La Verde Project, Mexico, Preliminary Economic Assessment
TSX-V: CCY
VANCOUVER, Jan. 18, 2013 /PRNewswire/ – Catalyst Copper Corp. (“Catalyst” or
“the Company”) announces La Verde project’s NI 43-101 Technical Report;
including a Preliminary Economic Assessment Study (“PEA”) completed by
AMC Mining Consultants (Canada) Ltd. and effective September 2012 has
been filed and can be viewed on SEDAR. The Technical Report is based
in part on a preceding document entitled “Technical Report and Resource
Estimate of the La Verde Copper Project, Mexico”, by Margaret Harder,
M.Sc., P.Geo. and Michael F. O’Brien, M.Sc., PrSci. Nat., GSSA,
FAusIMM, FSAAIMM, both Qualified Person, of Tetra Tech Inc., dated 19
September 2012.
Catalyst invites you to attend the Vancouver Resource Investment
Conference, January 20(th) and 21(st), 2013 and visit us at Booth 1027, Vancouver Convention Centre West from
10:00AM – 5:00PM to discuss the latest project results.
Summary highlights of the PEA and 20 year Life of Mine (LOM) plan
include:
Physicals
Processing rate 30 Mtpa (80,000 tpd, nominal)
LOM tonnes processed 587Mt @ 0.37%Cu, 0.03g/t Au, and
2.3g/t Ag
LOM Concentrate production 7.17Mt@ 26.7% Cu
LOM Contained Cu in Concentrate 4.22 Billion lbs
Average Annual Production in 211Mlbs Cu, 23.8 Koz Au, and 1.63
Concentrate Moz Ag
Mine Life 20 Years
Economics (all figures in US$)
Mining costs Yrs 1-7 $1.17-1.20 per tonne
$1.76 per tonne mined (avg. LOM)
Processing Costs $5.84 per tonne milled
Roasting Cost $30.00 per tonne concentrate
G&A $0.35 per tonne milled
Pre Production Capital $1,160 M
Pre Tax undiscounted cash flow ** $1,625 M
Pre tax NPV@8% ** $617 M
Pre-tax IRR ** 21.2%
-- M - Millions Mt- millions of tonnes Mlbs-Millions of pounds
Mtpa- millions of tonnes per year
**all calculations are to a 100% interest in the La Verde project (and
after deducting a 0.5% NSR royalty). The La Verde Project PEA includes
analysis at various metal prices. Base case metal prices utilized for
preparation of the Mine Plan, and in the above table, were Cu-$2.70;
Au $1200/ounce (“oz”); Ag – $25/oz. Financial estimates are earnings
before income tax, depreciation and amortization allowances (“EBITDA”)
and all dollars are US$.
The PEA is preliminary in nature and includes the scheduling of Inferred
Mineral Resources that are considered too speculative geologically to
have the economic considerations applied to them that would enable them
to be categorized as Measured or Indicated Resources. There is no
certainty that the results of the PEA will be realized. Investors are
cautioned that the La Verde project is at an early stage of development
and no feasibility study has yet been undertaken. Further studies are
required, but not limited to, drilling, metallurgical, geotechnical and
the ability of the company to acquire surface rights, adequate waste
and tailings storage areas, environmental permitting and the “Social
licence” from the effected local communities to explore, develop and
operate the project.
T.W. Hodson, P.Geo. is the qualified person for the purposes of National
Instrument 43-101 Standards of Disclosure for Mineral Properties of the
Canadian Securities Administrators, has reviewed and accepts
responsibility for the information contained in this news release.
About La Verde
La Verde is located in an area with excellent infrastructure: Power,
rail and water. 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
silver mineralization as drill programs have 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.
Catalyst has delivered notice to Teck’s Mexican subsidiary that it has
met its expenditure commitments. Upon Catalyst earning its 60%
interest, Teck’s subsidiary has the option, by providing notice to
Catalyst by March 3, 2013, 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
Royalty.
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.
Quality Assurance: The Company employs a system of quality control for
drill results which includes the use of blanks, certified reference
materials (standards) and check assaying. Core is logged on site and
split with a diamond saw. Samples are shipped to Acme Analytical
Laboratories Ltd. for analysis. All elements with the exception of gold
are analyzed by Aqua Regia digestion and ICP-ES analysis. Gold is
analyzed by fire assay method.
SOURCE Catalyst Copper Corp.
