Coro Mining Corp.

Coro Mining Corp.

March 20, 2008 15:33 ET

Coro Reports 2007 Year End Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 20, 2008) - Coro Mining Corp. ("Coro" or the "Company") (TSX:COP) is pleased to announce the release of its Financial Statements and Management Discussion and Analysis ("MD&A") for the year ended December 31, 2007. For a full understanding of the results of operations for the year ended December 31, 2007, reference should be made to the complete set of financial statements and full MD&A that is available on the Company's website at The following information has been extracted from the full version of the Company's MD&A.

1. Milestones / Highlights

- Completed Initial Public Offering ("IPO") on TSX, raising gross proceeds of CA$13.5 million (July 2007)

- San Jorge 43-101 Resource Statement and Update

- Barreal Seco 43-101 Resource Statement

- Initiated San Jorge PEA and PFS (completion expected Q208)

- Commenced scoping study on Flores Project

- Acquisition of Andrea Copper Gold Property (November 2007)

- Staked 42,300 hectares in South Central Chile

- Cerro Negro option agreement to purchase operating mine (February 2008)

2. 2007 Expenditures Review

The following table has been extracted from the MD&A and details the
Company's expenditures by quarter.

Table 12: ($000's)
Expenditures summary
Quarterly Full Year
Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 2006 2007
costs $737 $545 $1,304 $1,769 $1,229 $1,372 $1,468 $1,430 $4,355 $5,499
costs - - 2,790 1,234 706 3,336 1,930 1,496 4,024 7,468

exploration &
ment 737 545 4,094 3,003 1,935 4,708 3,398 2,926 8,379 12,967
ized - - (2,790)(1,234) (706)(3,336)(1,930)(1,496)(4,024)(7,468)
costs 85 111 179 202 209 242 242 305 577 998
zation 11 11 11 17 17 17 30 23 50 87
(gain) 18 29 20 (12) - (2) (264) (354) 55 (620)
income (40) (42) (100) (108) (81) (72) (150) (120) (290) (423)
sation 13 30 33 47 55 66 70 127 123 318
loss $824 $684 $1,447 $1,915 $1,429 $1,623 $1,396 $1,411 $4,870 $5,859

The following table has been extracted from the MD&A and details the
Company's exploration costs per quarter.

Table 13: ($000's)
Exploration expenditure
Quarterly Full Year
Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 2006 2007
By type

costs $ 73 $ 68 $ 261 $ 237 $ 108 $ 192 $ 159 $ 434 $ 639 $ 893

labour &
fees 126 155 164 263 337 328 261 446 708 1,372
Drilling &
ing - 18 621 327 13 270 474 274 966 1,031
gations 88 111 89 491 275 216 421 142 779 1,054

costs 430 161 121 398 469 323 100 50 1,110 942

Travel &
dation 20 32 48 53 27 43 53 84 153 207
Total $737 $545 $1,304 $1,769 $1,229 $1,372 $1,468 $1,430 $4,355 $5,499
By project

Andrea $ - $ - $ - $ - $ - $ - $ - $85 $ - $ 85
Flores 477 150 815 808 808 593 1,133 450 2,250 2,984
Gloria - 142 9 400 36 340 65 149 551 590
Chile -
General 143 92 299 231 171 282 200 632 764 1,285
Mexico 117 161 181 330 214 157 70 114 789 555
Total $737 $545 $1,304 $1,769 $1,229 $1,372 $1,468 $1,430 $4,355 $5,499


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.


In May 2007, the Company completed a 43-101 compliant resource on the Barreal Seco deposit part of the Flores Group of Projects. Subsequent to this resource statement the Company has drilled a further 17,968 meters (101 Reverse Circulation ("RC") holes) into the various Flores properties. An updated resource is expected to be released for the Barreal Seco deposit in the second quarter of 2008 and a 43-101 resource statement is also expected to be established for the Salvadora property in the second quarter of 2008.

Barreal Seco's leachable and primary resources, using a 0.30% CuT cutoff, have been estimated as follows (from NI 43-101 Technical Report, dated February 2007, by AMEC Americas Limited). For a full copy of the Barreal Seco Resource reference should be made to the Company's website. At the neighboring Salvadora property a total of 5,828 meters (39 RC holes) were drilled in 2007. For the full results of the drill program reference should be made to the Company's News Release 07-08.

At Barreal Seco, metallurgical tests and crushability tests are expected to be completed in the first quarter of 2008. The Company now anticipates that the scoping study will be evaluating the potential for producing copper cathode from the Flores group of projects. 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.


