CDB.V · 2022-01-11 12:00:00

Cordoba Announces Positive Preliminary Feasibility Study Results for the 100%-Owned Alacran Deposit within the San Matias Copper- Gold-Silver Project in Colombia LOM Production of 849 Mlbs Copper, 0.7 Moz Gold, and 4.7 Moz Silver

Economic Studies

Cordoba Announces Positive Preliminary

Feasibility Study Results for the 100%-Owned

Alacran Deposit within the San Matias Copper-

Gold-Silver Project in Colombia

LOM Production of 849 Mlbs Copper, 0.7 Moz Gold, and 4.7 Moz Silver

$415M After-Tax NPV8%, 25.4% After-Tax IRR at $3.60/lb Copper

At Current Spot Metals Prices, After-Tax NPV8% Increases to $650.7M and After-Tax IRR to

32.7%

Vancouver, British Columbia--(Newsfile Corp. - January 11, 2022) - Sarah Armstrong-Montoya,

President and Chief Executive Officer of Cordoba Minerals Corp.

(TSXV: CDB) (OTCQB:CDBMF)

otherwise "Cordoba" or the "Company") is pleased to announce positive results from the Preliminary

Feasibility Study ("PFS") for the Alacran Copper-Gold-Silver Deposit, located within Cordoba's 100%-

owned San Matias Project in Colombia (the "Project"). The PFS has been independently prepared by

Nordmin Engineering Ltd. ("Nordmin") of Thunder Bay, Ontario, and all amounts are in United States

dollars, unless otherwise stated. Summary results of the PFS are shown below in Table 1.

Highlights:

Probable Mineral Reserves totalling 102.1 Mt grading 0.41% copper, 0.26 g/t gold, and 2.30 g/t

silver diluted.

22,000 tonnes per day ("tpd") open pit mining operation, with average annual production of 68.8

Mlbs copper, 55 koz gold, and 386 koz silver, over a 13-year Life of Mine ("LOM"). Low overall

strip ratio of 1.1.

During the first 6 years of production, copper, gold and silver grades within the fresh and transition

rock are expected to average 0.61%, 0.29 g/t and 3.50 g/t respectively.

Total recovered production of 849 Mlbs copper, 0.7 Moz gold, and 4.7 Moz silver, with

metallurgical recoveries averaging 92.5% copper, 78.1% gold, and 62.9% silver in copper and

precious metals concentrates. The copper concentrate is expected to contain very low contents of

deleterious elements, such as arsenic and lead.

Copper C1 cash costs averaging $2.59/lb copper (before credits), and $1.18/lb net of precious

metals by-product credits.

Initial capital expenditures total $434.9 million. LOM capital expenditures, including sustaining

capital, reclamation and closure costs total $591.0 million.

After-tax NPV

of $415.1 million and IRR of 25.4%, representing a 2.9-year payback using the

same metals price assumptions.

Financial analysis shows that 60%, or $292.1 million of the $434.9 million initial capital expenditure

can be financed by debt.

This would improve the after-tax IRR to 27.2%, but marginally reduce the

NPV

to $394.5 million.

At current metals prices of $4.28/lb copper, $1,778/oz gold and $21.93/oz silver, after-tax

NPV

increases to $650.7 million and IRR to 32.7%, representing a 2.4-year payback

[1]

The Alacran Mine is expected to generate $190.4 million in government royalty revenue plus

$514.2 million in income tax revenue to support government and social programs in Colombia and

local communities.

The current PFS does not include the satellite deposits: Montiel East, Montiel West and Costa

Azul. The combination of infill drilling in the Alacran Deposit and the inclusion of satellite deposits

has the potential to significantly add value to the Project and potentially extend the mine life.

The following is a summary of the material aspects and assumptions of the PFS. Investors are urged to

review the complete NI 43-101 report following its filing on SEDAR for complete details of the PFS.

