A Chile Focused Copper Company

Transcription

1 A Chile Focused Copper Company Marimaca: Maiden Resource Estimate Berta: Growing Production March 2017

2 Disclaimer & Forward Looking Statements 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 of 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 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 Each Disclosure Document was prepared by or under the supervision of a qualified person (a Qualified Person ) as defined in National Instrument Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ( NI ). For readers to fully understand the information in this presentation, they should read the Technical Reports (available on 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 and has approved this written disclosure. 2

3 The Copper Business Increasing Demand + Supply Shortfalls = Higher Copper Prices Copper Consumption - Grows with GDP - China has a long way to go to catch up with the West Copper Supply - Current prices do not support most new mine development Source; Rio Tinto plc Presentations 3

4 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 electrowinning (SXEW) to produce copper metal in the form of 99.99%Cu cathodes How Copper Cathode is created - (Min 1:52 3:11) 4

5 Copper in the spotlight for 2017 Why invest in copper NOW? Large infrastructure projects announced and planned - Demand for copper grows as a consequence of overall economic growth - Both US and China have announced significant growth in large infrastructure projects - Demand for copper increases with increased power grid infrastructure in both developed and developing countries Growing middle class - Chinese consumer growth leads to greater acquisition of power-consuming devices (cars, electronic devices, appliances) and the manufacturing of these devices, which also increases consumption of power, leading to demand for more robust power grids Bottom of Price Cycle Passed in 2016 Decline of new copper discoveries; declining grades of existing producers - Fewer higher grade deposits discovered over the past 6 years - The grades of both existing and new deposits have declined over the past 6 years 5

6 Our Business Coro is a growth oriented copper producer developing high return, low cost, low capital intensity, leachable operations 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 - 145,500 tonnes (320,772,600 lbs) of Measured & Indicated + 99,300 tonnes (218,919,000 lbs) of Inferred contained copper resources - Deposit remains open in 3 directions - Unbeatable location, low strip ratio and good metallurgy - Finalizing acquisition of nearby 10,000 tonnes/yr (22,046,230 lbs) Cu Ivan SXEW plant SCM Berta: Expanding Production: (Coro 65%) - Berta mine, 3,000 tonne per year (6,613,868 lbs) Nora SXEW plant & El Jote project - Installing leaching facilities at Berta to expand capacity to 4,800t/yr (10,582,189 lbs) - El Jote provides potential for further expansion or life extension Strong Partners - Greenstone Resources (55.9% of Coro). Private equity group investing in companies with small to medium sized projects approaching production - ProPipe (35% of SCM Berta). Chilean engineering company focused on driving down capital and operating costs. Project development team for Coro 6

7 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 30,000 tonnes (66,138,684 lbs) of copper per year within 5 years. 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 - Minimizing initial capital investment rather than maximizing NPV - Prioritizing profitability over production rate - Bootstrapping to increase production and/or extend life 7

8 Location Of Our Projects 8

9 Marimaca Development Project ~250m Marimaca Deposit Viewed from North 9

10 Marimaca: A Significant New Leachable Deposit 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 - Maiden NI resource estimate announced 01/17 - Baseline environmental study completed Q1/17 - Metallurgical tests in progress - Acquiring nearby Ivan processing plant - Feasibility study initiated Ivan Mantos de la Luna Michilla Marimaca Mantos Blancos Coastal Copper Belt 10

11 Marimaca: Resource Estimate Measured Indicated Meas + Ind Inferred 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, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , >0 5, , , , NI resource completed by NCL Ingeniería y Construcción S.A., Chile - 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 20,000,000 tonnes 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 11

12 Marimaca: Pit Constrained Resource Estimate At a $3.20/lb long term copper price, the following heap leachable pit constrained resources were estimated: Category t x 1000 %CuT %CuS t CuT t CuS Measured 5, ,400 31,000 Indicated 16, ,100 79,400 Measured & Indicated 21, , ,400 Inferred 18, ,300 72,800 Waste 54,436 Strip 1.31:1 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 45 o 12

13 Marimaca: Block Model Cross Section Pit Boundary High Grade Core Leachable copper (oxides and mixed) block model. No sulphides included 13

14 Marimaca: Drill Plan 500m 14

15 Marimaca: Geology and Mineralization Marimaca deposit is a m thick, gently ESE dipping, slab of strongly fractured Jurassic diorite formed at intersection of major N striking Marimaca structure and NE striking feeder zones Hypabyssal diorite intrusives associated with introduction of chalcopyrite, mainly as veinlets with accompanying magnetite and potassic alteration (IOCG type) Subsequently largely supergene enriched to chalcocite and covellite Resulting secondary enriched blanket almost completely deeply oxidised to green copper oxides, mostly brochantite/atacamite and chrysocolla with lower grade copper wad and black oxides deposited at peripheries of deposit during oxidation Distribution and grade of copper mineralization controlled by fracture density Large pyrite halo developed in hanging wall, now oxidised to form limonitic leached cap Deposit is cross cut by unmineralized late & post mineral dykes and sills. 15

