Discover-Develop-Operate A Copper Growth Company in Chile May 2017 - - PowerPoint PPT Presentation
Discover-Develop-Operate A Copper Growth Company in Chile May 2017 - - PowerPoint PPT Presentation
Discover-Develop-Operate A Copper Growth Company in Chile May 2017 T.COP Disclaim er & Forw ard Looking Statem ents This presentation includes certain forward-looking statements about future events and/or financial results which are
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Disclaim er & Forw ard Looking Statem ents
This presentation includes certain forward-looking statements about future events and/or financial results which are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements or information, including but not limited to those with respect to the operation of SCM Berta, and the development of the Marimaca project, metal prices, metallurgical results and resource estimates, 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. Forward-looking statements include without limitation, statements regarding the company’s plans, goal or objectives and future completion
- f mine feasibility studies, mine development programs, capital and operating costs, production, potential mineralization, resources and
reserves, exploration results and future plans and objectives of Coro Mining Corp. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, or “ continue” or the negative thereof or variations thereon or similar terminology. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause results to differ materially from expectations include risks associated with mining generally and pre-development stage projects in particular. The company is an exploration, development & mining company. Many references to resources and other geological and technical information contained herein have not been verified by an independent expert and are either not in accordance with the requirements under National Instrument 43-101 or have not been prepared in accordance with a preliminary or final feasibility study. Potential investors should conduct their own investigations as to the suitability of investing in securities of Coro Mining Corp. The potential target tonnage and grade noted for the El Jote project are conceptual in nature as there has been insufficient exploration to define mineral resources, and it is uncertain if further exploration will result in these targets being delineated as mineral resources. Unless otherwise indicated, Coro has prepared the technical information in this presentation (“Technical Information”) based on information contained in the technical reports and news releases (collectively the “Disclosure Documents”) available under Coro Mining Corp.’s company profile on SEDAR at www.sedar.com. Each Disclosure Document was prepared by or under the supervision of a qualified person (a “Qualified Person”) as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators (“NI 43-101”). For readers to fully understand the information in this presentation, they should read the Technical Reports (available on www.sedar.com) in their entirety, including all qualifications, assumptions and exclusions that relate to the information set out in this presentation which qualifies the Technical Information. Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. The Disclosure Documents are each intended to be read as a whole, and sections should not be read or relied upon out of context. The Technical Information is subject to the assumptions and qualifications contained in the Disclosure
- Documents. All figures are quoted in US dollars unless otherwise stated.
Alan Stephens, FIMMM, President and CEO of Coro Mining Corp, a geologist with more than 41 years of experience is the Qualified Person for the purposes of NI 43-101 and has approved this written disclosure.
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The Copper Business
I ncreasing Demand + Supply Shortfalls = Higher Copper Prices
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Copper in Chile
- Chile is the world’s largest copper producing country
- Safe, low political risk
- History of mining and mining-friendly government
- Defined process for project approval
- Long history of foreign investment
- Leachable Copper
- A significant percentage of Chilean production comes from so-called leachable
deposits, either by heap leaching where higher grade material is crushed and deposited on a lined heap leach pad; or run of mine leaching of lower grade material where the ore is not crushed prior to depositing on a lined pad
- The copper is extracted from the pads by means of dissolution by sulphuric acid to
form a pregnant leach solution (PLS), followed by solvent extraction and electro- winning (SXEW) to produce copper metal in the form of 99.99% Cu cathodes
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Our Business
Coro discovers, develops and operates high return, low cost, low capital intensity, leachable copper deposits in areas of good infrastructure in Chile.
