Coro Announces 170 Meters at 0.63% Copper From Drilling Program at Chacay Property and Exercise of Warrants
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/08/11 -- Coro Mining Corp. ('Coro' or the 'Company') (TSX: COP) is pleased to announce the assay results from a recent drilling program comprising 8 vertical reverse circulation drill holes for a total of 2424m, completed by its Chilean subsidiary, Minera Cielo Azul Ltda ('MCAL') at its 100% owned Chacay porphyry copper property, located 12km southeast of Teck Resources Relincho copper project, and 50km east of the city of Vallenar in the III Region of Chile. See attached map for project location (Figure 1).
Previous assay results were announced in the Company's news releases dated March 26th 2010 and May 4th 2010, all drill hole locations are shown on Figure 2, and complete intersections from this latest program are shown on the table below;
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Hole TD m From To m %CuT Ore Type
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Nacho Zone
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CHC-RC17 282 112 282 170 0.63
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including 112 264 152 0.67 Chalcocite
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and 264 282 18 0.24 Primary
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CHC-RC19 444 184 268 84 0.36 Chalcocite
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and 316 350 34 0.26 Chalcocite
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CHC-RC20 334 140 216 76 0.15 Chalcocite
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CHC-RC21 224 130 170 40 0.16 Chalcocite
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CHC-RC22 402 238 270 32 0.36 Chalcocite
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CHC-RC23 368 210 368 158 0.39
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including 210 264 54 0.75 Chalcocite
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and 264 368 104 0.21 Primary
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Martin Zone
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CHC-RC24 170 0 22 22 0.16 Oxide
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Lucho Zone
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CHC-RC18 202 No Significant Results
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Alan Stephens, President and CEO of Coro commented, 'This round of drilling has provided further encouraging results and definition of the Nacho Zone chalcocite blanket. CHC-RC17 was a twin of CHC-RC13, and has added 30m to the blanket thickness at this location, as well as intersecting underlying primary mineralization, which is still open at depth. CHC-RC23 was drilled 450m to the SE of CHC-RC17, and has intersected a significant thickness of chalcocite and primary mineralization, which is also open to depth. CHC-RC21 and 22 have defined the northern and western limits of the blanket. CHC-R20 intersected what is interpreted to be a late porphyry intrusive with no primary copper mineralization. We now plan to conduct a diamond drilling program to gain a better understanding of the geology of the Nacho Zone and provide further definition of the mineralization. We have also identified a new area of leached capping with phyllic alteration and peripheral copper oxides, outcropping approximately 2000m to the SE of the Nacho Zone. This area is surrounded by gravels, so its ultimate size is unknown, and sampling and mapping is in progress.'
About Chacay
The Chacay property hosts a porphyry copper prospect of probable Eocene age that has previously been drill tested by several companies. The drill hole locations and summary geological information are available for some of the previous drilling but it has not been possible to obtain the corresponding assay information. A zoned porphyry alteration suite of external propylitic alteration surrounding a phyllically altered core is developed over a distance of 3500m, oriented west northwest. Three zones of copper mineralization have been outlined by the drilling to date.
The largest of these, known as the Nacho Zone, occupies an area of approximately 900 x 700m centered on Cerro Colorado. This hill has an elevation difference of 300m over the surrounding valleys and hosts a leached cap, which drilling has shown to vary from 50 to 200m in thickness. Underlying the leached cap, a weakly oxidized, flat lying, chalcocite enrichment blanket has been intersected in drilling, that is currently interpreted to be between 20m thick on its margins and greater than 100m thick towards its centre. The chalcocite blanket is thickest and has the highest copper grades when developed within a diorite porphyry intrusive exhibiting sericite-chlorite-quartz alteration, and which contained original primary copper sulphides. This diorite is cross cut by zones of moderate to strong quartz-sericite-pyrite alteration, which may or may not represent a separate late porphyry phase, and which generally hosts mineralization grading less than 0.2%CuT, with chalcocite occurring only as coatings on pyrite. The geometry of the mineralized diorite porphyry is poorly constrained by the existing drilling and its relationship with other lithologies is obscured by the intense alteration that affects all rock types except a weakly altered, late-post mineral hornblende diorite that occurs as small stocks and dykes, and post mineral latite dykes. All holes of this program, except CHC-RC18 and 24, were drilled to better define the mineralization of the Nacho Zone.
