The estimate was based on 15 drill holes in the eastern area of a large geochemical anomaly - which extends several hundred metres - where high-grade phyllic-style copper-gold mineralisation was intersected.

Further drilling was planned for the west and southwestern sides, as well as the Quebrada Verde porphyry target, which remains undrilled.

Candente Copper's president and CEO Joanne Freeze said Canariaco Sur had the potential to add significant value to the resources at Canariaco Norte, which lies 2km to the northeast.

"This deposit contains higher levels of gold and molybdenum than Canariaco Norte, minimal aersenic levels and mineralisation that starts at surface," she added.

Candente Copper also announced the mineral resource had been updated for its Canariaco Norte deposit to 2.66Blb of copper and 0.55Moz of gold, as its 2022 preliminary economic assessment (PEA) neared completion.

While Peru remained a powerhouse for copper production, exploration faltered in recent years as explorers pushed further into remote areas and faced resistance from local communities. Candente Copper was one of the companies that struggled to fund ongoing work during this time and the Canariaco Norte project was stalled at the feasibility stage for close to a decade.

However, the company made progress in September last year with the start of the updated PEA study.  

Candente Copper last traded on January 28 on the Toronto Stock Exchange at C$0.225/share. Prices have hovered slightly above the C$0.20 mark since the start of the year.