Coro Mining Corp. (“Coro” or the “Company”) (TSX:
COP) is pleased to announce an increase in Measured &
Indicated (M+I) and Inferred Mineral Resources at its Marimaca
project, establishing Marimaca as one of the largest copper oxide
discoveries in northern Chile for over a decade.
Marimaca’s location is ideal. It is at low
altitude in Chile’s Coastal Copper Belt, 25km east of the port of
Mejillones and 45km north of Antofagasta, with ready access to a
skilled workforce, water and power as well as supplies of sulphuric
acid and consumables. Roads, rail networks and deep-water ports are
in close proximity.
The Marimaca deposit is located within only a
small portion of the near 300km2 district scale exploration area
which Coro fully controls. Shareholders are reminded that in
September 2019 Coro acquired the remaining 49% of the core Marimaca
1-23 Claim which it did not previously own.
The Company has appointed Wood plc to advance
engineering studies to demonstrate the value to be captured by
combining Marimaca’s significantly enlarged resource with easy
access to excellent infrastructure, and move Coro from a “cents per
pound in the ground” exploration project to a credible development
Company to be valued on a net present value basis.
Highlights
- Mineral Resource Estimate at a US$3.00/lb copper price, with a
very low strip ratio of 1.11:1 for the constraining pit shell, in a
single pit design, enhanced by the presence of several near surface
high-grade zones which should reduce initial capex and increase
early cash flows:
- M+I Mineral Resource Estimate of 70.4Mt at 0.60%
CuT
- Inferred Mineral Resource of 43.0Mt at 0.52%
CuT
- M+I Contained Copper increased to
420kt
- Inferred Contained Copper increased to
224kt
- Good potential exists to increase oxide resources within the
drilled area and for the discovery of additional mineralisation
along strike and at depth. In that regard, sulphide and district
scale exploration work programs will be announced in the coming
weeks.
- Engineering firm Wood plc has been appointed to advance a range
of engineering studies to demonstrate:
- the economics for a conventional full-scale project at
Marimaca; and
- low capex alternatives for staged development at Marimaca,
leveraging the nearby Ivan SXEW plant (100% owned by Coro). The
objective of staged development would be to minimise upfront capex
and limit equity dilution to Coro’s shareholders.
Luis Tondo, CEO of Coro said:
“Marimaca lies in the heart of Chile’s main copper producing
region, surrounded by the skills and infrastructure needed to build
and operate a mine. Crucially, it does not need to incur the
significant infrastructure costs associated with a remote
development project. We have now commenced engineering studies to
demonstrate the value proposition of combining a sizeable, low
strip deposit in an ideal location with immediate access to
infrastructure. This will include evaluating a low capital staged
development option using our nearby Ivan SXEW processing plant,
ramping up over time to a larger scale copper operation."
Mineral Resource EstimateThe
Mineral Resource Estimate was based on 346 reverse circulation
holes (“RC”) and 39 diamond holes (“DD”) for a total of 91,210m
drilled between 2016 and 2019. The Mineral Resource Estimate was
completed at a range of Cut-Off grades by independent consultants
NCL Ingeniería y Construcción SpA, and is reported in accordance
with the requirements of NI43-101. Summarized results are presented
in Table 1 and detailed results in Tables 2 and 3. The Mineral
Resource Estimate has an effective date of Tuesday 26 November
2019.
To demonstrate reasonable prospects for eventual
economic extraction (RPEEE), a series of Lerchs-Grossmann pit shell
optimizations was completed by NCL, utilizing appropriate operating
costs, recoveries obtained from metallurgical test work, and a long
term US$3.00/lb copper price. The resources were estimated only for
oxide, mixed, wad and enriched copper mineralization which can be
processed by heap leaching (HL) and run of mine (ROM) dump leaching
to produce copper cathode. Primary sulphide mineralization
occurring in deeper parts of the deposit, which are within the
constraining pit shell is not included in the resource estimate
shown in the tables below. With the economic parameters stated
above, the Cut-Off grade of the Mineral Resource Estimate is
approximately 0.22% CuT and a strip ratio of 1.11:1 has been
estimated by NCL.
