2015-09-01 06:57 ET - News Release
Also News Release (C-ETG) Entree Gold Inc
Ms. Joanne Freeze of Candente reports
CANDENTE COPPER ANNOUNCES THE EXECUTION OF DEFINITIVE ROYALTY AGREEMENTS ON THE CANARIACO PROJECT WITH ENTREE GOLD AFFILIATE
Candente Copper Corp. has executed definitive royalty agreements between two of the company's subsidiaries and Exploraciones Apolo Resources SAC, an affiliate of Entree Gold Inc. Pursuant to these agreements, the Company has granted a royalty for a 0.5% net smelter return ("NSR") on its wholly-owned Canariaco Copper Project in Peru, in exchange for the aggregate sum of US$500,000.
A total of US$150,000 has been received from Entree to date, and the remainder is to be paid as registration of the Royalty Agreements in Peru progresses. Funds will be used for general corporate purposes and activities at the Canariaco Project including community related activities.
The Canariaco Copper Project is located in one of the world's most favorable mining jurisdictions. It is a high quality copper deposit that is projected to be a long life - low cost mining operation. "Candente is very pleased to be able to raise funds in a manner that minimizes dilution to our shareholders and appreciates Entree's endorsement of the Canariaco project," commented Joanne Freeze, CEO of Candente.
The Canariaco Property includes the Canariaco Norte deposit, Canariaco Sur deposit, and Quebrada Verde porphyry prospect. In April 2011, the Company initiated a definitive Feasibility Study ("FS") of the Canariaco Norte Project. In mid-2013, although well advanced and approximately 50% complete, the FS was put on hold due to the deterioration in investment climate for junior mining exploration companies. Since then, the Company has focused on maintaining a strong local community presence and facilitating development and job creation in the Lambayeque region of Northern Peru.
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 the end of 2008. (ii)Copper equivalent grade including gold and silver, metal recoveries (copper 90%, 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. Please refer to the pre-feasibility study progress report for the Canariaco Norte Copper Project titled "Canariaco Project, Lambayeque Department, Peru, NI 43-101 Technical Report on Pre-feasibility Study Progress Report" for further information.
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