Vancouver, British Columbia, May 26th, 2004: Further to Release No. 95 dated March 8th, 2004 Candente Resource Corp. - DNT:TSX-V ("Candente") is pleased to announce that it has entered into an Option Agreement with Orex Ventures Inc. - REX:TSX-V ("Orex") on the Las Sorpresas property in Northern Peru. The terms of this option are the same as for the El Tigre property such that Orex has the right to earn a 51% interest in the property by incurring exploration expenditures of US$2.5 million over 3.5 years. Candente is very pleased to have Orex as an exploration partner now funding significant exploration programs on two gold properties in Peru, while Candente focuses their resources on the Alto Dorado and Cañariaco properties.
Las Sorpresas covers 2,827 hectares and borders the southern edge of the Yanacocha gold mine owned by Newmont (51%) and Buenaventura (43%). Gold targets on the Las Sorpresas property include both the oxide style of gold mineralization currently being mined at Yanacocha and the higher-grade sulphide mineralization being discovered at depth at Yanacocha. Yanacocha is the largest gold mine in the world and one of the lowest cost producers with an annual production exceeding 2 million ounces per year at average costs of $100 to $133 per ounce. Reserves are reported to exceed 35 million ounces of gold.
Exploration at Las Sorpresas will be operated by Candente's Peruvian exploration team led by Director Ing. Fredy Huanqui and employed by subsidiary Cia. Minera Oro Candente S.A. ("Oro Candente"). Exploration programs are being designed so as not to disturb or interrupt current land use and to provide employment when possible to the local community. Previous exploration at Las Sorpresas delineated anomalous levels of gold in stream sediment samples on the property. Levels of gold are highest (189 to 789 parts per billion (ppb)) towards the centre of the property indicating a potential gold source within Las Sorpresas. Anomalous levels of mercury occur in soils also near the centre of the property. Mercury is one of the exploration tools used to discover buried gold zones at Yanacocha. Work at Las Sorpresas will commence with a ground magnetics survey, which is part of the Phase I exploration program planned to delineate drill targets by carrying out additional geophysical surveys, geological mapping and rock chip sampling.
In addition to the exploration expenditure commitments, Candente has received US$15,000 in cash and will receive staged share issuances totaling 250,000 shares for the property by January 31st, 2008. Orex is required to provide US$250,000 for exploration expenditures on the property by June 30, 2004.
Candente is a well-funded mineral exploration company focused on the acquisition and exploration of world-class gold and copper projects. Management has a strong geological/technical focus and a track record of discovering world-class mineral deposits. Candente has a policy of ensuring that its exploration and development activities are beneficial to the local communities. For more information visit www.candente.com, call us at (604) 689-1957, toll free 1-877-689-1964 or e-mail to info@candente.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"Joanne C. Freeze"
Joanne Freeze, P. Geo., President & CEO
Candente Resource Corp.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Candente relies upon litigation protection for forward looking statements.