Coro Mining Corp.
TSX : COP

Coro Mining Corp.

September 09, 2010 09:15 ET

Coro Announces Positive Conclusions From Hydrological Studies At San Jorge Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 9, 2010) - Coro Mining Corp. ("Coro" or the "Company") (TSX:COP) is pleased to announce that further to its news release of July 26th 2010, it has completed additional hydrological studies at its San Jorge advanced copper gold project located in the Province of Mendoza, Argentina.

The Company previously announced it had been advised by the Provincial Government of Mendoza, that certain re-confirmatory studies were required to be completed to provide further hydrological information on the project, as a condition to proceeding to the Public Hearing scheduled for October 20, 2010. The Public Hearing is the final step in the consultation process prior to the Environmental Impact Study ("EIS") being submitted to the Provincial Government for approval, and if approved, presented to the Provincial House of Deputies and Senate for ratification.

The objective of the studies was to provide additional information of the potential impact of the San Jorge project on the hydrological resources of the project area. Coro contracted SRK Consulting to conduct the requested studies, which were completed on time, and the consultant's report has now been submitted to the Provincial General Department of Irrigation for their review.

On the basis of the pre-existing information and the data collected for these studies, SRK Consulting concluded;

  • The Arroyo del Tigre stream has sufficient resources to supply the project requirements.
  • Water extraction from the Arroyo del Tigre at the proposed rate would result in only an 8% reduction in the flow rate to the Yalguaraz marsh, and would result in a less than 1% reduction in the volume of water stored in the aquifer. Therefore, there would be no significant impact on the availability of water resources from the project development.
  • Water extraction from the Arroyo del Tigre and the reduction of recharge would not affect the quality of the Yalguaraz aquifer water. The vulnerability of the aquifer was determined to be low, and correct handling of the proposed paste tailings should result in no risk of contamination. Percolation of moisture from the base of the tailings facility is not anticipated to exceed 6m under the most unfavourable conditions modelled (greater precipitation than observed, less evaporation than observed, soil humidity greater than observed). The top of the aquifer occurs at depths greater than 100m. Therefore, the project development would not affect the quality of the water resources.
  • The minimal percolation demonstrates the efficiency of paste tailings and confirms that there is no necessity to install an impermeable liner in the proposed facility. This is in line with existing Chilean legislation on paste tailings which prohibits the use of plastic liners as they may increase structural instability.
  • The Yalguaraz basin is limited to the south by a series of structural highs, re-confirming previous studies.

Alan Stephens, President and CEO of Coro commented, "We are pleased that the studies carried out by SRK Consulting have produced these positive conclusions that re-confirm the work completed for the San Jorge Environmental Impact Study. We look forward to presenting San Jorge to the people of Mendoza at the Public hearing on October 20th."

The work carried out by SRK Consulting, in conjunction with Ausenco-Vector and Quantec Geoscience, comprised;

  • Site tests of the area of the proposed paste tailings facility and waste dumps, including in situ measurements of density, humidity and infiltration, and laboratory permeability tests
  • Permeability tests (Packer method) utilizing 2 drill holes at the site of the proposed tailings facility wall
  • Modelling of infiltration in the area of the proposed paste tailings facility
  • Hydrological balance of the Arroyo del Tigre stream and Yalguaraz aquifer and potential impact from the project development
  • Assessment of vulnerability of the Yalguaraz aquifer from the project development
  • A 25km TEM (Transient Electro Magnetic) geophysical survey, aimed at providing additional information regarding the southern limits of the Yalguaraz basin. Pre-existing geophysical and geological data covering the area was incorporated into the interpretation.
  • Geophysical investigations in the Arroyo del Tigre stream channel

Coro is fully committed to developing San Jorge in such a way that no water resources would be affected by contamination, as required by local and national laws and regulations, and by international best practices. The Company, through its subsidiary, Minera San Jorge, continues to follow a policy of complete transparency and frankness, and has stressed the economic and employment benefits of the project to Argentina, as well as a commitment to exacting industry standards in environmental management, and has invited citizen participation in the environmental monitoring of the operation. The Company has demonstrated its commitment to water conservation through the proposed use of paste tailings, which minimizes water usage through recycling. It has committed to train as many local residents as possible for employment in the future operations at San Jorge.

CORO MINING CORP.

Alan Stephens, President and CEO

About San Jorge:

The San Jorge copper-gold project is located in Mendoza, Argentina. The Company completed an independent Preliminary Economic Assessment ("PEA"), in April 2008 which contemplated production of 39,500 tonnes of copper per annum and 39,000 ounces of gold per annum over a 16 year mine life. The deposit remains open to the west and at depth and using a $2.00 per pound copper and $600 per ounce gold price returned an after tax NPV of $220 million, with a capital expenditure of $277 million.

Alan Stephens FIMMM, President and CEO of Coro, a geologist with more than 33 years of industry experience is the Qualified Person for Coro who has reviewed and approved the contents of this News Release. In respect of the PEA, it should be noted that mineral resources that are not mineral reserves do not have demonstrated economic viability.

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 Chacay, Llancahue and Celeste copper exploration properties located in Chile. The Company also holds 9,140,353 shares (a 20.3% interest) in Valley High, which holds the Cordero property in Mexico. (www.valleyhighventures.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.

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