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 The San Jorge Property is located in west-central Argentina approximately 110 km northwest of the provincial city of Mendoza and 250 Km northeast of Santiago, Chile. The Property comprises 2 Mining Concessions and 44 Mining Estacas covering a total of 444.6 hectares.
In May 2006, the Company optioned the project to Coro Mining Corp (Coro), a Vancouver based mining development company (TSX-COP). In order for Coro to exercise the option, Coro must pay Lumina US$500,000 by May 2009 and US$16 million on the earlier of completing a bankable feasibility study or the following schedule: May 2010 US$2 million - May 2011 US$4 million - May 2012 US$5 million - May 2013 US$5 million (less the value of the 1 million shares issued to Lumina to date). In addition, on the commencement of commercial production, Coro will pay Lumina US$0.02 per contained pound of copper in the sulphide mineral reserves for the project as defined by the feasibility study, less the US$16 million previously paid. Further, Coro will pay to Lumina US$0.015 per contained pound of copper of any additional sulphide material not defined as mineral reserves in the feasibility study but processed through its mill. Should Coro choose to process the oxide material, it will pay to Lumina US$0.025 per contained pound of copper within the oxide reserves as defined in the feasibility study on commencement of commercial production. For any additional oxide material mined, Coro will pay Lumina US$0.02 per pound contained copper that is processed. Coro will also pay Lumina a 1.5% net smelter royalty on all other metals produced including gold and molybdenum.
Coro is currently awaiting approval of its environmental permit to develop a mine at San Jorge and expects to receive the permit during the first quarter of 2010, where after it will complete the bankable feasibility study on the project.
In February 2008, Coro filed a NI 43-101 technical report that detailed the results of a mineral resource estimate on the project. The mineral resource estimate is shown in the table below:
| Resource Category |
Cu %
Cut-off |
Tonnes
Millions |
Grade |
Contained Metal |
Cu
% |
Au
g/t |
Cu lbs
Billions |
Au oz
Millions |
| Measured + Indicated |
0.3 |
195 |
0.48 |
0.21 |
2.10 |
1.26 |
| Inferred |
0.3 |
73 |
0.37 |
0.14 |
0.60 |
0.34 |
National Instrument 43-101 compliant resource estimate was calculated by Coro Mining using a 0.3% cut off.
Report date: Feb 2008
Rodrigo Mello, P.Geo, employee of NCL Brasil Ltda, served as the Qualified Persons responsible for the preparation of the Technical Report as defined in NI 43-101, Standards of Disclosure for Mineral Projects
43-101 Technical Report SEDAR link (PDF 5.21 Mb)
[updated: Jan 2010]
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