Vancouver, British Columbia, January 8th, 2015. Candente Copper Corp. (TSX:DNT, BVL:DNT, US:CCOXF) ("Candente Copper" and/or the "Company" ) is pleased to provide the following Corporate and Project updates.
Further to appointing Endeavour Financial Limited (Cayman) as financial advisor for funding the Cañariaco Copper project, the Company has received Expressions of Interest in different forms of funding for the project. The Company is interested in forms that include but are not limited to: concentrate off-take, royalties, streaming, loans and joint venture agreements. The Company is furthering discussions with the parties expressing interest with the goal to obtain long term funding for the advancement of the Cañariaco project.
Feasibility Study Update for the Cañariaco Norte Project
The Feasibility Study of the Cañariaco Norte Project was initiated in April 2011 and although well advanced was put on hold in mid 2013 due to the deterioration in the investment climate for small cap mining exploration companies. The Feasibility Study is being conducted by Amec Foster Wheeler and supported by Knight Piesold Consultants, both of Vancouver. The Environmental Impact Assessment is being performed by AMEC (Peru) SA.
Overall, the Feasibility Study is approximately 50% complete. Activities completed to date include all resource drilling and resource estimation, metallurgical drilling, site layout, infrastructure and ancillary facilities design, and access road alignment. The process plant (grinding and flotation) layout is approximately 80% complete and will be finalized upon completion of metallurgical testwork. Geotechnical drilling for the pit design is 50% complete and approximately 80% of the field work for the Environmental and Social Impact Assessment study has been completed.
Additional metallurgical testwork is required to finalize design criteria for the cleaner flotation circuit and concentrate roasting processes. Limited geotechnical drilling is required to provide information to finalize the design criteria for the open pit wall slope and mine plan plus additional geotechnical assessment for facility foundation design and water management.
The Feasibility Study scope of development is based on the Prefeasibility Study Progress Report ("PFSPR") completed in March 2011, however the Feasibility Study incorporates several key modifications as identified below:
The daily processing rate has been increased from 95,000 to 110,000 tonnes per day with a corresponding increase in annual copper production. The increase is achieved by utilizing a 40 foot diameter SAG mill in place of the 38 foot SAG mill as specified in the PFSPR, increasing the size of the ball mills and adding pebble crushers to the primary grinding circuit. Importantly, even with the throughput increase the crushing and grinding circuit will retain a single line configuration with one primary crusher, one SAG mill and two ball mills.
Tailings Management Facility
As part of the Feasibility Study work, Knight Piesold conducted a review of the tailings management facility concepts. This analysis resulted in the selection of a new tailings management facility location significantly closer to the proposed process plant site. All project facilities including the open pit, process plant and tailings management facility are now within close proximity resulting in a smaller project footprint with all facilities located within one watershed. With this project layout the overall water management design for the project is significantly improved relative to the original PFSPR layout.
New Peru Corporate Tax Rate and Project Economics
The Government of Peru recently approved a significant reduction in the corporate income tax rate from 30% to new rates as follows:
|Tax year||New Rate|
This proactive move clearly demonstrates the Government's support and recognition of the importance of mining to the future growth of Peru.
Amec Foster Wheeler completed an independent financial assessment of the Cañariaco Norte project economics as part of the PFSPR which indicated robust economics for the project. Since that time industry costs have increased (capital and operating) and so have the forecasts for the long term price of copper. In the PFSPR a long term copper price of US$2.25 per pound was used for the financial assessment whereas current long term copper prices are now forecast in the US$2.75 to $3.00 range. As part of the Feasibility Study the financial model will be updated to include new capital and operating costs, new long term metal prices and the reduced corporate income tax rates. Candente believes that the updated financial analysis will continue to demonstrate robust economics for the Cañariaco Norte project.
Exploration -- Cañariaco Sur
The Cañariaco Sur copper-gold-silver porphyry system is located approximately 1.5 kms southwest of the Cañariaco Norte deposit. Candente has drilled twelve widely spaced diamond drill holes at Sur with ten new holes completed in the 2013 drilling program. All twelve holes intersected copper-gold-silver mineralization from surface to target depth, with several of the holes drilled to over 500 meters total depth. This drilling confirms excellent potential for Cañariaco Sur to be a large copper-gold-silver deposit that could have a significant positive impact on the overall scope of development at Cañariaco. Future drilling is planned for additional step-out drilling at Cañariaco Sur as well as first phase drilling on the Quebrada Verde target.
About Candente Copper
Candente Copper is a mineral exploration company engaged in the acquisition, exploration and development of mineral properties. The company is currently focused on its 100% owned Cañariaco project, which includes the Feasibility stage Cañariaco Norte deposit as well as the Cañariaco Sur deposit and Quebrada Verde prospect, located within the western Cordillera of the Peruvian Andes in the Department of Lambayeque in Northern Peru.
At Cañariaco Norte 7.5 billion pounds of copper have been delineated in a Measured and Indicated* resource of 752.4 million tonnes grading 0.49% copper equivalent**. An Inferred Resource of 157.7 million tonnes at 0.44% copper equivalent has also been delineated in the Cañariaco Norte deposit.***
In addition, Candente Copper holds several other base metal exploration projects in Peru. One of these, the Arikepay copper-gold porphyry, is being explored under a joint venture agreement with Zahena S.A.C. which is funding up to USD$5 million (M) in exploration expenditures and USD$4M in payments within 4 years.
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. For more information see the technical report entitled "Candente Copper Corporation, Cañariaco Project, Lambayeque Department, Peru, NI 43-101 Technical Report on Prefeasibility Study Progress Report" dated 18 January 2011 available at www.sedar.com. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.**Copper equivalent grade including metal recoveries (copper 90%, 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. .***The Feasibility Study will not be based, and the PFSPR was not based, on the Inferred Resource.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release may contain forward-looking information or forward-looking statements within in the meaning of applicable securities laws ("forward-looking statements"). All statements herein, other than statements of historical fact, including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes, are forward-looking statements. 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 as a result of various factors, including, but not limited to, the interpretation of drill results and the estimation of mineral resources, the possibility that future exploration, development or mining results will not be consistent with Candente Copper's expectations, metal price fluctuations, environmental and regulatory requirements, the inherent uncertainty of production and cost estimates, the potential for unexpected costs and expenses, commodity price fluctuations and currency fluctuations. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Candente Copper disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Candente Copper 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.
"Joanne C. Freeze" P.Geo.
For further information please contact:
Manager, Investor Relations
mobile: +1 (604) 306-8477
local: + 1 (604) 689-1957 ext 3
Investor Relations, Peru
tel.: (511) 715-2001 ext 107