Coronado signs copper sales contract

Coronado has signed a contract for the sale of its copper to a New York based metals dealer for shipment off shore.

Coronado will receive payment for 95% of the contained copper subject to a deduction of 2.5 units (2.5% or 55.1 lbs per metric ton) as well as a $0.16 per payable pound.

These are for smelting and refining charges with an additional $360.00 per dry short ton being charged for shipping.

This will enable the company to aggressively increase production. The mining contractor has been requested to increase his work force as soon as possible.

A screening and sorting device has been put into operation with early results indicating that 14% to 17% copper can be obtained on site.

A second mill test of the lower grade 5% to 7% copper will begin June 6th.

Mining of the gold ore is continuing in a new area which is presently developing 3 zones within a 60 foot horizontal distance.

The first intersected in hole 88-11a contained 0.66 ozs of gold/ton over 10 feet, the second 0.698 ozs of gold over 30 feet, in hole 89-11a and 6.2 feet of .259 gold/ton encountered in hole 06-8, all of which have previously been reported.

The new contract with the Golden Sunlight plant calls for shipments of 1000 tons before processing.

Unless noted, assay work was completed by Norris Labs, a local Montana lab using the dry assay method.

Norris Labs is not registered by the International Standards Organization; they are used due to proximity and quick turn around results.