Coro Mining Corp.
TSX : COP

Coro Mining Corp.

October 17, 2012 09:00 ET

Coro Acquires New Copper-Gold Porphyry Project in Chile

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 17, 2012) - Coro Mining Corp. (TSX:COP) ("Coro" or the "Company") is pleased to announce that it has entered into an option agreement to acquire the Payen Property from a local Chilean company. The 1,225 hectare Property is located approximately 90km NNE of La Serena, 4km W of the Pan-American Highway and approximately 47km from the coast, in the III Region of Chile, at an elevation of 1,100m (Figure 1). It is also located some 15km SW of the operating Dos Amigos copper mine.

The Property covers the NE end of the 12 x 3 km Pajonales alteration zone (Figure 2), which was first prospected by Enami in the 1970's and then explored by Shell-Billiton in the early 1980's, who completed some wide spaced drilling, and by Noranda in the mid 1990's, who completed surface exploration only. In 2009, the owner of the Property completed 3 shallow reverse circulation ("RC') holes, two of which encountered Cu-Au porphyry style mineralization at the extreme NE end of the alteration zone. It was subsequently optioned to CM Viento Norte ("CMVN"), a private Chilean company which completed surface exploration and drilled 11 diamond drill holes in late 2011 - early 2012, all of which intersected porphyry style mineralization. The highlights of this drill program included intersections of 138m at 0.38% CuT + 0.17g/t Au (0.47% CuEq), starting at surface, and 104m at 0.37% CuT + 0.24g/t Au (0.50% CuEq), from 88m. A complete list of intersections is shown on Table 1.

Alan Stephens, President and CEO of Coro, commented, "We are delighted to have acquired this exciting property, which we have renamed Payen, ("Copper" in the local Diaguita language), and which we believe hosts multiple porphyry targets. Firstly, the recent drilling has discovered attractive copper-gold porphyry style mineralization, associated with strong potassic alteration & a discrete magnetic high anomaly, which is ready for resource definition drilling. Secondly, the extensive phyllic alteration zone, measuring approximately 3.5 x 2km within the property boundaries, contains large areas of outcropping leached cap with associated quartz stockwork, anomalous copper geochemistry and magnetic low anomalies. We believe that these may have the potential to host chalcocite enrichment, as well as underlying primary mineralization. Finally, several untested magnetic high anomalies which may represent similar mineralization to that already drilled, are present. We intend to complete additional mapping, sampling and geophysics, prior to drill testing these multiple targets."

Payen Option Terms

Coro may acquire 100% of the El Inca property for a total of US$17,000,000, by making the following staged option payments:

On signing: US$500,000 (paid)
On or before 12 months: US$500,000
On or before 24 months: US$1,000,000
On or before 36 months: US$2,000,000
On or before 48 months: US$13,000,000

The Property is subject to a 2.5% NSR, of which half (1.25% NSR) may be purchased for US$10,000,000 at any time up to Commencement of Commercial Production.

About Payen

The large NE-SW oriented Pajonales alteration zone is located in the same 90-110 million year old belt of porphyry Cu-Au deposits such as PanAust's Inca de Oro & Carmen projects, Cemin's Dos Amigos mine and Teck's Andacollo mine, and is bordered to the west by a number of small scale iron mines of IOCG affiliation. The Payen property covers the northeastern third of the zone, where it is at its widest, and where the alteration appears most intense. The northern end of the property is transected by a NW fault which has uplifted to the north and exposed a potassically altered and quartz stockworked diorite porphyry with associated copper-gold mineralization. This has been subjected to reverse circulation drilling (RC-TOT01 & 03) carried out by the Property owner in 2009, and diamond drilling (DDH-TOT01-11) completed by the CMVN in 2011-2012. The mineralization is associated with a magnetic high anomaly, and several other similar highs are present south of the fault, which may represent similar but unroofed mineralized diorite porphyry stocks. Much of the remainder of the property hosts extensive phyllic alteration with outcropping leached cap, quartz stockworking, remnant copper oxides, and associated magnetic low and copper geochemical anomalies. (Figure 3) High sulphidation alteration, including phreatomagmatic breccias and silicified ledges with anomalous gold, indicative of a remnant lithocap are exposed at the highest elevations. Previous geochemical sampling has indicated the presence of strongly anomalous copper associated with certain areas of the phyllic alteration, indicating potential for chalcocite enrichment.

Table 1: Historic Drill Intersections

Hole From To m Au g/t CuT% CuEq%
DDH-TOT01 0 138 138 0.17 0.38 0.47
incl 64 132 68 0.25 0.51 0.64
DDH-TOT03 88 192 104 0.24 0.37 0.50
incl 88 164 76 0.30 0.44 0.59
DDH-TOT04 74 208 134 0.17 0.30 0.39
incl 136 204 68 0.22 0.40 0.51
and 218 234 16 0.04 0.29 0.31
DDH-TOT05 82 104 22 0.11 0.16 0.22
and 138 166 28 0.11 0.25 0.31
and 192 252 60 0.08 0.15 0.19
and 268 280 12 0.05 0.23 0.25
DDH-TOT06 260 300 40 0.05 0.20 0.22
DDH-TOT07 34 120 86 0.06 0.18 0.21
DDH-TOT09 46 374 328 0.14 0.26 0.34
incl 78 116 38 0.21 0.32 0.43
incl 226 286 60 0.18 0.37 0.46
and 400 426 26 0.12 0.20 0.26
and 466 488 22 0.31 0.10 0.26
DDH-TOT10 220 298 78 0.22 0.34 0.45
and 342 474 132 0.12 0.35 0.41
RC-TOT01 0 135 135 0.16 0.29 0.38
RC-TOT03 0 198 198 0.14 0.20 0.28

The diamond drill samples were collected by CMVN and assayed for Au by fire assay with an AAS finish, and for Cu by 37 element ICP at Activation Laboratories in Coquimbo, Chile. Coro is in possession of the assay certificates, drill logs, drill core and assay pulps, but is unaware if any QA/QC procedures were carried out, and has no information on chain of custody for the sampling. Therefore, while Coro believes that the core sampling and assaying was carried out in a professional manner by a company independent of the underlying owner of the property, and assays are consistent with the mineralization seen in the drill core, these results should be treated as historical and not be relied upon for compliance with NI43-101 standards. Coro is also in possession of the assay results and drill logs for the RC holes completed by the property owner, but is unaware if any QA/QC procedures were carried out, nor has any information on chain of custody for the sampling. Again, these results should be treated as historical and not be relied upon for compliance with NI43-101 standards. No information is available from the Shell drilling.

The Cu equivalent values were calculated by Coro using $2.80/lb Cu and $1,000/oz Au, with no account taken of potential metallurgical recoveries.

Sergio Rivera, Vice President of Exploration, Coro Mining Corp., a geologist with more than 30 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 36 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.

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 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 Berta, El Desesperado, El Inca, Chacay, Llancahue, and Celeste copper exploration properties located in Chile.

For further information please visit the Company's website at www.coromining.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.

To view the figures accompanying this press release, please click on the following link: http://media3.marketwire.com/docs/cop1017i.pdf

Contact Information