Mining MarketWatch CDO.V Review

Figure 1. Subject Company's Logo

Candorado Operating Company Ltd. is a Canadian-based mineral exploration mining company listed on the TSX Venture Exchange (ticker symbol CDO) (Frankfurt: HQU) (US Listing: CDOOF). The Company has come to our attention due, in part, to the exceptional opportunity afforded shareholders as CDO.V is focused on three alkalic copper-gold porphyry projects in British Columbia, Canada ripe with potential.

Each project offers major copper-gold porphyry discovery potential and potential catalysts on three key fronts make CDO.V an undervalued and exceptional risk-reward scenario. Mining MarketWatch provides insight into each of these:

1) Eldorado Project, Stikine Terrane, BC (100% owned) adjacent to Imperial Metals Red Chris where recent developments have opened the area for rapid development and will see BC's next multi-billion pound copper and multi-million ounce gold mine [see overview below]

2) Man-Prime Project, Quesnel terrane, BC (100% owned) near Princeton. The project was previously owned by two separate companies; the Man and Prime Zones have copper-gold deposits, often with high gold values relative to copper [see overview below]

3) Murphy Lake Project, Quesnel Terrane, BC (100% owned) with key ground that sits within 1 km of Fjordland’s Southeast Zone gold discovery [see overview below]

Neighbouring BC's next multi-billion pound copper & multi-million ounce gold mine

Figure 2. Location Map Located in the Stikine terrane which is generally considered to be the northwesterly extension of the Quesnel terrane. These terranes host most of the alkalic porphyry copper-gold deposits in British Columbia.

The Eldorado property is approximately 10 km to the northeast of the Imperial Metal’s Red Chris copper-gold deposit. Imperial Metals acquired the Red Chris property in 2007 with a 2005 feasibility study on Red Chris sitting at total mineable reserves of 276Mt grading 0.349% copper and 0.266g/t gold equating to 2.123B lb in-situ copper and 2.362M oz in-situ gold, expected to produce more than 116,000 ounces of gold and 54 million kg of copper per year with a 25 year mine life. Since then Imperial has completed successful deep drill programs revealing the potential for high grades beneath their current pit design and rewriting the book on alkalic copper-gold porphyries for the region.

Government commitments to power transmission have been announced and evidence of follow through place the region open for development; the BC Transmission Corp. submitted an application for an environmental assessment certificate at the end of January 2010 and if everything goes ahead as scheduled that the transmission of the NW sector would be likely built in around 2013. Candorado's neighbour Imperial Metals would likely time it so that when the transmission line is complete they would tie into it fairly quickly and open their mine.

Candorado's understanding of the geology is that it is in the same geologic terrane as the Red Chris where the alkalic copper-gold mineralization occurs along the central axis of the altered and fractured Red Stock, associated with quartz (+carbonate) veins and stockwork zones. Eldorado has little outcrop, most of the published maps show cover and thus geophysics must be used to determine the potential in the area. CDO.V has a geophysics program planned for this year.

Amarc Resources (a Hunter Dickerson company) had optioned the Eldorado property in the past and had performed some IP work on the eastern section only. They discovered an IP anomaly and it was open to the west where no surveying was done. The program for CDO.V this year is to extend the IP westward to cover the whole property.

A 1980 reconnaissance drill program comprising of four short holes on the Eldorado cut two 3-metre intersections grading 0.2% copper in two of the holes. Minor auger sampling showed elevated copper anomalies at depth.

Orientation auger and hand-dug pit sampling has demonstrated that copper and gold values can be significantly enhanced at several metres depth. This may be an important exploration tool on the project.

Eldorado is ripe with potential having for the most part never been meaningfully explored and is within the same geologic terrane as Imperial Metals which has recently significantly added to its understanding of the geology on its property; high grade copper and gold occur below the previously delineation reserves.

