DNT Candente Copper Corp

Candente Copper Corp. (TSX:DNT)( BVLAC:DNT) ("Candente") is pleased to provide
an update on the impact of the new Peru Mining Tax Law on the Canariaco Norte
economics, the Canariaco Norte Copper Feasibility Study being prepared by AMEC
Americas Limited ("AMEC") and on general corporate activities.


New Peru Mineral Tax

An assessment of the new tax rates in Peru confirms the robust economics of the
Canariaco Norte project. AMEC has completed an assessment of the impact to the
Canariaco Norte project economics resulting from the new Mineral Taxation Law
recently enacted in Peru. The new tax rates were applied to the financial model
developed by AMEC as part of the Pre-Feasibility Study Progress Report completed
in March 2011. In order to complete a direct assessment of the new tax rates,
all other aspects of the financial assessment including metal prices were held
constant as per the March 2011 Financial Model. Under the new tax rates, the
after tax NPV, IRR and payback period for the Canariaco Norte project are $912
million, 17.2% and 4.4 years respectively, at a long term copper price of
US$2.25 per pound and a discount rate of 8%. The after tax NPV, IRR and payback
period reported in March 2011 in the Pre-feasibility Study Progress report were
US$1.063 billion, 18.8% and 4.2 years respectively.  


Feasibility Study

Feasibility design work is well underway by AMEC and Knight Piesold. As part of
the Feasibility Study program, AMEC completed an analysis of the potential
benefit of increased daily throughput. Four different production rates were
evaluated which considered the impacts on mining, processing, ancillary
facilities, water balance, project footprint and project financials including
capital and operating costs. Based on the analyses a larger SAG mill and larger
ball mills will be incorporated into the Canariaco Norte process plant.
Specifically, a 40 foot diameter SAG mill will be used. The larger 4o foot SAG
mills are rapidly becoming the preferred size for large mining operations.
Preliminary modelling indicates that the larger SAG mill will achieve a
processing rate in the range of 100,000, to 110,000 tonnes per day, which is an
increase from the 95,000 tonne per day rate projected in the Prefeasibility
Study Progress Report. This increase in processing rate will result in higher
levels of annual copper, gold, and silver production, however the resulting
increase in metal production totals are still under assessment, pending
completion of the Feasibility level mine design.


As part of the production rate increase, Knight Piesold conducted a review of
tailings containment options to ensure the proposed tailings site provided
sufficient capacity for the proposed increase. This analysis identified several
options and resulted in the selection of a new tailings containment area
significantly closer to the proposed process plant than the tailings facility
presented in the Prefeasibility Study Progress report.


In addition, AMEC has completed a review of the potential mine access routes.
The review indicates that development of a southern route that follows the
current access road route would provide several key benefits including shorter
haul distance to the Port at Eten and lower life of mine cost. In addition, the
power line may be constructed along this road route thereby simplifying the
logistics of power line construction.


Canariaco Drilling Programs 

Candente has significant drilling programs planned for the Canariaco project.
Exploration drilling is planned for the Canariaco Sur area where drilling, by
Candente in 2008 and prior to Candente's ownership, by BHP Billiton, identified
the presence of a significant copper-gold porphyry system. The exploration
drilling is planned to test for lateral and depth extensions of the Sur system. 


Exploration drilling is also planned at Quebrada Verde to test for copper-gold
mineralization. Geological, geochemical and geophysical surveys carried out by
Candente have delineated strongly anomalous copper, gold and molybdenum levels
in rock samples and soil samples that coincide with magnetic and chargeability
highs identified by magnetic and induced polarization (geophysical) surveys. 


Canariaco Sur and Quebrada Verde have excellent potential for the discovery of
additional copper and gold mineralization in very close proximity to the
Canariaco Norte project.


Planned drilling on Canariaco Norte includes geotechnical, metallurgical and
geological drilling for Feasibility Study design of the open pit and ancillary
facilities, as well as a small amount of infill drilling for the resource. 


In addition to the planned drilling, Candente plans to conduct a geophysical
survey over the entire Canariaco property. The objective of this program is to
search for new geophysical anomalies that could be indicative of underlying
porphyry systems. Geophysical surveys completed to date have focussed solely on
the Canariaco Norte, Canariaco Sur and Quebrada Verde areas. The Canariaco
property covers over 16,000 hectares and the majority of it is under explored.
The property wide geophysical survey will be a key tool to assist evaluation of
exploration potential beyond the Canariaco Norte, Sur and Quebrada Verde areas. 


