TSX-V: CCY
VANCOUVER,
Jan. 18, 2013 /CNW/ - 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 20th
and 21st, 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 Concentrate |
|
211Mlbs Cu, 23.8 Koz Au, and 1.63 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.