Coro Mining Corp (TSE:COP) unveiled a major milestone with the release of a definitive feasibility study (DFS) for the Marimaca 1-23 claim in Chile, which has demonstarted the economic viability of developing the project.
Completing the study was a condition of the group earning up to a 75% interest in the claim, which is near Antofasgasta in Chile.
Proven and probable reserves were put at 24.6mln tonnes at 0.8% CuT (total copper tonnes), containing 196,800 tonnes (434mln pounds) of copper.
The net present value (NPV), using a 5% discount rate, was US$114mln, using a US$3 per pound copper price.
The after tax IRR (internal rate of return) was put at 58.8%.
Output over a 12 year mine life (plus three years of processing stacked ore) was 10,000 tonnes (year two to year 10) from a 1.8mln-tonne-per year SX-EW (solvent extraction and electrowinning) plant at an average plant feed grade of 0.80% CuT (total copper tonnes) and a LOM (life of mine) strip ratio (waste to ore) of 2 to 1.
Initial capital costs were put at US$22.6mln, including US$1.7mln in project contingency and US$1.1mln in owner allowances.
"We are pleased that the DFS, even at this early stage of what could ultimately be a larger project, already confirms the strong economic potential of the Marimaca 1-23 claim," said Luis Tondo, chief executive at Coro.
"Completion of this study is an important milestone enabling the company to establish its 51-per-cent ownership of Compania Minera Newco Marimaca (CMNM), owner of the Marimaca 1-23 claim.
"Coro may acquire an additional 24-per-cent interest in CMNM by obtaining financing to build the project or by transferring ownership of its Ivan SX-EW processing plant to CMNM.
"With the completion of the acquisition of 100 per cent of the SM claims, a 379-hectare package of mining claims immediately adjoining the Marimaca 1-23 claim to the north and south and the optioning of the adjacent La Atomica property, the company will work towards determining the preferred development plan for the Marimaca area to maximize value creation for its shareholders."
Coro Mining shares added 5% on Monday to stand at C$0.10.