Coro Mining Corp.
TSX : COP

Coro Mining Corp.

October 04, 2016 08:30 ET

Coro Drilling at Marimaca Returns More Exciting Intercepts Highlighted by 330m @ 0.80%CuT, 236m @ 0.81%CuT & 188m @1.06%CuT

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 4, 2016) - Coro Mining Corp. ("Coro" or the "Company") (TSX:COP) is pleased to announce the results of a further 7 reverse circulation (RC) holes from the 39 hole, 8530m hole program completed at its Marimaca copper project, located 22km E of the port of Mejillones in the II Region of Chile, (Fig. 1). We also announce the results of the remaining 4 diamond drill (DDH) holes of the 6 hole, 2021m program, aimed at providing metallurgical samples and geotechnical information; to corroborate the RC drilling; and to test deeper mineralization. Previous drill results (MAR-01 to MAR-21, MAR-24 to 26 and MAD-01 to 02B) were released on April 28, May 6 and September 6 2016, and results for the remaining 24 RC holes will be released over the coming weeks.

Coro has agreed a 1 month extension to October 24 2016 for its due diligence period for the Minera Rayrock (MR) acquisition announced on August 4 2016; MR is the owner of the Ivan SXEW plant located some 18km S of Marimaca, as well as a large claim position shown on Fig. 1. Coro also announces that Minera Peñoles de Chile Ltda. has terminated its option over the Company's Llancahue prospect in central Chile.

Alan Stephens, President and CEO of Coro commented, "We are delighted with this latest batch of results from Marimaca, which continue to exceed our initial expectations for the deposit, both in thickness and grade. So far, drilling has only defined the SW limit of the mineralization, corresponding to the structural footwall of the deposit at surface. We will shortly be completing a drone based magnetic survey which we anticipate will further aid our understanding of the deposit and an initial resource estimate is scheduled for completion before year end."

Drilling Results

Latest results are shown on Tables 1a and 1b where %CuT means total copper. Drill hole locations are shown on Fig. 2 and in more detail on Fig. 3. Drill collars for all holes are shown on Table 2.

Table 1a: RC Intersections
Hole TD From To m %CuT Type
MAR-22 280m 60 118 58 0.80 Oxide
and 148 166 18 0.77
MAR-23 300m 40 90 50 0.66 Oxide
and 116 136 20 2.30 Mixed
MAR-27 250m 64 136 72 0.56 Oxide
MAR-28 190m No Significant Results
38 250 212 0.69 All
38 126 88 0.58 Oxide
MAR-29 250m including 126 144 18 2.36 Primary
158 230 72 0.55 Primary
230 250 20 0.54 Mixed
MAR-30 250m 26 56 30 0.46 Oxide
and 98 110 12 0.30 Oxide
MAR-31 200m No Significant Results
Table 1b: DDH Intersections
Hole TD From To m %CuT Type
0 188 188 1.06 All
MAD-03 406m including 0 176 176 1.07 Oxide
176 188 12 0.98 Primary
24 260 236 0.81 All
24 194 170 0.57 Oxide
MAD-04 320m 194 200 6 3.25 Enriched
including 200 214 14 1.21 Oxide
214 228 14 2.98 Enriched
228 260 32 0.52 Oxide
Hole TD From To m %CuT Type
0 330 330 0.80 All
0 88 88 1.08 Oxide
88 108 20 1.33 Enriched
108 184 76 0.82 Oxide
MAD-05 330m including 184 194 10 1.22 Primary
216 236 20 1.32 Primary
236 304 68 0.51 Mixed
312 322 10 0.20 Oxide
322 328 6 0.37 Primary
50 144 94 0.58 All
MAD-06 209m including 50 86 36 1.06 Oxide
86 144 58 0.29 Mixed

Geology & Mineralization

The Marimaca deposit comprises a significant oxidised enrichment blanket, with some of the enrichment partially or completely preserved as mixed and enriched zones respectively. Primary chalcopyrite mineralization has been intersected in some of the deeper holes. The overall control to mineralization is a major N-S trending ~60°E dipping zone of fracturing, defined as the Marimaca Structure, cross cut by NE-SW oriented feeder structures, dipping to the SE. The host rock is a coarse grained Jurassic diorite intruded along the Structure by later diorite plugs and associated dykes that are related to the mineralization, all cross cut by post mineral andesitic sills and dykes. Strong potassic alteration and magnetite introduction accompanies the mineralization. Acid solubilities in the oxide zone are good at 74% for all assays > 0.1%CuT and rising to 80% for >0.3%CuT.