"Achieving this positive PFS result is an extraordinary accomplishment given the COVID-19 related

challenges over the past two years. Having started the PFS in December 2019, we had to contend with

severe national and international lockdowns, travel disruptions, and the obligation to meet the Mining

Technical Work Plan (Programa de Trabajo y Obras or "PTO") submission deadline which meant a

very limited window to collect PFS data. As a direct result of this, we had to focus on the Alacran

Deposit only, since the PEA had shown us that this is where the bulk of the project value is. With the

approval from the Board of the PFS, Nordmin and the Cordoba team are to be congratulated on

delivering the Study under such challenging conditions.

The PFS confirms that we have a very valuable and deliverable project, with quick payback period

and robust financial returns, that will deliver significant value for all stakeholders. We look forward to

continuing to advance the development of this important project,"

commented Sarah Armstrong-

Montoya, President and CEO of Cordoba.

San Matias Copper-Gold-Silver Project Overview

The San Matias Copper-Gold-Silver Project is located in the municipality of Puerto Libertador,

Department of Có rdoba, Colombia, and is approximately 160 kilometres north of Medellin. The site is

road accessible from the town of Puerto Libertador, approximately 20 kilometres away.

The PFS details a conventional open pit mining operation for Alacran and a processing plant. It also

includes key infrastructure components such as the WMF, external and internal access roads, power

supply and distribution, freshwater supply and distribution, and water treatment plant.

Table 1:

PFS Highlights

Production Metrics

Life of Mine (years)

Recovered copper (Mlbs)

848.6

Recovered gold (Moz)

0.68

Recovered silver (Moz)

4.7

Average copper recovery

92.5%

Average gold recovery

78.1%

Average silver recovery

62.9%

Average annual copper production (Mlbs)

68.8

Average annual gold production (koz)

Average annual silver production (koz)

386

Total ore mined(tonnes)

102,100,000

Total waste (tonnes)

109,685,000

Total material (tonnes)

211,785,000

Strip ratio (waste:ore)

1.1

Average LOM mine copper grade (%)

0.41

Average LOM mine gold grade (g/t)

0.26

Average LOM mine silver grade (g/t)

2.30

Processing rate (tpd)

22,000

Operating Costs

Total operating cost ($/t milled; incl. royalties)

20.97

All-In Sustaining Cost ("AISC") ($/lb copper; net of by-product credits)

1.38

Capital Costs ($M)

Initial capital expenditures

434.9

Sustaining capital expenditures

156.1

Total LOM capital expenditures (incl. WMF, sustaining, closure)

591.0

Economic Analysis

Pre-tax unlevered free cash flow ($M)

1,387.6

Pre-tax NPV

($M)

734.9

Pre-tax IRR

36.1%

After-tax unlevered free cash flow ($M)

873.4

After-tax NPV

($M)

415.1

After-tax IRR

25.4%

Copper price ($/lb)

3.60

Gold price ($/oz)

1,650

Silver price ($/oz)

21.00

Open Pit Mining

Open pit mining will include conventional drilling and blasting with a combination of a backhoe type

excavator and front-end loader type excavator loading broken rock into haul trucks, which will haul the

material from the bench to the crusher. The open pit mine plan for the PFS assumed three phases - the

initial pit, the north expansion, and the south expansion. This phased approach brings forward higher

value material where possible - that is, mining at an elevated cut-off grade for the first five years of

production period and stockpiling lower-grade material for later processing. During the 13-year mine life,

copper, gold and silver grades are expected to average 0.41%, 0.26 g/t and 2.30 g/t respectively with a

low strip ratio of 1.1. Figure 1 and Table 2 outline the Alacran Mineral Resource while Figure 2 and

Table 3 collectively outline the Alacran Mineral Reserve. Figure 3 outlines the recovered metal,

processing head grades and overall material movement while Figure 4 outlines the site general

arrangement.

Figure 1:

2022 PFS plan view of the Open Pit and cross section of the Mineral Resource.

To view an enhanced version of this graphic, please visit:

https://orders.newsfilecorp.com/files/3116/109662_a41c6801f40359ad_002full.jpg

Figure 2:

3D view of the ultimate pit shell showing the Mineral Reserve Material by rock type

and grade bin.