The less well defined Lucho Zone, is located on Cerro Chacay, and has been drill tested by two holes for which assay information is unavailable, one of which had primary copper sulphides reported and both of which have visible chalcocite in the drill cuttings left on site. Hole CHC-RC18 was drilled to test a Titan IP anomaly on the flanks of Cerro Chacay and failed to intersect significant mineralization. The smaller Martin zone, located between Nacho and Lucho had been previously tested by CHC-RC02, which intersected near surface mixed copper oxide and sulphide mineralization in a potassically altered diorite porphyry. Hole CHC-RC24, aimed at off-setting this hole, intersected only weak copper oxide mineralization.
Mineralization at Chacay contains anomalous gold values, but no significant molybdenum or silver is present in the holes assayed to date. Coro owns 100% of the Chacay property, subject to a 2% Net Profits Interest with a US$2 million cap, payable to First Quantum Minerals.
All RC holes were sampled on a 2 m continuous basis, with samples riffle split on site and one quarter sent to the Andes Analytical Assaying laboratory in Santiago. A second quarter was stored at a MCAL facility for reference. Samples were transported to the laboratory by Andes Analytical Assaying under the supervision of MCAL. Samples were prepared using the following standard protocol: drying, crushing to better than 80% passing -10#, homogenizing, splitting and pulverizing a 400 g subsample to 95% passing -150#. All samples were analyzed by sequential assaying for CuT, CuSol and CuCN and for Au, Ag and Mo. A full QA/QC program, involving insertion of appropriate blanks, standards and duplicates was employed with acceptable results.
Angelo Peri, VP Exploration, Coro Mining Corp, a geologist with more than 25 years was responsible for the design and conduct of the exploration at Chacay, and Alan Stephens, FIMMM, President and CEO, of Coro Mining Corp, a geologist with more than 35 years of experience is the Qualified Person for the purposes of NI 43-101.
To view accompanying maps click on the following link: http://media3.marketwire.com/docs/COP1and2Figures.pdf
Exercise of Warrants
Coro also announces that the remaining 10,285,455 warrants with an exercise price of $0.20 have been exercised for proceeds of $2.1 million, and the Company now has cash and cash equivalents of approximately $13 million. As of February 7th, 2011 Coro had 133,080,045 common shares issued and outstanding and 146,640,444, fully diluted. The Company has 6,249,999 remaining warrants at an exercise price of $0.50 until June 1, 2011, and at an exercise price of $0.65 thereafter, subject to a forced exercise provision. The forced conversion may be initiated should the common shares of Coro trade at a price that is greater than or equal to $0.625 prior to June 1, 2011 for a period of 10 trading days or is equal to or greater than $0.8125 thereafter for a period of 10 trading days, and Coro has received the approval of the Mendoza Provincial Government for its EIS. Coro also holds 3,290,353 shares and 1,525,000 warrants (exercisable at $0.65) of Valley High Ventures Ltd, with a total market value of approximately $6.8 million, based on the February 4th closing price. Valley High recently announced that it is to be acquired by Levon Resources.
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 Chacay, Llancahue and Celeste copper exploration properties located in Chile. The Company is well funded, with approximately $13 million in cash and cash equivalents as at February 7th. It also holds 3,290,353 shares (a 5.2% interest) of Valley High Ventures Ltd, together with 1,525,000 warrants exercisable at $0.65, with a total market value as at February 4th of approximately $6.8 million. (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.
Contacts:
Coro Mining Corp.
Michael Philpot
Executive Vice-President
(604) 682 5546
investor.info@coromining.com
www.coromining.com