Table 1: Summarized Mineral
Resource (US$3.00/lb copper price)
Mineral Resource Category |
Quantity (kt) |
CuT (%) |
CuS (%) |
CuT(t) |
CuS (t) |
Total Measured |
20,721 |
0.66 |
0.44 |
136,283 |
91,772 |
Total Indicated |
49,666 |
0.57 |
0.37 |
283,654 |
183,741 |
Total Measured and Indicated |
70,387 |
0.60 |
0.39 |
419,937 |
275,513 |
Total Inferred |
43,015 |
0.52 |
0.31 |
224,471 |
131,746 |
CuT means total copper and CuS means acid soluble
copper. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. Technical and economic parameters
include: copper price US$3.00/lb; mining cost US$2.00/t; HL
processing cost including G&A US$9.00/t; ROM processing cost
including G&A US$2.50/t; selling cost US$0.07/lb Cu; heap leach
recovery 76% of CuT; ROM recovery 40% of CuT; and 44°-46° pit slope
angle.
Table 2: Mineral Resource
sensitivity to varying Cut-Off grades (US$3.00/lb copper price)
Cut-offgrade(%
CuT) |
Measured |
Indicated |
Measured + Indicated |
Inferred |
Quantity (kt) |
CuT (%) |
CuS (%) |
Quantity (kt) |
CuT (%) |
CuS (%) |
Quantity (kt) |
CuT (%) |
CuS (%) |
Quantity (kt) |
CuT (%) |
CuS (%) |
0.60 |
9,071 |
1.00 |
0.66 |
17,657 |
0.92 |
0.58 |
26,727 |
0.95 |
0.61 |
12,182 |
0.90 |
0.48 |
0.50 |
11,397 |
0.91 |
0.61 |
23,285 |
0.83 |
0.53 |
34,682 |
0.85 |
0.56 |
16,926 |
0.80 |
0.44 |
0.40 |
14,403 |
0.81 |
0.55 |
30,600 |
0.74 |
0.48 |
45,003 |
0.76 |
0.50 |
23,607 |
0.70 |
0.40 |
0.30 |
17,865 |
0.72 |
0.49 |
40,253 |
0.64 |
0.42 |
58,118 |
0.67 |
0.44 |
33,410 |
0.60 |
0.35 |
0.22 |
20,721 |
0.66 |
0.44 |
49,666 |
0.57 |
0.37 |
70,387 |
0.60 |
0.39 |
43,015 |
0.52 |
0.31 |
0.18 |
22,072 |
0.63 |
0.42 |
54,109 |
0.54 |
0.35 |
76,181 |
0.57 |
0.37 |
47,164 |
0.49 |
0.29 |
0.10 |
23,087 |
0.61 |
0.41 |
57,619 |
0.52 |
0.33 |
80,706 |
0.54 |
0.35 |
50,641 |
0.47 |
0.27 |
CuT means total copper and CuS means acid soluble
copper. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. Mineral resource technical and
economic parameters included: copper price US$3.00/lb; mining cost
US$2.00/t; HL processing cost including G&A US$9.00/t; ROM
processing cost including G&A US$2.50/t; selling cost
US$0.07/lb Cu; heap leach recovery 76% of CuT; ROM recovery 40% of
CuT and a 44°-46°pit slope angle.
Marginal Cut-Off grades for Heap and ROM Dump
leach processes were calculated to be 0.18% CuT and 0.10%CuT
respectively, which are also shown on Table 2.
