September 8 2014, Coro Mining Corp. (“Coro” or the “Company”) (TSX Symbol: COP) is pleased to announce it has received encouraging results from initial mapping, surface sampling, and test work of its 100% owned Celeste Sur iron ore project, located 55km NE of the port of Chañaral, in the III Region of Chile. The location of Celeste Sur is shown on Figure 1.
Alan Stephens, President and CEO of Coro commented, “We are very encouraged by the results of this initial surface sampling and mapping program, from which we have developed a potential target of 5-10mt at 40-50% Fe. This could be capable of sustaining an operation to produce Fe concentrate, using a simple, low cost, dry crushing and magnetic separation process route, enhanced by its proximity to a port with existing concentrate handling facilities. We plan to advance Celeste Sur over the coming 12 months by completing a drilling campaign, resource estimate, further test work, environmental baseline studies and a Preliminary Economic Assessment.”
Mapping, Sampling and Test Work
Outcropping iron mineralization occurs as massive, breccia hosted and stockwork magnetite located within structural splays off the Atacama Fault Zone and has previously been mined to depths of 10m or less. The principal target is the Central Body which outcrops over a length of 500m and is approximately 40m wide, while similar style mineralization occurs in the NW Veins and Stockworks zones, as shown on Figure 2. The average of 32 rock samples taken from the old workings was 52% Fe, while the average of 118 samples of the waste dumps derived from these old workings, was 40% Fe.
Preliminary Davis Tube magnetic separation test work was carried out on assay pulps from 7 rock samples and 3 dump samples; range 23% to 64.9% Fe, average 43.6% Fe. Good concentrate assays were obtained for all samples; range 67.6% to 71.1% Fe, average 69.7% Fe, and contaminant elements in the concentrate were all below penalty limits, except for 1 sample with slightly elevated phosphorus content.
The potential tonnage and grade noted previously is conceptual in nature as there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the Celeste Sur target being delineated as a mineral resource.
Coro has received US$323k as part payment of the outstanding US$500k from the previously announced sale of the Chacay property in 2013, and anticipates receiving the balance in the next few weeks.
Coro’s strategy is to grow a mining business through the discovery, development and operation of “Coro type” 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. Partners will be sought for any attractive projects identified that we do not have the financial capacity to develop alone. Coro’s properties include the Berta pre-production project, the Planta Prat copper development project, the Celeste Sur iron ore project and the Marimaca & Llancahue copper exploration prospects, all located in Chile. The advanced San Jorge copper-gold project located in Argentina has been optioned to Aterra Capital and Solway Industries.
Celeste Sur Sample Collection, Preparation, Assaying and Test Work
Celeste Sur rock samples were collected by Coro personnel as continuous chips perpendicular to the strike of the mineralization, and were located to representatively sample the various types of mineralization and their attendant grade ranges. Each sample weighed approximately 14kg. Dump samples were taken from all of the significant dumps on the property and were taken to be as representative as possible, again with each sample weighing approximately 14kg. All samples were transported by Coro personnel to the Andes Analytical Assaying (“AAA”) laboratory for preparation which comprised drying, crushing, quartering and pulverizing to 500g. All sample pulps were assayed for Fe, Al, S, and P by multi acid digestion followed by ICP. A total of 10 of these sample pulps were selected as a representative Fe grade range and underwent Davis Tube test work at AAA to separate the magnetic fraction and the resulting concentrate assayed for Fe, P, S, Al2O3, Mn, SiO2, TiO2, V, K2O, Mg, Na2O, As, Ca, Cr, Cu, Pb, and Zn by multi acid digestion and ICP.
Sergio Rivera, Vice President of Exploration, Coro Mining Corp, a geologist with more than 31 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 Coro Mining Corp, a geologist with more than 38 years of experience, and a Qualified Person for the purposes of NI 43-101, is responsible for the contents of this news release.
CORO MINING CORP.
President and CEO
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 firstname.lastname@example.org
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 metal prices, metallurgical results and resource estimates, 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 price of iron, 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.
Figure 1; Location of Celeste Sur
Figure 2; Mineralization at Celeste Sur