The increase to 95,000 tpd is the second increase in processing rate achieved during the Pre-Feasibility level design of the Cañariaco Norte project. The processing rate has now increased by 26% from the 75,000 tpd rate proposed in the Preliminary Economic Assessment completed in 2008. This latest increase is a result of the significant increase in the mineral resource estimate completed by AMEC and reported by Candente on November 1, 2010 (see Candente Copper NR 010).
Importantly, this increase in production rate will incur minimal additional capital costs to the project, as the primary crushing and grinding circuits will remain essentially unchanged from the previous 85,000 tpd circuit. This is based on recently completed metallurgical test work which confirmed that target copper recovery can be achieved at a coarser final grind prior to the copper flotation stage, thereby allowing the increased processing rate. This increase in processing rate will result in higher levels of annual copper, gold, and silver production. The resulting increase in metal production totals are still under assessment, pending completion of the mine design.
The increase in processing rate requires development of a new 95,000 tpd mine plan and revisions to several aspects of the project engineering. Given this change in scope, a Pre-Feasibility Progress Report is scheduled for January 2011. The Pre-Feasibility Progress Report will include project costing and financial analysis with estimated cash flows, IRRs, and NPVs based on the proposed scope of development.
"We continue to be extremely pleased with the progress of the Cañariaco Norte Pre-Feasibility program, and firmly believe the Pre-Feasibility Progress Report will demonstrate significant improvements to the scope of project development," commented Sean Waller, P.Eng., President of Candente Copper.
About Candente Copper
Candente Copper's flagship project is the 100% owned, 7.5 billion pound, Pre-Feasibility stage Cañariaco Norte Copper Project located in northern Peru's prolific mining district. The Cañariaco Norte deposit contains a Measured and Indicated resource of 752.4 million tonnes grading 0.49% copper equivalent*, and an Inferred Resource of 157.7 million tonnes at 0.44% copper equivalent*.
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Sean Waller, P.Eng., President and Joanne C. Freeze, P.Geo., CEO, are the Qualified Persons as defined by National Instrument 43-101 for the projects discussed above. They have reviewed and approved the contents of this release. *The 'Measured and Indicated Resource' listed above consists of Measured Resources of 338.1Mt at 0.48% Cu , 0.08 g/t Au, and 2.0/t Ag (0.52% Cu Eq.), plus Indicated Resources of 414.3Mt at 0.43% Cu, 0.06 g/t Au, and 1.8 g/t Ag (o.46% Cu Eq.). All resources quoted in this release are based on a 0.30% copper cut-off grade and 229 drill holes completed to March 2008. *Copper equivalent grade including gold and silver, metal recoveries (gold 55%; silver 50%) and smelter returns (copper 96.5%: gold 93%; silver 90%) applied. Copper grade equivalent calculation: Cu Eq% =(Cu % + ((Au grade x Au price x Au recovery x Au smelter return%)+(Ag grade x Ag price x Ag recovery x Ag smelter return%))/(22.0462 x Cu price x 31.0135 g/t x Cu recovery x Cu smelter return%). The metal prices used are: copper US$2.50/lb, gold US$1,035/oz and silver US$17.25/oz.
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 that 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.
On behalf of the Board of Candente Copper Corp.
"Sean Waller" P.Eng.
President & Director
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For further information please contact:
John Foulkes
VP Corporate Development
mobile: +1 (604) 614-2999
local: + 1 (604) 689-1957 ext 2
toll free: 1 (877) 689-1964 ext 2
info@candentecopper.com
www.candente.com
or:
Walter Spagnuolo
Manager, Investor Relations
mobile: +1 (604) 306-8477
local: + 1 (604) 689-1957 ext 3
NR-011