The Gloria prospect, in Chile, comprised two claim blocks, one of which is wholly owned and the other which was under an option agreement. In the fourth quarter a drill program of 674 meters (6 RC holes) was completed. The disappointing results from the drill program have resulted in the Company discontinuing its payments under the option agreement.

Chile - General

At its wholly owned Cerro-Chacay property, located next to Global Copper's Relincho copper/molybdenum porphyry deposit, a short re-assaying program and mag survey was undertaken. 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.

Development Costs - San Jorge, Argentina

The Company has engaged GRD Minproc to complete a Preliminary Economic Assessment ("PEA") of producing 35-50,000 tonnes per annum of copper in concentrates, with a significant gold credit, from flotation of the enriched and primary resources. This PEA is scheduled for completion in the second quarter of 2008. The Company's ability to develop the oxide resources at San Jorge was dealt a setback in June 2007 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 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 process the oxide resources at San Jorge with sulphuric acid. The claims pursued with the action are related to discrimination, unreasonable prohibition, and excess in the legislation to control an industrial activity. The Government has responded and defended the legislation with the original arguments which led to the law being passed. The next step is to open the case to trial which could take anywhere from seven months to a year to conclude.

Notwithstanding, the Company continues to work towards the completion of an independent PFS, which contemplates production of 25,000 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 the second quarter of 2008. The current legislation should not impact the development of a flotation only operation and the Company will work with the newly elected Provincial Government to demonstrate that the San Jorge Project can be developed in an environmentally responsible manner to the lasting economic and social benefit of the local community and the Province.

3. Cash and Financing

As of Feb 29, 2008 the Company had cash and cash equivalents of $8.3 million (Dec 31, 2007: $10.0m). As at December 31, 2007 the Company had raised $28.9 million in cash through the issuance of common shares. No debt has been raised by the Company at this time. The cash has been used to acquire and advance the San Jorge project ($8.5 million). A further $5.1 million has been spent on the acquisition and development of the Flores group of properties. A further $3.3 million has been spent on exploration in Chile and $1.5 million in Mexico.

4. Outlook

Cerro Negro Copper Mine

The main focus of our exploration and development team for the first six months of the year will be completing a thorough evaluation and due diligence of the Cerro Negro mine. Prior to March 24, 2008, the Company will look to complete a "fatal flaw" evaluation on Cerro Negro before committing to the $1.0 million option payment. Should the Company proceed past this point, the Company will then complete a full due diligence on the existing operation and any potential that might exist for production enhancements and expansions. Upon initial examination, it would also appear there is potential upside from an exploration perspective on the property itself and the surrounding district and Coro will look to thoroughly investigate these opportunities.

During the initial due diligence period, the Company will also further continue its discussions with potential lenders to determine the optimal capital structure of the transaction and to determine how the acquisition cost will be financed. As a result of this focus on Cerro Negro some of the Company's other exploration programs planned for 2008 maybe deferred until late in 2008. Once the Company has established NI 43-101 compliant resources it hopes to provide greater guidance on the operational capability of Cerro Negro.

San Jorge

The results from the PEA on the flotation of the enriched and primary ore will determine the outlook for the San Jorge project. If positive, the Company will look to proceed to permitting of a flotation operation by the end of 2008 and will continue to demonstrate that the San Jorge project can be developed in a socially and environmentally responsible manner to the benefit of the local community and Province. It will also continue with its legal action against the Provincial Government claiming that the legislation banning the use of sulphuric acid is unconstitutional, in an attempt to improve the economics of the flotation project and avoid treating the oxide resources as waste.

Flores Group

The Company expects to be able to report on an update to the leachable and primary sulphide resources at Barreal Seco in the second quarter of 2008. It also expects to be able to establish a 43-101 compliant resource statement from the 5,828 meters (39 RC holes) of drilling that was undertaken during 2007 at the Salvadora property. The Company is currently undertaking a scoping study on the Flores group of properties that is expected to be completed in the second quarter of 2008. If positive, an independent pre-feasibility study could be completed by the end of the year.


In Southern Chile, the Company intends to complete internal surface mapping and sampling to confirm targets. The Company will also seek a major company to partner in the exploration of the staked areas in Southern Chile. At Andrea, surface sampling and mapping will continue. The Company will look to drill test Andrea in the second quarter of 2008. At Cerro-Chacay the Company intends to drill test this prospect later in 2008.

The above information has been extracted from the Company's full MD&A and reference should made to the Conpany's complete financial statements and MD&A that are available on its website at


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, an option to acquire the Cerro Negro copper mine in Chile, 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, Prince Edward Island and Newfoundland and Labrador.

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