- Marimaca: Exciting New Development Project: (Coro earning 75% )
- Open pit mineable, heap leach project with maiden resource estimate
- 145,500t of Measured & Indicated + 99,300t of Inferred contained copper resources
- Deposit remains open in 3 directions
- Unbeatable location, low strip ratio and good metallurgy
- Finalising acquisition of nearby 10,000t per year Cu Ivan SXEW processing plant
- SCM Berta: Expanding Production: (Coro 65% )
- Berta open pit mine, 3,000t per year Nora SXEW processing plant & El Jote project
- Finalising installation of leaching facilities at Berta & expansion to 4,800t per year
- El Jote provides potential for further expansion or life extension
- Strong Partners
- Greenstone Resources (61% of Coro). Private equity group investing in companies with
small to medium sized projects approaching production
- ProPipe (35% of SCM Berta). Chilean engineering company focussed on driving down
capital and operating costs. Project development team for Coro
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- “Coro type” projects have the following characteristics:
- Stage of development immaterial, preferably open pit, preferably leachable
- Close to infrastructure & water
- Environmentally simple & socially acceptable
- Financeable relative to our market capitalization
- Readily scalable with additional exploration
- We will then develop them in the “Coro way” by:
- Having an austerity-driven development approach
- Accelerating commencement of production
- Minimising initial capital investment rather than maximising NPV
- Prioritising profitability over production rate
Our Growth Strategy
Using our exploration and development expertise, our strategy is to grow a Chilean copper mining business through the discovery, development and operation of “Coro
type” projects. Our target is to be producing more than 30,000t per year Cu within 5 years.
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Location Of Our Projects
20km 30km
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Marimaca Development Project
~ 250m
Marimaca Deposit Viewed from North
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- Project Summary
- 14km from highway and powerline, 22km from
Mejillones port, 1 hour from Antofagasta
- Coro earning 75% interest by completing
engineering studies and obtaining project financing
- Total of 54 RC and 6 DD holes drilled on property
for 13,740m during 2016
- Maiden NI 43-101 resource estimate
announced 01/ 17
- Initial column tests and base line studies completed
- Acquiring nearby I van processing plant
- Feasibility study initiated
Marimaca: A Significant New Leachable Deposit
I van
Mantos Blancos
Marimaca
Coastal Copper Belt
Michilla Mantos de la Luna
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Marimaca: Agreement Terms
Coro may earn a 75% interest in Compañia Minera Newco Marimaca (CMNM) as follows;
- 51% interest earned by August 6th 2018 by:
- Paying $125,000
- Completing NI43-101 resource estimate. (Done)
- Completing feasibility study for a minimum of 1,500t per year Cu cathode
- Additional 24% interest earned by:
- Obtaining financing for the project construction, or
- Transferring Ivan plant to CMNM at Coro’s election
- Owner’s interest will comprise:
- 15% interest free carried to commencement of commercial production
- 10% participating interest subject to dilution.
- Owners may request Coro to loan them any equity portion corresponding to their 10%
interest
- Coro retains a first right of refusal
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Marimaca: Geology and Mineralization
- Deposit hosted by Jurassic age coarse grained dioritic rocks, strongly affected by E
dipping N-S oriented fracturing related to a branch of the Atacama Fault Zone, the Marimaca Structure