Table 3: Mineral Resource by
mineralization type (US$3.00/lb copper price, at 0.22% CuT Cut-Off
Grade)
Mineral Resource Category and Type |
Quantity (kt) |
CuT (%) |
CuS (%) |
CuT (t) |
CuS (t) |
Measured |
|
|
|
|
|
Brochantite |
10,890 |
0.76 |
0.55 |
82,418 |
59,835 |
Chrysocolla |
4,918 |
0.59 |
0.45 |
29,016 |
22,191 |
Wad/Black oxides |
3,262 |
0.34 |
0.20 |
11,118 |
6,555 |
Mixed |
475 |
1.02 |
0.26 |
4,865 |
1,217 |
Enriched |
1,176 |
0.75 |
0.17 |
8,874 |
1,974 |
Total Measured |
20,721 |
0.66 |
0.44 |
136,283 |
91,772 |
|
|
|
|
|
|
Indicated |
|
|
|
|
|
Brochantite |
24,719 |
0.68 |
0.49 |
167,463 |
121,418 |
Chrysocolla |
9,581 |
0.50 |
0.37 |
48,298 |
35,668 |
Wad/Black oxides |
10,722 |
0.32 |
0.18 |
34,160 |
19,299 |
Mixed |
1,177 |
0.86 |
0.21 |
10,076 |
2,457 |
Enriched |
3,468 |
0.69 |
0.14 |
23,769 |
4,899 |
Total Indicated |
49,666 |
0.57 |
0.37 |
283,654 |
183,741 |
|
|
|
|
|
|
Measured and Indicated |
|
|
|
|
|
Brochantite |
35,609 |
0.70 |
0.51 |
249,881 |
181,253 |
Chrysocolla |
14,499 |
0.53 |
0.40 |
77,314 |
57,859 |
Wad/Black Oxides |
13,984 |
0.32 |
0.18 |
45,281 |
25,854 |
Mixed |
1,652 |
0.90 |
0.22 |
14,941 |
3,675 |
Enriched |
4,644 |
0.70 |
0.15 |
32,644 |
6,873 |
Total Measured and Indicated |
70,387 |
0.60 |
0.39 |
419,937 |
275,513 |
|
|
|
|
|
|
Inferred |
|
|
|
|
|
Brochantite |
17,618 |
0.63 |
0.42 |
110,712 |
74,266 |
Chrysocolla |
9,978 |
0.47 |
0.33 |
47,077 |
32,680 |
Wad/Black oxides |
9,565 |
0.31 |
0.17 |
29,834 |
16,498 |
Mixed |
3,661 |
0.63 |
0.15 |
23,197 |
5,525 |
Enriched |
2,193 |
0.63 |
0.13 |
13,786 |
2,777 |
Total Inferred |
43,015 |
0.52 |
0.31 |
224,471 |
131,746 |
CuT means total copper and CuS means acid soluble
copper. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. Mineral resource technical and
economic parameters included: copper price US$3.00/lb; mining cost
US$2.00/t; HL processing cost including G&A US$9.00/t; ROM
processing cost including G&A US$2.50/t; selling cost
US$0.07/lb Cu; heap leach recovery 76% of CuT; ROM recovery 40% of
CuT and a 44°-46°pit slope angle.
Engineering Studies
Coro benefits from Marimaca’s excellent access
to local infrastructure (illustrated in Figure 1 below) which
should result in lower project capex, development time and
risk.
Figure 1 is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/05c7dfb4-62ef-471a-b289-53e19dbc7286
To advance Marimaca’s development, Coro has
appointed Wood plc to conduct a range of engineering studies that
will demonstrate:
- the economics of a conventional full-scale project at Marimaca;
and
- low capex alternatives for a staged development at Marimaca,
leveraging the nearby Ivan SXEW plant (100% owned by Coro) and
existing infrastructure.
Such staged development options are being
considered to minimise upfront capex and limit Coro shareholders’
equity dilution. Concurrently with these studies, Coro will invite
project financing proposals to further minimise equity dilution to
shareholders.
The Company anticipates that the work from the
various studies will be completed during 2020 and news will be
released as work progresses.
Coro shareholders are reminded of the June 2018
Feasibility Study on just the Marimaca 1-23 Claim which returned
robust economics with an after-tax IRR of 58.8%, an NPV (5%) of
US$114 million, and initial capital costs of US$$22.6 million for
the upgrading and start-up of the Ivan plant, at a US$3.00/lb
copper price (see announcement “Coro Announces Conclusions of
Marimaca 1-23 Claim Definitive Feasibility Study”; June 22,
2018).
