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July 3, 2007
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Candente Resource Corp. and Canaco Resources Inc.: Gold & Silver Intersected by
Drilling at El Oro, Mexico
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 3, 2007) - Candente Resource Corp. (TSX:DNT)(BVL:DNT)(WKN:GW4) (Candente) and Canaco Resources Inc. (TSX VENTURE:CAN) (Canaco) are pleased to announce that drilling has intersected 2.90 metres (m) of 7.79 grams per tonne (g/t) gold & 8.13 g/t silver below the deepest known historical level of mining on the El Oro gold-silver property in Central Mexico.
Two of 13 drill holes planned for the Phase I drill program on the El Oro property have been completed and drilling continues. Both holes targeted down-dip extensions of the San Rafael Vein. Drill hole VSR-07-02 intersected mineralized tuff breccia and several quartz and quartz-carbonate veins. One of the vein and mineral intercepts, 2.90 m of 7.79 g/t gold & 8.13 g/t silver, is interpreted to be the down-dip extension of the San Rafael vein at a depth approximately 20 m below the deepest known level of previous mining. A compilation of mining records in the El Oro camp has identified the most productive areas within the four main veins and suggests that these veins remain open to a depth below previous levels of mining. The presence of the San Rafael vein and mineralization intersected in drill hole VSR-07-02 confirms this assumption.
One of the other most significant intercepts in drill hole VSR-07-02 is high grade silver mineralization of 1330 g/t over 3.05 m within a zone containing 726.38 g/t over 5.60 m. The significance of this intersection is unclear as it could represent a new discovery (vein) but it also could be associated with the historic workings of the Nueva Vein. If it is associated with historic workings it may represent material left behind and/or wall rock, or some combination thereof. The Nueva Vein is located in the hanging wall of the San Rafael Vein.
Significant drill intercepts:
Estim-
Drill ated
inters- true
Drill From To ection width Au Ag
Hole Description (m) (m) (m) (m) (g/t) (g/t)
VSR-07-02 Tuff breccia 251.65 308.30 56.65 54.95 0.22 2.02
VSR-07-02 Underground working 386.85 392.45 5.60 3.98 0.09 726.38
(incl.) 389.40 392.45 3.05 2.17 0.06 1330.00
VSR-07-02 Quartz-carbonate vein 469.55 469.80 0.25 0.18 4.19 27.20
VSR-07-02 Quartz-carbonate vein 563.15 564.45 1.30 0.92 1.87 26.12
VSR-07-02 Quartz-carbonate vein 566.25 569.30 3.05 2.17 0.63 12.40
VSR-07-02 Quartz-carbonate vein 572.70 573.05 0.35 0.25 12.60 216.00
VSR-07-02 Quartz-carbonate vein 594.40 595.30 0.90 0.64 7.34 50.90
VSR-07-02 Quartz-carbonate vein 640.95 643.40 2.45 1.74 0.15 10.94
VSR-07-02 Quartz vein. Down dip
extension of San 666.35 673.55 7.20 5.11 3.45 4.9
Rafael Vein
(incl.) 666.35 669.25 2.90 2.06 7.79 8.13Mining of the veins in the El Oro camp is reported to have stopped for financial reasons (see below(i)) and not due to lack of ore. The San Rafael vein is reported to have produced in excess of 5 million gold equivalent ounces (oz) over 45 years from 11.9 million tonnes (Mt) of ore with an average production grade of 10.8 grams gold per tonne (g/t Au) and 115 grams silver per tonne (g/t Ag) over an average width of 10 m. The Verde vein is reported to have produced in excess of 3 million gold equivalent ounces from 6.3 Mt of ore with an average production grade of 12.0 g/t Au and 160 g/t Ag over an average width of 5-10 m. In the San Rafael vein production occurred over a vertical depth of 250 m and over a strike length approaching 3.5 kilometres (km). In the Verde vein, production occurred over a vertical depth of up to 240 m and over a strike length of approximately 2 km. The average vertical depth for gold and silver production in veins in Mexico is understood to be 450 metres.
The veins on the El Oro property have been worked since the late 1700's. The height of mining activity began in 1904 with the Gold Mining & Railway Company. For 33 years four companies produced gold and silver, predominantly from the San Rafael and Verde veins. In excess of 18.2 million tonnes grading 11.1 grams gold and 131 grams silver were produced. In 1938, all of the mines and properties were acquired by the Las Dos Estrellas Mining Company. Shortly thereafter, a tailings dam collapsed and compensation costs bankrupted(i) the Las Dos Estrellas Mining Co. For this reason the properties were transferred to the workers who formed a consortium with the government and continued to operate the mines predominantly as a salvage operation, mining pillars and backfill. This proved to be very costly and resulted in closure of the mines in 1959.
The El Oro Mines have collectively been described as some of the most significant high-grade, gold-silver producers in the history of Mexican mining, with past production of approximately 20 million gold equivalent ounces. El Oro hosts the largest known vein systems in the region with past production from veins varying between 1 and 70 m in width.
The Oriente area drill target is the eastern extension of the prolific El Oro ore-shoot trend. It has had no mining and little exploration and is mostly covered by younger Tertiary volcanic rocks, which mask favourable host rocks and potential veins. Seven exposures of the favourable host rocks have been found within these younger volcanics and five of these have alteration and quartz-calcite veining and stockwork typical of the El Oro gold-silver veins. The veins and stockwork are hosted in the older Cretaceous andesitic volcanics which overlie the common host rocks (sediments) to the prolific veins. Geological mapping and data compilation in the Oriente area has identified 6 drill targets to date. A NSAMT geophysical survey has also been carried out over the Oriente area to assist in the identification of potential new veins. The NSAMT final report and recommendations are expected to be received soon.
The Option agreement, entered into jointly (50/50) by Canaco and Candente, gives the combined companies the right to earn up to a seventy percent (70%) interest in the El Oro property which comprises all of the 24 El Oro exploration and mining concessions (14,950 hectares), held by Luismin (See News Release 166, dated May 12th, 2006). Funds are in place for completion of the Phase I drilling and all year one option obligations.
Major Drilling de Mexico, S.A. de C.V. was contracted to carry out the drilling program. They have supplied a truck mounted UDR 650 drill rig capable of performing RC drilling as well as core drilling with HQ, NQ, and BQ diameters. Drill core is cut on site using a rock saw. Half of the core samples are submitted to the assay lab for analysis while the remainder is stored in core boxes for future reference. A QA/QC program involving the use of 3 standard samples and a blank has been incorporated into the sampling regime for the project.
Samples are sent to ALS-Chemex Laboratories, an internationally recognized assay service provider. Sample preparation is done in Guadalajara, Mexico and analysis using ME-ICP41m, AA-AA24 in North Vancouver, Canada.
Additional information on the companies and the El Oro property is available at www.candente.com and www.canaco.ca.
Candente and Canaco have chosen to jointly explore at El Oro to take advantage of the companies combined abilities and successful track records in exploration, discovery, project development and mining operations. The companies have formed a Mexican subsidiary named Minera CCM SA de CV to operate this joint venture. Piotr Lutynski, P.Eng. Consultant, Michael J. Casselman, P.Geo. and Director, Candente and Andrew Lee Smith, P.Geo. Chairman and CEO, Canaco, are the Qualified Persons as defined by NI 43-101 for the project discussed above and they have read and approved the contents of this release.
Joanne C. Freeze, P.Geo., President and CEO, Candente
Andrew Lee Smith, P.Geo., Chairman and CEO, Canaco
NR217
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.
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. Canaco relies upon litigation protection for forward-looking statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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