- Surface area of mineralized zone defined by grid drilling expanded from 14 to 38 hectares
- Vertical extent of copper mineralization more than doubled to 644 m
- Copper system still open in all directions
- New Cu-Mo showings up to 500 m northwest of 2004 drilling grid
Vancouver, British Columbia, August 22nd, 2005. Candente Resource Corp. (DNT:TSX) is pleased to report that 4,365 metres (m) of drilling in 13 holes has been completed in Phase II / 2005 on the Cañariaco Norte Zone of the Cañariaco Property, Peru. All holes intersected significant copper (Cu) mineralization and all of the holes bottomed in Cu mineralization. The deepest hole (C05-014) was drilled to 501m and shows that the copper system extends to a minimum of 644 m vertically (collared 143 m below top of system as known). The deposit is still open laterally and vertically. Preliminary copper results have been received for only 8 of the 13 holes drilled to date in this phase. Average copper grades set out below are based on preliminary results.
Candente's 2005 drilling is focusing on expanding the preliminary inferred copper and gold resource at Cañariaco Norte which was estimated from 2004 drilling as being 76.5 million tonnes grading 0.61% copper and 0.10 grams per tonne gold at a cut-off grade of 0.30% copper. The resource lies within a 14 hectare surface area measuring 450 m by 450 m and extends to an average depth of 228 m. Contained metal in the inferred resource equals 1.035 billion pounds of copper and 243,000 ounces of gold. Preliminary results indicate that the surface projection of the consistently mineralized zone tested by grid drilling has been expanded from the original 14 hectares to 38 hectares and more than doubled in depth (to 644 m). Preliminary copper assay data has been received for the first 8 drill holes, but final copper results cannot be released until all Quality Assurance and Quality Control (QA/QC) procedures have been completed for these holes. Copper assay data and QA/QC data for all 13 drill holes is expected to be available in two to three weeks and will be released at that time. Due to the lag time between drilling and receipt of copper analyses, Candente has decided to pause the drill program for approximately one month in order to receive and compile all results. The drilling company has agreed to leave the drill with Candente so that drilling may resume as soon as the compilation is completed.
Joanne Freeze, P.Geo., President and CEO, comments "We are very pleased with drilling results to date. The Cañariaco Norte deposit is turning out to be much larger than many people expected. Our 2005 program has added 750 m of north-south strike length, maintained the 450 m east-west width and added over 240 meters of depth to the grid drilled zone. The copper mineralization remains open in all directions. The total area of influence of grid drilled copper mineralization now extends up to 1.2 km north-south and up to 450 m east-west (38 hectares) and up to 644 m vertically. We feel very fortunate to be advancing such a significant copper-gold project at a time when copper is at historic highs and projections continue to show long term strength. We are also very impressed with the performance of the Pac Rim S.A. (Kluane) drill and personnel with respect to daily footage, core recovery, hole depths, move time and minimal surface disturbance."
The 13 holes drilled to date in 2005 were drilled on a 150 m centered grid pattern. Holes C05-013 to C05-017 were drilled at 150 m spacing on a north-south line starting 150 m south from the 2004 drilling grid. Two other north-south lines of holes were drilled 150 m east (holes C05-23, 25 and 18) and 150 m west (holes C05-22, 21, 24 and 20) from the first line such that 2005 drilling to date shows continuity in the system for an additional 750 m to the south. In addition, two new surface discoveries of copper and molybdenum (Cu-Mo) mineralization have been found up to 500 m northwest of the 2004 drilling. Fourteen 2 m channel samples of leached (mineral depleted) outcrop have an average grade of 0.27% Cu (0.11% to 0.55% Cu), and an average of 112 parts per million (ppm) molybdenum (50 ppm to 286 ppm Mo). These mineralized outcrops further extend the area of the system laterally. Most drill holes were planned to be drilled to 350 m vertically, however, ground conditions forced four of the holes to stop short of anticipated test depth. C05-014 was drilled to 501 m to test the depth potential of the system. Maps can be viewed at: http://www.candente.com/s/PeruProjects_Cañariaco.asp
Copper mineralization occurs in several rock types. The majority of the copper mineralization occurs in a Crowded Quartz Feldspar Porphyry (CQFP) intrusive as exemplified in hole C05-14 which intersected 0.72% Cu over 72 m within a larger interval of 0.57% Cu over 369 m. The most southerly drill hole of the sequence (C05-17) shows that the copper mineralization also extends into volcanic/subvolcanic rocks that border and overlie the outer parts of the CQFP unit. This hole intersected 102 m of leached cap (volcanics) then 96 m of mineralized sub-volcanic rocks (0.31% Cu) and below that 157 m of mineralized CQFP (0.27% Cu). The fact that the mineralization is not limited to the porphyritic intrusive rocks indicates extensive lateral potential for the deposit. C05-013 cut predominantly late inter-mineral intrusive breccia which gave an average of 0.39% Cu over 112 m below the leach cap. In hole C05-19 the mineralized CQFP unit has an average Cu grade of 0.59% (with higher grade sections such as 0.82% over 25 m) and crosscutting late stage dykes have an average Cu grade of 0.12%. In this area individual dyke thicknesses range from 2 to 40 m for a cumulative thickness of approximately 97m (30% of hole C05-19). However, the dykes are cut-off to the east and narrow substantially to the west. C05-20 is the most southwesterly hole drilled to date and is entirely within the favourable CQFP and is dominated by chalcocite mineralization to a depth of 216 m (0.52% Cu over 204 m). The leached cap continues to vary from 3 to 102 m (averaging 40 m) indicating an excellent strip ratio for the deposit.
In addition to copper analysis, assay analysis for gold is being performed on all holes and multi-element ICP, including molybdenum and silver, is being carried out on selected holes from the Phase II / 2005 drilling program. All core from drilling is being cut in half with a diamond saw and sampled at two metre intervals on the property. One half of the split core is collected by Candente's Peruvian geologists in accordance with industry standards and is being submitted to Actlabs Laboratorio Químico (Actlabs) in Lima, Peru. Total copper analysis and a sequential leach procedure for acid soluble copper, cyanide soluble copper and residual sulphides is being carried out by Actlabs. Actlabs will carry out the gold assays and multi-element ICP analysis as well. QA/QC procedures, including the use of sample standards, blanks and duplicates as well as assay checks by an independent laboratory, are currently being carried out. Sample chain of custody is monitored by Candente personnel. 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. Our focus is to increase shareholder value through discovery. In addition to the Cañariaco Project, Candente has several other gold and gold-copper projects in Peru. Candente's directors have individual track records in both the discovery and development of multi-million ounce gold and silver, and multi-billion pound copper deposits. Candente subscribes to principles, which ensure 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 email@example.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"Joanne C. Freeze"
Joanne Freeze, P. Geo., President & CEO
Candente Resource Corp.
Release No. 136
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.