There has been a substantial increase in the
mineral resources since June 2018. It is emphasised that the June
2018 Feasibility Study and values contained therein were only on a
limited area controlled by Coro at that time (the Marimaca 1-23
Claim). As stated above, Coro is now reviewing a number of
alternatives to define the best development option for the
significantly expanded resource.
Mineral Resource Estimate Additional
InformationThe Mineral Resource Estimate has a very low
strip ratio of 1.11:1 within the constraining pit shell, all within
a single pit design, enhanced by the presence of multiple high
grade zones which may reduce initial capex and increase early cash
flows.
Figure 2 below shows plan views of the mineral
resource categories and copper grades at the 980m elevation,
together with the outline of the open pit used in the mineral
resource within the constraining pit shell. Several high grade
(>0.8% CuT) zones, occurring in the central part of the deposit,
are highlighted. Figure 3 shows a longitudinal section of the
copper grades and mineral resource category distribution along a
1,500m north-south section illustrating that higher copper grades
occur along the whole section.
Figure 2 is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/efdf410c-8729-4a38-b9e1-5cd1fb74fd56
Figure 3 is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/49457d72-e45a-48f0-b611-40d788a3e228
Mineral Resource Estimation
ParametersCopper grades were capped according to the
following criteria:
Table 3: Grade-capping
Grade capping |
% CuT capped at |
% CuS capped at |
Brochantite |
8.0 |
6.0 |
Chrysocolla |
3.0 |
2.5 |
Copper Wad/Black Oxides |
1.8 |
1.5 |
Mixed |
6.6 |
1.7 |
Enriched |
4.2 |
2.4 |
Grade estimates were completed using ordinary
kriging with nominal block size measuring 5m by 5m by 5m. Resources
have been classified by their proximity to sample locations and
number of drill holes and samples within different search
ellipsoids, and are reported according to Canadian Institute of
Mining, Metallurgy and Petroleum (CIM) Definition Standards for
Mineral Resources and Mineral Reserves (2014).
Coro completed a Feasibility Study for the
original Marimaca 1-23 Claim in June 2018 and for the purposes of
this Mineral Resource Estimate, basic technical parameters were
derived from the study (adjusted for the new resource estimate) and
from NCL benchmark parameters for similar size deposits, with
consideration for the readily available infrastructure in the
area.
Table 4: Key technical and
economic parameters
|
|
Copper price |
US$3.00/lb |
Mining cost |
US$2.00/t |
HL Processing cost, including SX/EW and G&A |
US$9.00/t |
ROM Processing cost including SX/EW and G&A |
US$2.50/t |
Selling cost |
US$0.07/lb |
Heap leach recovery |
76% of CuT |
ROM recovery |
40% of CuT |
Pit slope angle1 |
44°-46° |
1 The pit slope is estimated at a range of 44°-46°
based on the geotechnical information currently available, but this
is anticipated to improve as more data is generated.
Sampling and Assay ProtocolRC
holes were sampled on a 2m continuous basis, with dry samples
riffle split on site. One-quarter was sent to the Andes Analytical
Assay preparation laboratory in Calama and the pulps then sent to
the same company laboratory in Santiago for assaying. A second
quarter was stored on site for reference. Samples were prepared
using the following standard protocol: drying; crushing to better
than 85% passing -10#; homogenizing; splitting; pulverizing a
500-700g subsample to 95% passing -150#; and a 125g split of this
sent for assaying. All samples were assayed for CuT (total copper),
CuS (acid soluble copper), CuCN (cyanide soluble copper) by AAS and
for acid consumption. A full QA/QC program, involving insertion of
appropriate blanks, standards and duplicates was employed with
acceptable results. Pulps and sample rejects are stored by Coro for
future reference.
