"The global fundamentals for copper continue to be very strong, and there is a lack of new large scale copper projects under development. Cañariaco Norte is a compelling, large scale copper project that is well positioned to be one of the next generation of Peruvian copper mines," said Sean Waller, P.Eng., President of Candente Copper. "Completion of the Pre-Feasibility Study will take Cañariaco Norte to a very important next step of development."
Update on Cañariaco Norte Copper Project Pre-Feasibility Study
Candente Copper has awarded AMEC the contract for the completion of a comprehensive Pre-Feasibility Study for the Cañariaco Norte Copper Project. The scope of services includes mine, process, tailings, and infrastructure design plus capital and operating costs estimates. In addition, the scope of work will include the completion of an NI 43-101 Technical Report.
Candente management is extremely pleased to be working with AMEC on the continuing development of Cañariaco Norte. AMEC is recognized as one of the leading international mine engineering and construction firms, and their current expertise in large scale mining projects will be a real benefit to Cañariaco Norte. The pre-feasibility schedule calls for completion of the Pre-Feasibility Study in the fourth quarter of 2010.
The proposed new port of Eten, near Chiclayo in northern Peru, has been chosen by Candente Copper for a new concentrate load-out facility, and Ausenco Sandwell has been contracted to develop the preliminary design and cost. Ausenco Sandwell has extensive experience with copper concentrate terminals in South America.
Eten is only 170 kms from the Cañariaco Norte mine site, whereas the port of Salaverry, which was used in the December 2008 Cañariaco Norte Preliminary Economic Assessment ("PEA"), is 420 kms from the mine site. The reduced distance will provide a very significant reduction in transport costs over the life of the mine.
Metallurgical evaluation work resumed in March 2010, and the feasibility level metallurgical test work program resumed in June at SGS Lakefield Research in Santiago, Chile. This test work will determine the process options, projected metal recoveries, and other metallurgical parameters required to finalize the Cañariaco Norte process flow sheet which will be used for both the Pre-Feasibility and Feasibility Studies.
As part of the metallurgical assessment program, CESL Limited, a subsidiary of Teck Resources Limited, recently completed a preliminary level study to assess the applicability of its hydrometallurgical technology to treat the Cañariaco Norte copper concentrate and produce LME grade A copper cathode on-site. The study concluded that this technology is suited to the Cañariaco Norte copper deposit and that it has the potential to significantly improve the project. AMEC is currently assessing various process options in addition to the CESL process.
A geotechnical drilling program in the Cañariaco Norte pit area is scheduled to start in Q3 2010. This program will provide the geotechnical data required to complete the pre-feasibility level design of the Cañariaco Norte pit. It is anticipated that the additional data will permit optimization of the pit wall slopes with the potential to improve the mine plan grade, particularly during the early years of production, which would have a significant positive effect on cash flow.
In addition, AMEC (Peru) S.A. is conducting the Environmental and Social Impact Assessment (ESIA) which is a key aspect of the Cañariaco Norte project development, and was the first major project activity to resume in 2010. The current schedule calls for the completion of the ESIA in July of 2011. AMEC E&E's strong international reputation and their extensive experience in Peru were the key criteria in the original ESIA contract award to AMEC Peru.
Exploration targets including Cañariaco Sur, Quebrada Verde and other copper prospects in Peru are currently under evaluation for prioritizing drill targets to be tested in 2010. Permitting for drilling is underway.
About Candente Copper
Candente Copper's flagship project is the 100% owned, 7.7 billion pound, 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 622 million tonnes grading 0.52% copper equivalent, and an Inferred Resource of 128 million tonnes at 0.47% copper equivalent*.
A positive Preliminary Economic Assessment was completed on the Cañariaco Norte Copper Project by SRK Consulting in late 2008, which shows robust economics at both current and consensus long term copper prices. Since this report was published, a number of factors have been identified which have the potential to significantly improve the project's economics.
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. All resources quoted in this release are based on a 0.30% copper cut-off grade and 60,580 metres drilled in 213 holes to March 2008. *The 'Measured and Indicated Resource' listed above consists of Measured Resources of 237Mt at 0.51% Cu, 0.08 g/t Au, and 1.94 g/t Ag, plus Indicated Resources of 385Mt at 0.45% Cu, 0.07 g/t Au, and 1.76 g/t Ag. The 'Inferred Resource' listed above consists of 128Mt at 0.43% Cu, 0.06 g/t Au, and 1.64 g/t Ag. All copper equivalent grades quoted in this release are based on US$1.90 per pound copper, US$600 per troy ounce gold, US$10 per troy ounce silver, and 100% metal recoveries.
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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