Approval of Expansion Project at Proyecto Riotinto

Acropolis, Cyprus (FSCwire) - Atalaya Mining plc (AIM: ATYM; TSX: AYM), with its subsidiaries, is pleased to announce its decision to proceed with the 15 Mtpa expansion plan at Proyecto Riotinto in south-western Spain.

The 15 Mtpa expansion plan is designed to upgrade processing facilities with the ultimate goal of increasing copper production to approximately 50,000 - 55,000 tonnes per year.

Project Highlights

• The purpose of the 15 Mtpa expansion plan is to increase copper production, improve operational efficiencies, reduce maintenance requirements and lower operating cash costs.

• The expansion plan is designed to deliver processing capacity of up to 15 Mtpa which correlates to an estimated 50,000 - 55,000 tonnes of copper contained in concentrate per year.

• Capital cost has been estimated at €80.4 million consistent with the low capital intensity that the Company has delivered previously at Proyecto Riotinto.

o  Expansion project represents capital intensity of approximately US$6,100 per tonne for the expected incremental 15,000 tonnes of copper production over current nameplate.

• Estimated reduction in cash costs and all-in sustaining costs by approximately 7% compared to the existing 9.5 Mtpa operation, based on maintenance and processing efficiencies.

• Subject to completion of financing arrangements and permitting activities, it is anticipated that ground construction works will start during the first quarter of 2018 with commissioning scheduled for the second half of 2019 and nominal production during the first half of 2020.

• Management expects that the expansion project will result in an incremental post-tax net present value (NPV) of approximately US$113 million (assuming an 8% discount rate) and a post-tax internal rate of return (IRR) of approximately 43%, when assuming a US$3.00/lb copper price, US$18.00/oz silver price, and USD:EUR of 1.15.

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 http://www.rns-pdf.londonstockexchange.com/rns/2529Y_1-2017-12-4.pdf

This information is provided by RNS

The company news service from the London Stock Exchange

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