Peru commits US$56 M for Development in Kañaris
Peru committed to development and invests $56,000,000 US
Government of Peru Commits US$56 M for Development in Districts of Kañaris, Salas and Incahuasi
Vancouver, British Columbia, April 12, 2013. Candente Copper Corp. (TSX:DNT, BVL:DNT, US:CCOXF) ("Candente Copper” or “the Company") is pleased to report that the Government of Peru through Development for the districts of Kañaris, Incahuasi and Salas, Ferreñafe Province, Lambayeque Region, has committed to an investment of more than 140,000,000 (One hundred forty million) Peruvian Soles (approximately US$56 Million). These funds will be directed to projects, which address health, education, sanitation, energy, homes, transport, agriculture, and other needs.
This is an increase from the 100,000,000 (100 million) soles originally committed for investment in development at the second Roundtable meeting in February this year. Roundtable meetings which were initiated by the National Dialogue Office of the Presidency of the Council of Ministers ("PCM") and the Ministry of Energy and Mines ("MINEM") in January 2013 (see NR 044 January 23, 2013) are held monthly and include Regional and local governments, community leaders and other institutions.
Participants
1. Coffee Producers Association Community Kañaris
2. Kañaris Defense Front Association
3. Special Committee of Landholders - San Juan de Kañaris
4. Board of Irrigation Users Motupe
5. Rural Community of the District of Incahuasi
6. Regional Government of Lambayeque
7. District Municipalities of Incahuasi, Salas and Kañaris
8. Cañariaco Copper Peru S.A. subsidiary of Candente Copper Corp. 9. Association of Engineers of Lambayeque
10. Association of Economists of Lambayeque
11. Presidency of the Council of Ministers - (PCM)
12. Ministry of Energy and Mines - (MEM)
13. Ministry of Environment - (MINAM)
14. Ministry of Health - (MINSA)
15. Ministry of Transport and Communications
16. Ministry of Economy and Finance - (MEF)
17. Ministry of Culture
18. National Water Authority - (ANA - MINAG)
Two subcommittees, of the Roundtable have been formed to address: 1. Social Development
2. Mining and Environment
Candente is very pleased to have been invited by Ministerial Resolution No. 034-2013- PCM to participate in both sub-committees.
Sub-Committee – Development Plans
The Development subcommittee reviews projects proposed by the three participating municipalities which are according to their citizens needs. Participating ministries also resent their existing programs of intervention in the province, and what their respective ministries could bring to Kañaris to support development.
During the fourth Roundtable meeting on April 6, 2013, a matrix of 49 projects was approved. Projects approved to date include: health centres, water reservoirs, irrigation systems, roads, drinking water, communication, improvement of education infrastructure, electrification and others.
Peruvian laws require a strict process by which experts must put together technical files and present the proposed projects. Within its Social Responsibility policy and practices, Candente Copper, has offered to support the Development Plans with both the evaluation and funding of experts to prepare the technical files and present the projects which the Central Government will be funding. This is a key role due to the importance of these projects and the level of professionals and funds that will be necessary to develop them.
Sub-Committee - Mining and Environment
The Mining and Environment sub-committee is tasked with explaining to citizens how the environment is being and will be protected by responsible mining practices.
The Ministry of Energy and Mines, conducts informative workshops on current mining and environmental procedures throughout the local community as well as other areas of direct influence of the Cañariaco project.
The National Water Authority (ANA), has provided detailed technical information to the community on the exploration activities at Cañariaco with respect to water and shown that the there are no discharges and that the water is unchanged from its natural quality and quantity thus ruling out the possibility of contamination in rivers and tributaries of the area by the Company’s activities..
During the third meeting, Candente Copper requested the implementation of a monitoring committee of water quality as a collaboration among the Peruvian government (through their agencies), the mining company, and participation of community members in the district. This is to allow continuous monitoring and transparency of water quality of the Cañariaco River basin. This monitoring committee will allow interested parties to verify the reliability and transparency of the results, in terms of quality and quantity of groundwater.
Also on the agenda of the recent Roundtable meetings were presentations regarding the two community meetings held in 2012, one on July 8 and another on September 30 both of which were called to vote on the Company’s activities in the area. In the July 8 meeting the Company was granted surface access for three years to conduct exploration activities including drilling whereas in the September 30 meeting the stated result was to oppose mining. The two parties in charge of these meetings were requested to explain the validity of such meetings and to provide all legal documents for such. The July 8 team was prepared and ready to present its information at both the third and fourth meetings, however, the September 30 group chose not to present its documentation at the third meeting and not to attend the fourth meeting, therefor this item has been postponed until the next meeting.
Government officials have commented that they consider the Roundtable and Sub- committee meetings have been very productive as they have allowed the concerns and needs of the population of Kañaris to be heard. In addition excellent progress has been made in the sub-committees and there have been productive proposals by the Executive and the Regional Government of Lambayeque (GRL)*.
(*Press releases published on the websites of PCM and MINEM.
PCM. News Release on the results of the third Round Table in Huacapampa, March 2nd 2013.
PCM. News Release on the results of the fourth round table in Kañaris, April 6th 2013
MINEM. News Release on the results of the fourth round table in Kañaris, April 6th, 2013
About Candente Copper
Candente Copper’s flagship project is the 100% owned, 7.5 billion pound, Feasibility stage Cañariaco Norte Copper Project located in northern Peru’s prolific mining district. The Cañariaco Norte deposit contains a Measured and Indicated resource of 752.4 million tonnes grading 0.49% copper equivalent**, and an Inferred Resource of 157.7 million tonnes at 0.44% copper equivalent**.
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.
** 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% CuEq), plus Indicated Resources of 414.3Mt at 0.4% Cu, 0.06 g/t Au, and 1.8 g/t Ag (o.46% CuEq). All resources quoted in this release re based on a 0.30% copper cut-off grade and 229 drill holes completed to March 2008. 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: CuEq% =(Cu % + ((Au grade x Au price x Au recovery x Au smelter eturn%)+(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.