Apr 16 2015
Candente Copper Corp. ("Candente Copper", "Company") is pleased to announce that Compañia Minera Zahena S.A.C. ("Zahena") has all permits in hand to commence drilling the Arikepay copper-gold porphyry project, located in southern Peru.
Zahena's planned program is to drill approximately 10,000 metres ("m") in 10 to 12 holes to depths of 800m. Drilling will commence in June and will take an estimated 6 to 8 months to complete. "We are very excited that the next round of drilling at Arikepay is soon to begin," commented Mike Thicke, P.Geo., Candente Copper's Vice President of Exploration. "The drill depths anticipated by Zahena will be at least 500m deeper than the Company's initial reverse circulation ("RC") drilling program and will provide an excellent deep test of the robust Arikepay porphyry system."
Candente Copper drilled 3,630m in 14 wide spaced RC holes to a maximum machine depth of 300m in 2012 and defined a mineralized porphyry system that measures at least 2,200m by 700m to 1,200m and continues to a depth of at least 300m. Within the mineralized porphyry system is an area of significant copper, gold and silver mineralization that measures at least 1,200m by 800m and open to depth. At least two-thirds of the mineralized porphyry system is covered by recent gravel deposits. Highlights of the 2012 drilling include:
- 142m of 0.51% Cu Eq* in hole RC-12-ARI-006
- 186m of 0.43% Cu Eq* in hole RC-12-ARI-011
- 292m of 0.39% Cu Eq* in hole RC-12-ARI-002
- 170m of 0.31% Cu Eq* in hole RC-12-ARI-013
- 146m of 0.31% Cu Eq* in hole RC-12-ARI-003
- 80m of 0.35% Cu Eq* in hole RC-12-ARI-005
Zahena can earn a 75% interest in Arikepay by making USD$5 million ("M") in exploration expenditures and USD$4M in payments to Candente within 4 years ("First Option"). A USD$50,000 payment was made on signing the Agreement. A firm commitment has been made to complete 3,000m of drilling within 12 months of receiving all drilling permits.
Upon completion of the First Option, Zahena can earn an additional 25% interest, by completing a bankable feasibility study and by paying Candente USD$10M within 5 years of earning its initial 75% interest ("Second Option"). Completion of the Second Option would result in Zahena earning 100% interest in Arikepay subject to a 2% Net Smelter Return ("NSR") to Candente Copper.
Zahena would retain the right to purchase 1% of the NSR for USD$5M at any time up to 60 days from the start of commercial production, leaving Candente with a 1% NSR. A final payment of USD$5M would be made to Candente 60 days from the start of commercial production or within 4 years of completion of the bankable feasibility study, whichever happens first.
About Candente Copper
Candente Copper is a mineral exploration company engaged in 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.
*Copper equivalent (Cu Eq) grades include gold and silver values based on 100% metal recoveries and the following metal price assumptions: US$1,200 per troy ounce gold, US$20 per troy ounce silver, and US$2.50 per pound copper.
On behalf of the Board of Candente Copper Corp.
"Joanne C. Freeze" P.Geo., CEO, Director
Source: http://www.candentecopper.com/