Salient Details on Eldorado
• Candorado Operating Company Ltd owns 100% of the Eldorado property, subject to a 2% net smelter royalty
• The Property is located in the Stikine Terrane and the exploration target is a alkalic copper-gold porphyry deposit
• All significant previous exploration has been carried out on the largest claim block of the Property, located northeast of the Red Chris deposit

Location, Infrastructure and Resources:
• Property comprises four groups of claims totalling 10 claims and covering 3,278 hectares
• The largest claim block, encompassing 2,828 ha, is located 21 km south-east of Iskut Village in northern BC and 10 km northeast of the Red Chris copper-gold deposit
• Road access is within 4 km to the largest claim block

History:
• Texasgulf Canada carried out geological, geochemical and geophysical surveys in 1976 and 1977
• A grab sample from a small hand dug trench in 1977 yielded 0.12% copper and 0.45 ppm gold
• A 1980 reconnaissance drill program by Esso Resources Canada, comprising of four shallow holes, cut two 3-metre intersections grading 0.2% copper in two of the holes
• In 2004, a work program was conducted by Amarc Resources, including induced polarization (IP), magnetometer and soil geochemistry surveys
• Two IP chargeability anomalies were delineated and are awaiting further interpretation

Geology:
• Situated in the Stikine Terrane, which is generally considered to be the northwesterly extension of the Quesnel Terrane
• These terranes host most of the alkalic copper-gold porphyry deposits in British Columbia
• Most of the Property is overburden covered, which means that geophysics is needed to help discover drill targets

Mineral Occurrences:
• Most of the large claim block is covered by glacial till and hence outcrop exposure is poor
• An orientation auger soil sampling (1980) program showed a depth of at least 12 m to the till-bedrock interface
• In the area of historic work, sulphide mineralization from outcrop, sub-crop and rock chips taken from auger soil sampling, consists mainly of pyrite, with lesser pyrrhotite and chalcopyrite

Recent Developments in the Area:
• Imperial Metals, 10 km southwest of the largest claim block, is developing the Red Chris alkalic copper-gold porphyry deposit

Proposed Exploration:
• Interpretation of 2004 IP and magnetic survey
• Extension of the IP and magnetic geophysical survey to cover the entire large claim block

2) Man-Prime Project - Southern end of Quesnel Terrane BC, Canada near Princeton, 100% CDO.V Owned (1.25% NSR)

Figure 3. 2007 Man-Prime Drilling

The Man-Prime Project is 36 km north of Princeton in south-central British Columbia and covers 15 km² east of Missezula Lake on the Thompson Plateau. The property has good access by a network of logging and exploration roads.

The Man-Prime is the most advanced project of Candorado and the 2007 drilling results fit very well the model for the type of copper-gold deposits similar to nearby Copper Mountain. Copper Mountain Mining, 50 km south of the property, currently has a mineral measured plus indicated resource of 206 million tonnes grading 0.37% copper, at a 0.20% cut-off and produced 1.7 billion pounds of copper, 700,000 ounces of gold and 9 million ounces of silver from underground and then later five separate pit areas, between 1927 and 1996. The Copper Mountain alkalic porphyry copper-gold camp is part of a northerly trending Mesozoic tectonostratigraphic terrane termed Quesnellia (or Quesnel Terrane or Quesnel Trough), composed of a volcanic arc with overlying sedimentary sequences, all of which were built on top of a deformed, oceanic sedimentary-volcanic complex. The principle rock formation of Quesnellia is the Late Triassic Nicola Group, a predominately subaqueous island-arc assemblage that has been intruded by late Triassic to early Jurassic alkalic, calc-alkalic and mafic plutons and batholiths. The Quesnel Trough forms a 25± km wide band that extends from the Canada-U.S. border north to northern BC, an area which encompasses the Man-Prime Project, as well as the Murphy Lake.

Man-Prime was in the past often owned/explored by separate companies; it is now combined as one property 100% owned by Candorado. The Man Zone has a copper-gold deposit with high gold values relative to copper; several holes were drilled in 2007 with the best hole 120 m of 0.92 g/t gold and 0.21 % copper. Right now, according to Mining MarketWatch, the mineralized deposit area seems to be about 200 m by 300 m. CDO.V also has the benefit of core from the past operator that was only partially logged, split and analysed. This represents a significant value of core that can be analysed at a nominal cost to Candorado. This might offer some surprises and certainly should add insight/value and add to the Man side of the picture, especially knowing Man has encountered relatively high gold values. Candorado has spent about $1.4M on exploration on the property.

On the Prime Zone, Candorado did rock chip sampling in an old trench over 24 m that averaged 0.7% copper and 0.25 g/t gold, soil geochemistry, geological mapping and an IP survey. That IP data have been sent to a specialist in Denver for expert interpretation -- results are expected back in early Q2 2010.

