Coro Announces Nora Plant Commissioning, Receipt of Convertible Debenture Tranche 2 Funds & Drill Results
News Release 15-10
November 27 2015, Coro Mining Corp. (“Coro” or the “Company”) (TSX Symbol: COP) is pleased to announce that its subsidiary, SCM Berta (“SCMB”) has completed the remediation and refurbishment of its Nora SXEW plant, located in the III Region of Chile. Key management positions have been filled and plant commissioning is nearing completion with crushing, agglomeration, stacking and testing of fluid flows in progress. SCMB anticipates that production of copper cathode will start before year end once the plant suspension order referred to in our June 16 2015 news release has been lifted. The plant will be treating dump material for the next several months prior to initiating mining at Berta itself.
Coro also announces the closing of the second tranche of the Convertible Debenture with Greenstone Resources L.P. (“Greenstone”) which forms part of a larger ~US$9.0 million combined convertible debenture (US$6.5 million) and equity financing (~US$2.5 million) that was previously announced on June 16, 2015. The second tranche comprises US$1.4 million which is repayable on the date that is 350 days after the date of drawdown and requires repayment of US$1.75 million resulting in an effective interest rate of ~25%. The proceeds of Tranche 2 will be used to complete the commissioning and start-up of the Nora Plant. In the event that the amounts are not repaid in full in cash, any unpaid amounts will be converted into common shares of Coro at a conversion price of C$0.04 per share.
In addition, Coro is pleased to announce the results of SCMB’s recently completed, 6 hole (552m) diamond drilling (“DDH”) program and 15 hole (1240m) reverse circulation (“RCH”) drilling program at the Berta property. The objective of the DDH program was to provide; further definition of the higher grade mineralization; samples for additional metallurgical column test work; and improved geotechnical data for pit slope design. The objective of the RCH program was to provide improved definition of the limits to the various Berta Central deposits. All of these objectives were completed satisfactorily and the information derived will be used for production planning purposes. The location of Berta and Nora are shown on Figure 1; intersections from the drilling on Tables 1 and 2; collar coordinates on Table 3; and a drill plan on Figure 2.
Alan Stephens, President and CEO of Coro commented, “We are pleased to be finally commissioning our Nora plant and look forward to initiating production of copper cathode before the end of the year. The lifting of the suspension order is a condition precedent for the remaining equity portion of the Greenstone financing as described in our August 10 2015 news release, and we anticipate that this will be satisfied shortly. We are pleased with the results of our drilling which has further defined the higher grade cores of the Berta Sur and Central deposits as highlighted by oxide intersections of 56m @ 0.73%CuT from surface in BD-02 and 60m @ 1.09%CuT from 10m depth in BD-05, respectively. Finally, we have received the second annual option payment of US$0.2 million in relation to its Llancahue property as described in our news release of November 6 2014.”
Table 1: DDH Intersections
|Berta DDH Intersections|
Table 2: RCH Intersections
|Berta RCH Intersections|
No significant mineralization was intercepted in holes BR-94, 97, 101-104 and 107.
Table 3: UTM Collar Coordinates for DDH and RC holes
All RC drill holes were sampled on a 2 m continuous basis, with samples riffle split on site and one quarter sent to the Andes Analytical Assaying laboratory in Copiapo for preparation and then to their assay laboratory in Santiago. A second quarter was stored on site for reference. All DDH holes were logged, photographed and split by core splitter prior to sending half to the same laboratory facilities for preparation and assaying. Samples were transported to the laboratory by Andes Analytical Assaying under the supervision of the Company’s contractor, Geominco, who also logged the drill cuttings and drill core. 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 holes were assayed for CuT and Mo, with intersections containing greater than 0.1%CuT also assayed for CuS and Au. A full QA/QC program, involving insertion of appropriate blanks, standards and duplicates was employed with acceptable results.
The conclusions of a Preliminary Economic Assessment (“PEA”) for the Berta Project were announced in our news release of June 16, 2015 and an amended and updated technical report dated September 24, 2015 is available on the Company’s website www.coromining.com and on Sedar. More detailed engineering studies have not been completed and so the normal progression from PEA to Preliminary Feasibility Study to Feasibility Study has not been followed in respect of making a production decision at the Berta operation. Therefore, investors are cautioned that no mineral reserves have been declared and the level of confidence in the resources, metallurgy, engineering and cost estimation is not at a level normally associated with a project reaching a production decision. This may result in the production rates, copper recoveries and operating costs stated in the PEA not being realized
Sergio Rivera, Vice President of Exploration, Coro Mining Corp, a geologist with more than 36 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 drilling 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 40 years of experience is responsible for the contents of this news release.
Figure 1: Location Map
Figure 2: Berta Drill Plan
CORO MINING CORP.
President and CEO
About Coro Mining Corp.:
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. The Company’s assets include its 65% interest in SCM Berta; the Planta Prat and Marimaca projects; 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 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 the Greenstone Financings, lifting of the Suspension Order, commissioning activities, timing of production and exploration results. 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. Coro undertakes 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.