- Subsequent SE dipping, NE-SW oriented feeder structures, possibly Riedel shears
associated with NW-SE shearing, introduced copper mineralization
- Mineralization genetically associated with late Jurassic plugs, sills and dykes which
controlled distribution of primary sulphides
- Primary mineralization consists of hairline to centimetric veinlets of chalcopyrite-
magnetite with accompanying potassic alteration. Very little disseminated sulphide
- Supergene enrichment with chalcopyrite enriched to chalcocite and covellite
- Deep oxidation and Cu remobilization resulted in an oxidised enrichment blanket
- Distribution and grade of secondary copper mineralization controlled by fracture density
- Pyrite halo developed in hanging wall of deposit, oxidised to pyritic leached cap
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Marimaca: Geologic Model
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Marimaca: Drill Plan
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Marimaca: Cross Section
- Only leachable blocks shown. No enriched or primary mineralization modelled
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Marimaca: Resource Estimate
- NI43-101 resource completed by NCL Ingeniería y Construcción S.A., 01/17
- Deposit remains open in 3 directions
- Only leachable oxides and mixed material included in estimate
- Enriched and primary sulphides material not included in estimate
- Approximately 20,000,000t of potential leachable mineralization identified but not
included in any resource category
CuT means total copper and CuS means acid soluble copper. Cut off expressed in % CuT
Cut Off t x 1000 %CuT %CuS t x 1000 %CuT %CuS t x 1000 %CuT %CuS t x 1000 %CuT %CuS >1.0 1,177 1.36 1.06 2,355 1.24 0.90 3,532 1.28 0.95 1,320 1.19 0.75 0.9 1,482 1.28 1.00 3,284 1.16 0.84 4,766 1.20 0.89 2,027 1.11 0.72 0.8 1,878 1.19 0.93 4,508 1.08 0.79 6,385 1.11 0.83 3,085 1.02 0.69 0.7 2,359 1.10 0.86 6,137 0.99 0.73 8,496 1.02 0.76 4,615 0.93 0.64 0.6 2,950 1.01 0.79 7,928 0.91 0.67 10,878 0.94 0.70 6,920 0.83 0.59 0.5 3,661 0.92 0.72 10,190 0.83 0.62 13,851 0.85 0.65 10,728 0.73 0.53 0.4 4,365 0.84 0.66 12,738 0.75 0.56 17,103 0.78 0.59 15,251 0.65 0.47 0.3 4,986 0.78 0.61 15,192 0.69 0.52 20,178 0.71 0.54 20,753 0.57 0.41 0.2 5,453 0.74 0.58 16,833 0.65 0.48 22,286 0.67 0.51 26,979 0.49 0.35 0.1 5,689 0.71 0.56 17,551 0.63 0.47 23,241 0.65 0.49 31,844 0.44 0.31 >0 5,761 0.70 0.56 18,052 0.61 0.46 23,814 0.63 0.48 39,456 0.36 0.33 Measured Indicated Meas + Ind Inferred
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Marimaca: Pit Constrained Resource Estimate
Category t x 1000 % CuT % CuS t CuT t CuS
Measured 5,301 0.74 0.59 39,400 31,000 Indicated 16,198 0.66 0.49 106,100 79,400
Measured & I ndicated 21,499 0.68 0.51 145,500 110,400 I nferred 18,769 0.53 0.39 99,300 72,800
Waste 54,436 Strip 1.31:1
At a $3.20/lb long term copper price, the following heap leachable pit constrained resources were estimated:
Mining Cost $2.8/t HL Processing Cost, inc G&A $10.5/t
Economic Parameters
ROM Processing Cost inc G&A $4.6/t Selling Cost $0.07/lb Heap Leach Recovery 76% of CuT ROM Recovery 38% of CuT Pit Slope Angle 45o
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- Logging of drill core and cuttings defined 4 types of leachable copper oxide
mineralization occurring in coherent bodies, namely; brochantite and chrysocolla which form the bulk of the resource; black copper oxides & copper wad which occurs at the margins; and one small body of mixed oxide and chalcocite
- A resource estimate was completed for each type:
Marimaca: Mineralization Types
t %CuT %CuS %Sol t %CuT %CuS %Sol t %CuT %CuS %Sol t %CuT %CuS %Sol
