Candente Updates Canariaco Norte Mineral Resource Estimate
May 29 2008 - 4:00AM
Marketwired Canada
Candente Resource Corp. (TSX:DNT)(BVL:DNT)(WKN:GW4) ("Candente" or the
"Company") is pleased to announce an updated mineral resource estimate completed
by SRK Consulting (Canada) Inc. ("SRK") on its wholly-owned Canariaco Norte
copper project located in Lambayeque Department, northern Peru.
The updated mineral resource estimate by classification is (0.3% copper ("Cu")
cut-off grade):
- Measured: 237 million tonnes ("MT") grading 0.51% Cu containing 2.66 billion
pounds ("lbs") Cu;
- Indicated: 385 MT grading 0.45% Cu containing 3.80 billion lbs Cu;
- Measured and Indicated: 622 MT grading 0.47% Cu containing 6.46 billion lbs
Cu; and
- Inferred: 128 MT grading 0.43% Cu containing 1.21 billion lbs Cu.
Highlights of the upgraded Canariaco Norte mineral resource estimate:
- The level of confidence of the mineral resource estimate has materially
increased. The SRK mineral resource estimate is based on stricter estimation
methods than previously used and a more detailed geological model. The mineral
resource estimate was then constrained within a shell generated by Gemcom
Whittle(TM) software ("Resource Shell") and demonstrates the potential for
extraction using open-pit mining methods. This is a stricter method of reporting
mineral resources than the traditional global mineral resource estimate and is
in accordance with National Instrument ("NI") 43-101 guidelines requiring the
application of economic and technical parameters.
- SRK has identified areas within the Resource Shell where additional infill
drilling has the potential to increase the mineral resource tonnage by 15% to
20%. Drilling is underway to infill these areas to allow them to be included in
a further resource estimate. Completion of this drilling is targeted for 3Q
2008.
- SRK's mineral resource model shows potential for expansion of the mineral
resource beyond the current Resource Shell, potentially supporting a larger
Resource Shell. This potential is supported by six drill holes located below the
current Resource Shell, which intersected copper mineralization over a strike
length of 880 metres ("m"), a width of 300 m and a vertical extent of 77 m to
188 m. All six holes bottomed in mineralization but were considered of
insufficient drill density to generate additions to the resource at this stage.
- A higher grade, near-surface Resource Shell of 102 MT of Measured and
Indicated mineral resource grading 0.57% Cu containing 1.28 billion lbs of Cu at
a 0.3% Cu cut-off grade offers the potential for accelerated production of this
material and improved project economics.
Sample sections demonstrating the extent of mineralization and areas for
potential expansion can be viewed at
http://media3.marketwire.com/docs/dnt529.pdf.
Updated Canariaco Norte Mineral Resource Estimate as defined by
NI 43-101 (1)(2)
---------------------------------------------------------------
(Tonnes and Contained Copper tonnes in millions ("M"),
Contained Copper pounds in billions ("B"))
Measured Mineral Resources
Contained Contained
Cut-off Copper Copper Copper
Grade M Tonnes Grade (M tonnes) (B pounds)
--------- --------- --------- --------- ---------
0.2% 280 0.47% 1.32 2.91
0.3% 237 0.51% 1.21 2.66
0.4% 175 0.57% 0.99 2.18
0.5% 112 0.63% 0.71 1.56
Indicated Mineral Resources
Contained Contained
Cut-off Copper Copper Copper
Grade M Tonnes Grade (M tonnes) (B pounds)
--------- --------- --------- --------- ---------
0.2% 542 0.39% 2.12 4.68
0.3% 385 0.45% 1.73 3.80
0.4% 230 0.52% 1.18 2.61
0.5% 107 0.60% 0.64 1.41
Measured and Indicated Mineral Resources
Contained Contained
Cut-off Copper Copper Copper
Grade M Tonnes Grade (M tonnes) (B pounds)
--------- --------- --------- --------- ---------
0.2% 822 0.42% 3.44 7.59
0.3% 622 0.47% 2.93 6.47
0.4% 405 0.54% 2.17 4.79
0.5% 219 0.61% 1.34 2.96
Inferred Mineral Resources
Contained Contained
Cut-off Copper Copper Copper
Grade M Tonnes Grade (M tonnes) (B pounds)
--------- --------- --------- --------- ---------
0.2% 231 0.35% 0.81 1.78
0.3% 128 0.43% 0.55 1.21
0.4% 63 0.52% 0.32 0.71
0.5% 28 0.61% 0.17 0.38
(1) Mineral Resources do not have demonstrated economic viability. An
Inferred Mineral Resource is a classification of Mineral Resource
for which quantity and grade can be estimated on the basis of
geological evidence and limited sampling and can be reasonably
assumed, but not verified. It cannot be assumed that all or any
part of an Inferred Mineral Resource will be upgraded to a higher
classification of Mineral Resource such as Measured or Indicated.
