Coro Announces Exploration Agreement With Freeport-McMoRan Exploration Corp. for its Talca Belt Properties in Central Chile

August 12, 2008 Filed Under: Copper Mining, Precious Metal  

Coro Mining Corporation announce that it has entered into an Area Wide Option Agreement with Freeport-McMoRan Exploration Corp. for the exploration, and if warranted, the further development of the Company’s Talca Belt properties, located in Central Chile. The Properties total approximately 42,300 hectares of claims grouped into 14 Prospect Areas and are 100% owned by Coro; they were staked in 2007 on the basis of their potential to contain significant porphyry copper style mineralization. They are currently subject to an existing data base agreement and 70% back in right to Freeport which this Agreement replaces. The Company’s Andrea property is not included in this Agreement but remains subject to the existing data base agreement and back in right to Freeport, which also continues in effect for other areas in Chile.

Alan Stephens, President and CEO of Coro Mining commented, “We are delighted to have entered into this option agreement with Freeport-McMoRan Exploration. Their participation confirms the good potential for significant porphyry copper mineralization that we recognized when we identified and staked the Properties last year. We look forward to working with Freeport as they conduct their exploration programs, and as we continue to explore the Talca Belt for additional prospects. We have also completed our surface mapping and sampling program at Andrea which has confirmed the presence of porphyry style mineralization with strongly anomalous copper and gold values associated with broad WNW oriented zones of quartz sericite alteration hosted by a diorite, and we intend to drill test it later this year.”

The essential terms of the Agreement for Freeport to acquire an interest in the Prospect Areas are as follows;

1. Freeport may acquire a 70% interest in an Existing Prospect Area, except the Llancahue Prospect Area by;

– Completing, at its election, a Minimum Expenditure of US$50,000 per Prospect Area on or before July 18th, 2009 – Completing, at its election, at least 2,000 meters of Initial Drilling on or before July 18th, 2010 on a Prospect Area on which it has completed a Minimum Expenditure

– Completing, at its election, at least 5,000 meters of Advanced Drilling on or before July 18th, 2011 on a Prospect Area on which it has completed Initial Drilling

2. Freeport may acquire a 70% interest in the Llancahue Prospect Area by;

– Completing, as an obligation, at least 2,000 meters of Initial Drilling by on or before July 18th, 2009
– Completing, at its election, at least 6,000 meters of Advanced Drilling on or before January 18th, 2011

3. The Agreement includes an Area of Interest within which Coro may acquire additional New Prospect Areas for submission to Freeport which, if accepted, would be subject to the same terms as per 1. above, except that the earn in periods shall be calculated from their Acquisition Date(s).

4. Upon completing its acquisition of a 70% interest in a Prospect Area or Areas, Freeport and Coro may enter into a joint venture to further explore, develop, and exploit it (or them), subject to Freeport completing, at its election, a National Instrument 43-101 compliant Resource Estimate for a Prospect Area on or before July 18th, 2014 (or 72 months from the Acquisition Date for a New Prospect Area). Coro shall have a one-time right and option to elect to require Freeport to fund Coro’s share of all further expenditures necessary to bring the Joint Venture Property to the Commencement of Commercial Production, and to arrange Third Party non-recourse project financing to the extent reasonably available for the construction and development of the relevant project.

5. In the event that a Resource Estimate for a Prospect Area does not demonstrate at least 750,000 tonnes of contained copper equivalent in Measured and Indicated categories, Coro shall have a buy back option, exercisable on or before July 18th, 2015 to acquire Freeport’s interest in the Joint Venture Property by paying US$0.02/lb of copper equivalent contained within 70% of the Measured and Indicated resources.

The Talca Belt Prospect Areas comprise extensive porphyry style alteration zones that have been subjected to first pass reconnaissance sampling by the Company, which indicated the presence of anomalous copper geochemistry. The Llancanhue Prospect Area, which in addition to hosting an extensive alteration zone, contains a small outcrop of attractive copper sulphide bearing, potassically altered, hydrothermal breccia located immediately adjacent to a covered area, and is ready for drill testing. All of the Properties are readily accessible year round and are at low elevations. Apart from Llancahue, which has a small prospect shaft, none of the Properties have any previous mining activity, and to the Company’s knowledge none of them have been subjected to prior exploration.