Coro Mining’s SCM Berta to acquire Salvadora project

May 18, 2016

CORO SUBSIDIARY OPTIONS SALVADORA COPPER PROJECT

Coro Mining Corp.’s 65-per-cent-owned Chilean subsidiary, SCM Berta, has optioned the Salvadora copper project, located approximately 30 kilometres northwest of the Nora plant and 58 kilometres northeast of the port of Chanaral in the III region of Chile. Coro previously explored Salvadora under option in 2006 to 2007 including a reverse circulation drill program of 64 RC holes for 8,892 metres, with results reported on Sept. 20, 2007. A second drill program of 14 RC holes for 3,282 metres was completed on the property by a private company in 2014.

Purchase agreement terms

SCMB may acquire a 100-per-cent interest in the property by completing the following option payment schedule:

At signing, $5,000 (U.S.);
On or before June 15, 2016, $30,000 (U.S.);
On or before July 15, 2016, $70,000 (U.S.);
On or before Nov. 15, 2016, $30,000 (U.S.);
On or before May 15, 2017, $180,000 (U.S.);
On or before May 15, 2018, $250,000 (U.S.);
On or before May 15, 2019, $2.44-million (U.S.);
Total of $3,005,000 (U.S.).

The final payment can be made in eight equal instalments of $305,000 (U.S.), plus interest at the London interbank offered rate, and SCMB can start production with the first instalment payment. A 1.5-per-cent net smelter return royalty is payable, which can be purchased for $1.5-million at any time.

Coro also announces that SCMB has leased the Veronica property, located approximately 26 kilometres west of the Nora plant, for five years in return for a production royalty.

Alan Stephens, president and chief executive officer of Coro, commented: “SCMB actively intends to access to as many satellite deposits as possible in its area of operation, through property acquisitions and production leases. Our Nora plant provides us with a competitive advantage as most of these deposits are not viable as stand alone operations. We intend to truck ore from the higher-grade ones and install leach facilities at the larger, lower-grade deposits. Salvadora falls into the latter category, and we are pleased to be able to acquire it on reasonable terms. No independent resource estimate has been completed on the property, but, based on the existing drilling, we see good potential for 10 million tonnes to 15 million tonnes at 0.4 per cent to 0.5 per cent copper of leachable mineralization, with a low strip ratio. Previous bottle roll testwork carried out by Coro in 2007 indicates that acceptable recoveries and acid consumptions should be achievable. Veronica hosts a 20-metre-to-30-metre-wide structure previously mined from a small open pit and offers good potential for a small-tonnage, good-grade trucking operation. We look forward to further defining both deposits and continue to seek others to add to our inventory.”

About Salvadora

Salvadora comprises a northwest-oriented structure, dipping at approximately 45 degrees to the southwest, and hosted by andesitic volcanics intruded by diorite dikes and irregular bodies. Mineralization is of iron oxide copper gold type and is associated with disseminated specularite and brecciation. Outcrop in the prospect area is limited to a series of small open pits, and, based on drilling, trenching and geochemistry, the structure has been traced over a strike length of approximately 1,000 metres. It is widest, and mineralization is best developed, over a 600-metre central section of the structure. Oxidation occurs to vertical depths of 60 metres to 100 metres, and sulphide mineralization has been intersected to depths of approximately 150 metres.

Mr. Stephens, FIMMM, president and CEO of Coro Mining, a geologist with more than 40 years of experience, and a qualified person for the purposes of National Instrument 43-101, is responsible for the contents of this news release.

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