Agreement Terms

Coro has the right to earn a 75% interest in the property as follows;

  • 51% interest earned in Compañia Minera Newco Marimaca (CMNM) with a $125k payment together with completion of a NI43-101 resource estimate and engineering study that demonstrates the technical and economic feasibility of producing a minimum of 1.5ktpy Cu cathode by August 6th 2018 at Coro's cost,
  • Additional 24% interest in CMNM earned by Coro upon obtaining financing for the project construction
  • The owner's interest will comprise a 15% interest free carried to commencement of commercial production and a 10% participating interest subject to dilution. The owners at their election may request Coro to loan them the equity portion corresponding to their 10% interest, if any, recoverable by Coro from 100% of the project's free cash flow after debt repayments

Twin Hole Analysis

Five of the DD holes were twinned with prior RC holes as follows; MAD-01/MAR-10, MAD-02/MAR-11, MAD-03/MAR- 03, MAD-05/MAR-04 and MAD-06/MAR-07. Recoveries in both RC and DD drilling exceeded 90%. Down hole surveying showed that the RC holes steepened more than the DD holes so that with increasing depth, the vertical separation invalidated the twinning exercise. However for the upper parts of the twins, there was good correlation between DD and RC holes and assays from both drilling methods will be used in the resource estimate.

Sampling and Assay Protocol

True widths cannot be determined with the information available at this time. Coro RC holes were sampled on a 2 m continuous basis, with dry samples riffle split on site and one quarter sent to the Geolaquim laboratory in Copiapo, Chile by Coro personnel for preparation and assaying. A second quarter was stored on site for reference. Core from DDH holes was photographed, logged, split and sampled on site by Coro personnel and one half of the core sent to Geolaquim. Samples were prepared using the following standard protocol: drying; crushing to better than 85% passing -10#; homogenizing; splitting; pulverizing a 500-700g subsample to 95% passing -150#; and a 125g split of this sent for assaying. All samples were assayed for CuT (total copper) and CuS (acid soluble copper) by AAS. A full QA/QC program, involving insertion of appropriate blanks, standards and duplicates was employed with acceptable results. Samples showing significant secondary sulphides will be assayed for CuCN (cyanide soluble copper) in due course. Pulps and sample rejects are stored by Coro for future reference.

Sergio Rivera, Vice President of Exploration, Coro Mining Corp, a geologist with more than 32 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 40 years of experience, and a Qualified Person for the purposes of NI 43-101, is responsible for the contents of this news release.

To view Fig 1: Location of Marimaca and Minera Rayrock Claims, please visit the following link: http://media3.marketwire.com/docs/1004CORO_map1.jpg

To view Fig 2: Marimaca Drill Plan, Latest RC holes in pink, DDH holes in blue, previous RC holes in brown and remaining RC holes in black, please visit the following link: http://media3.marketwire.com/docs/1004CORO_map2.jpg

To view Fig 3: Detailed drill plan showing latest RC holes in pink, DDH holes in blue, previous RC holes in brown, remaining RC holes in black, please visit the following link: http://media3.marketwire.com/docs/1004CORO_map3.jpg

Intersections as follows:

