Candente Copper Corp. ("Candente Copper", "the Company") is pleased to announce that Candente Copper and Gold Fields La Cima S.A., a subsidiary of Gold Fields Limited, have conditionally agreed to commercial terms for Gold Fields to option the Arikepay copper-gold porphyry property in Southern Perú.
Terms
Cash Payments totalling up to US$1,790,000 over 10 years:
- US$100,000 on signing of Definitive Agreement;
- US$40,000 upon receiving drilling permits;
- US$100,000 on first and second anniversaries;
- US$150,000 per year until Year 5;
- US$200,000 per year for the next 5 years
Exploration commitments are:
- US$3.5M over 3 years to reach 51% interest;
- An additional US$3.5M over another 2 years (5 yrs total) to reach 70% interest;
- Complete Feasibility and make a payment of US$10M within 10 yrs to reach 100% interest, subject to a 2.5% Net Smelter Return (“NSR”);
- The 2.5% NSR has an option to buyout 1.5% Interest for US$6M
The proposed terms are subject to the execution and completion of a Definitive Agreement by both parties which will layout further details currently still under discussion.
“We are excited to work on completing the Definitive Agreement with Gold Fields so that we can explore and advance the Arikepay Property with such a well established and successful company. This is a great time of world demand for both gold and copper and Arikepay shows excellent potential for both. Working with Gold Fields on Arikepay, while we are dedicating so much to our Cañariaco copper project and the 2021 PEA, is a great way to add shareholder value,” stated Joanne Freeze, CEO, Candente Copper Corp.
About the Arikepay Property
The Arikepay property, held by Cobriza Metals Peru S.A., (“Cobriza”), subsidiary of the Company, is located about 110 kilometres (“km”) south of the city of Arequipa in southern Perú and 45 km south of the +3 billion tonne Cerro Verde copper-molybdenum porphyry deposit, owned by Freeport, SMM Cerro Verde Netherlands and Buenaventura.
Two altered and mineralized bodies have been found on the property. Alteration comprises propylitic, phyllic, silicic and potassic altered volcanic and intrusive rocks. Mineralization consists dominantly of pyrite ranging from <1% to >10% in disseminations and veinlets with lesser amounts of chalcopyrite, bornite and magnetite.
Two drilling programs have been completed on the property to date. Cobriza completed a reverse circulation (“RC”) drill program in June 2012 totalling 3,630 metres (“m”) in 14 holes and a third party, Compania Minera Zahena S.A.C. (“Zahena”) drilled 8,908m in 14 drill holes between Dec 2013 and March 2017.
Cobriza and Zahena both initially focused on the copper potential but since 2017, Cobriza recognized a stronger potential for gold mineralization at Arikepay.
Selected highlights of copper mineralization from the RC drilling program included:
- 142 m of 0.51% CuEq*
- 186 m of 0.43% CuEq*
- 292 m of 0.39% CuEq*
Selected highlights of gold mineralization from the drilling programs included:
- 81 m of 3.05 grams per tonne (“g/t”) gold (“Au”) and 2.04 g/t silver (“Ag”)
- 18 m of 1.09 g/t Au and 0.1 g/t Ag
- 26 m of 1.29 g/t Au and 4.5 g/t Ag
*Copper equivalent (CuEq) 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.
Source: https://candentecopper.com/