16 Marimaca: Geometallurgy Four types of leachable copper oxide mineralization were identified in logging and were modelled separately in the resource estimation: - Brochantite/Atacamite - Chrysocolla - Copper wad and black oxides - Mixed oxides and Enriched Column test work is in progress 75-85% CuT recoveries and 20-40kg/t net acid consumption obtained in prior third party column tests from open pit samples Enriched and Primary sulphides occur at depth but have not been considered either in the resources or in the test work 16

17 Marimaca: Acquisition of Ivan SXEW Plant 17

18 Marimaca: Acquisition of Ivan SXEW Plant Signed non-binding Letter of Intent to acquire Minera Rayrock Ltda a Chilean subsidiary of Compañía Minera Milpo S.A.A., a Peruvian mining company Rayrock owns Ivan SXEW plant - Located ~18km south of Marimaca - Installed capacity of 10,000 tonnes (22,046,230 lbs) per year copper cathode - Operated from 1995 until 2012, now on care & maintenance - Associated water rights and environmental & operating permits, some of which require updating - Owns 38,283 hectares (95,000 acres) of mineral claims on which Milpo retains a 2% net smelter return (NSR) Transaction Status; - Paid US$250,000 for exclusivity - All due diligence completed, final agreement documentation almost completed - Payment of US$6,250,000 due on execution of final agreement 18

19 Marimaca: Phased Development Plan Initially develop project within constraints of existing infrastructure, power and water - Evaluate High Grade trucking option for first few years for 10,000 tonnes per year Cu (22,046,228 lbs) (Phase 0) - Maximise current power line capacity and expand Ivan plant to produce 24,000 tonnes per year Cu (52,910,947lbs) (Phase 1) - Build heap leach pads within 5km of Marimaca. Construct water and PLS pipelines to Ivan Depending on ultimate resource, expand capacity (Phase 2) - Add sea water pipeline & upgrade power line 19

20 Marimaca: 2017 Program Complete Acquisition of Rayrock Resource Conversion & Geotechnical Drilling - Convert Indicated to Measured, 25x25m - Convert Inferred to Indicated, 50x50m - Geotechnical diamond drilling Resource Expansion Drilling - NE Extension, 100x100m - S Extension, 100x100m Feasibility Study and Environmental Permit Submission 20

21 SCM Berta 21

22 Berta: 2017 Development Plan SCM Berta (65% Coro) owns the Berta open pit mine, the Nora SXEW processing plant and has optioned the El Jote project Acquired and commissioned the 3,000 tonnes per year Cu (6,613,870 lbs) capacity Nora plant in H2/15 High grade trucking continuing until Q1/17 Installation of crusher and pads at Berta and expansion of Nora plant to 4,800 tonnes per year Cu (10,582,190 lbs), commenced 12/16 Trucking of concentrated PLS from Berta to Nora (62km) to commence by end Q1/17 Evaluation of El Jote from Q2/17, with potential to produce 3-5,000 tonnes per year Cu ( million lbs) 22

23 Berta: Resource Estimate 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 in 2015: Category t x 1000 %CuT %CuS t CuT t CuS Measured 14, ,700 35,300 Indicated 3, ,100 6,300 Measured & Indicated 17, ,800 41,600 Waste 8,669 Strip 0.49:1 Resources from Coro Preliminary Economic Assessment dated 08/10/15 New resource estimate, mine plan and reserves to be completed by end Q1/17 All operating permits expected by end Q1/17 23

24 SCMB: El Jote Summary Plan Cross Section Potential Resource 100m 500m Potentially open pit mineable deposit located 30km NNW of Nora Drilled by Coro in 2007 and by a private company in 2013 (total 56 RC holes) Potential for 8,000,000 tonnes at %CuT*, heap leachable Initial bottle roll test work indicates 70% recovery of CuT with 20kg/t acid consumption $1,500,000 budget to reach PFS stage. Remaining $2,500,000 option payments for 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. 24

25 Our Experienced Leadership 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 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 25

26 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 26

27 Coro: Discovery, Development & Production We have a simple, achievable and replicable business strategy of finding, 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 145,500 tonnes (320,772,600 lbs) of Measured & Indicated plus 99,300 tonnes (218,919,000 lbs) of Inferred contained copper resources - Potential for significant expansion of resources - Accelerated development plan to reach production - Acquisition of the 10,000 tonnes/yr Cu (22,046,230 lbs) Ivan SXEW plant being finalized We own a 65% interest in SCM Berta, a small copper producer - Expansion from 3,000 tonnes (6.6 million lbs) to 4,800 tonnes (10.6 million lbs) per year Cu via installation of Berta mine site crusher and leach pads underway - Further expansion potential from El Jote 27

28 Share Structure, Shareholders & Trading Symbol TSX: COP - Price at February 28th: CAD$ Shares Issued: 483.4m - Market Cap: ~CAD$82m Major Shareholders - Greenstone Resources (56%) - Other institutions (~14%) - Founders & Management (~7%) Shares have outperformed the S&P TSX index by 303% during the last year Stock chart Globeandmail.com 28

29 For further information, please contact: Naomi Nemeth, VP IR at Phone: Toll free: Alan Stephens, President & CEO Phone: Suite Howe St, Vancouver, B.C., V6C