Coro Mining Corp.
TSX : COP

Coro Mining Corp.

November 08, 2007 12:13 ET

Coro Mining Corp. Reports on Third Quarter 2007

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 8, 2007) - Coro Mining Corp. (TSX:COP) -

Highlights:

- Initial Public Offering gross proceeds of CA$13.5 million

- Commenced trading on the TSX on July 10, 2007

- Drill programs completed at San Jorge, Barreal Seco and Salvadora, including sulphide mineralization at Salvadora at the bottom of one hole of 16m @1.70% CuT

- San Jorge pre-feasibility study completion expected in early 2008

- Acquisition of Andrea Copper Gold Property in November 2007

A full version of the September 30 2007 Financial Statements and Management Discussion and Analysis of the Company is available on the Company's website at www.coromining.com and will be available on SEDAR www.sedar.com.

Extract from the Company's Management Discussion and Analysis;

2007 Third Quarter Review

On July 10, 2007 the Company completed its Initial Public Offering ("IPO") which raised gross proceeds of CA$13.5 million. Concurrent with the completion of the IPO the Company commenced trading on the Toronto Stock Exchange ("TSX") under the symbol "COP".

San Jorge

The San Jorge project was dealt a setback in June when the Provincial Government of Mendoza introduced legislation that prohibited the use of toxic chemicals including sulphuric acid in any mining activity in the Province. The new legislation, unless amended or repealed, could impair the Company's ability to develop San Jorge. The Company believes that this legislation is unconstitutional and has filed an action against the Provincial Government of Mendoza ("Government") in an attempt to protect its rights to develop San Jorge. The Company was one of twelve companies that filed an action against the Government prior to the filing deadline. The Company now intends to engage directly with the newly elected Provincial government to have this Act substantially modified or repealed by demonstrating that the San Jorge Project could be developed in an environmentally responsible manner to the lasting economic and social benefit of the local community and the Province.

Notwithstanding, the Company continues to work towards the completion of an independent pre-feasibility study ("PFS"), which contemplates production of 20,000 tonnes per annum of cathode copper, via heap leaching and solvent extraction/electrowinning ("SX/EW"), from the oxide and enriched resources only. In order to incorporate the positive results of recent drilling into a new resource model, the PFS is now expected to be completed in early 2008.

In addition, the Company has initiated an internal evaluation of producing 30,000 tonnes per annum of copper in concentrates, with a significant gold credit, from flotation of the enriched and primary resources plus production of an additional 10,000 tonnes per annum of copper in cathode from heap leaching of the oxide resource only. This internal evaluation is scheduled for completion in the first quarter of 2008.

At San Jorge, a recent drilling program comprising a total of 27 diamond drill holes for 4,177 meters has been completed, aimed at expanding and further defining the in pit copper/gold resource base. Ten infill holes were drilled within the existing measured and indicated resources and have resulted in improved resource definition and categorization, particularly of the enriched and primary sulphide ore types. They have also provided further confidence in the gold distribution, given that some of the older drill holes were not assayed for gold. Eight of the ten holes ended in sulphide mineralization.

Step out drilling was completed peripheral to the existing measured and indicated resource and was aimed at defining additional oxide and enriched resources, as well as to convert inferred resources to the indicated category. Eight of the seventeen stepout drill holes ended in sulphide mineralization. It is the intent of the Company to incorporate the new drilling information into a revised resource estimate prior to the end of the year.

Chilean Exploration

Barreal Seco and Satellites:

At the Barreal Seco deposit, a drilling program comprising a total of 43 Reverse Circulation ("RC") holes for 8,510 meters was completed during the quarter (26 holes or 5,090 meters were completed in the third quarter), 14 of these holes (3,160 meters) were aimed at converting inferred oxide and primary sulphide resources into the measured and indicated category. A further 18 holes (3,150 meters) were aimed at defining the limits to the existing resource and 11 holes (2,200 meters) exploring geophysical targets on the property. The Company is awaiting the final assay results and expects to release the results of this drill program in the fourth quarter of 2007.

In July, the Company drilled 16 RC holes at the Salvadora property (a potential satellite prospect) for a total of 2,376 meters, aimed at extending copper oxide and sulphide mineralization previously defined by drilling in 2006. The assay results are highlighted by an intersection in hole SAL 34, of 84m at 0.46%CuT in copper oxides, starting at surface, with mineralization open to the northwest under cover, and an intersection in hole SAL 36 of 16m at 1.70%CuT in sulphides before the hole was lost in mineralization, with the last 2 meters assaying 2.34%CuT. The mineralization intersected in SAL 36 was found under cover and demonstrates the potential for additional blind mineralization at Salvadora. For the full results at the drill program reference should be made to the Company's News Release 07-08.

