Candente Resource Corp. ("Candente") (TSX Venture:DNT) is pleased to announce that the company has entered into an Agreement with Hecla Mining Company regarding exploration, development and production on Hecla's Alto Dorado gold property in Northern Peru.
The Alto Dorado property hosts both high sulfidation and porphyry gold targets similar to those found at the Pierina and Yanacocha high sulfidation mines in Peru. The property is located half-way between the Yanacocha and Pierina deposits, 36 km south-southeast of the Alto Chicama property, where Barrick Gold recently announced a new discovery of in excess of 7 million ounces of gold. High sulfidation targets have been identified both on surface and in drill holes and comprise typical vuggy silica with gold grades from 0.5 to 3.6 grams per tonne (gpt). The main alteration zone recognizable in satellite photographs covers 7 x 2.5 Km. Anomalous levels of gold in soils occur over an area 8 x 2 Km and range from 40 to 979 ppb with several samples in the 500 ppb (0.5 gpt) range.
The current claims cover 2400 hectares (6000 acres), however, the Agreement includes a three kilometre area of mutual interest within which any property interest or mineral right acquired by either Company shall become part of the Agreement.
Hecla contacted Candente in early 2002 when Hecla chose to reduce exploration in Peru in order to focus exploration efforts on the highly successful gold and gold-silver projects La Camora in Venezuela and San Sebastian in Mexico. The two companies have recently signed an option Agreement whereby Candente can earn 100% interest in the Alto Dorado Gold Property from Hecla by: paying all vigencia fees as required by Peruvian law; funding and carrying out applications for all exploration permits and approvals at all stages of exploration and development; issuing 100,000 shares over four years; and paying to Hecla a Net Smelter Return (NSR) equal to two and one-half percent (2.5%). If Candente sells any interest in the Claims to another party, 25% of any cash payment or shares of any company (less annual vigencia payments) will be paid to Hecla within the first year; 20% in the second year, 15% in the third year and 10% in the fourth year. The NSR can be reduced from 2.5% to 1.0%, by paying to Hecla the sum of US$1,500,000. The cash equivalent value of any consideration paid to Hecla by Candente as above will be applied to the NSR buyout.
Hecla Mining Company, headquartered in Coeur d'Alene, Idaho, mines and processes silver and gold in the United States, Venezuela and Mexico. A 111-year-old company, Hecla has long been well known in the mining world and financial markets as a quality silver and gold producer. Hecla's common and preferred shares are traded on the New York Stock Exchange under the symbols HL and HL-PrB.
Candente is a junior exploration company focused on the acquisition, exploration and development of world-class gold and copper projects in Peru and Eastern Canada. Management has a track record of gold discoveries, extensive experience in Peru and internationally. Candente's common shares are traded on the TSX Venture Exchange under the trading symbol DNT.
On another matter, Candente's management would like to invite you to come and meet Joanne C. Freeze, President & CEO and other Company personnel at the following conferences: Calgary Investment Conference, Oct. 5/6 in Calgary, AB; Chicago Natural Resource and Technology Exhibition and Conference, Oct. 26 in Chicago, IL; New Orleans Investment Conference, Nov. 7-10 in New Orleans, LA; and International Investment Conference, Dec.1/2 in San Francisco, CA.
For further details about Candente Resource Corp. please contact us at: 1-877-689-1964 or 604-689-1957 or investor@candente.com or visit our website at http://www.candente.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"Joanne C. Freeze"
Joanne Freeze, P. Geo., President & CEO
Candente Resource Corp.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. 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.