VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 10, 2015) - Atico Mining Corporation (TSX VENTURE:ATY)(OTC PINK:ATCMF)("Atico" or the "Company") is pleased to announce that ongoing in-fill drilling at the El Roble mine has significantly extended mineralization at Zeus, approximately perpendicular to the strike direction of the massive sulfide body. In addition, the Company reports the results for three diamond drill core holes (ATD-0001 through ATD-0003), which included 86.4m of 5.04% copper and 3.71g/t gold and 116m of 3.05% copper and 2.38g/t gold, respectively.
Fernando E. Ganoza, CEO, commented: "The ongoing in-fill drill program at the El Roble mine has intercepted high-grade mineralization at Zeus massive sulfide body which significantly extends the mineralization beyond the previously outlined mineralized shell. The Zeus mineralized body accounts for approximately forty percent of our total identified resource and so any extensions to mineralization discovered here could have a material impact on our total identified resource." Mr. Ganoza added, "we are extremely pleased and encouraged with these results as they continue to add further confidence to our hypothesis that high-grade mineralization continues strong at depth and remains open beyond the current mine limits."
El Roble Drilling Highlights Include:
| Hole |
From (m) |
To (m) |
Interval (m) |
Cu (%) |
Au (g/t) |
Ag (g/t) |
| ATD-0001* |
180.0 |
296.6 |
116.6 |
3.05 |
2.38 |
7.04 |
| Including |
192.4 |
234.6 |
42.2 |
6.73 |
1.91 |
7.23 |
| ATD-0002 |
160.9 |
231.7 |
70.8 |
5.25 |
1.93 |
8.14 |
| Including |
175.3 |
220.8 |
45.5 |
7.52 |
1.45 |
5.10 |
| ATD-0003 |
158.8 |
245.2 |
86.4 |
5.04 |
3.71 |
8.69 |
| Including |
194.9 |
227.3 |
32.4 |
9.09 |
1.69 |
6.44 |
| |
194.9 |
199.4 |
4.5 |
15.73 |
3.04 |
11.50 |
| * There was a cumulative core loss of 7.6 meters for the total intercept and a grade value of zero was assigned to these lost intervals in the calculation. |
| ** True widths are dependent on uncertainties in the local strike and dip of the mineralization and are estimated to be between 76% and 83% of the drill intercept. |
In-fill Drilling Program
The goal of the underground drilling program at the El Roble mine is to further define the known mineralized bodies and expand the identified resource. During the fourth quarter of 2014, the Company began a drill program to specifically test the Zeus, Aquiles and Ares mineralization. In-fill drilling approximately perpendicular to the strike direction of the known massive sulfide bodies and drilling of new prospective areas below the 2000-meter level is being conducted from the new main level 1880 adit. With the first three holes of the program (ATD-0001, ATD-0002 and ATD-0003), drilling intercepted significantly larger intervals of massive sulfide than had been modeled in the NI 43-101 inferred resource estimate wireframes of Zeus and Aquiles (See Atico technical report August 27, 2013). At the levels of mineralization drilled, the average interval used in the wireframe calculation of the inferred resource was approximately 58 meters, whereas the first infill hole (ATD-0001) intersected 116.6 meters, the second hole (ATD-0002) intersected 70.8 meters and the third hole (ATD-0003) intersected 86.4 meters of mineralization.
Infill Drill Program Assay Results:
| |
|
|
|
Intercept** |
|
|
|
|
| Hole ID |
Azimuth
(°) |
Dip
(°) |
Total
Length
(m) |
From
(m) |
To
(m) |
Interval
(m) |
Cu
(%) |
Au
(g/t) |
Ag
(g/t) |
| ATD-0001* |
20 |
-28 |
314.30 |
180.0 |
296.6 |
116.6 |
3.05 |
2.38 |
7.04 |
| Including |
|
|
|
192.4 |
234.6 |
42.2 |
6.73 |
1.91 |
7.23 |
| |
|
|
|
193.9 |
198.2 |
4.3 |
6.47 |
2.25 |
6.90 |
| |
|
|
|
201.7 |
205.2 |
3.5 |
11.15 |
1.43 |
6.00 |
| |
|
|
|
205.8 |
215.1 |
10.6 |
10.41 |
0.83 |
6.49 |
| |
|
|
|
225.0 |
234.6 |
9.6 |
5.60 |
4.91 |
7.97 |
| |
|
|
|
276.5 |
283.8 |
7.3 |
1.37 |
4.71 |
9.94 |
| ATD-0002 |
28 |
-24 |
276.45 |
160.9 |
231.7 |
70.8 |
5.25 |
1.93 |
8.14 |
| Including |
|
|
|
175.3 |
220.8 |
45.5 |
7.52 |
1.45 |
5.10 |
| |
|
|
|
184.2 |
190.6 |
6.4 |
7.49 |
0.74 |
4.15 |
| |
|
|
|
196.3 |
201.0 |
4.7 |
8.98 |
1.38 |
3.62 |
| |
|
|
|
201.5 |
211.3 |
9.8 |
15.00 |
2.31 |
4.34 |
| |
|
|
|
215.1 |
221.8 |
6.7 |
4.35 |
2.14 |
6.46 |
| |
|
|
|
224.2 |
228.1 |
3.85 |
2.84 |
3.75 |
17.29 |
| ATD-0003 |
24 |
-31 |
361.50 |
158.8 |
245.2 |
86.4 |
5.04 |
3.71 |
8.69 |
| Including |
|
|
|
194.9 |
227.3 |
32.4 |
9.09 |
1.69 |
6.44 |
| |
|
|
|
194.9 |
199.4 |
4.5 |
15.73 |
3.04 |
11.50 |
| |
|
|
|
200.5 |
208.9 |
8.4 |
9.42 |
1.36 |
6.07 |
| |
|
|
|
209.5 |
216.0 |
6.5 |
11.82 |
4.56 |
0.32 |
| |
|
|
|
217.2 |
231.6 |
14.4 |
6.01 |
1.60 |
6.44 |
| * There was a cumulative core loss of 7.6 meters for the total intercept and a grade value of zero was assigned to these lost intervals in the calculation. |
| ** True widths are dependent on uncertainties in the local strike and dip of the mineralization and are estimated to be between 76% and 83% of the drill intercept. |
Images showing the schematic Zeus-Aquiles massive sulfide bodies with above intercepts are available at the following link: http://www.aticomining.com/i/Maps/Schematic-models-MAR2.jpg
Union Negotiations and Operations Update
The Company reports it has successfully concluded negotiations with the El Roble mine union. The terms of the new agreement are for the period 2015 through 2016 and are in line with agreements negotiated recently by mining companies in Colombia.
The Company also reports commissioning of new crushing equipment has caused intermittent production at El Roble mine equivalent to approximately 25% less availability than scheduled for January and February. The Company has since stabilized production, expects equipment availability for March as scheduled and anticipates completion of commissioning by the end of the first quarter.
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 previous 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 2.5g/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. In 2014, the Company initiated and completed an expansion of the existing processing facility 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.
Inferred mineral resource of 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
Dr. Demetrius Pohl, Ph.D., AIPG Certified Geologist, a qualified person under NI 43-101 standards and independent of the company, is responsible for ensuring that the information contained in this news release is an accurate summary of the original reports and data provided to or developed by Atico Mining Corporation. Dr. Pohl has approved the scientific and technical content of this news release.
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.