Stage I comprising a US$400,000 drilling program will commence in early January 2006. Candente has the right to operate all exploration during Stages I and II. In addition to the exploration expenditure commitments, Candente has the right to require Gallipoli to purchase 450,000 common shares in Candente when Gallipoli elects to advance from Stage I to Stage II and an additional 450,000 shares if and when Gallipoli elects to advance to Stage III. Purchase price for the shares is set at $0.65. Candente will hold a right of first refusal on the shares.
Joanne Freeze, President and CEO comments that "We are very pleased to have Gallipoli as a partner at Alto Dorado as the principals, Vince Gauci (Executive Chairman, & former CEO of MIM Holdings Limited) and Mike Menzies (CEO, and former Executive General Manager, Mining of MIM Holdings Limited) and their team have extensive experience in building and operating mines internationally. Especially important to us is Mike's experience at Bajo de la Alumbrera in Argentina where he led the MIM team that carried out the 2000 Operations Review, was the architect of the mine's performance turnaround, and oversaw the 2001-2002 mine expansion." The Bajo de la Alumbrera mine is owned by Xstrata Plc (50%), Goldcorp Inc. (37.5%) and Northern Orion (12.5%) and "is one of the world's largest and lowest cost gold and copper operations with cash costs in the lowest quartile of producers" (www.goldcorp.com). Both Gallipoli and Candente believe that the gold-copper ratios and other features of the mineralization found to date at Alto Dorado indicate that it could have many similarities to Bajo de la Alumbrera. In addition to the experience of the principals, Gallipoli is partially (50%) owned by Nippon Mining and Metals Co. Ltd. of Japan, one of the world's largest producers of refined copper, with upstream interests in the Los Pelambres, Collahausi and Escondida copper mines in Chile.
The Alto Dorado property covers an extensive gold-copper porphyry style mineralizing system, which is 9 kilometres (km) in length and 2 to 3 kms in width. The mineralizing system is delineated by anomalous levels of gold, copper, molybdenum and silver in soils and rocks, typical porphyry style alteration and Induced Polarization (IP) chargeability anomaly (often associated with sulphide gold and copper mineralization) which to date covers 7 km by 2 km. Two holes drilled 5 km apart intersected anomalous gold and copper levels over 176 m and 160 m vertically (0.22 gpt Au, 0.17% Cu and 0.13 gpt Au, 0.08% Cu).
For more technical information on the Alto Dorado property please refer to:
Sampling and analytical procedures conform to NI 43-101 standards and are detailed in previous Candente news release dated September 16, 2004. All samples were submitted to Actlabs in Lima, Peru. Michael Casselman, 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 Evelyn Cox 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. 148
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.