During the third quarter of 2007, the Company completed a first pass drilling program of 19 RC holes (3,630 meters) at Celeste, another Barreal Seco satellite prospect. The first pass program indicated only limited oxide potential and the Company is currently reviewing the sulphide potential at Celeste.

At Barreal Seco, metallurgical testing and crushability tests are expected to be completed in the fourth quarter of 2007 as well as initial metallurgical test (including bottle roll testwork) at Salvadora in the fourth quarter of 2007. An updated resource estimate is also anticipated in the fourth quarter of 2007. The Company now anticipates that our scoping study will be evaluating the potential for producing both copper cathode and copper in concentrates from the Barreal Seco and satellite properties. Power, water and acid studies are also currently being completed internally by our development team and are expected to be completed in the first quarter of 2008. Preliminary environment study is due for completion in the second quarter of 2008.

Other Chilean Exploration:

In October 2007, the Company conducted a short re-assaying program at its Cerro Colorado-Chacay porphyry copper property. The re-assaying indicated that the mineralization, encountered in two holes, comprised mixed copper oxide and chalcocite, exhibiting high total solubility, rather than mixed oxides and primary sulphides as previously inferred. A drill program is now scheduled for the fourth quarter of 2007. The Cerro Colorado-Chacay property is located 12 kilometers south east of Global Copper's Relincho copper project, and 50 kilometers east of the city of Vallenar in the III region of Chile.

In November 2007, the Company announced the acquisition of the Andrea Copper Gold Property and the acquisition, by staking, of a number of claim positions in south-central Chile.

At Gloria, a hand trenching program was conducted in the third quarter of 2007 and a drill program is expected to be undertaken in the fourth quarter of 2007.

2007 Expenditures

The following table details the Company's expenditures by quarter.



--------------------------------------------------------------------------
Table 1: Expenditures summary
($000's) Q106 Q206 Q306 Q406 Q107 Q207 Q307
--------------------------------------------------------------------------
Exploration
costs $ 737 $ 545 $ 1,304 $ 1,769 $ 1,229 $ 1,372 $1,468
Development
costs - - 2,790 1,234 706 3,336 1,930
Total
exploration
and
development
costs 737 545 4,094 3,003 1,935 4,708 3,398
Development
costs
capitalized - - (2,790) (1,234) (706) (3,336) (1,930)
Corporate
costs 85 111 179 202 209 242 242
Depreciation
and
amortization 11 11 11 17 17 17 30
Interest income (40) (42) (100) (108) (81) (72) (150)
Other expenses 18 29 20 (12) 0 (2) (264)
Stock-based
compensation 13 30 33 47 55 66 70
--------------------------------------------------------------------------
Net loss $ 824 $ 684 $ 1,447 $ 1,915 $ 1,429 $ 1,623 $1,396
--------------------------------------------------------------------------
--------------------------------------------------------------------------


Exploration costs for the third quarter are up slightly due to the drill programs at Barreal Seco and its satellite properties. Development costs are lower than the second quarter due to property option payments of $1.5 million being included in the second quarter. Corporate costs remain consistent with the previous quarter. Interest income has risen as a result of the increase in the Company's cash position after the IPO. Other expenses include foreign exchange gains on the Canadian dollar. The increase in the foreign exchange gain is as a result of the appreciation of the Canadian dollar against the U.S. dollar during the quarter.

The net loss for the quarter was $1.4 million which was less than the previous quarter due to the increased interest income and foreign exchange gains previously mentioned.

Exploration Expenditures



--------------------------------------------------------------------------
Table 2: Exploration expenditure
($000's) Q106 Q206 Q306 Q406 Q107 Q207 Q307
--------------------------------------------------------------------------
Exploration
expenditures -
by type
Administration
costs $ 73 $ 68 $ 261 $ 237 $ 108 $ 192 $ 159
Consulting,
labour &
professional
fees 126 155 164 263 337 328 261
Drilling &
trenching - 18 621 327 13 270 474
Property
investigations 88 111 89 491 275 216 421
Property
acquisition
costs 430 161 121 398 469 323 100
Travel &
accommodation 20 32 48 53 27 43 53
--------------------------------------------------------------------------
Total $ 737 $ 545 $ 1,304 $ 1,769 $ 1,229 $ 1,372 $1,468
--------------------------------------------------------------------------
Exploration
expenditures -
by project
Barreal Seco and
satellites $ 477 $ 150 $ 815 $ 808 $ 808 $ 593 $1,133
Gloria - 142 9 400 36 340 65
Chile -
General 143 92 299 231 171 282 200
Cordero -
Sanson 24 116 150 232 120 36 9
Mexico -
General 93 45 31 98 94 121 61
--------------------------------------------------------------------------
Total $ 737 $ 545 $ 1,304 $ 1,769 $ 1,229 $ 1,372 $1,468
--------------------------------------------------------------------------
--------------------------------------------------------------------------


Drilling and trenching costs cost comprised 32% of the exploration costs for the quarter, as the Company continued its drilling campaigns at Barreal Seco and its satellite properties. During the quarter, 61 RC drill holes were completed for a total of 11,096 meters. Property investigations costs include the costs of assaying the drilling completed during the quarter, and therefore have increased with the aforementioned increase in drilling activity.

