Information Regarding the Benton Capital Corp. Investment in Coro Mining Corp.
Benton Capital Corp. strategically holds approximately 41.84% or 57,866,754 shares of the issued and outstanding shares of Coro Mining Corp. (TSX: COP) (“Coro”). Benton made its initial investment in Coro in January 2009 during tumultuous equity markets in order to gain exposure to both an exciting portfolio of exploration and development assets in Latin America, and to invest in a team of proven explorers and mine developers led by CEO Alan Stephens who prior to co-founding Coro in 2005, was VP Exploration for First Quantum Minerals. In addition, Coro’s VP Exploration Sergio Rivera was formerly the General Manager of Exploraciones Andinas S.A., a wholly-owned subsidiary of Codelco, the world's largest copper producer and where he played a prominent role in the discovery of several world-class ore deposits, which cumulative contain more than 35 million tonnes of copper.
Our Strategic Partner – Coro Mining Corp.
Coro 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, copper projects that can be developed and placed into production. Coro's properties include the Berta, El Desesperado, Payen, Chacay (currently in the process of selling to Teck Resources Limited for $2.5 million USD), Llancahue, and Celeste copper properties located in Chile and the advanced San Jorge copper-gold project, in Argentina.
Coro has two exploration projects with major copper porphyry copper potential - El Desesperado (Cu) (Acquired Feb 2012) and Payen (Cu-Au) (Acquired in October 2012), both located in Chile. The Company also has the Llancahue and Celeste copper porphyry exploration properties in Chile.
Coro believes there is good potential on the El Desesperado property to host mineralization of similar style to the adjacent Toki Cluster deposits (Toki, Quetena, Genoveva, Opache, Miranda and Pulucktur). In November 2012, the Company announced assay results from the 8-hole 2,308m reverse circulation
(RC) drilling program which included RC Hole CED-R-4, 204m @ 0.55% CuT, bottomed in greater than 1%CuT; potential to host a significant porphyry copper deposit. CED-R-4 intersected a partially oxidized chalcocite enrichment blanket essentially from surface to bottom of hole. Coro intends to carry out follow up drilling in 2013 on the El D Norte and El D Sur targets. The El Desesperado property lies strategically adjacent to Codelco's Toki Cluster of 5 major deposits, each of which contains several hundred million tonnes of mineralization at 0.4-0.5% Cu.
Coro has three development properties. The San Jorge project (Cu-Au) located in Mendoza, Argentina and the Berta (Cu) and Chacay (Cu) projects both located in Chile. Coro is currently in the process of selling the Chacay project to Teck Resources Limited for $2.5 million USD plus a 1.5% NSR (expected to close by March 25, 2013).
San Jorge currently has a PFS completed on a Bi-Provincial project development alternative for a 24,000tpy/10 year copper heap leach project in the Province of San Juan (Quarry in the Province of Mendoza)(March 2012). In addition, Coro has updated their EIS and submitted it in July 2012 to include the incorporation of a railway in the Bi-Provincial project. San Jorge boasts an after tax NPV of $133 million and an after tax IRR of 29% (based on $2.80/lb copper) on the Bi-Provincial project.
Coro believes that Berta could be placed into production quickly and at a relatively low-cost, and would thus generate cash flow for their Chilean exploration program. Located in an established mining area with good infrastructure (Chile's Region III), an initial NI-43-101 resource estimate was completed for Berta Sur in December 2012, with the potential for additional resources to be added. Using a $3/lb copper price, the optimum pit was determined at Berta Sur to contain 6,101,000t at a grade of 0.40%CuT and a minimal stripping ratio of 0.04:1 (at surface resource). Preliminary metallurgy indicates quick copper recovery and low acid consumption and an internal evaluation supports a 5,000 tpy Cu SXEW operation.
Share Capitalization as at December 31, 2012
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