Coro Mining Corp. (“Coro” or the “Company”) (TSX:
COP) is pleased to provide an update on its business
operations, cost reduction initiatives and on the various
workstreams which are underway for its flagship Marimaca Copper
Project (“Marimaca” or “the Project”).
Coronavirus Business
Impacts
At the outset of the pandemic, in March 2020,
Coro repatriated all personnel and contractors from the field,
leaving a skeleton team to manage the site. The majority of the
team has been directed to work from home in line with the
recommendations from the Chilean authorities at that time. While
the lockdown has clearly impacted mining businesses in Chile,
especially those with large scale operations, Coro has focused on
those technical workstreams which can continue despite the
lockdowns. This has meant that, while there has been some impact,
the Company is still making encouraging progress on its key
technical work streams.
Key Workstreams Underway
In the latter part of 2019 and early 2020 ahead
of Covid-19, the Company commenced several workstreams to assist in
formulating the optimal development strategy for the Company and to
further de-risk Marimaca from a technical perspective. These
workstreams have experienced a range of impacts from the lockdowns
imposed as a result of the pandemic.
Firstly, Coro engaged independent engineering
firm Gestión y Economía Minera Limitada (“GEM”) to undertake a
detailed options trade-off study to assess the optimal development
strategy for Marimaca. This workstream was focused on defining
process design criteria and mining methods and rates to deliver the
best risk adjusted outcome from a wide array of potential
development strategies. The Company expects to be able to release a
summary of the results of this study in the coming weeks.
Secondly, following the completion of the last
resource drilling campaign, Coro commenced detailed preliminary
metallurgical studies including bottle roll and mini-column testing
under a variety of scenarios to provide valuable technical data
with respect to the leach kinetics and recoveries which could be
expected from Marimaca in any future development. The
laboratories in Santiago have, fortunately, albeit at a slightly
slower pace, managed to continue the test work program during this
period and this important workstream is nearing completion.
The Company is currently analysing the results of this test work
program which will be released once it is finalized.
Thirdly, the Company is refining its geological
interpretation and model for the Marimaca deposit with a particular
focus on the sulphide potential below Marimaca and in the areas
immediately surrounding the Project. This work includes reassessing
historical drilling data, remapping and sampling and, most
importantly, geophysical campaigns including drone mounted
magnetometry and induced polarization surveys, to assist with drill
target identification. It is expected that these work streams will
provide the Company with potential exploration targets for follow
up drilling towards the end of 2020. The timeframe for any
drilling campaign is dependent on receiving various permits. The
permitting process is underway and is expected to be concluded in
late Q3 or early Q4. The Company has completed the magnetometry and
reinterpretation of the geological model and is in the process of
collating and synthesizing this information and will release an
exploration update in due course.
Finally, the Company continues to progress the
Preliminary Economic Assessment for Marimaca, which is based on the
updated oxide Mineral Resource Estimate (“MRE”) of 70 million
tonnes with an average grade of 0.60% copper (420Kt of contained
copper) within the Measured & Indicated Categories and 43
million tonnes with an average grade of 0.52% copper (224kt of
contained copper) within the Inferred Category (refer
release on 2 December 2019), representing an increase of
nearly 100% from the pit constrained MRE released in April 2018.
The progress of the PEA has been impacted by the pandemic, and the
Company now believes its original timelines have slipped by between
two and four weeks. Coro will continue work as quickly as possible
to deliver this key de-risking milestone by late June or early
July.
Funding, Cost Reduction Measures and
Corporate Structure
As a result of the global impact of the
coronavirus pandemic, which has severely affected many businesses,
Coro has made significant changes to its cost structures and is
minimizing expenditure wherever possible to preserve its cash
position, while still allowing high value de-risking workstreams to
continue. It recently announced the provision of ongoing funding
from its two major shareholders in the form of a Working Capital
Facility, (refer release on 19 March 2020) which
provides sufficient liquidity for the remainder of 2020.
As previously announced, the Company is reviewing
its corporate structure and is intending to restructure and
reposition the business in preparation for the future development
of the Marimaca Project.
Qualified Person
The technical information in this news release,
including the information that relates to geology, drilling and
mineralization was prepared under the supervision of, or has been
reviewed by Sergio Rivera, Vice President of Exploration, Coro
Mining Corp, a geologist with more than 36 years of experience and
a member of the Colegio de Geologos de Chile and of the Institute
of Mining Engineers of Chile, and who is the Qualified Person for
the purposes of NI 43-101 responsible for the design and execution
of the drilling program.
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
Project
Marimaca is fast becoming recognised as one of
the most significant copper discoveries in Chile in recent years as
it represents a new type of deposit which challenges accepted
exploration wisdom and promises to 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 growing Marimaca resource is
a high-profile development project as it is situated 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 will benefit from nearby
existing infrastructure including roads, powerlines, ports, a
sulphuric acid plant, a skilled workforce and seawater.
Contact InformationFor further
information please visit www.coromining.com or contact:
Tavistock +44 (0) 207 920
3150Jos Simson/Emily Mosscoro@tavistock.co.uk
Forward Looking Statements
This news release includes certain
“forward-looking statements” under applicable Canadian securities
legislation. 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, the
impact of a rebranding of the Company, the future development and
exploration potential of the Marimaca Project. 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: risks related to share price
and market conditions, 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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