Permitting

As part of new requirements for advanced drilling permits in Peru, AMEC (Peru)
S.A. ("AMEC E&E") completed a semi-detailed Environmental Impact Assessment
("EIASD") in July 2011. A community workshop (also as required) was conducted on
the EIASD findings in October 2011. AMEC E&E has now completed all of the
studies and responses required for the drilling application and it has been
submitted to the Peruvian Ministry of Environmental Affairs. Pending approval
times, management anticipates that drilling should commence in the first quarter
of 2012. In addition to the drilling application, a long term agreement for
surface rights access is also being discussed with the local community. 


Sustainable Development and Community Programs

Candente has formed an alliance with local communities, regional government and
two well recognized Non-Governmental Organizations to ensure local interests and
needs guide the Company's sustainable development, cultural and community
initiatives.


CICAP, a Peruvian based Livelihood Development organization, will join our team
and international specialists in initiatives for: coffee growers and other
agricultural producers, to improve quality and reach new markets (including
organic and fair trade); micro-finance ventures; water security; and technical
training for tradesmen.


Save the Children initiatives will focus on improving health, nutrition,
education, hygiene and individual's rights. These will include: local clinics
and support systems in the promotion of traditional food and culture while
enhancing childrens' development, maternal health and reducing domestic
violence.


Candente is also very pleased to be assisting the Clinton Giustra Sustainability
Global Initiative and Lyons Club of Lambayeque which are now carrying out
campaigns for eye care which includes cataract surgeries and the distribution of
free eye glasses. Sight improvement for both the young and aged has an enormous
impact on their quality of life and livelihoods.


Feasibility Schedule

Due to the additional project optimization work conducted to date as part of the
Feasibility Study and the longer period required to complete the drilling
application process, the completion date for the Feasibility Study has been
extended. The schedule remains highly dependent on Ministry approval of the
Canariaco Norte drilling program application which has no firm timeline but is
expected within 3 months. Timeline for completion of the Feasibility Study will
be updated once drilling commences.


Corporate Update

Canariaco Norte is one of the largest undeveloped copper deposits currently
under 100% control of a junior mining company and a number of major and mid-size
International companies have communicated interest to Candente regarding an
investment in the Canariaco Norte project. Candente has entered into a
Confidentiallity Agreement with several of the third parties, and these
companies are conducting technical reviews of project data and have or are
scheduled to visit the Canariaco project site. 


"We continue to be extremely pleased with the progress of the Canariaco Norte
Feasibility program, and although our feasibility schedule has been extended due
to the additional engineering assessment and drilling application process, we
believe the improvements made to the scope of the project development will
provide significant benefit to the Canariaco Norte project," commented Sean
Waller, P.Eng., President of Candente Copper.


About Candente Copper

Candente Copper's flagship project is the 100% owned, 7.5 billion pound,
Feasibility stage Canariaco Norte Copper Project located in northern Peru's
prolific mining district. The Canariaco Norte deposit contains a Measured and
Indicated resource of 752.4 million tonnes grading 0.49% copper equivalent(i),
and an Inferred Resource of 157.7 million tonnes at 0.44% copper equivalent(i).


Sean Waller, P.Eng., President, and Joanne C. Freeze, P.Geo., CEO, are the
Qualified Persons as defined by National Instrument 43-101 for the projects
discussed above. They have reviewed and approved the contents of this release.
(i)The 'Measured and Indicated Resource' listed above consists of Measured
Resources of 338.1Mt at 0.48% Cu, 0.08 g/t Au, and 2.0/t Ag (0.52% Cu Eq.), plus
Indicated Resources of 414.3Mt at 0.43% Cu, 0.06 g/t Au, and 1.8 g/t Ag (o.46%
Cu Eq.). All resources quoted in this release are based on a 0.30% copper
cut-off grade and 229 drill holes completed to March 2008. (i)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%).
The metal prices used are: copper US$2.50/lb, gold US$1,035/oz and silver
US$17.25/oz.


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 that 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.


On behalf of the Board of Candente Copper Corp. 

Sean Waller, P.Eng., President & Director

NR-031

Candente Copper (TSX:DNT)
Historical Stock Chart
From Jun 2024 to Jul 2024

Candente Copper (TSX:DNT)
Historical Stock Chart
From Jul 2023 to Jul 2024