| August 15, 2008 |
| Candente Resource Corp.-Results and Summary for the Six Months Ended June 30, 2008 |
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 15, 2008) - Candente Resource Corp. (TSX:DNT)(BVL:DNT)(WKN:GW4) ("Candente" or the "Company") announces a summary of its results for the six months ended June 30, 2008 (the "2008 Period"). All amounts in this release are in U.S. dollars unless otherwise stated.
Candente incurred mineral properties expenditures totalling $8.0 million during the 2008 Period, of which $7.3 million was directed to the Canariaco property. Cumulative mineral property expenditures to June 30, 2008 totalled $31.1 million of which Canariaco expenditures totalled $24.5 million.
During the 2008 Period, the Company received gross proceeds of $11.8 million from a private placement of units at a price of Cdn$1.50 per unit completed in June 2008 and $0.7 million from the exercise of stock options. Each unit from the placement consisted of one common share and a one-half share purchase warrant, each full warrant exercisable at a price of Cdn$2.00 to purchase one additional common share of the Company over a two-year period.
At June 30, 2008, the Company had $13.1 million in cash and cash equivalents and working capital of $10.4 million. The Company's net loss for the 2008 Period totalled $2.2 million, or $0.03 per share, compared to $1.8 million, or $0.03 per share, for the same period in 2007.
For a detailed analysis of the above financial results, refer to the Interim Consolidated Financial Statements and Management's Discussion and Analysis for the 2008 Period available on the Company's website at www.candente.com and at www.sedar.com.
The Company continues to be focused on advancing the Canariaco Norte Deposit with resource delineation and expansion drilling and various engineering and other studies, which are forming the basis for an updated Preliminary Economic Assessment (PEA) and a Feasibility Study. In addition drilling has commenced on the Canariaco Sur porphyry target.
Corporate highlights for the 2008 Period up to August 12, 2008 follow:
- Announced January 22, 2008 the renewal of the Canariaco property exploration permit with support from 85% of the community;
- A combined total of 11,672 meters of diamond drilling has been competed to date (in 2008);
- An inclined drill hole program designed in conjunction with SRK Vancouver (Canada) Inc. to test geological boundaries, copper grade continuity and major structures for resource modeling and resource estimation was carried out;
-- The program included ten inclined diamond drill holes (2,700 meters) completed March 2008 for inclusion in an updated resource estimate discussed below; and
-- A further four inclined diamond drill holes (1,191 meters) completed June 2008 following the updated resource estimate has confirmed the interpreted geological boundaries and structures used in the three-dimensional geological resource model.
- Announced a revised Canariaco Norte mineral resource estimate May 29, 2008 and filed the related National Instrument 43-101 Technical Report (Amended) on July 22, 2008;
-- Measured and Indicated: 622 million tonnes ("MT") grading 0.47% Cu containing 6.46 billion lbs Cu;
--- Measured: 237 MT grading 0.51% Cu containing 2.66 billion pounds ("lbs") Cu (0.3% Cu cutoff grade);
--- Indicated: 385 MT grading 0.45% Cu containing 3.80 billion lbs Cu (0.3% Cu cutoff grade);
-- Inferred resource of 128 MT grading 0.43% Cu containing 1.2 billion lbs Cu (0.3% Cu cutoff grade); and
-- Total unclassified, unconstrained mineral inventory of 870 MT grading 0.46% Cu containing 8.9 billion lbs of Cu (0.3% Cu cutoff grade);
- SGS Lakefield ("SGS") in Santiago, Chile was contracted in 1Q 2008 to conduct a Phase II Metallurgical Program;
-- Metallurgical samples are being derived from 17 diamond drill holes of which 16 (3,551 meters) were completed in 2Q 2008, and one hole (392 meters) was completed end 2007;
-- SGS is conducting feasibility level comminution and flotation testing, flow sheet development and metallurgical variability assessment of the Canariaco mineralization from composites representative of lithology, alteration and mineralization types at Canariaco Norte. SGS Lakefield will also evaluate rock characterization including abrasion, grindability and crushing indices for crusher and mill design. These tests are scheduled to be completed in 4Q 2008.
- Raised gross proceeds of $11.8 million in a private placement mostly with institutions in North and South America on June 26, 2008;
- A Resource Delineation and Expansion Program was initiated in June 2008 after the updated mineral resource estimate was received from SRK. This program is scheduled for completion Q3 2008 and is designed to infill areas at depth within the Resource Shell and potentially expand the Resource Shell. In July, a third deep drilling rig was added to aid in the timely completion of these holes (3Q 2008);
-- The program consists of 14 diamond drill holes over approximately 10,000 meters, of which seven diamond drill holes (4,230 meters) have been, or are near completion;
-- Preliminary results indicate that the copper mineralization continues beyond the current resource grade block model especially at depth.
- July 29, 2008, Orex Minerals Inc. advised the Company that it has decided to terminate the Las Sorpresas property option agreement due to a recent review of its exploration property portfolio. As a result, 100% ownership of the Las Sorpresas property will revert to Candente; and
- August 7, 2008 announced the hiring of Sean Waller as Vice President of Development to lead the Canariaco Norte feasibility and the addition of Mark Katsumata as Chief Financial Officer.
Sections, diagrams and complete results are available on Candente's website. Sampling and analytical procedures conform to National Instrument 43-101 standards. Details of these analytical procedures can be found in the technical report dated July 11, located on the company website at http://www.candente.com/s/PeruProjects_Canariaco.asp.
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 and has reviewed and approved the contents of this release.
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.
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