Preliminary assessments based on current field data and drill testing information have indicated that further examinations are definitely warranted. Preliminary copper (Cu) deposit models using 50 million tonnes (Mt) at 0.6% Cu and 100 Mt at 0.5% Cu and a Cu price of $1.30 per pound returned very attractive Net Present Values (NPVs) and after-tax Internal Rates of Return (IRRs) of approximately 37 % and 27 % respectively.
The goal of the more detailed evaluation is to determine the optimum grade and throughput options required for an economic copper heap leach, SX-EW operation at Cañariaco based on the deposit as identified to date.
The study will establish the various economic cost factors including order-of-magnitude capital and operating costs, preliminary IRRs and NPVs of various size plants. The team will evaluate potential plant and infrastructure requirements and determine the requirements for moving the project towards a feasibility study.
The first 25 holes drilled by Candente at Cañariaco delineated an inferred resource of 76.5 Mt grading 0.61% copper (Cu) and 0.1 grams per tonne (gpt) gold as well as potential for an additional 325 Mt grading between 0.45% and 0.65% Cu (as reported on October 19th, 2005). Contained metal in the inferred resource alone is 1.035 B lb copper and 243,000 oz gold.
Drilling continues to expand the deposit beyond the size delineated in the first 25 holes. To date an additional 5 (30 total) holes have been completed, assays are pending but all holes have intersected significant leachable copper mineralization.
For more information such as maps, sections, drill data please refer to:
Sampling and analytical procedures conform to NI 43-101 standards and are detailed in previous Candente news release dated September 7, 2005. Michael Casselman, P.Geo., Robert Van Egmond, P.Geo., and Joanne Freeze, P.Geo., are the Qualified Persons for the project as defined by NI 43-101 and have reviewed this news release.
Candente is a diversified copper and gold exploration company focused on increasing shareholder value through discovery. In addition to the Cañariaco Project, Candente has several other gold, copper and silver projects in Peru. Candente subscribes to principles which ensure that its exploration and development activities are beneficial to the local communities.
For further information please contact Candente at: (604) 689-1957 or toll free 1-877-689-1964
ON BEHALF OF THE BOARD OF DIRECTORS
"Joanne C. Freeze"
Joanne Freeze, P. Geo., President & CEO
Candente Resource Corp.
Release No. 144
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.