VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 21, 2015) - Atico Mining Corporation (TSX VENTURE:ATY)(OTC PINK:ATCMF) is pleased to announce operating results for the three and twelve month periods ended December 31, 2014 from its El Roble mine. Production totaled 2.9 million pounds of copper with 3,304 ounces of gold and 9.1 million pounds of copper with 9,538 ounces of gold in concentrates for the fourth quarter and full year 2014, respectively.
"Atico concluded its first full year of operating and scaling up the El Roble mine with strong operational results in the fourth quarter. Last planned changes at the mill have been completed in early January to achieve the run rate of 650 tonnes per day" said Fernando E. Ganoza, CEO. "The scale-up of the El Roble mine, executed through 2014, positions the Company to significantly improve cash flow from operations while continuing to focus on organic growth opportunities at the mine and contiguous land package."
Fourth Quarter and Full Year Operational Highlights
Fourth Quarter
- Production of 2.9 million pounds of copper contained in concentrates; an increase of 7.7% over Q3 2014.
- Production of 3,304 ounces of gold contained in concentrates; an increase of 12.7% over Q3 2014.
- Average processed tonnes per day of 551; an increase of 11.7% over Q3 2014.
- Copper and gold head grades of 3.61% and 3.70 grams per tonne; in line with company expectations for this quarter.
- Copper and gold recovery of 91.44% and 69.35%; in line with company expectations for this quarter.
2014 Year-end
- Production of 9.1 million pounds of copper contained in concentrates.
- Production of 9,538 ounces of gold contained in concentrates.
- Average processed tonnes per day of 462.
- Copper and gold head grades of 3.37% and 3.30 grams per tonne.
- Copper and gold recovery of 91.36% and 66.90%.
Drilling
The infill drill program at El Roble mine continues as scheduled with the focus on Zeus massive sulfide body. The first two drill holes have crosscut longer mineralized intercepts than suggested by the inferred wireframe of the massive sulfide body. Core samples have been shipped to the primary assay lab in Medellin with results pending. Drilling continues at Zeus with the third drill hole designed to test the lower end of the sulfide body.
Fourth Quarter and Full Year Operational Details
| |
Q1 Total |
Q2 Total |
Q3 Total |
Q4 Total |
2014 Total |
| Production (Contained in Concentrates) |
|
|
|
|
|
| Copper (000s pounds) |
1,398 |
2,070 |
2,702 |
2,909 |
9,079 |
| Gold (ounces) |
1,147 |
2,155 |
2,932 |
3,304 |
9,538 |
| Mine |
|
|
|
|
|
| Tonnes of ore mined |
26,791 |
37,206 |
40,088 |
44,690 |
148,775 |
| Mill |
|
|
|
|
|
| Tonnes processed |
23,016 |
33,888 |
36,505 |
39,923 |
133,332 |
| Tonnes processed per day |
354 |
440 |
493 |
551 |
462 |
| Copper grade (%) |
3.01 |
3.07 |
3.63 |
3.61 |
3.37 |
| Gold grade (g/t) |
2.43 |
3.12 |
3.60 |
3.70 |
3.30 |
| Recoveries |
|
|
|
|
|
| Copper (%) |
91.5 |
90.1 |
92.4 |
91.4 |
91.4 |
| Gold (%) |
63.7 |
63.4 |
69.5 |
69.3 |
66.9 |
| Concentrates |
|
|
|
|
|
| Copper and Gold Concentrates (dmt) |
2,735 |
4,388 |
5,768 |
6,526 |
19,417 |
| |
|
|
|
|
|
| Payable copper produced (000s lbs) |
1,332 |
1,967 |
2,567 |
2,764 |
8,630 |
Note: Metal production figures are subject to adjustments based on final settlement.
El Roble Mine
The El Roble mine is an underground copper, gold and silver mine and processing plant located in the Department of Choco in Colombia. Its commercial product is a copper concentrate with gold and silver by-product credits.
With a nominal capacity of 400 tonnes per day, the mine has processed over the past twenty-two years, a total of over 1.5 million tonnes of ore at an average head grade of 2.6% copper and an estimated gold grade of 2.5 g/t. Copper and gold mineralization at the El Roble property occurs in volcanogenic massive sulfide ("VMS") lenses.
On November 22, 2013, the Company completed the exercise of a property purchase option, acquiring 90% of the shares of Minera El Roble S.A. ("MINER"), the owner of the El Roble mineral property and took control of the producing El Roble mine and 6,679 hectares of surrounding claims. The Company has completed in 2014 an expansion to a nominal capacity of 650 tonnes per day.
Since entering into the option agreement in January 2011 to acquire 90% of El Roble, Atico has aggressively explored the mine and surrounding claims. The Company has completed 11,740 meters of diamond drilling and identified numerous prospective targets for VMS deposits on the 6,679-hectare property. This exploration led to the discovery of high-grade copper and gold mineralization below the 2000 level, the lowest production level of the El Roble mine. Atico has developed a new adit access from the 1880 elevation to develop these new resources.
National Instrument 43-101 compliant inferred mineral resource are 1.58 million tonnes grading 4.45 % copper and 3.17 g/t gold, at a cut-off grade of 0.72 % copper equivalent. Mineralization is open at depth and along strike and the Company plans to further test the limits of the resource.
On the larger land package, the Company has identified a prospective stratigraphic contact between volcanic rocks and black and grey cherts that has been traced by Atico geologists for ten kilometers. This contact has been determined to be an important control on VMS mineralization on which Atico has identified 15 prospective target areas for VMS type mineralization occurrence, which is the focus of the surface drill program at El Roble.
Qualified Person
Mr. Thomas Kelly (SME Registered Member 1696580), Chief Operating Officer of the Company and a qualified person under National Instrument 43-101 standards, is responsible for ensuring that the technical information contained in this news release is an accurate summary of the original reports and data provided to or developed by Atico.
About Atico Mining Corporation
Atico is a growth-oriented company, focused on exploring, developing and mining copper and gold projects in Latin America. The Company operates the El Roble mine and is pursuing additional acquisition opportunities. For more information, please visit www.aticomining.com.
ON BEHALF OF THE BOARD
Fernando E. Ganoza
CEO
Atico Mining Corporation
Trading symbols: (TSX VENTURE:ATY)(OTC PINK:ATCMF)
Neither the 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.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold in the United States, or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S of the U.S. Securities Act) unless pursuant to an exemption therefrom. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.
Cautionary Note Regarding Forward-Looking Statements
This announcement includes certain "forward-looking statements" within the meaning of Canadian securities legislation. All statements, other than statements of historical fact, included herein, without limitation the use of net proceeds, are forward-looking statements. Forward- looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs; the need to obtain additional financing to maintain its interest in and/or explore and develop the Company's mineral projects; uncertainty of meeting anticipated program milestones for the Company's mineral projects; and other risks and uncertainties disclosed under the heading "Risk Factors" in the prospectus of the Company dated March 2, 2012 filed with the Canadian securities regulatory authorities on the SEDAR website at www.sedar.com