(2) Numbers may not sum due to rounding.
Joanne Freeze, President and CEO, stated, "SRK's work on the Canariaco Norte
resource gives us a very solid model to move forward with and complete the
definition of this deposit. This updated resource underscores our belief that
the Canariaco Norte deposit is a very promising asset. Our team continues to
advance metallurgical, environmental and other studies towards the completion of
our Preliminary Economic Assessment and feasibility studies."
SRK is also working on estimates for potential by-product credits from gold and
silver, which are expected to be completed by 3Q 2008.
The updated mineral resource is based on 60,580 m of drilling in 213 diamond
drill holes. The mineral resource estimation work completed by SRK includes all
results from all Candente drilling campaigns conducted from 2004 to 2007, as
well as the Candente 2008 resource definition drilling program. Copper assay
results from 2,910 m of drilling in 11 diamond drill holes completed between
1973 and 1999 by other companies were also included following data verification.
Sections, diagrams and complete results are available on Candente's website at
http://www.candente.com/s/PeruProjects_Canariaco.asp.
Sampling and analytical procedures conform to NI 43-101 standards. The inclusion
of certified copper standards, field blanks and sample duplicates as well as
check assays completed at independent laboratories were included as part of the
quality assurance and quality control ("QA/QC") program. Chain of custody and
data verification procedures were followed to ensure that QA/QC standards were
met.
All samples were submitted to Actlabs-Skyline Peru S.A.C. in Lima, Peru, a BVQI
ISO 9001/2000 accredited laboratory. The analytical procedure for the total
copper results used in the resource estimate was a three acid digestion on a
0.25 gram split with an Atomic Absorption finish. In addition, sequential copper
results for acid soluble, cyanide soluble and residual copper components were
carried out on all samples for use in extraction processing trade off studies.
The independent mineral resource estimate prepared by SRK is reported in
accordance with Canadian Securities Administrators' NI 43-101 and conforms to
the generally accepted Canadian Institute of Mining "Estimation of Mineral
Resources and Mineral Reserves Best Practices" guidelines. Copper grades were
estimated using ordinary kriging into a 3D block model with primary dimensions
of 15 m x 15 m x 15 m. All missing assays were assigned 0.0% Cu grades. Copper
assays were capped at a maximum of 2.0% Cu in the highest grade domains. For
resource estimation, all assay results were composited to two-metre lengths. The
complete NI 43-101 Technical Report will be released within 45 days of this news
release.
Robert van Egmond, P.Geo., Manager Geology Canariaco, is a Qualified Person as
defined by NI 43-101 for the Canariaco Norte project discussed above. Marek
Nowak, P. Eng., of SRK is the Qualified Person as defined by NI 43-101 for the
resource estimate discussed above. They have reviewed and approved the contents
of this release.
Conference Call and Webcast:
On Friday, May 30th at 10:00 a.m. (EST) management will host a conference call
and webcast to discuss the Company's updated mineral resources estimate of
Canariaco Norte. In order to join the conference call, in the U.S. and Canada
please dial 1 (866) 223-7781 and outside North America please dial 1 (416)
641-6136. The conference call will be broadcast live and recorded and archived
on the web at www.candente.com. In order to access this service, you will need
to have Windows Media Player installed on your computer.
A replay of the call will be available until June 11, 2008 by dialing 1 (800)
408-3053 or 1 (416) 695-5800, passcode 3262525. If you would like to listen to a
replay of our conference call on the web, go to the home page on
www.candente.com and click on the link.
About Candente Resource Corp.
Candente is a diversified exploration company with copper, gold, silver, and
zinc projects in Peru and Mexico. The Canariaco Norte property, a copper deposit
located in Northern Peru, is currently in advanced resource definition and
Preliminary Economic Assessment stage. 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.
NR242
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