Candente Copper Corp. ("Candente Copper" or "the Company") is pleased to report on progress of exploration and feasibility drilling on the Cañariaco property.
One drill is working on Cañariaco Norte focusing on metallurgical and geotechnical work. Three metallurgical holes have now been completed to depths of 201, 303 and 253 metres, respectively, and a fourth metallurgical hole is in progress. A second drill is working on exploration targets at Cañariaco Sur and the first hole (CS-12-003) has been completed to a depth of 528 metres. Drilling has commenced on the second hole (CS-13-004).
Drill hole CS-12-003 was targeted to test a strong induced polarization ("IP") chargeability anomaly from a previous partially complete geophysical survey, thought to represent the pyrite halo of a porphyry deposit. A second IP survey was recently completed which expanded on the previous survey to cover the entire Cañariaco Sur prospect area. Interpretation of the new and expanded IP survey and observations made from hole CS-12-003 indicates the pyrite halo is situated a further 300 metres to 400 metres to the west. Moderate to strong potassic and phyllic alteration has mostly obliterated volcanic and various porphyritic intrusive rock textures. Locally strong quartz-sulphide stockwork veining is also associated with potassic and phyllic alteration. Samples for drill hole CS-12-003 have been sent to ALS Chemex labs in Lima, Peru for ICP and assay analyses which will be reported once received.
Approximately 11,000 metres of feasibility drilling are planned for Cañariaco Norte and approximately 4,000 metres of exploration drilling are planned for Cañariaco Sur. Local employment to support the drilling and other project site activities is carried out on a rotational basis and over 260 villagers have now qualified for the 130 daily positions.
Working Table for Development for the District of Kañaris
The Company is also very pleased to report that a Working Table for Development for the District of Kañaris was installed by The National Dialogue Office of the Presidency of the Council of Ministers ("PCM") and the Ministry of Energy and Mines ("MINEM") in Chicalyo on Saturday January 19, 2013. The installation was conducted in a private meeting involving representatives of the Regional Government of Lambayeque, Representatives of the communities of Kañaris and Tupac Amaru, the Municipality of Ferreñafe and Kañaris, the National Water Authority, Ministry of Agriculture, Ministry of Development and Social Inclusion, as well as several institutions and professional associations. Following the meeting, the agreements that have been reached to ensure the development of this district, which is the poorest and least developed region of Lambayeque, will be announced.
During the meeting, it was highlighted that one of the goals of the development board is to foster dialogue, and seek understanding between the Company and the District of Kañaris with respect to the Cañariaco mining project. Both the Company and members from the Community have demonstrated that they support this. This is considered a great opportunity to raise not only the understanding of the mining project but also the opportunities for development of the district and the country.
Officials also commented that that there is a relationship between some protests in Kañaris and current anti-mining sectors seeking to prevent investments in Peru, but in Kañaris many people are not in agreement with this attitude, they prefer to converse and have dialogue. The presence of leaders from the two communities in the District of Kañaris at the Working Table demonstrates this.
The fact that there is no previous mining experience in Lambayeque, has likely lead to a mistrust from a number of residents so MINEM is planning to carry out workshops on Responsible Mining in the community. The Department of Lambayeque and the District of San Juan de Kañaris do not currently receive the Mining tax ("Canon"), and therefore the development of Cañariaco is considered a great opportunity for Lambayeque.
Community
On January 20 and 21, 2013 a few roads providing access to the Cañariaco project were blocked by some of the local villagers and other villagers also gathered near the Cañariaco Camp to protest the exploration and feasibility work at Cañariaco. These activities were carried out by approximately 150 people in total and have been peaceful. The roads were cleared and most of the protestors had departed the area by January 22. Company officials are in communication with the villagers and National Police are present at the Cañariaco site.
These actions are understood to be in response to the establishment of the Working Table for Development for the District of Kañaris mentioned above.
Source: http://www.candentecopper.com/