Brochantite 2,165 0.88 0.68 77% 6,776 0.74 0.55 74% 8,941 0.77 0.58 75% 6,873 0.61 0.45 74% Chrysocolla 3,093 0.65 0.52 80% 9,045 0.6 0.46 77% 12,138 0.62 0.47 76% 8,576 0.53 0.41 77% Wad 30 0.33 0.22 67% 297 0.32 0.21 66% 327 0.32 0.21 66% 2,596 0.32 0.21 66% Mixed 13 0.46 0.19 41% 80 0.5 0.19 38% 93 0.49 0.19 39% 724 0.53 0.2 38% Total 5,301 0.74 0.59 80% 16,198 0.65 0.49 75% 21,499 0.68 0.51 75% 18,769 0.53 0.39 74% Type Measured Indicated Measured & Indicated Inferred
tCuT tCuS % % tCuT tCuS % % tCuT tCuS % % tCuT tCuS % % Brochantite 19,052 14,722 48.5% 47.6% 50,142 37,268 47.4% 46.8% 69,194 51,990 48% 47% 41,925 30,929 42.1% 42.4% Chrysocolla 20,105 16,084 51.1% 52.1% 54,270 41,607 51.3% 52.2% 74,375 57,691 51% 52% 45,453 35,162 45.7% 48.2% Wad 99 66 0.3% 0.2% 950 624 0.9% 0.8% 1,049 690 1% 1% 8,307 5,452 8.3% 7.5% Mixed 60 25 0.2% 0.1% 400 152 0.4% 0.2% 460 177 0% 0% 3,837 1,448 3.9% 2.0% Total 39,315 30,896 105,763 79,651 145,078 110,547 99,523 72,990 Inferred Type Measured Indicated Measured & Indicated
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Marimaca: Metallurgical Test Work
- Two sample composites were made for each oxide type and one for the mixed, with
the following head assays:
- Two 6” diameter, 1m high columns were run at P90= 3/4” and P90= 1/2” for each of
the composites for 27 days of irrigation and shut down after 30 days, with the finer crush size results as follows:
Col-15 Col-16 Col-21 Col-22 Col-17 Col-18 Col-23 Col-24 Col-19 Col-20 Col-25 Col-26 Col-27 Col-28 kg/t Acid Dose 25 25 20 20 25 25 20 20 25 25 15 15 16 16 %CuT analytic 0.93 0.93 0.83 0.83 1.46 1.46 1.14 1.14 0.44 0.44 0.62 0.62 0.59 0.59 %CuS analytic 0.73 0.73 0.72 0.72 1.13 1.13 0.98 0.98 0.26 0.26 0.44 0.44 0.40 0.40 %Solubility 78.9 78.9 86.1 86.1 77.8 77.8 85.7 85.7 59.4 59.4 70.8 70.8 67.6 67.6 %CuT Rec 80.4 78.8 73.9 76.6 70.7 69.2 79.0 81.9 68.2 68.9 74.1 76.8 59.5 61.0 kg/t NAC 56.7 57.2 53.6 56.2 58.4 59.2 46.6 47.3 63.0 63.8 47.3 47.9 50.9 50.3 Wad>Chry>Broch Chrysocolla Brochantite Mixed Marimet-1 Marimet-4 Marimet-2 Marimet-5 Marimet-3 Marimet-6 Marimet-7
Type Composite %CuT %CuS %Sol %CO3 kg/t AC Marimet-1 0.87 0.73 83.9 1.00 48.7 Marimet-4 0.85 0.71 84.0 1.28 39.3 Marimet-2 1.50 1.13 75.4 1.67 32.5 Marimet-5 1.16 0.98 84.5 0.50 39.4 Marimet-3 0.45 0.26 57.8 1.48 53.3 Marimet-6 0.61 0.44 71.6 0.49 30.1 Mixed Marimet-7 0.63 0.40 64.2 1.08 23.2 Chrysocolla Brochantite Wad>Chry>Broch
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Chrysocolla Brochantite Wad>Chry>Broch
Marimaca: 1m Columns, Leach Kinetics
80% 80% P90= 3/ 4” P90= 1/ 2”
- All columns suffered from insufficient acid being added in the curing stage which led to
higher than anticipated acid consumption. More tests planned
- Previous 3rd party test work indicated acid consumptions of 20-40kg/t which are in line
with the composite head assays
30 days
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Marimaca: Three Stage Development Plan
- Stage 1: Complete feasibility study for
10,000t per year Cu, including:
- Potential for high grade trucking option for
Years 1-2
- Install heap leach pads 5km W of
Marimaca
- Install 15km water and PLS pipelines to
Ivan
- Stage 2: Expand resources
- Stage 3: Determine optimum production rate
and/or phased production scenarios
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Marimaca: Stage 1 of Development Plan
- Complete feasibility study for 10,000t per year Cu production to earn 75% interest in CMNM
- Rehabilitation & remediation of existing pads, crushers, agglomerators, SX and EW
circuits and water wells. Estimated I van rehab capex: ~ $10m
- Evaluate potential for initial 1-2 year starter pit trucking ore to Ivan to generate cash flow
- Move Ivan crushers & agglomerators, build new pads and PLS/water pipelines.
