La Verde Project, Mexico, Preliminary Economic Assessment Estimates US$1.625 Billion*Pre-Tax Net Positive Cash Flow

La Verde Project, Mexico, Preliminary Economic Assessment Estimates US$1.625 Billion*Pre-Tax Net Positive Cash Flow


TSX-V: CCY



VANCOUVER, Dec. 3, 2012 /PRNewswire/ - Catalyst Copper Corp. ("Catalyst" or
"the Company") announces positive results from the La Verde project NI
43-101 Technical Report; including a Preliminary Economic Assessment
Study ("PEA") completed by AMC Mining Consultants (Canada) Ltd. and
effective December 2012.  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 Persons, of Tetra Tech Inc., dated 19 September 2012.



Summary highlights of the PEA and 20 year mine 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 18 years mining; 20 years processing



Economics (all figures in USD)

Mining Costs Yrs 1-7 $1.17 - 1.20 per tonne mined
Avg LOM $1.70 per tonne mined



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 (from Year -3 )

Pre-tax IRR * 21.2%






-- LOM - Life of Mine
-- M - Millions
-- Mt- Millions of tonnes
-- Mlbs- Millions of pounds
-- Mta- Millkions 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/lb; 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. Mineral
resources that are not mineral reserves do not have demonstrated
viability.


Investors are cautioned that the La Verde project is at an early stage
of development and no feasibility study has yet been undertaken. 
Further drilling, metallurgical studies (including pilot plant and
arsenic concentrations in concentrate studies) and geological mapping
and investigations; including modelling of alteration mineralogy,
sulphide mineralogy, and structure to constrain the resource model,
will be required to enhance the confidence level in the property's
resources. Significant risks to the potential development and success
of the project remain; including, but not limited to, the ability of
the Company to acquire water and 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.


The La Verde PEA mine plan is envisioned as a conventional truck and
shovel open pit mining operation, based on an average yearly mining
rate of 102 million tonnes (mill feed plus lower grade stockpiled ore
plus waste). The load and haul mining fleet will be composed of two 36m(3 )bucket rope shovels, two 36m(3 )bucket hydraulic shovel and nineteen 225 tonne haul trucks (LOM avg).
The LOM average strip ratio is 2.3.



The proposed metallurgical plant is a conventional copper concentrator
comprising crushing, grinding (SAG, ball mill, pebble crusher) and
flotation with concentrate regrind and three stages of cleaning.
Metallurgical recoveries from sulphide mineralization to concentrate,
based on test work to date, are:




___________________________________________________
| |Table 1 Estimated Metallurgical Recoveries|
|________|__________________________________________|
|Ore Type|Copper|Gold | Silver |
|________|______|_____|_____________________________|
|Sulphide|90.0% |75.4%| 75.6% |
|________|______|_____|_____________________________|
| Oxide | 50% |75.0%| 50% |
|________|______|_____|_____________________________|

* Table 1 assumes a plant feed of an average of 30 Mta





Oxide or mixed oxide sulphide material in the East Hill deposit
demonstrated recoveries of approximately 50% and is sent to low grade
stockpiles for recovery in later years. The West Hill deposit oxide cap
is not economic and therefore treated as waste.


Total mine life is expected to span approximately 21 years at a target
plant throughput rate of 30 Mtpa with a total of 587 Mt of mineralized
rock delivered to the plant. Copper concentrate production is estimated
to average 358 thousand tonnes per year grading 26.7% Cu.



Net smelter return (NSR) calculations were undertaken on all mining
blocks by taking into consideration Base Case metal prices for copper,
silver and gold, smelter costs, transport costs and refining costs as
well as arsenic-related penalties. The NSR values were used in the life
of mine schedule to optimize the value of the project. The life of mine
plan presented in the PEA was based on optimising the overall value for
the project by using a variable NSR cut-off grade by period and
selectively stockpiling lower grade material after meeting processing
plant requirements of 30 Mtpa and maximum mining fleet capacity of
120 Mtpa. Stockpiled lower grade material is reclaimed at the most
opportune time throughout the mine life to complement mill feed ore
sourced directly from the open pits.



Table 2 provides a profile of mill feed grades, concentrate produced and
contained metal in concentrate over the mine life.