Barreal Seco and satellites comprised 77% of the exploration costs for the quarter, as all the exploration drilling occurred at either the Barreal Seco deposit, Salvadora or Celeste. At Gloria, a hand trenching program was completed to better understand the geology of the deposit prior to drilling in the fourth quarter of 2007.

Development expenditures (San Jorge)

As at September 30, 2007, the Company was only capitalizing costs associated with its development project, San Jorge.

The following table summarizes the quarter by quarter expenditures and indicates the life to date ("LTD") expenditure on the project.



--------------------------------------------------------------------------
Table 3: Development expenditure
($000's) Q306 Q406 Q107 Q207 Q307 YTD LTD
--------------------------------------------------------------------------
Engineering &
infrastructure - - $ 27 $ 727 $ 194 $ 948 $ 948
Environmental - 2 4 100 26 130 132
General &
administration 121 470 540 568 630 1,740 2,331
Geology - 762 87 228 884 1,197 1,959
Metallurgy - - 48 175 169 392 392
Mining - - - 32 27 60 60
Property
acquisition
costs 2,669 - - 1,506 - 1,506 4,175
--------------------------------------------------------------------------
Costs
capitalized $(2,790) $(1,234) $ (706) $(3,336) $(1,930) $(5,972) $(9,996)
--------------------------------------------------------------------------
--------------------------------------------------------------------------


During the third quarter, geology costs comprised 46% of the costs of development, as a drilling program consisting of 27 diamond drill holes for 4,177 meters was completed, aimed at expanding and further defining the in pit copper gold resource base.

Engineering and infrastructure costs account for 10% of the costs of development and are principally comprised of engineering costs associated with Ausenco. General and administration costs include a provision against value-added tax receivable ("VAT") of approximately $0.4 million in Argentina. The Company is fully providing for its VAT in Argentina due to the uncertainty of collection.

The decrease in expenditures from quarter two is principally as a result of the property option payments that were paid in the second quarter.

The above information is only an extract from the Company's Management Discussion & Analysis for the nine months ended September 30, 2007 and reference should be made to the full version available on SEDAR www.sedar.com or the Company's website www.coromining.com.

The following financial statements have been extracted from the full version of the Company's Unaudited Consolidated Financial Statements for Third Quarter ended September 30, 2007 and reference should be made to the full version of these financial statements and accompanying notes available on SEDAR www.sedar.com or the Company's website www.coromining.com.

CORO MINING CORP.

Alan Stephens, President and CEO

About Coro Mining Corp.:

The Company was founded with the goal of building a mining company focused on medium-sized base 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 and it has established an experienced development and exploration team to accomplish this. The Company has two main properties; Barreal Seco, in Chile and San Jorge, in Argentina, as well as other exploration properties located in Chile and Mexico.

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, Price Edward Island and Newfoundland and Labrador.



Coro Mining Corp.
Consolidated Balance Sheet
As at September 30, 2007 and December 31, 2006
(Unaudited)
(expressed in thousands of U.S. dollars, except where indicated)

2007 2006
$ $

Assets
Current assets
Cash and cash equivalents 13,328 10,074
Accounts receivable and prepaid expenses 314 266
------------ ------------
13,642 10,340
------------ ------------

Property, plant and equipment (note 5) 804 672
Mineral property interests (note 6) 9,997 4,024
Other assets 23 44
------------ ------------
24,466 15,080
------------ ------------
------------ ------------

Liabilities
Current liabilities
Accounts payable and accrued liabilities 1,949 1,591
------------ ------------
1,949 1,591

Future income tax liability 934 406
------------ ------------
2,883 1,997

Shareholders' Equity
Equity accounts (note 7) 30,876 18,543
Accumulated other comprehensive income (note 9) 765 150

Retained deficit (10,058) (5,610)
------------ ------------
21,583 13,083
------------ ------------
24,466 15,080
------------ ------------
------------ ------------


Coro Mining Corp.
Consolidated Statements of Loss and Deficit
For the three and nine months ended September 30, 2007 and 2006
(Unaudited)
(expressed in thousands of U.S. dollars, except where indicated)

Three months Three months Nine months Nine months
ended ended ended ended
September 30, September 30, September 30, September 30,
2007 2006 2007 2006
Expenditures $ $ $ $