Estimated additional capex: ~ $10m
- Estimated processing opex: $1.24/ lb after pad installation
(Capex and opex exclude mining, ore transport and G&A costs)
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Marimaca: 2016-17 Development Plan
- Initial resource drill program: completed
- Purchase of Rayrock: (almost) completed
- Initial resource estimate : completed
- Confirmation of 10,000t per year Cu development plan: completed
- Marimaca base line studies: completed
- Initial column test work: completed
- Geotech drilling for open pit design: Q2-Q3/17
- Submission of permit applications for open pit and new leach pads: Q3/17
- Resource expansion drilling: Q3-Q4/17
- Feasibility Study for 10,000t per year Cu & assignment of Ivan to earn 75% interest:
Q4/17
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SCM Berta
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- SCM Berta (65% Coro) owns the Berta open pit
mine, the Nora SXEW processing plant and has
- ptioned the El Jote project
- Acquired and commissioned the 3,000t per year
Cu capacity Nora plant in H2/15
- High grade trucking continuing until 05/17
- Installation of crusher and pads at Berta and
expansion of Nora plant to 4,800t per year Cu. Completion 05/17
- Trucking of concentrated PLS from Berta
to Nora (62km) to commence 05/ 17
- Evaluation of El Jote (ex-Salvadora) from Q3/17,
with potential to produce 3-5,000t per year Cu
Berta: 2017 Production & Development Plan
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Berta: Resource Estimate
- Resources from Coro Preliminary Economic Assessment dated 08/10/15
- New resource estimate, mine plan and reserves nearing completion
- Final Berta site operating permits expected by end Q2/17
Category t x 1000 % CuT % CuS t CuT t CuS
Measured 14,125 0.38 0.25 53,700 35,300 Indicated 3,479 0.29 0.18 10,100 6,300
Measured & I ndicated 17,604 0.37 0.23 63,800 41,600
Waste 8,669 Strip 0.49:1
The resource estimate includes the Berta Sur deposit, and the Berta Central deposits which comprise five individual but adjacent deposits which have been subject to prior small scale open pit mining. At a $3.0/lb long term copper price, the following pit constrained resources were estimated:
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SCM Berta: El Jote
Potential Resource
Plan Cross Section
- Potentially open pit mineable deposit located 30km NNW of Nora
- Potential for 8,000,000t at 0.5-0.6% CuT* , heap leachable, based on 56 RC holes
- Bottle roll test work indicates 70% recovery of CuT with 20kg/t acid consumption
- $1,500,000 budget to reach PFS stage.
- Outstanding $2,500,000 in option payments to acquire 100%
* The potential quantity and grade is conceptual in nature, being based on limited drilling surface sampling and mapping, there has been insufficient
exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
500m 100m
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27 Management Title Previously
Alan Stephens President & CEO, Director VP Exploration, First Quantum Minerals Marcelo Cortes VP Development Manager - Infrastructure, Antofagasta Minerals Damian Towns CFO Controller, First Quantum Minerals Sergio Rivera VP Exploration General Manager - Exploration, Codelco Naomi Nemeth VP Communications IR Manager for various TSX Mining Companies
Directors Title Occupation
Gord Fretwell Chairman Securities Lawyer Rod Webster Independent Director Mining Executive Michael Haworth Greenstone Nominee Senior Partner, Greenstone Colin Kinley Greenstone Nominee CEO, Kinley Exploration
Our Experienced Leadership
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Our Successful Track Record of Discovery
Alan Stephens, President & CEO
Kansanshi Cu-Au Zambia Producing Frontier Cu DRC Producing Guelb Moghrein Cu-Au Mauretania Producing Milpillas Cu Mexico Producing San Jorge Cu Argentina Permitting Co Quema Au Panama Development
Sergio Rivera, VP Exploration
Toki Cluster Cu Chile Development Inca de Oro Cu-Au Chile Development La Americana & Co Negro (Andina) Cu Chile Advanced Casualidad Cu Chile Advanced
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Coro: Discovery, Development & Production
- We have a simple, achievable and replicable business strategy of discovering,
developing, financing, building and operating small to medium scale, leachable copper projects in coastal Chile and we have the management team and partners to execute it
- We are earning a 75% interest in the exciting Marimaca development project
- Maiden resource released 01/17 containing 145,500t of Measured & Indicated plus
99,300t of Inferred contained copper resources
- Potential for significant expansion of resources
- Accelerated development plan to reach production
- Acquisition of the 10,000t per year Cu Ivan SXEW plant being finalised
- We own a 65% interest in SCM Berta, a small copper producer
- Increase from 3,000t to 4,800t per year Cu via installation of Berta mine site crusher &
leach pads and expanded Nora plant, almost complete
- Further expansion potential from El Jote
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Share Structure, Shareholders & Trading
- Symbol TSX: COP
- Price at May 1st: CAD$0.14
- Shares Issued: 593.2m
- Market Cap: ~ CAD$83m
- Major Shareholders
- Greenstone Resources (61% )
- Other Institutions (~ 14% )