Vancouver, British Columbia, March 7th, 2011. Candente Copper Corp. (TSX:DNT, BVL:DNT, US:CDOUF) ("Candente Copper") is pleased to announce that it has filed with the Canadian securities regulators, an NI 43-101 Technical Report (the "Technical Report") dated March 4th, 2011 in support of the Pre-Feasibility Study Progress Report for the Cañariaco Norte copper project in Peru (see Candente Copper NR 015, January 18th, 2011).
The Technical Report is a requirement of Canadian Securities Regulators, and provides an excellent summary of the Cañariaco Norte copper project. It was prepared by AMEC Americas Limited ("AMEC"), and can be found on SEDAR at www.sedar.com and Candente Copper's website at www.candentecopper.com.
The full Pre-Feasibility Study Progress Report is currently under final review by AMEC and is scheduled for release in mid-March. This multiple volume report will provide a comprehensive and detailed assessment of the Cañariaco Norte copper project, and will also be made available on the Candente Copper website upon completion.
Improved Net Present Value & Internal Rate of Return
Candente is also pleased to report that AMEC has revised the key financial parameters of the Cañariaco Norte copper project. The new financial parameters include a significant increase in both after tax net present value ("NPV") and internal Rate of Return ("IRR") for the project.
The new financial parameters are:
• After-tax NPV of US$1,063M (previously US$960M)
Base case using US$2.25 /lb Cu, US$1,015 /oz gold, US$15.85 /oz silver, and 8% discount rate
• After-tax IRR of 18.8% (previously 17.7%)
Base case using US$2.25 /lb Cu, US$1,015 /oz gold, and US$15.85 /oz silver
The metal price assumptions applied in the financial analysis, as well as the key technical parameters of the Pre-Feasibility Study Progress Report remain unchanged, and are as reported in Candente Copper's January 18th News Release.
"Completion of the Technical Report and the imminent completion of the Pre-Feasibility Study Progress Report are very significant milestones in the development of the Cañariaco Norte copper project," commented Sean Waller, President of Candente Copper. "We have established a very solid basis for Cañariaco Norte and will quickly move ahead to the next stage of development. We are very pleased with the revised financial parameters developed by AMEC, and with an after-tax NPV now over one billion dollars, Cañariaco Norte is clearly an exceptional project."
Qualified Persons for NI 43-101 Technical Report
The qualified persons for the NI 43-101 Technical Report are identified below:
Mr. David Thomas, P.Geo. Principal Geologist with AMEC and an independent Qualified Person as set forth by NI 43-101. Responsible for the Cañariaco Norte Mineral Resource Estimate reported on November 1, 2010 and included in the Pre-Feasibility Study Progress Report.
Ms. Alexandra Kozak, P.Eng. Manager of Process with AMEC and an independent Qualified Person as set forth by NI 43-101. Ms Kozak served as AMEC's project manager for the Cañariaco Norte Pre-Feasibility Study Progress Report. Ms. Kozak is responsible for project capital costs and financial analysis.
Mr. Tony Lipiec, P.Eng. Principal Metallurgist with AMEC and an independent Qualified Person as set forth by NI 43-101, responsible for metallurgy and process, process equipment capital costs, process operating costs, and general and administration operating costs.
Mr. Jay Melnyk, P.Eng. Principal Mining Engineer with AMEC and an independent Qualified Person as set forth by NI 43-101, responsible for mine design and mine capital and operating costs.
About Candente Copper
Candente Copper Corp is a TSX and BVL listed mining company focused on exploration and development of base metal mining projects in Peru and Latin America. Candente Copper's flagship project is the 100% owned Cañariaco Norte copper project located in northern Peru's prolific mining district.
Sean Waller, P.Eng., President and Stacy Freudigmann, P.Eng., Candente Project Manager 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.
This news release contains forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, results of financial analyses, 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. The mine design and tailings management facility design are based on limited geotechnical data and may change when additional geotechnical data is made available. The economic analysis is based on measured and indicated mineral resources, which are not mineral reserves and do not have demonstrated economic viability. 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 of 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
For further information please contact:
VP Corporate Development
mobile: +1 (604) 614-2999
local: + 1 (604) 689-1957 ext 2
toll free: 1 (877) 689-1964 ext 2
Manager, Investor Relations
mobile: +1 (604) 306-8477
local: + 1 (604) 689-1957 ext 3
Investor Relations, Peru
Tel.: (511) 715-2001 ext 107
Fax: (511) 717-1233