Net Exploration
and Development
Expenditures 1,468 1,304 4,069 2,586

Other Expenses
(Income)
Corporate costs 242 179 693 375
Depreciation and
amortization 30 11 64 33
Interest expense
(income) (150) (100) (303) (182)
Other expenses
(income) (264) 20 (266) 67
Stock-based
compensation 70 33 191 76
------------ ------------ ------------ ------------
(72) 143 379 369

Loss for the
period 1,396 1,447 4,448 2,955
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Deficit -
beginning of
period 8,662 2,248 5,610 740
Deficit - end
of period 10,058 3,695 10,058 3,695
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------

Basic and
diluted loss per
share 0.04 0.06 0.14 0.13

Weighted average
shares
outstanding
(000's) 35,535 25,779 31,795 22,079


Coro Mining Corp.
Consolidated Statements of Exploration and Development Expenditures
For the three and nine months ended September 30, 2007 and 2006
(Unaudited)
(expressed in thousands of U.S. dollars, except where indicated)

Three months Three months Nine months Nine months
ended ended ended ended
September 30, September 30, September 30, September 30,
2007 2006 2007 2006
Expenditures $ $ $ $

Exploration
Expenditures
(note 4)
Administration
costs 159 261 459 402
Consulting,
labour &
professional
fees 261 164 925 445
Drilling &
trenching 474 621 757 639
Property
investigations 421 89 913 288
Property
acquisition
costs 100 121 892 712
Travel &
accommodation 53 48 123 100
------------ ------------ ------------ ------------
1,468 1,304 4,069 2,586
------------ ------------ ------------ ------------

Development
Expenditures
(note 6)
Engineering &
infrastructure 194 - 948 -
Environmental 26 - 130 -
General &
administration 630 121 1,740 121
Geology 884 - 1,197 -
Metallurgy 169 - 392 -
Mining 27 - 60 -
Property
acquisition
costs - 2,669 1,506 2,669
------------ ------------ ------------ ------------
1,930 2,790 5,973 2,790
------------ ------------ ------------ ------------

Total Exploration
& Development
Expenditures 3,398 4,094 10,042 5,376

Costs Capitalized (1,930) (2,790) (5,973) (2,790)
------------ ------------ ------------ ------------

Net Exploration &
Development
Expenditures 1,468 1,304 4,069 2,586
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------


Coro Mining Corp.
Consolidated Statements of Comprehensive Losses
For the three and nine months ended September 30, 2007 and 2006
(Unaudited)
(expressed in thousands of U.S. dollars, except where indicated)

Three months Three months Nine months Nine months
ended ended ended ended
September 30, September 30, September 30, September 30,
2007 2006 2007 2006
$ $ $ $

Loss for the
period 1,396 1,447 4,448 2,955
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------

Other
Comprehensive
Loss (Income)
Net loss (gain)
on translation to
reporting
currency (100) (92) (615) (256)

------------ ------------ ------------ ------------
Comprehensive
Loss 1,296 1,355 3,833 2,699
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------


Coro Mining Corp.
Consolidated Statements of Cash Flows
For the three and nine months ended September 30, 2007 and 2006
(Unaudited)
(expressed in thousands of U.S. dollars, except where indicated)

Three months Three months Nine months Nine months
ended ended ended ended
September 30, September 30, September 30, September 30,
2007 2006 2007 2006
$ $ $ $

Cash flows from
operating
activities
Net loss for the
period (1,396) (1,447) (4,448) (2,955)
Items not
affecting cash
Depreciation and
amortization 30 11 64 33
Unrealized
foreign exchange
loss (gain) (271) - (271) -
Stock-based
compensation 70 33 191 76
---------------------------------------------------------
(1,567) (1,403) (4,464) (2,846)

Change in
non-cash
operating
working capital
Increase in
accounts
receivable and
prepaid expenses (148) (117) (78) (167)
Increase in
accounts payable
and accrued
liabilities 3 169 (259) 251
------------ ------------ ------------ ------------
(1,712) (1,351) (4,801) (2,762)
------------ ------------ ------------ ------------

Cash flows from
financing
activities
Issuance of
common shares
(net of issue
costs) 11,510 11,884 11,369 12,184
------------ ------------ ------------ ------------
11,510 11,884 11,369 12,184
------------ ------------ ------------ ------------

Cash flows from
investing
activities
Property, plant
and equipment (26) (582) (134) (595)
Deferred
development
costs (1,753) (1,493) (4,095) (1,493)
------------ ------------ ------------ ------------
(1,779) (2,075) (4,229) (2,088)
------------ ------------ ------------ ------------

Effect of
exchange rate
changes on cash 400 91 915 255

Increase
(decrease) in
cash and cash
equivalents 8,419 8,549 3,254 7,589

Cash and cash
equivalents -
Beginning of
period 4,909 4,418 10,074 5,378
------------ ------------ ------------ ------------
Cash and cash
equivalents -
End of period 13,328 12,967 13,328 12,967
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------

Contact Information