Prime section highly prospective for sizeable Gold-Copper porphyry and CDO.V is ready to seriously work the property

From historic holes on the Prime section Candorado has the promise that they will be able to put a much larger picture together. The situation is different on the ground in the Prime section compared to Man (where gold values were higher than norm and copper was lower); a past operator in ~1990 on Prime had done a number of rotary drill holes and every drill hole ended in ~.4+ copper. That operator was so enthralled with what they had found and believed to be on the Prime section they commissioned 90 drill paths to be built -- unfortunately the market evaporated along with them so they were not able to follow through. Canderado is now positioned to seriously start working the property where they left off; Candorado did a trenching chip sampling program over 27m which averaged .7 copper and encountered extreme high gold geochem going up to 2000ppb in the area. Candorado has spent over $2M on the property in work and out of that was an extensive IP with good line spacing. That IP was performed over the whole property has been sent to a specialist in Denver for expert interpretation -- results are expected back in early Q2 2010.

Expectations are that Candorado will be able to drill holes with potentially economic grades over long intersections -- Budget wise drilling is fairly cheap at Man-Prime since it is near Princeton with access from the Coquihalla connector and good logging roads -- CDO.V could customize a work program for $100K (estimated at $200/metre) and get four good holes out of that. Note: Candorado has some flow through in the kitty earmarked for BC which could be used here.

Salient Details on Prime-Man
• Candorado Operating Company Ltd owns 100% of the Man-Prime property, subject to a 1.25% net smelter royalty held by Bearclaw Capital Corporation (BRL-TSX.V)
• The Property is located in the Quesnel Terrane and the exploration target is alkalic copper-gold porphyry deposits

Location, Infrastructure and Resources:
• Property covers 1,544 hectares east of Missezula Lake on the Thompson Plateau of south-central British Columbia
• Property has good access by a network of logging and exploration roads
• Princeton, 36 km to the south, has a history of being a mining town

History:
• Copper-gold mineralization has been known since the 1930s
• Newmont extensively explored the property during the period 1979 to 1981, including soil sampling, geological mapping, induced polarization (IP) and ground magnetometer surveys, trenching and 2,550 metres of diamond drilling
• From 1981 to 1992, further geophysical surveys, soil sampling and 1,508 m of drilling were completed
• Drilling in 1988 by Brican Resources Ltd returned 63.0 m of 0.70% copper in hole 321-01 and 28.0 m of 0.33% copper and 0.57 g/t gold in hole 321-04

Geology:
• Situated within the southern portion of the Quesnel Trough (Terrane) in alkalic volcanic rocks and co-magmatic intrusives of the Triassic Nicola Group
• These rocks host most of the alkalic copper-gold porphyry deposits in British Columbia

Mineral Occurrences:
• Copper sulphide minerals (chalcopyrite, bornite), with potassium feldspar alteration are present in two zones, the Man and the Prime
• Mineralization on the Man Zone is irregularly and discontinuously distributed over an area of moderate chargeability and low resistivity, 350 by 300 metres in size

• Copper-gold mineralization in the eastern half of the Prime Zone is hosted by variably altered volcanic rocks and to a lesser extent by medium-grained monzonite or diorite over an area of approximately 250 by 200 m, which coincides with a northerly trending gold-in-soil geochemical anomaly

• The geology, alteration and mineralization encountered confirm that an alkalic copper-gold porphyry system exists on the property

2007 - 2008 Exploration Program Highlights:
• Candorado carried out an IP geophysical survey, soil sampling and 5,210 m of drilling in 2007/2008
• In 2008 GWR Resources Ltd optioned the property and drilled 1,870 m, but returned the property in 2009
• The GWR drill results are partial as core logging and analysis are not yet completed

Recent Developments in the Area:
• Copper Mountain Mining, 50 km south of the property, has started mine development on the Copper Mountain alkalic copper-gold porphyry deposit

Proposed Exploration:
• The entire Property to be geologically mapped at a scale of no less than 1:2500, and including every natural and man-made outcrop. This work will be integrated with the re-examination of the 2007 and 2008 drill core of both the Prime and the Man Zones
• Re-open, extend, and re-examine old trenches, outline existing geochemical anomalies, and close gaps in the soil grid
• Full interpretation of IP and magnetic surveys
• Further drilling would be contingent on the results of the geochemical, geophysical and geological results outlined above. However, on the Prime Zone drilling is likely to test a soil geochemical anomaly and the zone of mineralization exposed on surface and tested by the 1965-68 drilling.

