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Salvadora, Chile (acquiring 100%) Celeste, Chile (lease property) The Flores project comprises four properties, the Barreal Seco Deposit and the nearby Salvadora and Celeste properties. The most significant property to date, the Barreal Seco Deposit, is located on the border of the II and III regions of Chile, approximately 70km northeast of the port of Chanaral. The Barreal Seco Deposit is also located next to Centario's Franke SX/EW project which is under construction. The Company expects to complete an Internal Preliminary Economic Assessment for the Barreal Seco Deposit in Q208. The Company also expects to complete a 43-101 compliant resource statement on Salvadora in Q108. Any potential resources from Salvadora or any exploration upside from the other Flores properties could add to the overall project economics of the Flores project. At this time, the sulphide potential of the properties have not been fully assessed.
Barreal Seco is a variant of the hematite/chalcopyrite rich, Iron Oxide Copper-Gold ("IOCG") deposit type. Hydrothermal breccias cutting the volcano-sedimentary sequence host the Fe - Cu mineralization. These breccias have been heavily oxidized to varying depths (70m to 200m), resulting in vertical zonation from oxide to sulphide in the deposit. Mineralization comprises disseminations, veinlets and matrix filling of copper oxides & sulphides with associated specularite. The Main Zone comprises the majority of the oxides and primary sulphides and is structurally bounded by a breccia and specularite stockwork zone. The main ore body has been outlined over more than 550m in the NE-SE direction, 350m in the NW-SE direction; and for a vertical extent of 400m. The South East zone is structurally controlled mineralization with lower grade copper disseminations in a favorable lithology. Salvadora comprises a northwest-southeast oriented IOCG deposit hosted by andesitic volcanics intruded by diorite dykes and irregular bodies. Mineralization, associated with disseminated specularite and brecciation, is best developed in the contact regions of these intrusives and forms several sub-parallel, steeply dipping, tabular bodies, each of which vary in thickness from 10m to 100m approximately. Outcrop in the prospect area is extremely limited but based on drilling and trenching, mineralization has been traced over a strike length of approximately 1,000m, open at both ends. Oxidation occurs to vertical depths of 60m to100m; sulphide mineralization has been intersected to depths of approximately 150m, and remains open at depth. Like Barreal Seco and Salvadora, Celeste is of IOCG type and occurs within north-northeast oriented, east dipping, swarms of veins and veinlets and, as disseminations is favourable units, cross cutting Cretaceous age andesitic volcanic and intrusive. Resources Barreal Seco's leachable and primary resources, using a 0.30% CuT cutoff, have been estimated as follows (from NI 43-101 Technical Report, dated February 2007, by AMEC Americas Limited). Leachable Resources
Primary Sulphide Material
The above Mineral Resources are an inventory of mineralization that under realistically assumed and justifiable technical and economic conditions might become economically extractable: therefore, in addition to the restrictions applied to classifying Mineral Resources, AMEC defined costs and prices for pit optimization to determine material which could have reasonable prospects of economic extraction. The parameters used for the pit optimization were defined based on AMEC's experience in similar deposits, and long-term market values were assumed for metal price. Copper price used follows the market long term value of $US1.25/lb plus an approximation of 10% allowance for resource optimization. AMEC calculated tonnages and grades for the blocks inside the pit limits and reported resources using variable cutoff values. Different economical cutoffs can be applied depending on the destination route and type of material; however AMEC calculated a 0.27% CuT breakeven cutoff that represents an average for all materials and routes of destination. Subsequent to drilling that occurred in late 2007, an amended Mineral Resources estimate for Barreal Seco is estimated to be completed in Q108. There are no NI43-101 resources at Salvadora or Celeste at this time. At Salvadora four drill campaigns for a total of 8,892 meters in 65 reverse circulation holes have been undertaken over the past 15 months and a compliant Mineral Resource Estimate is anticipated in Q108.
Both Barreal Seco and Salvadora are of IOCG's type deposits which by nature tend to have a higher sulphuric acid consumption for copper oxide ore rather than from a porphyry deposit. Currently, standard metallurgical test work programs are underway at Barreal Seco and Salvadora. Coro is also investigating some ammonia leach test work utilizing Alexander Mining plc, AMMLEACH technology which could have the benefit of reducing or eliminating the requirement for sulphuric acid. Overall the detailed studies underway include:
With the objective to complete an internal valuation of the Barreal Seco deposit and/or the combination of Barreal Seco and Salvadora deposit in Q208, the following studies are being undertaken:
Based on a positive Preliminary Economic Assessment which meets the Company's investment criteria, a preliminary feasibility study will be initiated followed by a feasibility study with completion estimated in Q209. What's Next?
More on Barreal Seco  February 28, 2007 : Technical Report for the Barreal Seco Copper Property prepared by AMEC Americas Limited. Related Releases
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