Trading Symbol: CCY
VANCOUVER,
May 8, 2012 /PRNewswire/ - Catalyst
Copper Corp. (the "Company" or "Catalyst") is pleased to announce
that it has initiated a Preliminary Economic Assessment (PEA) on
the La Verde copper porphyry
deposit located in Michoacán State, Mexico. The independent PEA will be carried
out by AMC Mining Consultants Ltd. of Vancouver with an initial draft expected by
the end of June.
Taking as a base the most recent in-situ resource estimation
(January, 2012), recent metallurgical studies results (G&T) and
other data elements from Catalyst, AMC will produce a preliminary
economic assessment on the La
Verde deposit that will include:
- A cash flow estimate based on a concentrator producing copper
concentrate as single final product, including opex and capex
estimates, and taxation and any royalty-type expenditure and
a set of standard financial KPI's;
- A sensitivity analysis of the economic output; and
- Comments and recommendations about relevant components and
factors of the Economic Assessment, for further refining.
As part of the work, AMC will complete a PEA-level pit design
and associated production schedules, preliminary location
identification and global design for waste dumps and tailings
storage facility, and estimation of fleet sizing and personnel
requirements. Infrastructure requirements including buildings,
roads, power and water will also be addressed in the PEA.
"Since Catalyst optioned La
Verde at the beginning of 2010, we have continually grown
the deposit through the various drill programs we have completed.
It is now time to see if this economic analysis reflects and
justifies what we have seen and reported during the drilling
phase," says Terry Hodson, VP
Exploration.
T.W. Hodson, P.Geo. is the
qualified person as defined by National Instrument 43-101, and has
reviewed the technical disclosure contained herein and accepts
responsibility for such disclosure.
About La
Verde
La Verde is
located in an area with excellent infrastructure. Power, rail and
water all cross the property. Lazaro
Cardenas, Mexico's third largest port on the Pacific
Ocean is 180 km from the site. Significant upside potential
remains for the two known zones of porphyry style copper, gold and
molybdenum mineralization as the 2010 drill program has shown both
deposits remain open to depth and along strike.
La Verde
property is subject to an option agreement with a Mexican
subsidiary of Teck Resources Limited (Teck) whereby Catalyst's 100%
Mexican subsidiary, Minera Hill 29,
may earn a 60% interest in La
Verde by making US$10,000,000
in exploration expenditures (including 30,000 meters of drilling
and 200 kilometers of IP) by December 31,
2012. Upon Catalyst earning a 60% interest, Teck has the
option to increase its interest to 60% by incurring aggregate
expenditures equal to two times the amount spent by Catalyst.
Should Teck fail to exercise its option to earn a 60% interest,
Catalyst can acquire a 100% interest in La Verde by paying to Teck US$20 million. The property is subject to an
underlying 0.5% NSR.
ON BEHALF OF THE BOARD OF DIRECTORS OF
CATALYST COPPER CORP.
"Terence W.
Hodson, P.Geo."
TERENCE HODSON,
V.P. EXPLORATION
Certain information set forth in this news release may
contain forward-looking statements that involve substantial known
and unknown risks and uncertainties. These forward-looking
statements are subject to numerous risks and uncertainties, certain
of which are beyond the control of the Company, including, but not
limited to, risks associated with mineral exploration and mining
activities, the impact of general economic conditions, industry
conditions, dependence upon regulatory approvals, and the
uncertainty of obtaining additional financing. Readers are
cautioned that the assumptions used in the preparation of such
information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements. Neither TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this
release.
SOURCE Catalyst Copper Corp.