Candente Resource Corp.: Mitsui Drilling on Candente's El As de Zinc Property in Peru
Tuesday June 20, 5:00 am ET
ca.us.biz.yahoo.com
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 20, 2006) - Candente Resource Corp. (TSX:DNT - News; "Candente") is pleased to announce that Compania Minera Santa Luisa S.A., a subsidiary of Mitsui Mining and Smelting Co., Ltd. of Japan ("Mitsui") has completed three diamond drill holes and a fourth is in progress on the El As de Zinc Property in Central Peru. Mitsui reports that they are pleased with results from Stage I, 1,000 metres, and have chosen to advance into Stage II, which will comprise an additional 1,500 metres diamond drilling.
The first three holes were drilled to depths of 473.95, 467.5 and 417.50 metres respectively. Assays from these holes will be released once they have been received from Mitsui. These holes were targeted to intersect lead and zinc mineralization in mantos (blankets) or stratabound forms. Mitsui, who optioned the El As de Zinc property from Candente's subsidiary Oro Candente S.A., is funding and operating the exploration program.
"This decision by Mitsui to spend their funds at El As de Zinc, as well as recent substantial investment decisions for mine building and purchases in Peru at Tintaya by XStrata, (US$750 million (M), Cerro Corona by Gold Fields Inc. (US$277M), La Granja by Rio Tinto (US$82M) and all show that Peru is well recognized globally as an excellent country for investment," comments Joanne Freeze, President and CEO of Candente.
At El As de Zinc, four distinct zones of zinc-lead mineralization have been discovered in outcrop on the property. Average zinc (Zn) and lead (Pb) grades from sampling to date appear to be in the range of: 10.6% Zn & 1.88% Pb over 3.25 m; 3% Zn & 0.64% Pb over 3.6 m; 4% Zn & 0.35% Pb over 6.5 m and 22% Zn & 4% Pb over 1 m. Higher grades reach as high as 47.5% Zn & 5% Pb over 2 m and 9% Zn & 2.4% Pb over 7 m. This mineralization has some very distinctive characteristics which resemble two kinds of world class lead-zinc deposits often referred to as Mississippi Valley Type (MVT) and Irish Type.
Santa Luisa operates the Huanzala mine, approximately 75 km by road from the El As de Zinc property. Zinc and lead ores from El As de Zinc could be trucked to Huanzala and processed there. The Huanzala Mine has a concentration plant with capacity for 1700 tonnes per day. Most of the zinc concentrates from Huanzala are sent to smelters in Japan and lead concentrates are sent to the Doe Run operation nearby at La Oroya, Peru.
Santa Luisa has an option to earn an 80% interest in the El As de Zinc project by making staged payments of US$200,000 and drilling 10,000 metres (spending approximately US$1,500,000) within three years. Candente may convert their retained 20% interest into a sliding scale NSR based on the price of zinc. The NSR will be scaled to the price of zinc and vary from 1% to 3%. At current zinc prices (US$1.41/pound (lb) or US$3,102/tonne) the NSR would equal 3%.
Joanne Freeze, P.Geo., is the Qualified Person as defined by NI 43-101 whom has reviewed this news release.
Candente is a diversified copper and gold exploration company with gold, silver, copper and zinc projects in Peru and Mexico, including an advanced exploration stage leachable copper project, Canariaco. Candente subscribes to principles which ensure that its exploration and development activities are beneficial to the local communities.
ON BEHALF OF THE BOARD OF DIRECTORS
Joanne Freeze, P. Geo., President & CEO
Candente Resource Corp.
Release No. 169
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.
Contact:
Kelly Gray
Candente Resource Corp.
(604) 689-1957 or Toll Free: 1-877-689-1964
Evelyn Cox
Candente Resource Corp.
(604) 689-1957 or Toll Free: 1-877-689-1964
info@candente.com
www.candente.com
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Source: Candente Resource Corp. |
