|May 03, 2011|
Coro Makes US$4 Million Payment To Lumina For San Jorge
|May 3, 2011, Coro Mining Corp. ("Coro" or the "Company") (TSX Symbol: COP) is pleased to announce the Company has paid US$4 million to Lumina Copper Corp. ("Lumina") under the terms of the San Jorge purchase agreement.|
Alan Stephens, President and CEO commented "This payment to Lumina demonstrates our continued confidence in the San Jorge project and the outcome of the Environmental Impact Study ratification process. We understand that the review of the project by various committees of the Lower Chamber of the Provincial Legislature of Mendoza is nearing its end and that, once complete, the Chamber would be in a position to vote on the ratification. The timing of this vote may be affected by the elections to the Legislature, which take place in October 2011. As part of our commitment to the sustainable development of the project area, we have established a foundation to assist in the socioeconomic development of the Uspallata community, with emphasis on creation of new employment opportunities, as well as promoting micro businesses to become involved in developing the agricultural and eco-tourist potential of the large ranch on which the project is located."
The San Jorge copper-gold project is located in Mendoza, Argentina. The Company completed an initial Preliminary Economic Assessment ("PEA"), in April 2008 which contemplated production of 39,500 tonnes of copper per annum and 39,000 ounces of gold per annum over a 16 year mine life. The deposit remains open to the west and at depth and using a $2.00 per pound copper and $600 per ounce gold price returned an after tax NPV of $220 million, with a capital expenditure of $277 million.
San Jorge has a measured and indicated sulphide resource of 2.15 billion pounds of copper and 1.44 million ounces of gold and an inferred sulphide resource of 1.28 billion pounds of copper and 0.8 million ounces of gold at a 0.2% copper cutoff. In addition, it has a measured and indicated oxide resource of 0.42 billion pounds of copper and 0.28 million ounces of gold at a 0.2% copper cutoff.
Under the terms of the option agreement, the Company has paid a total of US$7,500,000 in cash and issued a total of 1,000,000 shares and has the following payments outstanding; US$5,000,000 in May 2012, and US$5,000,000 in May 2013, less the aggregate deemed value of the 1,000,000 common shares of Coro previously issued. If, after May 10, 2011, the Company completes a Bankable Feasibility Study on either the Heap Leachable Copper Resources or the Sulphide Copper Resources, or a combination of both, the Company shall pay the balance of any amounts owing within six months from the date of completion of the Bankable Feasibility Study.
US$16,000,000 of the cash payments will be treated as an advance payment on either: (a) the obligation to pay $0.02 per pound on the mineable proven and probable copper sulphide reserves upon commencement of commercial production or (b) the obligation to pay $0.025 per pound on the mineable proven and probable heap leachable copper reserves upon commencement of commercial production. For any production of copper in excess of that derived from the total mineable, proven and probable heap leachable reserves and the mineable, proven and probable sulphide reserves the Company agreed to pay (i) $0.015 per pound of copper contained in ore processed by a mill, in excess of the total pounds of copper contained in the mineable, proven and probable sulphide reserves and (ii) $0.02 per pound of copper contained in ore placed on leach pads, in excess of the total pounds of copper contained in the mineable, proven and probable heap leachable reserves.
In addition, Coro will pay a net smelter return production royalty of 1.5% on all non-copper production from San Jorge.
Alan Stephens FIMMM, President and CEO of Coro, a geologist with more than 33 years of industry experience is the Qualified Person for Coro who has reviewed and approved the contents of this News Release. In respect of the PEA, it should be noted that mineral resources that are not mineral reserves do not have demonstrated economic viability.
CORO MINING CORP.
President and CEO
About Coro Mining Corp.:
The Company was founded with the goal of building a mining company focused on medium-sized base and precious metals deposits in Latin America. The Company intends to achieve this through the exploration for, and acquisition of, projects that can be developed and placed into production. Coro's properties include the advanced San Jorge copper-gold project, in Argentina, and the Chacay, Llancahue and Celeste copper exploration properties located in Chile.
For further information please visit the Company's website at www.coromining.com or contact Michael Philpot, Executive Vice-President at (604) 682 5546 or email@example.com
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Such forward-looking statements or information, including but not limited to those with respect to the prices of copper, estimated future production, estimated costs of future production, permitting time lines, involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such factors include, among others, the actual prices of copper, the factual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, 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.