To view an enhanced version of this graphic, please visit:

https://orders.newsfilecorp.com/files/3116/109662_a41c6801f40359ad_003full.jpg

Figure 3:

Production Head Grades, Recovered Metal and Material Movement.

To view an enhanced version of this graphic, please visit:

https://orders.newsfilecorp.com/files/3116/109662_a41c6801f40359ad_004full.jpg

Figure 4:

Site conceptual general arrangement showing the Alacran open pit, the mill location

and the WMF.

To view an enhanced version of this graphic, please visit:

https://orders.newsfilecorp.com/files/3116/109662_a41c6801f40359ad_005full.jpg

Table 2:

2021 Mineral Resource Estimate

Classification

Tonnage

(Mt)

NSR

($)

CuEq

Grade

(%)

Copper

Grade

(%)

Gold

Grade

(g/t)

Silver

Grade

(g/t)

Contained

Copper

(tonnes)

Contained

Copper

(Mlb)

Contained

Gold (oz)

Contained

Silver (oz)

Indicated Resources

Alacran

105.6

8.85

n/a

0.44

0.27

2.52

466,719

1,028.9

921,957

8,545,652

Montiel East

4.3

0.7

0.46

0.35

1.53

19,800

43.7

48,800

Montiel West

4.6

0.52

0.24

0.49

1.32

11,200

24.8

72,600

Costa Azul

7.4

0.4

0.24

0.21

0.65

20,300

44.8

49,200

Total Indicated

121.9

0.64

0.42

0.28

2.33

518,019

1,142.2

1,092,557

9,108,452

Inferred Resources

Alacran

2.6

8.85

n/a

0.20

0.17

0.86

5,228

11.5

14,531

Montiel East

1.8

0.34

0.25

0.15

0.88

4,400

9.6

8,500

Montiel West

0.6

0.39

0.07

0.54

0.96

400

11,100

Costa Azul

0.1

0.39

0.29

0.16

0.6

400

0.8

600

Total Inferred

5.1

0.39

0.204

0.206

0.874

10,428

22.9

34,731

Only the Alacran Deposit was updated during the 2021 Mineral Resource Estimate. The Mineral

Resource Estimates for the three satellite deposits: Montiel East, Montiel West, and Costa Azul have not

been updated. The work on the Mineral Resource Estimate for the PFS included a detailed geological

re-examination of the structural controls to high-grade Au veins within the Alacran Deposit.

Notes on Mineral Resources

The Mineral Resources in this estimate were independently prepared by Glen Kuntz, P.Geo. of

Nordmin Engineering Ltd and the Mineral Resources were prepared in accordance with NI 43-101

and the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) and the CIM

Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). Mineral

Resources that are not Mineral Reserves do not have demonstrated economic viability. This

estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title,

taxation, sociopolitical, marketing, or other relevant issues.

Verification included multiple site visits to inspect drilling, logging, density measurement

procedures and sampling procedures, and a review of the control sample results used to assess

laboratory assay quality. In addition, a random selection of the drill hole database results was

compared with original records.

The Mineral Resources in this estimate for the Alacran Deposit used Datamine Studio RMTM

Software to create the block models and Geovia's SurpacTM and WhittleTM software to constrain

the resources and create conceptual open pit shell for the deposit. Assumptions used to prepare

the conceptual pit for Alacran deposit include:

Metal prices of $3.25/lb copper, $1,600.00/oz gold, and $20.00/oz silver;

Operating cost inputs include:

Mining cost of $1.73/t for Saprolite, and $2.30/t for transition and fresh rock for the

overall life of mine

Processing costs of $1.78/t for Saprolite, and $8.85/tonne Fresh and Transition rock.