3) Murphy Lake Project - Quesnel terrane BC, Canada, 100% CDO.V Owned (on key ground)

Figure 4. CDO.V Murphy Project and other claims The property has good access by a network of logging and exploration roads from 100 Mile House, Lac la Hache and Forest Grove.

The Murphy Lake property is situated within the central portion of the Quesnel Terrane in the middle of one of the most prolific regions for alkalic copper-gold porphyry discovery. The property is located in the Cariboo region of British Columbia, 50 km north of 100 Mile House and adjoins the Woodjam property of Fjordland and Cariboo Rose which has recently (~1 year ago) discovered a new porphyry system in the SE zone. The center of this new discovery lies ~1km from the northern boarder of 100% owned Candorado Murphy Lake property claims.

This neighbouring Southeast Zone discovery was under thick overburden that had discouraged exploration activity in the past. It was under 200 feet of glacial till and was found by drilling an IP anomaly that was similar to the anomalies that turned up sizeable deposits on the northern portion of the Woodjam deposit. Mapping or geochemistry is essentially a waist of time in the region, geophysics is the only answer.

Candorado plans to perform recognizance IP from the Fjordland/Cariboo Rose property south ~15km. CDO.V will need to concentrate on the IP in order to identify targets as it too is under a couple hundred feet of glacial till. There are no outcroppings in the area and CDO.V has never had an IP in that area previously nor have they drilled in the past -- the geology is permissive for something being there and anything can happen.

On other parts of the Murphy property CDO.V has developed a good understanding of the geology and is ready to take the property to another level and add significant value.

In the Bluff Lake area, three claims adjoining the Murphy Lake on the north and GWR Resources’ property on the south, has been optioned out. In 2008, four holes were drilled to evaluate a gold soil anomaly. Native (metallic) copper was encountered in all four holes.

Salient Details on Murphy Lake
• Candorado Operating Company Ltd owns 100 % of the Murphy Lake Property, subject to a 2% net smelter royalty on a portion of the Property
• The Property is in the Quesnel Terrane and the exploration target is an alkalic copper-gold porphyry deposit

Location, Infrastructure and Resources:
• The Property is west of Murphy Lake in the Cariboo region of British Columbia, 50 km north of 100 Mile House, and comprises 87 claims encompassing 27,590 hectares
• The Property borders onto GWR Resources' Lac La Hache property to the south, which hosts copper-gold porphyry mineralization at several occurrences
• The Property adjoins the southern boundary of Fjordland and Cariboo Rose Resources’ Woodjam South property. A 2007 IP survey led to the discovery of copper-gold-molybdenum porphyry mineralization in a new area called the Southeast Zone. This zone lies within one km of the Property
• Good access to the Property is provided by a network of logging and exploration roads from 100 Mile House, Lac La Hache and Forest Grove
• 70 Mile House, 100 Mile House and Williams Lake, located along Highway 97 west of the property are resource oriented communities

History:
• Numerous companies have explored the area since 1966. Diamond drilling was performed by Craigmont Mines (1974) and Regional Resources (1995)

Geology:
• Situated within the central portion of the Quesnel Terrane, which is dominated by alkalic and calc-alkalic island-arc volcanics and co-magmatic intrusives of the Triassic Nicola Group
• The Takomkane batholith lies on the eastern margin of the Property. The newly discovered Southeast Zone on the adjacent Woodjam property lies within this intrusion
• Most of the Property in covered in relatively thick overburden, which means that geophysics is needed to help discover drill targets

Mineral Occurrences:
• Several copper showings occur on the Property. In the area of the Murphy Lake Showing, drill core has shown copper mineralization to occur within 10 to 15-cm thick chalcopyrite-chlorite-quartz veins as well as on fine fractures within K-feldspar veins
• The geology, alteration and mineralization encountered confirm that copper-gold alkalic porphyry mineralization exists on the Property

Historic Exploration Results:
• Drilling in 1995 by Regional Resources returned 0.41% Cu over 41.7 m in hole ML95-06, as well as a second zone of 1.14% Cu over 9.3 m. ML-95-1 returned 0.20% Cu across 45 m.

Recent Developments in the Area:
• GWR Resources is continuing exploration its copper-gold porphyry prospect
• Fjordland and Cariboo Rose are planning further exploration at the Southeast Zone on their Woodjam South property
• Gold Fields has optioned the Woodjam North property and is actively exploring the property.

