VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 30, 2012) - Candente Copper Corp. (DNT.TO - News)(DNT.TO - News)(CCOXF.PK - News) ("the Company ") provides the following update on the status of the Company obtaining a surface rights access agreement for the Canariaco Project in Peru.
The Company has made a proposal to the surface rights holders, the Community of Kanaris (the "Community"), for a three year surface access rights agreement during which it plans to have an Environmental and Social Impact Assessment ("ESIA"), Feasibility Studies and further exploration of the Canariaco Property completed.
Under Community Law in Peru, such an agreement can only be accepted during a General Assembly meeting of the Community. For reasons not disclosed, the President of the Community, Cristobal Barrios, has to date failed to call for a General Assembly meeting to vote upon the approval of the proposed surface rights agreement. On April 2nd, 2012 a petition signed by over 1,000 Community members (representing more than 30% of the registered voters in the Community) was delivered to Mr. Barrios by a Judge. The petition demanded that Mr. Barrios, by April 14th, 2012 either choose a date and call the General Assembly meeting to vote upon the approval of the surface rights access agreement with the Company or the Judge would have the right to call the General Assembly meeting directly. On April 15th, 2012 a meeting was held by Mr. Barrios (the Company was not invited) during which he informed the Community that he was choosing to ignore the petition demanding the calling of a General Assembly meeting. Instead Mr. Barrios called for a different kind of meeting to be held on July 15th, 2012, which he called a "Consulta Popular" ("Consulta"). It has been reported that a Judge advised the Community during the meeting that the President was blatantly ignoring Community Law and their right to a democratic process, and in doing so his proposed Consulta was illegally called for and has no legal basis.
In addition to the illegal manner in which the Consulta was called for, Peruvian legal counsel advises that there is no legal framework within Peruvian Community Law, Peruvian Federal Law nor Peruvian Mining regulations for calling such a Consulta meeting.
The Consulta as called for by Mr. Barrios is not the new Consulta Previa procedure, which has recently come into effect in Peru and is meant to ensure that Indigenous communities are well informed of all the various aspects of mining projects in their communities. Consulta Previa must be called for by the Peruvian Regional or Central Government and will likely (the specific regulations are not in place yet) be called once the Environmental and Social Impact ("ESIA") and Feasibility Studies are completed and an acceptable Mine Plan has been proposed. The Canariaco Project is currently in the exploration, Feasibility Study and ESIA preparation stage.
The Company has also been informed that various members of the Community have asked the Peruvian Defensoria del Pueblo (Ombudsmen) to review the situation and advise, given that more than 1,000 people have formally requested the General Assembly meeting to be called to vote upon the approval of the proposed surface rights access agreement with the Company and the Consulta called for by Mr. Barrios has not been legally called for.
The Company understands that the Judge will now be calling the General Assembly meeting directly and that Community members are taking legal actions to stop Mr. Barrios' illegal Consulta from taking place.
The Company appreciates the Community's demand to follow appropriate legal protocol and looks forward to a timely resolution of this issue.
About Candente Copper
Candente Copper's flagship project is the 100% owned, 7.5 billion pound, Feasibility stage Canariaco Norte Copper Project located in northern Peru's prolific mining district. The Canariaco Norte deposit contains a Measured and Indicated resource of 752.4 million tonnes grading 0.49% copper equivalent(i) and an Inferred Resource of 157.7 million tonnes at 0.44% copper equivalent(i).
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 March 2008. (i)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: 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.
This news release may contain forward-looking information including but not limited to comments regarding the timing and completion of ESIA and feasibility studies. Forward-looking information addresses future events and conditions and therefore involves inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such forward looking information. The Company relies upon litigation protection for forward-looking information.
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.
On behalf of the Board of Candente Copper Corp.
Sean Waller, P.Eng., President & Director
- Community Law
Candente Copper Corp.
local: + 1 (604) 689-1957 ext 2
toll free: 1 (877) 689-1964 ext 2
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Walter Spagnuolo, Manager, Investor Relations
Candente Copper Corp.
mobile: +1 (604) 306-8477
local: + 1 (604) 689-1957 ext 3