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 Michoacán 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.