Table 2


___________________________________________________________________
| Year |Cu (%)| Au | Ag |Concentrate|Contained metal in |
| | |(g/t)|(g/t)| produced |concentrate |
| | | | | (000, |____________________________|
| | | | | tonnes) | Cu | Au | Ag |
| | | | | | ( |(thousand|(Millions|
| | | | | |millions| oz) | of oz) |
| | | | | | of | | |
| | | | | |pounds) | | |
|_______|______|_____|_____|___________|________|_________|_________|
| 1 |0.526 |0.085| 4.0 | 480 | 0.29 | 65 | 3.0 |
|_______|______|_____|_____|___________|________|_________|_________|
| 2 |0.537 |0.034| 3.4 | 540 | 0.32 | 25 | 2.6 |
|_______|______|_____|_____|___________|________|_________|_________|
| 3 |0.561 |0.019| 2.4 | 573 | 0.33 | 12 | 1.7 |
|_______|______|_____|_____|___________|________|_________|_________|
| 4 |0.509 |0.022| 2.5 | 516 | 0.30 | 15 | 1.7 |
|_______|______|_____|_____|___________|________|_________|_________|
| 5 |0.429 |0.02 | 2.1 | 429 | 0.25 | 13 | 1.4 |
|_______|______|_____|_____|___________|________|_________|_________|
|6 to 10|0.391 |0.039| 2.6 | 1,946 | 1.16 | 147 | 9.8 |
|_______|______|_____|_____|___________|________|_________|_________|
| 11 to |0.256 |0.027| 1.7 | 1,294 | 0.76 | 101 | 6.2 |
| 15 | | | | | | | |
|_______|______|_____|_____|___________|________|_________|_________|
| 16 to |0.298 |0.031| 2.0 | 1,374 | 0.81 | 109 | 6.9 |
| 20 | | | | | | | |
|_______|______|_____|_____|___________|________|_________|_________|
| | | | | | | | |
|_______|______|_____|_____|___________|________|_________|_________|
| LOM |0.366 |0.033|2.29 | 7,169 | 4.22 | 487 | 33.2 |
| Total | | | | | | | |
|_______|______|_____|_____|___________|________|_________|_________|





The PEA assumes the installation of a roaster to effectively treat the
copper concentrates thereby reducing arsenic levels in the concentrates
to acceptable levels for any smelter (0.1 to 0.3% arsenic, well below
the 0.5% threshold for arsenic content in copper concentrates). The
arsenic content in the copper concentrate remains a concern; especially
in the East Hill sulphides where the arsenic is present as a
copper-arsenic sulphosalt (tennantite). Metallurgical testwork carried
out to date is preliminary in nature and the Company recognizes further
work is required including variability testwork to investigate varying
metallurgical response associated with the deposit's various
lithological and alteration types. Preliminary copper concentrate
testing has shown roasting as an effective method of reducing arsenic
levels, nevertheless the Company is committed to investigating other
potential downstream treatment options for the concentrate to remove or
reduce arsenic levels.



Services such as power, water and supplies essential to the La Verde
project are in close proximity of the site. Excellent road and rail
access to the port of Lazaro Cardenas are within a few kilometers of
the site.



The tailings management facility (TMF) required is significant and while
initial storage areas have been identified in the surrounding valleys,
further work is required to investigate permitting issues and to
optimize the locations. Other potential TMF sites are also being
investigated.



Estimated pre-production (ie prior to the commencement of operation of
the processing plant) capital costs of $ 1,160 million are recovered
(assuming Base case metal prices) within three years of the start of
concentrate production.



Net present values and internal rates of return based on various metal
prices; including the base case (Case A), three year trailing average
prices for metals in accordance with SEC guidelines (Case B) and $3.00
copper (Case C) are set out below:




Project NPV ($ Million) Case A - Case B2 Case C3
Base Case1

0% discount rate 1,625 5,579 2,842

6% discount rate 796 2,874 1,436

8% discount rate 617 2,342 1,148

Project IRR 21.2 41.9 28.6






1. Case A. Cu $2.70/lb., Au $1200/oz; Ag $25/oz
2. Case B. Cu $3.64/lb; Au $1455/oz; Ag $28.06oz. In accordance with
United States Securities and Exchange Commission Guidelines -
Three year trailing averages for metal prices, as of November,
2012
3. Case C. Cu $3.00/lb; Au$1200/oz; Ag $25/oz


The PEA indicates that La Verde is a potentially attractive mining
opportunity.  The key financial indicators, based on reasonable future
copper prices and capital and operational cost estimates, justify
advancing the Project to a Pre-Feasibility study stage.



The key areas proposed to be addressed in moving the Project forward
are:



-- Management of high arsenic grades, both from economic and
environmental perspectives.
-- Availability of reliable and convenient power; grid power is
within 5 kilometers of the plant site but capacity needs to be
confirmed.
-- Identification of tailings management facilities for Life of
Mine.
-- Continued development of good relationships with local
stakeholders.
-- Initiation of environmental and social baseline studies.
-- In the next mine planning exercise, investigate options to
deplete West Hill pit earlier to provide an opportunity for
backfilling the pit with tailings or waste material.
-- Initiate a program investigating the geo-metallurgical
variability across the deposits to develop a geo-metallurgical
map and appropriate geo-metallurgical domains.
-- Investigate options to improve precious metals recovery,
especially gold in West Hill sulphides.


With respect to pit walls planning:



-- Undertake a geotechnical drilling program using orientated, NQ3
or HQ3-sized diamond drill core.
-- Develop a geotechnical and structural model at pit scale to
help with the modelling of the pit wall stability.
-- Conduct a hydrogeological study to assess the presence, nature,
and depth of the water table and how this may be affected by
mining.
-- Undertake an assessment of the rock mass strength and carry out
a slope stability analysis at bench, inter-ramp and overall
scale, to assess the slope parameters for each pit.


T.W. Hodson, P.Geo. who 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 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 2012 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 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.

Catalyst Copper Corp.

CONTACT: Corporate Communications Officer: Denby Greenslade (604) 638-5900.


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