To date four distinct zones of zinc-lead mineralization have been discovered on the property. Two of these have distinct horizontal control (stratabound) and have been traced over 500 and 200 metres, respectively. The longer horizon has an average width of 6.5 m and the shorter 3.25 m. The other two zones are more lenticular (pod-like) in form, are more difficult to trace on surface and vary in width from 3 m to 22 m. Average zinc (Zn) and lead (Pb) grades from sampling to date appear to be in the range of: 10.6% Zn & 1.88% Pb over 3.25 m; 3% Zn & 0.64% Pb over 3.6m; 4% Zn & 0.35% Pb over 6.5 m and 22% Zn & 4% Pb over 1 m. Higher grades reach as high as 47.5% Zn & 5% Pb over 2 m and 9% Zn & 2.4% Pb over 7 m.
The mineralization has some very distinctive characteristics which resemble two kinds of world class lead-zinc deposits often referred to as Mississippi Valley Type (MVT) and Irish Type. Examples of MVT deposits are: Pine Point in NWT, Canada (approximately 2 million tons (Mt) (2.6 billion pounds) of lead and 7 Mt (8.4 billion pounds) of zinc), Reocin in Spain and San Vicente in Peru. Examples of the Irish Type of deposit are: Navan (produced 36 Mt and remaining reserves of 41.8 Mt containing 8% Zn and 2% Pb), Kootenay Arc (between 6 - 7 Mt with 3-4% Zn and 1-2% Pb), Duncan (2.76 Mt with 3.1% Zn and 3.3% Pb) and Wigwam (8.48 Mt with 3.54% Zn and 2.14% Pb).
Candente believes that the El As de Zinc mineralization could fit the Irish Deposit Model in which several stacked layers of mineralization often occur.
Santa Luisa operates the Huanzala mine, approximately 75 km by road from the El As de Zinc property. Zinc and lead ores from El As de Zinc could be trucked to Huanzala and processed there. The Huanzala Mine has a concentration plant with capacity for 1700 tonnes per day. Most of the zinc concentrates from Huanzala are sent to smelters in Japan and lead concentrates are sent to the Doe Run operation nearby at La Oroya.
Fredy Huanqui, Vice President Exploration Latin America for Candente, comments "We consider Santa Luisa and Mitsui to be an excellent partner for this zinc project as they have the exploration expertise and infrastructure nearby which could allow rapid development into production. If a large deposit is discovered Santa Luisa would likely build new facilities on site, however, with facilities in place nearby they will also be able to produce from a medium or even a small sized deposit."
Santa Luisa has the option to earn an 80% interest in the El As de Zinc project by making payments of US$200,000 and drilling 10,000 metres (spending approximately US$1,500,000) within three years. Candente will have the option to convert their retained 20% interest into a sliding scale NSR based on the price of zinc. If Candente chooses to convert their interest to an NSR then Santa Luisa must have the project into production at a minimum rate of 100 t/day within two years or return the property 100% to Candente. The NSR will be scaled to the price of zinc and vary from 1% to 3%. At current zinc prices (US$1.05/pound (lb) or US$2,300/tonne) the NSR would equal 2%.
Candente acquired the property by staking in 2003 when Huanqui and Freeze recognized the distinctive similarities of the mineralization to the major zinc deposits referred to above. At that time zinc prices were as low as US$0.45/lb (US$1,000/tonne), they are now at US$1.05/lb (US$2,300/tonne). Oro Candente also has other zinc prospects in Peru.
Joanne Freeze, P.Geo., is the Qualified Person for the project as defined by NI 43-101 and has reviewed this news release.
Candente is a diversified copper and gold exploration company focused on increasing shareholder value through discovery. Candente has an advanced exploration stage leachable copper project, Cañariaco, and 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; or info@candente.com www.candente.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"Joanne C. Freeze"
Joanne Freeze, P. Geo., President & CEO
Candente Resource Corp.
Release No. 156
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.