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Coro Mining Corp.

Endangered Species List – Move Over Pandas, These Names are Going the Way of the Dodo

We are publishing our first “Endangered Species List”, which is a list of mining investment assets we consider most likely to go extinct (be acquired) in 2020. In addition, we plan to update this list of names throughout the year. In this note, we outline the criteria used for being selected to our list and a brief rationale of the specific catalyst that we believe could lead to the takeout occurring.

Coro Mining Corp. (TSX: COP) – Moving from Explorer to Near-term Copper Producer

Coro announced an updated mineral resource estimate and strategy for its Marimaca copper project located near Antofagasta in northern Chile. The company has increased its total measured and indicated resources by 45% and its inferred resources by 585%. We note that the company has defined what we strongly believe is the best copper oxide project in the public domain, which will likely be highly sought after.

Coro Mining (TSX:COP) – Ownership Consolidated; Endorsement at a Premium

Impact: Positive

Coro Mining Corp has announced that it plans to acquire the final 49% interest in Marimaca 1-23 claim giving the company 100% control of the entire Marimaca Project near Antofagasta, Chile. Coro has also announced a C$16.7M financing with its largest shareholders. We continue to believe that this growing Cu oxide project is undervalued by the market and this shift to full control should therefore be seen as a further positive.

Coro Mining Corp. (TSX:COP) – Phase II Doesn’t Disappoint

Impact: Positive

Coro released a final batch of results from its Phase II drilling program which continued to deliver oxide-copper mineralization as the company tests the northeastern limits of its Marimaca deposit. These results validate our view that a 175Mt oxide resource is potentially in hand – we expect Coro’s upcoming resource update (Q3/19) should move the share price towards our estimate.

H2/19 Explorer Preview – Looking for Winners in the Upcoming Drill Season

Introducing our inaugural Exploration Preview, which focuses on names within our coverage universe with drill bit torque. We review the exploration potential and try and quantify the potential impact on the share price should the company be successful in delivering results. We believe that exceptional drill results can create value regardless of where we are in the commodity cycle. Our top ideas are highlighted in Figure 1 below and will be presented in a similar alphabetical order within this document, bifurcated for precious and base metals focus.

Coro Mining Corp. (TSX:COP) – Marimaca Exceeding Expectations

Impact: Mildly Positive

Recent news confirms that Coro’s ongoing drill campaign has defined high-grade copper oxide zones within a broader oxide footprint that has more than doubled in size. In addition, the company continues to intersect intervals of primary copper which bodes well for a larger sulphide deposit beneath the oxides. We are increasing our fair market value estimate for Coro from C$0.21/sh to C$0.30/sh, based on a larger 175Mt oxide resource, driving a 40Ktpd mining operation averaging ~116Mlbs of copper annually. We believe Marimaca is a compelling copper heap leach story that keeps getting better with the drill bit.

Coro Mining Corp. (TSX:COP) – Drilling Points to Higher Grade Mineralization

Impact: Positive

Recent drill results reported by Coro hint at the potential for high grade oxide and sulphide zones while continuing to demonstrate the northward expansion of the Marimaca resource envelope. We believe that Marimaca is a compelling copper heap leach story that is going to expand materially through the drill bit, and these results support this view.

Coro Mining Corp (TSX:COP) – Coro Adds Land

Impact: Mildly Positive

Coro has announced the acquisition of two new property claim areas, contiguous to and around Marimaca, significantly expanding their property to the northwest and northeast. We note that ongoing exploration work continues to demonstrate Coro’s potential as a viable copper heap leach story, and we expect that ongoing drilling could materially expand the company’s current resource.

Coro Mining Corp. (TSX:COP) – What Bigger Could Look Like

Impact: Positive

After a recent deep dive with management regarding the Marimaca Project, we believe Phase II drilling to date suggests Marimaca could grow significantly beyond our assumed resource doubling in our Base Case valuation. A larger 200Mt oxide resource at Marimaca could support a 40Ktpd stand-alone mine, producing ~100Mlbs of copper annually. Our preliminary model for a project of this scope implies a fair market value of C$0.26/sh; however, we maintain our base case of C$0.21 until we get more information.

Coro Mining Corp (TSX:COP) – Adding Another Piece

Impact: Mildly Positive

Coro announced more positive drilling results today from Marimaca in line with recent announcements that continue to demonstrate the growth potential of this deposit. We continue to believe that Coro is a viable copper heap leach story that is going to expand materially through the drill bit and these results support this view.