Zahena plans to drill a minimum of 3,000 metres ("m") and possibly 5,000m by the end of 2016. A second drill is currently being mobilized to the project. Drill holes are planned to extend to depths of 600m to 800m. "We are very excited that drilling at Arikepay is underway," commented Joanne Freeze, P.Geo., Candente Copper's CEO. "The drill depths anticipated by Zahena will be at least 300m to 500m deeper than the Company's initial reverse circulation ("RC") drilling program and will provide an excellent deep test of the robust Arikepay porphyry system."
Candente Copper drilled 3,630m in 14 widely spaced RC holes to a maximum machine depth of 300m in 2012. The drilling in 2012 defined a mineralized porphyry system that extends laterally at least 2,200m by 700m to 1,200m and vertically to a depth of at least 300m. Within the mineralized porphyry system is a zone of significant copper, gold and silver mineralization that measures approximately 1,200m by 800m and is open to depth. Approximately two-thirds of the mineralized porphyry system is covered by recent gravel cover deposits.
Zahena has the right to earn up to 100% interest in the Arikepay property from Candente Copper by completing the following terms:
Zahena can earn a 75% interest in Arikepay by making US$5 million ("M") in exploration expenditures and US$4M in payments to Candente within 4 years ("First Option").
Upon completion of the First Option, Zahena can earn an additional 25% interest, by completing a bankable feasibility study and by paying Candente US$10M within 5 years of earning its initial 75% interest ("Second Option"). Completion of the Second Option would result in Zahena earning 100% interest in Arikepay subject to a 2% Net Smelter Return ("NSR") to Candente. A final payment of USD$5M would be made to Candente 60 days from the start of commercial production or within 4 years of completion of the bankable feasibility study, whichever occurs first. Payments for First and Second Option total US$19M.
Zahena would retain the right to purchase 1% of the NSR for an additional USD$5M at any time up to 60 days from the start of commercial production, leaving Candente with a 1% NSR.
USD$50,000 was received by Cobriza Metals, (a subsidiary of the Company) upon signing the Agreement (on November 28, 2013), and a USD$200,000 first anniversary payment was received by the Company in March, 2016. Payments of $750,000, $1,000,000 and $2,000,000 are due on March 13 of 2017, 2018 and 2019, respectively .
About Candente Copper
Candente Copper is a mineral exploration company engaged in 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 where additional drilling could increase resources and identify stand-alone new deposits, located within the western Cordillera of the Peruvian Andes in the Department of Lambayeque in Northern Peru.
Joanne C. Freeze, P.Geo., CEO, and Michael Thicke, P.Geo., VP Exploration, 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. 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.
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.
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Manager, Investor Relations
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