Caņariaco Norte is a 100% owned feasibility-stage porphyry copper deposit within a prolific trend of producing mines and known deposits in northern Peru.
Since 2004, Candente Copper has drilled more than 72,000m in over 240 drill holes to define a 7.5B pounds Measured and Indicated, plus 1.4B pounds Inferred Porphyry Copper Deposit, with excellent expansion potential through two nearby, 100% owned porphyry targets.
In March 2011 the full Pre-Feasibility Study progress report was completed and returned exceptional economics, with an after-tax (restated in Nov 2011 following changes to the Peruvian mining taxation laws) Net Present Value of US$912M, an Internal Rate of Return of 17.2%, and a payback period of 4.4 years using the base case US$2.25 copper and an 8% discount rate.
A Feasibility Study was initiated on the Caņariaco Norte project in April 2011 and is well underway
Caņariaco Norte Copper Deposit location map (click to enlarge)
A portion of the Caņariaco Norte Copper Deposit with selected drill holes collars superimposed (click to enlarge)
Resources
The Caņariaco Norte Copper Deposit is a single, contiguous, open-pit mineable deposit containing:
- Measured and Indicated Resources
752.4 million tonnes grading 0.45% copper containing 7.533 billion pounds of copper
- Inferred Resources
157.7 million tonnes grading 0.41% copper containing 1.434 billion pounds of copper
Caņariaco Norte
0.30% Cutoff |
Contained Metal |
Resource
Classification |
tonnes
(M) |
Cu Eq* |
Cu Eq** |
Cu |
Au
(g/t) |
Ag
(g/t) |
Copper
(B lbs) |
Gold
(M Ozs) |
Silver
(M Ozs) |
Measured |
338.1 |
0.55% |
0.52% |
0.48% |
0.08 |
2.0 |
3.587 |
0.870 |
21.635 |
Indicated |
414.3 |
0.49% |
0.46% |
0.43% |
0.06 |
1.8 |
3.945 |
0.799 |
23.602 |
Measured+
Indicated |
752.4 |
0.52% |
0.49% |
0.45% |
0.07 |
1.9 |
7.533 |
1.669 |
45.237 |
Inferred |
157.7 |
0.47% |
0.44% |
0.41% |
0.06 |
1.8 |
1.434 |
0.304 |
8.932 |
Caņariaco Norte Mineral Resource Estimate at the Base Case 0.30% Copper Cut-off Grade
(refer to DNT NR 010 for details)
Caņariaco Norte Mineral Resource Block Model with 22 and 33 year Pit Shell Outlines (click to enlarge)
Pre-Feasibility Study Progress Report - Completed March 2011
- NPV of US $912M and IRR of 17.2% (using US$2.25 copper and an 8% discount rate)
- Payback of preproduction capital in 4.4 years (after-tax)
- Copper Production of 262,000,000 pounds per year
- Initial Mine life of 22 years+
- Throughput rate of 95,000 tonnes per day
- Operating costs of US$0.988 per pound of copper (including onsite/offsite costs, taxes and byproduct credits)
- Minimal infrastructure required, excellent locations for all site facilities, close to existing highway (42km away) and power grid (57km away) & abundant water at site
- Very strong community & regional support
Caņariaco Norte location and Regional Infrastructure (click to enlarge)
Expansion Potential of Caņariaco Norte
On March 22, 2011 it was announced that a Phase I program of 10 diamond drill holes on Caņariaco Sur and 5 diamond drill holes on Quebrada Verde is planned for 2011 to test the continuity and extent of copper and gold mineralization away from that intersected in previous drilling, and to collect sufficient data for an initial resource estimate.
Caņariaco Norte, Caņariaco Sur and Quebrada Verde relative location and Geochemical / Geophysical Targets (click to enlarge)
Caņariaco Sur
- Located only 1,300m south of Caņariaco Norte, Caņariaco Sur contains a discreet, highly anomalous zone of copper, gold and molybdenum in soil geochemistry coincident with IP and ground magnetic anomalies.
- Very limited previous drilling (5 holes) at Caņariaco Sur intersected porphyry style mineralization, with one of the drill holes intersecting over 350m of 0.35% copper, 0.15g/t gold, and 1.4 g/t silver. A significant difference has been noted between the mineralization encountered in drilling to date at Caņariaco Sur from that at Caņariaco Norte, namely the higher gold content of >0.1 g/t at Caņariaco Sur versus <0.1 g/t at Caņariaco Norte.
(More details available on the Caņariaco Sur Project Page)
Quebrada Verde
- Located 3.5km south of the Caņariaco Norte deposit and immediately south-southwest of Caņariaco Sur, Quebrada Verde is the third porphyry target with excellent copper-gold soil geochemistry and strong coincident geophysical anomalies, such as large IP chargeability high centered on a resistivity anomaly over area of 0.8km by 2.0km.
(More details available on the Quebrada Verde Project Page)
*Copper equivalent grade including gold and silver values and based on 100% metal recoveries. Copper grade equivalent calculation. Cu Eq% =(Cu % + ((Au grade x Au price)+(Ag grade x Ag price))/(22.0462 x Cu price x 31.0135 g/t)
**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%)
