Coro Provides Projects Update
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 22, 2014) - Coro
Mining Corp. ("Coro" or the "Company") (TSX:COP) is pleased to
provide an update on its projects and strategy for developing a
growth oriented copper mining business in Chile.
Berta Copper Development Project
On November 7th 2013, Coro announced that its subsidiary, SCM
Berta S.A. ("SCMB") and a third party had executed a preliminary
agreement which accompanied SCMB's submission of an Environmental
Impact Declaration ("EID") for the Berta project, located
approximately 20km west of the village of Inca de Oro, in the III
Region of Chile. The agreement contemplates the sale of water to
SCMB and the purchase of pregnant leach solution from SCMB at the
third party's solvent extraction/electro-winning ("SXEW")
operation, for a period of 5 years.
Development of the project would include the construction by
SCMB of a pipeline between Berta and the third party's processing
facilities, as well as a crusher and heap & dump leach pads at
the mine site. Subject to SCMB executing a definitive agreement
with the third party, completing a positive Preliminary Economic
Assessment ("PEA"), receiving an approved EID, and to obtaining
financing for the project, Berta is anticipated to produce
5,000-10,000 tonnes of cathode copper per year.
SCMB is currently 87% owned by Coro and 13% by its partner,
ProPipe, a Chilean engineering company, and ProPipe may increase
its interest to 50% by funding all of the ongoing development
costs, completing the PEA and arranging 100% debt financing,
non-recourse to Coro, for the project.
The EID permitting process is proceeding normally and Coro
anticipates that it should be concluded later this quarter. The
definitive agreement with the owner of the third party plant is
being finalised and is currently going through their internal
approval process. The engineering studies are virtually complete
and Coro anticipates that the PEA may be released once the
definitive agreement between SCMB and the third party is executed,
later this quarter. Negotiations are in progress with the
underlying property owner to defer the final US$2.5m option payment
payable by SCMB in June 2014. Finally, ProPipe is in discussions
with parties interested in financing the project.
Payen Copper-Gold Exploration Project
On October 9th 2013, Coro announced that it had entered into an
agreement with Minera Freeport-McMoRan South America Limitada
(formerly Minera Aurex (Chile) Limitada) ("Freeport SA"), an
indirect subsidiary of Freeport-McMoRan Copper & Gold Inc.,
whereby Freeport SA may exercise an option to acquire up to an 80%
interest in the Payen porphyry copper-gold property. Payen is
located approximately 90km NNE of La Serena, 4km W of the
Panamerican Highway and approximately 47km from the coast, in the
III Region of Chile, at an elevation of 1,100m.
The Payen property is located within the large Pajonales
alteration zone which is part of the 90-110 million year old belt
of porphyry copper-gold deposits which includes Teck's Andacollo
mine, Cemin's Dos Amigos mine, PanAust's Inca de Oro & Carmen
projects and Hot Chili's Frontera project, which is located some
2.5km SE of the Payen property boundary. In a news release of 11th
March 2014, Hot Chili Ltd announced a JORC compliant Indicated
resource for Frontera of 16.1mt at 0.4%Cu + 0.2g/tAu and an
Inferred resource of 34.4mt at 0.4%Cu + 0.2g/tAu.
In 2011-12, reverse circulation drilling of outcropping
potassically altered and quartz stockworked diorite porphyry on the
property intersected encouraging copper-gold mineralization,
results of which were summarized in the Company's news release of
October 17th 2012.
Since execution of the agreement, Freeport SA has completed
surface exploration comprising geophysics, geochemistry and
geological mapping, and has advised Coro that it intends to
initiate a 4000-5000m diamond drilling program later this quarter.
Coro believes that Payen has the potential to host a major
copper-gold porphyry deposit, and we look forward to receiving the
results of the Freeport SA drill program later this year.
