Vancouver, British Columbia, August 10th, 2006. Candente Resource Corp. (DNT:TSX) ("Candente") is pleased to report that recent drilling has expanded the higher grade core and increased the total size of the known copper (Cu) deposit at Cañariaco Norte in Northern Peru. The higher grade core has been expanded to a 15.2 hectare surface expression which is 23% of the surface expression of the 489 million tonne inferred resource grading 0.45% Cu (4.8 billion lb Cu) estimated to date. This portion of the deposit has an average grade of 0.76% Cu with 73% of the Cu comprising highly leachable chalcocite and copper oxides.
A total of seventeen drill holes (5088 metres) have been completed (in Phase III) since the updated inferred resource estimate of 489 million tonnes was completed and copper (Cu) results have been received for the first six holes. All of the six holes have significant Cu intersections, but hole 06-042 is of particular interest as it extends the higher grade core. Hole 06-042 intersected 27m averaging 1.26% Cu within 165m averaging 0.76% Cu and a larger zone of 304m averaging 0.64 % Cu.
A Preliminary Assessment and Economic Evaluation (PAEE) on the Cañariaco Norte deposit in Northern Peru was completed by Merit Consultants International Inc. (Merit) on June 26th, 2006. Payback on Capital Expenditures is estimated to be 5 years at $1.25 Cu, 3 years at $1.50 and 1 year at $3.00 Cu. Using a price of $2.00 per lb copper and an 8% discount rate, Merit estimated the following:
- Total cash flow of approximately US$1.9 Billion
- Annual cash flow of an average US$76 M over the 25 year life of mine
Phase III Drill Results
| Hole No. | From | To | Interval | Copper Grade | % Chalcocite | |
| (m) | (m) | Metres | Feet | (%) | & Oxide | |
| 06-037 | 0 | 350* | 350 | 1148 | 0.47 | 36 |
| includes | 47 | 65 | 18 | 59 | 0.52 | 73 |
| 06-038 | 0 | 55 | 55 | 180 | Leach Cap | N/A |
| 55 | 281* | 226 | 741 | 0.39 | 55 | |
| includes | 55 | 65 | 10 | 33 | 0.56 | 80 |
| includes | 105 | 281 | 176 | 577 | 0.41 | 60 |
| 06-039 | 0 | 51 | 51 | 167 | Leach Cap | N/A |
| 51 | 299* | 248 | 813 | 0.42 | 55 | |
| includes | 51 | 166 | 115 | 377 | 0.43 | 86 |
| includes | 232 | 242 | 10 | 33 | 0.50 | 82 |
| 06-040 | 0 | 63 | 63 | 207 | Leach Cap | N/A |
| 63 | 248* | 185 | 607 | 0.27 | 56 | |
| includes | 63 | 184 | 121 | 397 | 0.36 | 77 |
| 06-041 | 0 | 24 | 24 | 79 | Leach Cap | N/A |
| 24 | 349* | 281** | 922 | 0.47 | 83 | |
| includes | 331 | 349 | 18 | 59 | 0.78 | 94 |
| 06-042 | 0 | 18 | 18 | 59 | Leach Cap | N/A |
| 18 | 351* | 304** | 997 | 0.64 | 72 | |
| includes | 127 | 291 | 164 | 538 | 0.76 | 76 |
| includes | 180 | 207 | 27 | 89 | 1.26 | 87 |
The resource estimate that was used for the PAEE is classified as an Inferred Mineral Resource, consistent with the CIM definitions referred to in NI 43-101. Mineral resources, which are not mineral reserves, have not demonstrated economic viability. Candente is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issues which may materially affect its estimate of mineral resources.
Complete results, maps, cross-sections and all reports can be viewed at: http://www.candente.com/s/PeruProjects_Canariaco.asp.
Sampling and analytical procedures conform to NI 43-101 standards and are detailed in a previous Candente news release dated September 16, 2004. All samples were submitted to Actlabs in Lima, Peru. Michael J. Casselman, M.Sc., P.Geo. General Manager Exploration and Director, Robert van Egmond, P.Geo., Senior Geologist and Joanne C. Freeze, P.Geo., President and CEO, are the Qualified Persons as defined by NI 43-101 for the project discussed above and Joanne Freeze has read and approved the contents of this release.
Candente is a diversified exploration company with copper, gold, silver, and zinc projects in Peru and Mexico. Candente subscribes to principles, which ensure that its exploration and development activities are beneficial to the local communities.
Joanne Freeze, P. Geo.
President & CEO
Release No. 175
For further information please contact:
Kelly Gray or Evelyn Cox
(604) 689-1957 or toll free 1-877-689-1964
E-mail: info@candente.com
www.candente.com
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.