Green: Oxides
Enriched: Red
Mixed: Yellow
Primary: Purple

Table 2: Marimaca Drill Collars

HOLE Easting Northing Elevation Azimuth Inclination TD
MAD-01 375,075 7,435,210 1,050 310 -55 421
MAD-02 375,060 7,435,212 1,051 220 -55 22
MAD-02B 375,059 7,435,209 1,051 220 -55 322
MAD-03 375,004 7,435,409 1,095 277 -60 406
MAD-04 375,000 7,435,510 1,132 220 -55 320
MAD-05 374,915 7,435,430 1,058 310 -60 300
MAD-06 375,118 7,435,529 1,113 330 -55 230
MAR-01 375,089 7,435,527 1,109 0 -90 140
MAR-02 374,951 7,435,480 1,097 0 -90 150
MAR-03 375,004 7,435,411 1,095 275 -60 200
MAR-04 374,916 7,435,432 1,057 310 -60 200
MAR-05 375,079 7,435,592 1,127 220 -60 200
MAR-06 375,074 7,435,595 1,127 310 -60 200
MAR-07 375,116 7,435,527 1,114 330 -55 210
MAR-08 374,965 7,435,459 1,098 310 -55 150
MAR-09 375,026 7,435,244 1,034 310 -55 150
MAR-10 375,074 7,435,207 1,050 310 -55 170
MAR-11 375,061 7,435,210 1,051 220 -55 170
MAR-12 375,092 7,435,118 1,047 310 -55 150
MAR-13 375,155 7,435,148 1,057 310 -55 150
MAR-14 375,029 7,435,238 1,033 220 -55 120
MAR-15 375,315 7,434,985 1,023 310 -55 350
MAR-16 375,097 7,435,111 1,046 220 -55 120
MAR-17 374,925 7,435,520 1,103 310 -55 200
MAR-18 374,922 7,435,517 1,104 220 -55 250
MAR-19 374,895 7,435,480 1,084 310 -55 300
MAR-20 374,870 7,435,452 1,062 310 -55 250
MAR-21 374,967 7,435,351 1,066 310 -55 300
MAR-22 374,967 7,435,344 1,066 220 -55 280
MAR-23 375,046 7,435,423 1,091 310 -55 300
MAR-24 375,051 7,435,421 1,091 220 -55 300
MAR-25 375,010 7,435,380 1,081 310 -55 300
MAR-26 374,974 7,435,275 1,059 310 -55 250
MAR-27 374,998 7,435,193 1,027 310 -55 250
MAR-28 374,834 7,435,262 1,063 310 -55 190
MAR-29 375,066 7,435,315 1,054 310 -55 250
MAR-30 375,011 7,435,116 1,021 310 -55 250
MAR-31 375,099 7,435,056 1,026 310 -55 200
MAR-32 374,805 7,435,433 1,066 310 -55 200
MAR-33 374,878 7,435,370 1,061 310 -55 90
MAR-33B 374,875 7,435,372 1,061 310 -55 200
MAR-34 375,131 7,435,220 1,085 310 -55 270
MAR-35 375,143 7,435,275 1,098 310 -55 250
MAR-36 375,144 7,435,271 1,098 220 -55 200
MAR-37 375,186 7,435,373 1,109 310 -55 200
MAR-38 375,247 7,435,420 1,117 310 -55 200
MAR-39 375,134 7,435,217 1,085 270 -55 400
MAR-40 375,137 7,435,218 1,086 220 -55 200
MAR-41 375,186 7,435,512 1,120 310 -55 200
MAR-42 374,996 7,435,517 1,132 310 -55 200
MAR-43 374,934 7,435,582 1,124 310 -55 200
MAR-44 374,939 7,435,575 1,124 220 -55 200
MAR-45 374,994 7,435,645 1,093 310 -55 200
MAR-46 375,130 7,435,712 1,081 310 -55 150
MAR-47 375,129 7,435,707 1,081 220 -55 150
MAR-48 375,668 7,435,241 1,069 310 55 200
MAR-49 375,633 7,435,167 1,067 310 55 200
MAR-50 375,448 7,435,157 1,049 310 55 200
MAR-51 375,162 7,435,329 1,103 310 -55 200
MAR-52 375,076 7,435,455 1,092 310 -55 250
MAR-53 374,865 7,435,491 1,082 220 -55 200
MAR-54 374,878 7,435,373 1,062 220 -55 200

CORO MINING CORP.

Alan Stephens, 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 including the Berta and Salvadora deposits; the Marimaca drill stage project; the Planta Prat project; the Llancahue prospect; and a royalty on the San Jorge copper-gold project located in Argentina.

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Such forward-looking statements or information, include but are not limited to those with respect to the geological potential and size of Marimaca. 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.

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