Nov 2 2010
Candente Copper Corp. (TSX:DNT)(BVLAC:DNT)(WKN:GW4) is extremely pleased to report that an updated Mineral Resource Estimate recently completed for the Cañariaco Norte copper deposit in Peru has confirmed a substantial increase in the mineral resources.
As part of the ongoing Pre-Feasibility Study of the Cañariaco Norte project, AMEC Americas Limited ("AMEC"), has re-modelled and re-classified the Mineral Resource and issued an updated, significantly larger Resource Estimate.
Highlights of the 0.30% copper cut-off Resource Estimate:
At the base case 0.30% copper cut-off grade, Cañariaco Norte's Measured and Indicated tonnage has increased by 21% and the Measured and Indicated contained copper has increased by 16% from the Mineral Resource Estimate released in September 2008 (see Candente Resource news release dated September 18, 2008).
- Measured and Indicated: 752.4 million tonnes ("Mt") grading 0.45% copper containing 7.53 billion pounds of copper (0.52% copper equivalent; 0.49% copper equivalent with gold and silver recoveries applied).
- Inferred: 157.7 Mt grading 0.41% copper containing 1.43 billion pounds of copper (0.47% copper equivalent; 0.44% copper equivalent with gold and silver recoveries applied).
To show sensitivity of the estimate to cut-off grade, a 0.20% copper cut-off grade was also modelled. Using this cut-off grade, Cañariaco Norte's Measured and Indicated tonnage has increased by 22% and contained copper increased by 18% from the 2008 Mineral Resource Estimate.
- Measured and Indicated: 1.003 billion tonnes grading 0.40% copper containing 8.94 billion pounds of copper (0.46% copper equivalent; 0.44% copper equivalent with gold and silver recoveries applied).
- Inferred: 293.3 million tonnes grading 0.33% copper containing 2.16 billion pounds of copper (0.38% copper equivalent; 0.36% copper equivalent with gold and silver recoveries applied).
"This updated mineral resource estimate will now be the basis for the Cañariaco Norte Pre-Feasibility Study currently underway, and we anticipate that it will have a very positive effect on the value of the Cañariaco Norte deposit. This new development provides further support to our conviction that Cañariaco Norte will be one of the next generation of Peruvian copper mines," commented Sean Waller, P. Eng., President of Candente Copper.
Resource Sensitivity at Various Copper Cut-off Grades
AMEC developed volumetrics at cut-off grades of 0.20% Cu and 0.14% Cu as well as the base case 0.3% Cu. The copper cut-off grade of 0.20% is based on operating cut-off grades of other comparable copper mines in South America. AMEC has also calculated that the marginal cut-off grade that allows for reasonable prospects of economic extraction is 0.14% copper.
Copper equivalent grade including gold and silver values and based on 100% metal recoveries. Copper grade equivalent calculation. Cu Eq% =(Cu % + ((Au grade x Au price)+(Ag grade x Ag price))/(22.0462 x Cu price x 31.0135 g/t)
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%)
This updated mineral resource estimate is based on 229 drill holes and includes the results of 16 drill holes completed after the previous estimate by SRK Consulting (Canada) Inc. in September 2008, as well as a review of the deposit lithology, alteration and specific gravities. Metal prices used by AMEC for the updated resource estimate are: copper US$2.50/lb, gold US$1,035/oz and silver US$17.25/oz.
Mineral Resource Statement
The effective date of this mineral resource estimate is September 10, 2010, which represents the cut-off date for the most recent scientific and technical information used in the resource estimate. The mineral resources reported herein have been estimated using criteria consistent with the Canadian Institute of Mining and Metallurgy ("CIM") Definition Standards (2005) and in conformity with the CIM "Estimation of Mineral Resources and Mineral Reserves Best Practice" (2003) guidelines. AMEC produced an updated resource estimate for the Cañariaco Norte deposit based on drilling information and geological interpretation provided by Candente Copper. AMEC undertook quality assurance and quality control studies on the mineral resource data for the Cañariaco Norte project. AMEC concludes that the collar, assay and lithology data are adequate to support resource estimation. The updated resource model includes 16 additional drill holes completed subsequent to the previous estimate conducted by SRK Consulting in September 2008.
The marginal economic Grade cut-off calculated at 0.14% Cu is based on prices and costs reviewed by AMEC. The open pit mineral constrained resource is reported at a cut-off grade of 0.30% copper within a Lerch-Grossman resource pit shell optimized on copper, gold and silver. Copper recoveries vary from 58.8% at a copper grade of 0.10% to 93.1% recovery at a copper grade of 0.60%. Gold and silver recoveries are: 55% and 50% respectively. The metal prices used are: copper US$2.50/lb, gold US$1,035/oz and silver US$17.25/oz. No assurance can be given that the estimated quantities will be produced.
David Thomas, P.Geo. is an employee of AMEC Americas Limited and is a Qualified Person as defined by National Instrument 43-101. Mr. Thomas is responsible for the mineral resources reported above and he has reviewed and approved disclosure of these mineral resources.
Source: Candente Copper Corp.