VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 31, 2012) - Candente Copper Corp. (News - Market indicators)(LMA:DNT)(PINKSHEETS:CCOXF) ("the Company") is pleased to announce that it has received the drilling permit for the Cañariaco Property from the Ministry of Energy and Mines of Peru (Dirección General de Asuntos Ambientales Mineros - DGAAM).
"We are very pleased to receive this drilling permit, and although the time for approval was longer than anticipated, it is indicative of both a thorough review and the importance that the Ministry places on these applications," stated Sean Waller, President.
This drilling permit is required for drilling to complete the Cañariaco Norte feasibility study, and for exploration drilling on the Cañariaco Sur copper-gold porphyry system, and the Quebrada Verde copper-gold porphyry target.
The Company will now immediately apply for the water permit, which can only be applied for once a drilling permit has been issued. The DGAAM granting the drilling permit and the National Water Authority (Autoridad Nacional del Agua - ANA) granting water permits are both Central Government entities.
In addition to the two Central Government permits, the Company requires an access agreement from the surface rights owner, which is the Community of Kañaris. The Company has made a proposal to the the Community of Kañaris for a three year surface access rights agreement. Under Peruvian Community Law, such an agreement can only be accepted during a General Assembly meeting of the Community of Kañaris. The Company is confident that such a General Assembly will be held soon, and looks forward to the resumption of drilling on the property.
The Cañariaco Norte feasibility study drilling will include a total of 47 holes (approximately 11,000 metres) planned in the proposed pit and project areas. This drilling will include geotechnical drilling required for the design of the open-pit, waste rock storage area, process plant site, tailings containment structures, plus ancillary facilities and infrastructure. Metallurgical holes will be drilled to provide samples required to complete the metallurgical assessment, and limited resource infill drilling will be completed to define lithological controls in certain portions of the Cañariaco Norte deposit.
The exploration drilling program includes 10 drill holes planned on the Cañariaco Sur porphyry system and 5 holes on the Quebrada Verde target. An additional 5 holes have been budgeted for Quebrada Verde, depending upon the results of the first 5 holes.
Cañariaco Sur is a mineralized copper-gold porphyry system that has had five holes drilled previously, with assays including 176.2 metres of 0.41% copper, 0.12g/t gold and 1.6 g/t silver in hole CS08-002, and 100.0 metres of 0.41% copper, 0.17g/t gold and 1.6 g/t silver in hole CS08-001 (see Candente Resource Corp. NR 256 Feb. 26th, 2009). Based on these results, Cañariaco Sur clearly offers exceptional potential to expand the porphyry system. Drilling on Cañariaco Sur is a priority, as the proximity of this porphyry system to the Cañariaco Norte deposit means it has the potential to add significant value to the Cañariaco project if an economic deposit is defined.
Quebrada Verde is an early stage target close to Cañariaco Sur, with copper-gold mineralization typical of porphyry type deposits exposed in outcrop identified by the Company's previous surface work.
"Cañariaco Sur and Quebrada Verde are compelling targets on their own, but their close proximity to the Cañariaco Norte deposit makes them even more attractive," commented Michael Thicke, P.Geo., Technical Advisor to Candente Copper.
In addition to the three drill programs outlined above, two geophysical programs are planned for the Cañariaco property. A ground-based induced polarization survey of approximately 60 line-kms will be completed over Cañariaco Sur and Quebrada Verde to guide the exploration drilling of these targets, and a high-resolution airborne magnetic survey of approximately 1,600 line-kms over the entirety of the Cañariaco property is planned to search for geophysical anomalies that could be indicative of new porphyry systems.
It is important to note that geophysical surveys completed to date have focused solely on the Cañariaco Norte, Cañariaco Sur, and Quebrada Verde areas. The Cañariaco property covers over 16,000 hectares and the majority of it is under-explored. The property wide, high-resolution magnetic survey will be a key tool to assist the evaluation of exploration potential beyond the Cañariaco Norte, Sur, and Quebrada Verde areas.
About Candente Copper
Candente Copper's flagship project is the 100% owned, 7.5 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 752.4 million tonnes grading 0.49% copper equivalent*, and an Inferred Resource of 157.7 million tonnes at 0.44% copper equivalent*.
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 (0.46% 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
NR-034