San Jorge Copper Development Project
On March 5th 2012, Coro announced the results of a Preliminary
Feasibility Study for its San Jorge project in Argentina, which
comprises a proposed rock quarrying operation in Mendoza province
together with an SXEW plant located in adjacent San Juan province,
for the production of up to 25,000 tonnes per year of copper in
cathode.
On December 9th 2013, Coro announced the execution of a binding
Heads of Agreement with a group comprised of Aterra Investments
Ltd. and Solway Industries Ltd. giving them rights to acquire up to
a 70% interest in the project, with the provision for an early
buy-out of Coro's interest, subject to Coro's retention of a 2.5%
Net Smelter Return on the production of all payable metals from the
project, except gold.
Aterra and Solway have now taken over management of the project,
and the parties are working towards the expeditious execution of a
definitive agreement, which includes a cash payment to Coro of
US$300,000 within 6 months of its signature, and two further
payments of US$500,000 each on the first and second anniversary
dates of signature.
El Desesperado Copper Exploration Project
On February 27th 2014, Coro announced the results of a 5 hole,
1191m diamond drilling program and a 7 hole, 950m reverse
circulation drilling program at the El Desesperado copper project,
located 7 km NW of the city of Calama in the II Region of Chile. A
thorough review of the exploration results concluded that the near
surface mineralization intersected in drilling comprises both
oxidized and enriched structurally controlled mineralization, and
transported exotic copper oxides, but disappointingly of more
limited extent than anticipated. A porphyry copper system may be
present at unknown depth beneath this mineralization, but given the
high risk nature of the target and the cost of testing it, both in
terms of drilling and property payments, Coro has elected to
terminate the option to acquire the property.
Corporate Strategy Update
Using our in-house exploration and development expertise, Coro's
strategy is to grow a mining business in Chile through the
discovery, development and operation of "Coro type" deposits. These
are defined as projects at whatever stage of development that are
well located with respect to infrastructure and water, or to third
party owned plants with spare capacity, and which have the
potential to achieve a short and cost effective timeline to
production. Our preference is for open pit heap leach copper
projects, where we will seek to minimise capital investment rather
than maximise NPV, where we will prioritise profitability over
production rate, and finally, where the likely capital cost is
financeable relative to our market capitalization. Partners will be
sought for any attractive projects identified that we do not have
the financial capacity to develop alone.
Cash Balance
As at March 31st 2014, Coro had a cash balance of US$1.3m. In
addition, the outstanding US$500,000 payment from the sale of the
Chacay property last year is expected to be received later this
quarter or early next.
Alan Stephens, FIMMM, President and CEO, of Coro Mining Corp, a
geologist with more than 38 years of experience, and a Qualified
Person for the purposes of NI 43-101, is responsible for the
contents of this news release.
CORO MINING CORP.
Alan Stephens, President and CEO
About Coro Mining Corp.:
The Company was founded with the goal of building a mining
company focused on base and precious metals deposits in Latin
America. The Company intends to achieve this through the
exploration for, and acquisition of, projects that can be developed
and placed into production in Chile. Coro's properties include the
Berta, Payen, Celeste and Llancahue copper properties in Chile and
the advanced San Jorge copper-gold project, in Argentina.
For further information please visit the Company's website at
www.coromining.com.
This news release includes certain "forward-looking statements"
under applicable Canadian securities legislation. Such
forward-looking statements or information, including but not
limited to those with respect to future transactions involve known
and unknown risks, uncertainties, and other factors which may cause
the actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements or information. Such factors include, among others, the
actual prices of copper, the factual results of current
exploration, development and mining activities, changes in project
parameters as plans continue to be evaluated, as well as those
factors disclosed in the Company's documents filed from time to
time with the securities regulators in the Provinces of British
Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick,
Nova Scotia, Prince Edward Island and Newfoundland and
Labrador.
Coro Mining Corp.Michael PhilpotExecutive Vice-President(604)
682 5546investor.info@coromining.comwww.coromining.com
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