Candente extends depth of Canariaco

Vancouver – Candente Resource‘s (DNT-T, CDOUF-O) drill effort on its Caariaco Norte copper project in northwestern Peru has turned in some long mineralized intercepts and points towards the deposits expansion potential.

Four recent holes collared on the northern half of the deposit returned up to 701.5 metres (from 65 metres downhole depth) of 0.59% copper, in hole 07-141, and ended in mineralization. The wide intercept included a 292-metre interval of 0.7% copper.

The four deep holes have pushed the vertical extent of Caariaco Norte deposit to at least 968 metres with it remaining open to depth.

Candente moved its project to the feasibility stage in May. Earlier this year the company tabled measured and indicated resources of 642.8 million tonnes grading 0.456% copper (about 6.5 billion contained lbs. copper) in the deposit using a 0.3% copper cut-off grade. A further 177.2 million inferred tonnes at 0.42% copper (1.6 billion contained lbs.) was also reviewed.

The company is eyeing a potential 2009 production scenario for its Caariaco Norte. A recent preliminary assessment and economic evaluation modeled a starter-pit zone of 107-million tonnes of near-surface mineralization averaging 0.6% copper (about 1.4 billion contained lbs. copper) with a projected 1.3-to-1 waste-to-ore stripping ratio.

Caariaco Norte is the more advanced of three main porphyry bodies on Candentes ground, all of which occur along an 8-km long structural trend. Mineralization is comprised of pyrite-rich copper and gold in disseminations and stockworks hosted within fine grained andesitic porphyries and dacitic tuffs that have undergone alteration from multiple igneous and magmatic hydrothermal breccia events. The deposit is covered by a 15-to-30 metre leach cap.

Shares of Candente notched up 3 on the August 29th drill results to close at $1.62 apiece. Based on its 69.5-million shares outstanding the company posts a $113-million market capitalization. The stock has a 52-week trading range of 75-$2.09.