September 6 2016, Marimaca Copper Corp. (“Coro” or the “Company”) (TSX Symbol: COP) is pleased to announce the results of the first 8 reverse circulation (RC) holes from a 39 hole, 8530m hole program nearing completion at its Marimaca copper project, located 22km E of the port of Mejillones in the II Region of Chile, (Figure 1). Results for the initial 2680m program of 16 RC discovery holes were released on April 28 2016 and May 6 2016. We also announce the results of the first 2 diamond drill (DDH) holes of a 6 hole, 2021m program, aimed at providing metallurgical samples and geotechnical information; to corroborate the RC drilling; and to test underlying sulphide mineralization. The DDH program is complete, the RC program is expected to finish within the next few days, and further results will be released over the coming weeks. Marimaca Coppercontinues to conduct due diligence on the Minera Rayrock (MR) acquisition announced on August 4 2016; MR is the owner of the Ivan SXEW plant located some 18km S of Marimaca, as well as a large claim position shown on Figure 1.
All 8 RC holes, MAR-17 to MAR-21 and MAR-24 to MAR-26 and both DDH holes, MAD-01 & MAD-02 intersected significant copper mineralization as shown on Tables 1a and 1b where %CuT is total copper.
MAR-17 to MAR-28 are holes aimed at defining the mineralization discovered previously on ~50m centres while MAR-29 to MAR-47 and MAR-51 to MAR-54 are step out holes on ~100m centres. Both sets were drilled with azimuths of 220o and 310o. MAR-48 to MAR-50 are exploration holes testing other anomalies.
Drill hole locations and the interpreted mineralized zone are shown on Figure 2 and in more detail on Figure 3. Drill collars for all holes are shown on Table 2 and results for holes MAR-01 to MAR-16 are shown on Table 3.
Table 1a: RC Intersections
Table 1b: DDH Intersections
MAD-01 was twinned with MAR-10 and MAD-02B with MAR-11 with good correlations. A full analysis of the comparisons between RC and DDH drilling will be provided once all results are to hand.
Alan Stephens, President and CEO of Marimaca Coppercommented, “Drilling at Marimaca continues to provide impressive intersections, both in terms of grade and thickness, with average depth of leachable mineralization now shown to be in excess of 200m. The deposit comprises a significant oxidised enrichment blanket, with some of the enrichment partially or completely preserved as mixed and enriched zones respectively. The overall control to mineralization is the major N-S trending ~60OE dipping zone of fracturing, defined as the Marimaca Structure, cross cut by NE-SW oriented feeder structures, dipping to the SE. The host rock is a coarse grained Jurassic diorite intrusive intruded by a late mineral diorite and cross cut by post mineral andesitic sills and dykes. Strong potassic alteration and magnetite introduction accompanies the mineralization. Acid solubilities in the oxide zone are good at 74% for all assays > 0.1%CuT and rising to 80% for >0.3%CuT. We look forward to reporting the next batch of results in due course.”
Marimaca Agreement Terms
Marimaca Copperhas the right to earn a 75% interest in the property as follows;
- 51% interest earned in Compañia Minera Newco Marimaca (CMNM) with a $125k payment together with completion of a NI43-101 resource estimate and engineering study that demonstrates the technical and economic feasibility of producing a minimum of 1.5ktpy Cu cathode by August 6th 2018 at Coro’s cost,
- Additional 24% interest in CMNM earned by Marimaca Copperupon obtaining financing for the project construction
- The owner’s interest will comprise a 15% interest free carried to commencement of commercial production and a 10% participating interest subject to dilution. The owners at their election may request Marimaca Copperto loan them the equity portion corresponding to their 10% interest, if any, recoverable by Marimaca Copperfrom 100% of the project’s free cash flow after debt repayments
- Marimaca Copperretains a first right of refusal
Sampling and Assay Protocol
True widths cannot be determined with the information available at this time. Marimaca CopperRC holes were sampled on a 2 m continuous basis, with dry samples riffle split on site and one quarter sent to the Geolaquim laboratory in Copiapo, Chile by Marimaca Copperpersonnel for preparation and assaying. A second quarter was stored on site for reference. DDH holes were logged, split and sampled on site by Marimaca Copperpersonnel and one half of the core sent to Geolaquim. Samples were prepared using the following standard protocol: drying, crushing to better than 80% passing -10#, homogenizing, splitting and pulverizing a 400 g subsample to 95% passing -150#. All samples were assayed for CuT (total copper) and samples >0.1%CuT assayed for CuS (acid soluble copper) by AAS. A full QA/QC program, involving insertion of appropriate blanks, standards and duplicates was employed with acceptable results. Samples showing significant secondary sulphides will be assayed for CNCu (cyanide soluble copper) in due course.
Sergio Rivera, Vice President of Exploration, Marimaca Copper Corp, a geologist with more than 32 years of experience and a member of the Colegio de Geologos de Chile and of the Instituto de Ingenieros de Minas de Chile, was responsible for the design and execution of the exploration program and is the Qualified Person for the purposes of NI 43-101. Alan Stephens, FIMMM, President and CEO, of Marimaca Copper Corp, a geologist with more than 40 years of experience, and a Qualified Person for the purposes of NI 43-101, is responsible for the contents of this news release.
Figure 1: Location of Marimaca and Minera Rayrock Claims
Figure 2: Marimaca Drill Plan, Showing RC holes with assays in red, DDH holes in blue and remaining RC holes in grey
Figure 3: Detailed drill plan showing assayed MAR holes in red and MAD holes in blue
Table 2: Marimaca Drill Collars
Table 3: MAR-01 to MAR-16 Intersects released previously
CORO MINING CORP.
President and CEO
About Marimaca Copper Corp.:
Coro’s strategy is to grow a mining business through the discovery, development and operation of “Marimaca Coppertype” deposits. These are defined as projects at whatever stage of development, that are well located with respect to infrastructure and water, which have low permitting risk, and which have the potential to achieve a short and cost effective timeline to production. Our preference is for open pit heap leach copper projects, where we will seek to minimise capital investment rather than maximise NPV, where we will prioritise profitability over production rate, and finally, where the likely capital cost is financeable relative to our market capitalization. The Company’s assets include its 65% interest in SCM Berta; the Marimaca project; the Llancahue prospect, optioned to Industrias Peñoles; and a royalty on the San Jorge copper-gold project located in Argentina.
For further information please visit the Company’s website at www.coromining.com or François Perron at Renmark Financial Communications Inc at (416) 644-2020 or (514) 939-3989 or firstname.lastname@example.org or www.renmarkfinancial.com.
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Such forward-looking statements or information, include but are not limited to those with respect to the geological potential and size of Marimaca. Forward-looking statements involve known and unknown risks, uncertainties and other factors which are beyond Coro’s ability to predict or control and may cause Coro’s actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, the operation of the Nora Plant, copper price volatility, and changes in debt and equity markets. Such forward-looking statements are also based on a number of assumptions which may prove to be incorrect, 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.
Accordingly, readers should not place undue reliance on forward-looking statements. Marimaca Copperundertakes 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.