Coro Mining Corp.





San Jorge, Argentina (acquiring 100%)

Preliminary Assessment Technical Report - June 2008 - pdf



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Located in west-central Argentina in the Province of Mendoza, the large (115,000 ha) San Jorge property lies approximately 45 km north of the town of Uspallata and 250 km northeast of Santiago, Chile. San Jorge hosts a medium sized copper gold porphyry deposit.

In Q308, the Company filed the Environmental Impact Study ("EIS") for its San Jorge copper-gold project, which was formally accepted to enter the evaluation process by the Secretary of the Environment of the Government of Mendoza. The EIS will be evaluated over the coming months by a number of provincial governments and their advisors, and the public will be given opportunity to review and comment on the proposed development of the San Jorge project.

Geology and Mineralization

San Jorge is a Permian age granodiorite porphyry stock with associated contact and hydrothermal breccias intruded into Paleozoic sandstones and shales. Strong silicification and quartz stockworking has developed in the sediments and porphyry.

The sequence of rocks has been fractured by strong NNE oriented structural controls. Best grades of copper and gold mineralization coincide with tourmaline brecciation. The porphyry shows a vertical zonation from hypogene mineralization at depth, passing upwards into a supergene enriched zone, which is overlain by a zone of oxide mineralization and finally into a thin, poorly developed leach cap.

Engineering Studies

The Company has completed two engineering studies to NI 43-101 Technical Report Standards; a) a Leach Only Copper Project yielding 25,000tpy copper cathode for 10 years, by Ausenco Canda Inc. and b) a Float Only Copper/Gold Project yielding an average 39,500mtpy of copper and 39,000ozpy of gold contained in concentrates for 16 years by GRD Minproc. Both these reports will be filed on SEDAR.

In June 2007, legislation was passed banning the use of toxic chemicals including sulphuric acid, in mining activities, which has meant the Leach Only project is not possible at this time and the Float
Only project has considered the oxide material as waste.

The highlights from these reports are outlined in the table below:

San Jorge Technical Reports Summary

Float Only Case

Leach Only Case

Base case (10%):
($1.65/lb Copper and $600/oz gold)

Pre-tax NPV
Pre-tax IRR
After-tax NPV
After-tax IRR

$291 million
31%
$82 million
18%

$159 million
28%
$77 million
20%

Upside case (10%):
($2.00/lb Copper and $600/oz gold)

After-tax NPV
After-tax NPV

$220 million
29%

$139 million
28%

Average cash operating costs:
(years 1 to 5) ($/lb)

Before credits
Credits
After credits

$0.91
$0.22
$0.69

$0.90
$0.35
$0.55

Total production:

Copper
(tonnes)
Gold (ounces)

632,000
629,000

223,363
n/a

Average production:
(years 1 to 5)

Copper
(tonnes)
Gold
(ounces)

51,000
42,000

24,000
n/a

Mine life:

Years

16

10

Initial capital costs:

$ million

$277

$162

Prepared by:

 

GRD MINPROC

AUSENCO

Report type:

 

Preliminary Economic Assessment

Preliminary Feasibility
Standard

Date:

 

April 22, 2008

April 3, 2008


What's Next?

Enlarge


• To advance the San Jorge Float Only copper gold project through the permitting process



Related Releases
October 20, 2008  Coro Files Environmental Impact Study for San Jorge Copper-Gold Project In Argentina - NR 08-24
April 22, 2008  Coro Announces Conclusions From NI 43-101 Technical Report On San Jorge Float Only Copper Gold Project Preliminary Economic Assessment - NR 08-09
April 03, 2008  Coro Announces Highlights From San Jorge Leach Only Copper Project Ni 43-101 Technical Report - NR 08-08
February 14, 2008  Coro To Conduct Independent Preliminary Economic Assessment On 35-50,000 Tpy Copper In Concentrate Production From San Jorge - NR 08-03
January 16, 2008  San Jorge New Resource Estimate and Project Update - NR 08-01
October 29, 2007  San Jorge Drill Results And Project Update - NR 07-10
July 23, 2007  Minera San Jorge files an action to challenge the constitutionality of recently passed Mendoza Provincial Act - NR 07-05
June 21, 2007  Recent Developments In Argentina - NR 07-02
 


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