Qualified PersonsThe scientific
and technical information in this news release including the
sampling, analytical and test data underlying such information, was
prepared under the supervision of, or has been reviewed by, Sergio
Rivera, Vice President of Exploration, Coro Mining Corp, a
Qualified Person for the purposes of NI 43-101 and a geologist with
more than 36 years of experience. Mr. Rivera is a member of the
Colegio de Geologos de Chile and the Institute of Mining Engineers
of Chile.
The independent Qualified Person responsible for
the Mineral Resource Estimate at Marimaca is Luis Oviedo Hannig, a
geologist with more than 41 years of experience at NCL Ingeniería y
Construcción S.A. He is a member of the Colegio de Geologos de
Chile and the Institute of Mining Engineers of Chile and is
registered with the Qualification Commission of Resources and
Mining Reserves (CRISCO, CMC, Membership Number 013). He has a
postgraduate degree in "Certification and Validation of Mining
Assets” from Queens University and PUVC.
The Qualified Person for other contents than
geological information of this news release is Luis Tondo, Chief
Executive Officer and Director of Coro Mining, a mining engineer
with more than 30 years of experience and a Fellow of The
Australasian Institute of Mining and Metallurgy, who is the
Qualified Person for the purposes of NI 43-101.
All QPs confirm they have visited the project
area, reviewed relevant project information, allowing
the correct technical judgement in their respective areas of
expertise, in turn used in the writing and reviewing the contents
of this news release.
Coro Mining and the Marimaca
ProjectMarimaca is fast becoming recognised as one of the
most significant copper discoveries in Chile in recent years. It
represents a new type of deposit which challenges accepted
exploration wisdom and may open up new frontiers for discoveries
elsewhere in the country. Marimaca is hosted by intrusive rocks
while the numerous manto deposits in the same region are hosted by
volcanics.
With a lack of new copper exploration
discoveries in Chile, the Marimaca resource is a high-profile
development project, due to its location in the coastal belt at low
elevation, close to Antofagasta and Mejillones. This prime location
could enable its future development at a relatively modest capital
investment. Marimaca would benefit from nearby existing
infrastructure including roads, powerlines, ports, a sulphuric acid
plant, a skilled workforce and water.
Contact InformationFor further
information please visit www.coromining.com or contact:
Luis Tondo, CEO & President |
Email: |
ltondo@coromining.com |
|
Corporate Office (Santiago, Chile) |
Telephone: |
+56 (22) 431 7600 |
Email: |
unearth@coromining.com |
Forward Looking StatementsThis
news release includes certain “forward-looking statements” under
applicable Canadian securities legislation. The words "expect",
“believe”, "target", "estimate", "may", "will" and other similar
expressions identify forward-looking statements. These statements
relate to future events or the Company’s future performance,
business prospects or opportunities. Forward-looking statements
include, but are not limited to, statements regarding the future
development and exploration potential of the Marimaca Project,
including the future preparation and results of further engineering
studies. Actual future results may differ materially. There can be
no assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements. Forward-looking statements reflect
the beliefs, opinions and projections on the date the statements
are made and are based upon a number of assumptions and estimates
that, while considered reasonable by Coro, are inherently subject
to significant business, economic, competitive, political and
social uncertainties and contingencies. Many factors, both known
and unknown, could cause actual results, performance or
achievements to be materially different from the results,
performance or achievements that are or may be expressed or implied
by such forward-looking statements and the parties have made
assumptions and estimates based on or related to many of these
factors. Such factors include, without limitation: the inherent
risks involved in the mining, exploration and development of
mineral properties, the uncertainties involved in interpreting
drilling results and other geological data, fluctuating metal
prices, the possibility of project delays or cost overruns or
unanticipated excessive operating costs and expenses, uncertainties
related to the necessity of financing, the availability of and
costs of financing needed in the future 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.
Accordingly, readers should not place undue reliance on
forward-looking statements. Coro undertakes no obligation to update
publicly or otherwise revise any forward-looking statements
contained herein whether as a result of new information or future
events or otherwise, except as may be required by law.
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