Vancouver, British Columbia, October 2, 2008. Candente Resource Corp. (DNT:TSX and BVL) ("Candente" or the "Company") is pleased to announce that drilling has identified a second copper-gold porphyry located 1.3 km south of Cañariaco Norte deposit. The first hole (CS08-001) in the Cañariaco Sur porphyry intersected average grades of 0.35% copper, 0.15 grams per tonne gold and 1.43 grams per tonne silver (0.43% copper equivalent -- see table below) from 180 to 535 metres. Within this 354 metre interval, drilling intersected 0.41% copper, 0.17 grams per tonne gold and 1.59 grams per tonne silver (0.50% copper equivalent) from 300 to 400 metres. Individual two metre sample intervals assayed as high as 0.78% copper, 0.36 grams per tonne gold and 4.2 grams per tonne silver demonstrating that the gold:copper ratio in Cañariaco Sur may be higher in this deposit than in Cañariaco Norte.
A second hole (CS08-002), collared 320 m north of hole CS08-001, was completed over a length of 506 metres, assays are pending and expected within a month. Both holes intersected mineralized porphyry rocks similar to those hosting the Cañariaco Norte deposit. These two holes confirm the presence of very significant mineralization within a large (2.3 kilometres) porphyry system at Cañariaco Sur.
Other exploration work indicates that Cañariaco Norte, Cañariaco Sur and a third target, Quebrada Verde, are part of an extensive porphyry complex covering a minimum length of five kilometres and an average width of two kilometres. "The existence of one or more additional porphyry deposits in such close proximity to Cañariaco Norte could add significantly to the economics of the project through shared infrastructure and facilities", commented Joanne Freeze, President and CEO.
The porphyry complex is covered entirely by the Cañariaco property, which is held 100% by Candente. Geological mapping, geophysics and geochemical sampling by Candente, and by Billiton (including limited drilling) in 1999, indicate the potential for additional porphyry copper-gold mineralization within the complex.
(1)Cu equivalent (%)
(1) Cu equivalents were calculated using a copper price of $1.90/lb, a gold price of $600/oz and a silver price of $10/oz. Copper, gold and silver grades used are not adjusted for metallurgical recoveries as these remain to be determined.
A Preliminary Economic Assessment (Scoping Study) underway evaluating an open pit mining operation utilizing grinding and flotation for the Cañariaco Norte deposit is due in mid October. This is a slight delay to include gold and silver content recently estimated and new metallurgical results. The economic study will be based on the September 2008 mineral resource estimate which contains 6.47 billion ("B") pounds ("lb") copper, 1.43 million ("M") ounces ("oz") gold and 36.5 M oz silver in the Measured and Indicated categories. An additional 1.21 B lb copper, 0.25 M oz gold and 6.77 M oz silver are contained in the Inferred category (see NR 249 dated September 18, 2008). Environmental Impact Assessment ("EIA") studies and feasibility level metallurgical testing are also underway.
Geological and Geophysical Details for Cañariaco Sur and Quebrada Verde
In addition to the mineralization intersected in drilling, Cañariaco Sur has significant potential based on results from several preliminary exploration activities conducted by Candente and Billiton. These include coincident: Magnetic high; Induced Polarization (IP) resistivity low and chargeability high; soils with elevated levels of copper of up to 5,720 ppm (0.57%) and gold up to 330 parts per billion covering over an area of 0.9 by 1.4 kilometres and potassic alteration within a principally biotite-feldspar porphyry which has been mapped over a length of 2.3 kilometres. Mineralization at Cañariaco Sur is primarily chalcopyrite and bornite in a porphyry, similar to that which hosts the bulk of the copper mineralization at the Cañariaco Norte deposit.
In the Quebrada Verde area, recent geophysical surveys have delineated a large IP chargeability high centered on a resistivity anomaly and covering an area of 0.8 km by 2.0 km. Argillic and minor phyllic alteration occur in biotite-feldspar porphyry similar to that which hosts the bulk of the copper mineralization at the Cañariaco Norte deposit. A magnetic high could represent potassic alteration at depth. In addition, anomalous levels of copper of up to 2,200 ppm (0.22%) and up to 497 ppb gold in soils cover an area of approximately 0.7 by 0.9 kilometres. The geochemical anomalies at Cañariaco Sur and Quebrada Verde are much stronger than those occurring in soils at Cañariaco Norte. Volcanic host rocks are believed to be masking lateral surface expression of the Cañariaco Sur and Quebrada Verde porphyry as they also do over parts of the Cañariaco Norte deposit.
Samples were sent by Candente to ALS-Chemex in Lima, Peru (BVQI ISO 9001/2000 accredited). The analytical procedure used for gold is Fire Assay with an Atomic Absorption finish on a 30 gram split. The analytical procedure used for copper is Four Acid Digestion with a multi element Inductively Coupled Plasma ("ICP") finish on a 0.25 g split.
Piotr Lutynski, P.Eng., Manager Exploration, and Robert van Egmond, P.Geo., Manager Geology Cañariaco, are the Qualified Persons as defined by National Instrument 43-101 for the project discussed above and they have reviewed and approved the contents of this release.
Additional information on the company and project is available at www.candente.com and
About Candente Resource Corp.
Candente is a diversified exploration company with copper, gold, silver, and zinc projects in Peru and Mexico. The Cañariaco Norte copper deposit located in Northern Peru, has a significant copper, gold and silver resource (NR. 249 dated September 18, 2008). Candente's directors and management have a track record in the discovery and development of copper, gold and silver deposits and subscribe to principles, which ensure that exploration and development activities are beneficial to the local communities.
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.
CAUTIONARY NOTE TO U.S. INVESTORS
We advise U.S. investors that this news release uses terms which are not recognized by the United States Securities and Exchange Commission ("SEC"), including "mineral resources", "measured resources", "indicated resources" and "inferred resources". The estimation of measured and indicated resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. U.S. investors are cautioned not to assume that mineral resources in these categories will be converted to reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. U.S. investors are cautioned not to assume that estimates of inferred mineral resources exist, are economically mineable, or will be upgraded into measured or indicated mineral resources. U.S. investors are cautioned not to assume that mineral resources in any of these categories will be converted into reserves.
For further information, please contact:
Joanne C. Freeze
President and CEO
+1 (604) 689-1957
W. John DeCooman, Jr.
Vice President Finance and Corporate Development
+1 (917) 402-9416