Preliminary Economic Assessment Underway on La Verde Copper Porphyry
Trading Symbol: CCY
VANCOUVER, May 8, 2012 /PRNewswire/ – Catalyst Copper Corp. (the “Company” or
“Catalyst”) is pleased to announce that it has initiated a Preliminary
Economic Assessment (PEA) on the La Verde copper porphyry deposit
located in MichoacÃ¡n State, Mexico. The independent PEA will be carried
out by AMC Mining Consultants Ltd. of Vancouver with an initial draft
expected by the end of June.
Taking as a base the most recent in-situ resource estimation (January,
2012), recent metallurgical studies results (G&T) and other data
elements from Catalyst, AMC will produce a preliminary economic
assessment on the La Verde deposit that will include:
-- A cash flow estimate based on a concentrator producing copper concentrate as single final product, including opex and capex estimates, and taxation and any royalty-type expenditure and a set of standard financial KPI's; -- A sensitivity analysis of the economic output; and -- Comments and recommendations about relevant components and factors of the Economic Assessment, for further refining.
As part of the work, AMC will complete a PEA-level pit design and
associated production schedules, preliminary location identification
and global design for waste dumps and tailings storage facility, and
estimation of fleet sizing and personnel requirements. Infrastructure
requirements including buildings, roads, power and water will also be
addressed in the PEA.
“Since Catalyst optioned La Verde at the beginning of 2010, we have
continually grown the deposit through the various drill programs we
have completed. It is now time to see if this economic analysis
reflects and justifies what we have seen and reported during the
drilling phase,” says Terry Hodson, VP Exploration.
T.W. Hodson, P.Geo. is the qualified person as defined by National
Instrument 43-101, and has reviewed the technical disclosure contained
herein and accepts responsibility for such disclosure.
About La Verde
La Verde is located in an area with excellent infrastructure. Power,
rail and water all cross the property. Lazaro Cardenas, Mexico’s third
largest port on the Pacific Ocean is 180 km from the site. Significant
upside potential remains for the two known zones of porphyry style
copper, gold and molybdenum mineralization as the 2010 drill program
has shown both deposits remain open to depth and along strike.
La Verde property is subject to an option agreement with a Mexican
subsidiary of Teck Resources Limited (Teck) whereby Catalyst’s 100%
Mexican subsidiary, Minera Hill 29, may earn a 60% interest in La Verde
by making US$10,000,000 in exploration expenditures (including 30,000
meters of drilling and 200 kilometers of IP) by December 31, 2012. Upon
Catalyst earning a 60% interest, Teck has the option to increase its
interest to 60% by incurring aggregate expenditures equal to two times
the amount spent by Catalyst. Should Teck fail to exercise its option
to earn a 60% interest, Catalyst can acquire a 100% interest in La
Verde by paying to Teck US$20 million. The property is subject to an
underlying 0.5% NSR.
ON BEHALF OF THE BOARD OF DIRECTORS OF
CATALYST COPPER CORP.
“Terence W. Hodson, P.Geo.”
TERENCE HODSON, V.P. EXPLORATION
Certain information set forth in this news release may contain
forward-looking statements that involve substantial known and unknown
risks and uncertainties. These forward-looking statements are subject
to numerous risks and uncertainties, certain of which are beyond the
control of the Company, including, but not limited to, risks associated
with mineral exploration and mining activities, the impact of general
economic conditions, industry conditions, dependence upon regulatory
approvals, and the uncertainty of obtaining additional financing.
Readers are cautioned that the assumptions used in the preparation of
such information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements. Neither TSX Venture
Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Catalyst Copper Corp.