This includes assumption for Milling, G&A, and Tailings

98.0% mining recovery, 2.0% dilution and 41°-48° pit slope in fresh and transitional rock, and

36.5° in weathered saprolite

Freight costs of $30.00t concentrate from Mine to Port and $82.00t concentrate Port to

Smelter

Treatment costs of $85.00/t dry concentrate, payable metal factors of 95.0% for copper,

96.5% for gold, and 90.0% for silver

Refining charges of $0.085/lb copper, $5.00/oz gold, and $0.30/oz silver

(i)

An NSR cut-off of $1.78/t for saprolite and $8.85/t for transition and fresh rock has been applied to

Alacran. The NSR value was calculated using preliminary production and processing parameters and

commodity metal prices as follows:

NSR_Cu = Cu_% * MiningRec_% * MillCuRec_% * 51.53/% Cu (On Site Value)

NSR_Au = Au_g/t * MiningRec_% * MillAuRec_% * 46.55_$/g (On Site Value)

NSR_Ag = Ag_g/t * MiningRec_% * MillAgRec_% * 0.54_$/g (On Site Value)

NSR = NSR_Cu + NSR_Au + NSR_Ag

The Mineral Resource effective date is August 3, 2021.

The Mineral Resources in this estimate for the satellite deposits used Datamine Studio 3™

software to create the block models and Datamine NPV Scheduler™ to constrain resources and

create conceptual open pit shells using Indicated and Inferred mineralized material (oxide and

sulphide). Assumptions used to prepare the conceptual pits for the satellite deposits include:

Metal prices of $3.10/lb copper, $1,400/oz gold, and $17.75/oz silver;

An NSR cut-off of $13.75/tonne has been applied. This equates to approximately 0.22%

CuEq as calculated in the block model.

Operating cost inputs include:

Mining cost of $2.43/t mined for the first 5 years and $1.69/t thereafter,

Processing cost of $8.63/t milled for the first 5 years and $7.50/t thereafter,

G&A costs of $2.56/t milled for the first 5 years and $1.32/t thereafter,

97.0% mining recovery, 4.0% dilution, and 45° pit slope in fresh and transitional rock and

32.5°in weathered saprolite,

Variable process recoveries of 50.0% to 90.0% for copper, 72.0% to 77.5% for gold, and

40.0% to 70.0% for silver depending on the domain (saprolite, transition, or fresh sulphide)

and copper grade.

Freight costs of $100.00/t concentrate, and treatment costs of $90.00/t dry concentrate,

payable metal factors of 95.5% for copper and 96.5% for gold and 90.0% for silver. Refining

charges of $0.090/lb copper, $5.00/oz gold and $0.30/oz silver.

Copper equivalency has been used for the three satellite pits and was calculated using:

CuEq % = Cu % + (Au Factor x Au Grade g/t + Ag Factor x Ag Grade g/t) x 100.

Au Factor = (Au Recovery % x Au Price $/oz / 31.1035 g/oz) / (Cu Recovery % x Cu

Price $/lb x 2204.62 lb/t).

Ag Factor = (Ag Recovery % x Ag Price $/oz / 31.1035 g/oz) / (Cu Recovery % x Cu

Price $/lb x 2204.62 lb/t).

Variable process recoveries of 50.0% to 90.0% for copper, 72.0% to 77.5% for gold

and 40.0% to 70.0% for silver depending on the domain (saprolite, transition, or fresh

sulphide) and copper grade.

The Mineral Resource of the satellite deposits effective date is July 24, 2019.

The 2019 Mineral Resource Estimate for the Alacran Deposit is no longer considered to be current

and is not to be relied upon for the Alacran Mineral Resource Estimate. Changes have not been

made to the Mineral Resource Estimates for the satellite deposits (Montiel East, Montiel West, and

Costa Azul). For further information with respect to the Mineral Resource estimate for the satellite

deposits, please see NI 43-101 technical report titled "NI 43-101 Technical Report and Preliminary

Economic Assessment, San Matías Copper-Gold-Silver Project, Colombia" with an effective date

of July 29, 2019 available under the Company's SEDAR profile at

www.sedar.com

Totals may not sum due to rounding.

Table 3:

Mineral Reserve Estimate