Corporate Update and Engineering Study Proposals under Evaluation
23 February 2021 - 12:00AM
Candente Copper Corp. (TSX:DNT, BVL:DNT) ("Candente Copper”,
“Company”) is pleased to announce that it has received and is
reviewing proposals from two internationally acclaimed engineering
firms for engineering studies to identify and define various value
add options for the development of the Cañariaco Project.
The first goal of the engineering study is to
define/identify a smaller, higher grade, start up option for
Cañariaco with a smaller initial capital expenditure (“CapEx”) and
accelerated payback period. This is expected to be able to be
permitted and financed to production more quickly than the larger
option. The intention would be that once the development capital is
paid back, the smaller operation could then be expanded to fully
recognize the value of the large copper-gold resource that exists
at Cañariaco.
The second goal is to explore other potential
options with a mind to establish both cost efficiencies and
environmental, social and governance (“ESG”) friendly development
options. Current industry wide ESG initiatives and responsible
investing is driving innovation in environmentally friendly,
sustainable development and finance products. This innovation has
been accelerated by the COVID-19 pandemic and increased urgency
around the 17 UN Sustainable Development Goals, resulting in many
new development options to consider now.
“We are very excited to see the results of the
new engineering studies and the extra value they can help us unlock
in Cañariaco,” comments Joanne Freeze.
The engineering studies will commence with Desk
Top Conceptual Studies which will focus on optimizing the block
model of the mineral resource with the goal of developing a new
mine plan targeting on higher grade portions of the deposit for the
early years. Then various other aspects of the development will
then also be reviewed. Assuming favourable results from the Desk
Top Conceptual Studies, the Company could move into a Preliminary
Economic Assessment (“PEA”) on the Revised Project Concept. The
Desk Top Conceptual Studies are expected to take approximately 6
weeks to complete with a subsequent PEA expected to take an
additional 4 months. The Company is fully funded for this
work.
Extensive prefeasibility and feasibility level
engineering as well as environmental and social work has been
completed in the past for Cañariaco. This data will provide a solid
basis and should prove to be beneficial as we progress with new
studies to assess both a smaller project and opportunities for
project optimization.
The Company is also pleased to advise that most
of the previous debt has been settled and/or repaid over the past
12 months such that payables are now less than $300,000 and are
limited to accrued fees for current and previous management and a
few vendors. As part of this, Restricted Share Units (“RSU’s”) were
granted to current and previous management in 2020 and have now
fully vested.
About Candente CopperCandente
Copper is a mineral exploration company engaged in the acquisition,
exploration, and development of mineral properties. The Company is
currently focused on its 100% owned Cañariaco project, which
includes the Feasibility stage Cañariaco Norte deposit as well as
the Cañariaco Sur deposit and Quebrada Verde prospect, located
within the western Cordillera of the Peruvian Andes in the
Department of Lambayeque in Northern Peru.
Please see
https://www.candentecopper.com/investors/presentations for details
from previous resource and engineering studies which delineated 9B
lbs copper, 2M oz gold and 54M oz silver in: Measured and Indicated
Resources of 752.4 million tonnes grading 0.45% copper, 0.07 grams
per tonne (“g/t”) gold and 1.9 g/t silver (0.52% Cu equivalent)
containing 7.533 B lb Cu, 1.67 M oz Au and 45.24 M oz Ag and
Inferred Resources of 157.7 million tonnes grading 0.44% copper,
0.06 g/t gold and 1.8 g/t silver containing 1.434 B lb Cu, 0.3M oz
Au and 8.932 M oz Ag.
Details from the Cañariaco Norte Copper Project
Pre-Feasibility Study Progress Report available at
https://www.candentecopper.com/site/assets/files/5389/canariaco-pfs.pdf
estimate NPVs and IRRs of $1.06B and 17.5% at $2.50 Cu and $1.56B
and 21.5% at $2.90 Cu. The Incentive Price for Cañariaco Norte is
in the lowest quartile of top 84 copper projects worldwide named by
Goldman Sachs. Cash Costs are also in lowest quartile of the copper
industry.
Joanne C. Freeze, P.Geo., CEO, is the Qualified
Person as defined by National Instrument 43-101 for the projects
discussed above. She has reviewed and approved the contents of this
release.This news release may contain forward-looking statements
including but not limited to comments regarding 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 Copper relies upon litigation protection for
forward-looking statements.
On behalf of the Board of Candente
Copper Corp.
“Joanne C. Freeze” P.Geo.President, CEO and
Director___________________________________For further information
please contact:
info@candentecopper.comwww.candentecopper.com
NR-126
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