Candorado Exploration Program Highlights:
• In 2004, Candorado carried out an IP survey and a 1,600 m drilling program in nine holes in the area of the Murphy Lake showing
• Candorado confirmed the copper mineralization encountered in the 1995 drill program. Only selected sections of core were sent for analysis; of the core analysed, 0.46% Cu over 14 m in was encountered
• In 2006, a detailed radiometric and magnetic airborne survey was flown over the majority of the Property. Interpretation by R. Shives led to the generation of several geophysical targets
• Exploration in 2007 on the Murphy Lake showing included field examinations of geophysical targets, grid soil surveys and two diamond drill holes. Best intercepts were 781 ppm Cu over 18 m; and 628 ppm Cu over 18 m
• In the area south of Spout Lake, a soil survey, prospecting and rock sampling program in 2007 and 2008 led to the delineation of a copper-in-soil anomaly 500 m in length. Two samples of mineralized intrusive float found in the vicinity assayed 1.59% Cu with 13.2 g/t Ag; and 1.49% Cu with 8.1 g/t Ag
• This work was followed up in 2008 with a 4-hole, 710 m diamond drilling program. All holes intersected zones of disseminated native copper in monzonitic rocks. Best intercept is 0.15% Cu across 2.0 m in BL08-02

Proposed Exploration:
• Conduct an IP-magnetic survey ground survey over the northern part of the Property
• In the Spout Lake area, further prospecting to the east of the copper-in-soil anomaly, in addition to petrographic and trace element analysis of the mineralized core to assist with classifying the mineral deposit type

Historic sampling and drilling on the property yielded indications of reasonable lithium grades and Mineralfields has given CDO.V $350K in hard flow through dollars specifically for the advancement of this prospect.

Candorado is planning to do sampling on outcrops of pegmatite. The lithium is in spodumene crystals which can be various sizes and create a nugget effect -- CDO.V will need to take panel samples across the outcrops and systematically sample them for grades and width. From the historical information and assessment reports to date there appears to be substantial width to the zones. At the time of the previous exploration, it appears that the samples were not analysed for rare earth elements. A diverse array of mineralization and exotic metals are possible to be found in such systems; tests for tantalum, niobium and REEs will be part of the new evaluation.

In mid 2009 Candorado entered into an option agreement with a private party to acquire a 100% interest various claims referred to as the Lake La Motte South Property; the Lake La Motte East Property; the Landrienne South Property; the La Corne Valor East property and the La Corne Valor West Property, near Val D’or, Quebec. The areas of the properties are favorable geological settings for lithium deposits. To date on the La Corne claims, limited exploration results have indicated in some areas widths of lithium-bearing pegmatites in drill holes grading up to 0.2% Li, or about 0.4% Li20. Further exploration is required to evaluate the potential for grades averaging from 1% to 2% Li2O.

Candorado has several projects highly prospective for copper-gold porphyry discovery in BC optioned out and being advanced at no cost to shareholders. These include the aforementioned Bluff Lake project adjacent to the Murphy Project, and the Summer Property (to the south of Murphy Project) where CDO.V has invested close to $500K in soil geochemistry and an IP survey. These are very valuable projects that are being advanced without dilution to shareholders and could have significant payoff.

The Company also has several holding properties, such as the Rayfield Property. Drill holes reveal long intersections of low grade (~0.1%) copper.

Mr. Reed is an executive with 18 years of experience with public and private companies, many of those years with oil & gas and international mining companies. As President for Candorado Operating Company, Mr. Reed's focus is to run the day-to-day operations, administration and investor relations.

Rene Bernard, Director
Mr. Bernard is a director and officer of several public companies, and has a strong business background in a broad base of industries. He is also the Investment Manager for W&S Bernard Investment Ltd., a privately held operator of residential, commercial and retail properties in BC and Alberta.

Mark A. Naylor, Director
Mr. Naylor is a Calgary businessman currently serving as a director of E3 Energie Inc, listed on the TSX Venture Exchange.

Raymond Ashley B.Sc., P.Geoph., Director
Mr. Raymond Ashley B.Sc., P.Geoph. is an internationally recognized geophysicist with 25 years experience in mineral exploration. He has been involved in the management of exploration programs at a number of listed companies including BHP, Dia Met, Trigon Uranium, Trigon Diamonds and Diamondex Resources. Mr. Ashley also brings extensive contacts within the mineral exploration and financing industry to the existing Candorado management team.

For more information contact Candorado Operating Company's head office at: Ph (250).979.2595


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