TIDMATYM
Atalaya Mining PLC
25 May 2021
25 May 2021
Atalaya Mining Plc.
("Atalaya" or "the Company")
Update on new Proyecto Riotinto East and Masa Valverde
Atalaya Mining Plc (AIM:ATYM, TSX:AYM) is pleased to provide an
update on its exploration assets in the Iberian Pyrite Belt,
including Proyecto Riotinto East, a new area of exploration focus
for the Company.
A version of this announcement containing all referenced maps
can be found on the Company's website at
www.atalayamining.com (the "Website Announcement").
Proyecto Riotinto East
In December 2020, Atalaya entered into a Memorandum of
Understanding (the "MoU") with a local private Spanish company to
acquire a 100% beneficial interest in three investigation permits
(known as Peñas Blancas, Cerro Negro and Herreros investigation
permits), which cover approximately 12,368 hectares and are located
immediately east of Proyecto Riotinto (see Figure. 1 in the Website
Announcement). These permits will be collectively referred to as
"Proyecto Riotinto East".
The permits for Peñas Blancas and Herreros are yet to be granted
but are expected within weeks.
The Peñas Blancas and Cerro Negro permits are located
immediately to the east of Proyecto Riotinto and share a similar
stratigraphic and structural setting. Several airborne magnetic
anomalies have already been delineated and a number of small mines
and mineral occurrences (pyrite and manganese mainly) are known to
occur in direct relationship with favorable volcanic and
volcano-sedimentary rocks that are expected to occur at Proyecto
Riotinto East. The Admirable Mine, with historic production of 3Mt
@ 1% copper, is situated very close to the northern limit of the
Cerro Negro permit (see Figure 2 in the Website Announcement).
A comprehensive exploration programme is currently being planned
which will include airborne Electro Magnetic surveys and soil
sampling followed by drill testing.
The Herreros permit is located 10 km northeast of Las Cruces
copper mine in a similar geological setting. Previous exploration
work carried out by RTZ in the 1990s had defined a strong gravity
anomaly associated with a TEM conductor underneath a tertiary cover
(see Figure 3 in the Website Announcement). Just one short hole was
drilled on top of the gravity anomaly intercepting an orthogneiss
with pyritic alteration. Further drilling is being planned on this
anomaly in order to explain its origin.
The Agreement
The MoU provides an initial exclusivity period of three years
and is renewable for additional years in order for Atalaya to carry
out all necessary exploration work and studies on Proyecto Riotinto
East. Atalaya will be the operator during the exclusivity period
and is fully responsible for all administrative and exploration
activities and costs as well as for the maintenance costs
associated with the permits.
A minimum investment of EUR 100,000 must be incurred for each
permit during the first year. Once that investment has been
incurred, Atalaya may exercise its purchase option at any time on
any of the permits, either individually or collectively.
Proyecto Masa Valverde
Since the acquisition of this polymetallic satellite project in
October 2020, Atalaya has embarked on a comprehensive review of all
available information, including the compilation and
re-interpretation of all previous gravimetric data, as well as the
preparation and implementation of a detailed exploration
programme.
Currently, a comprehensive Ground Squid-TEM geophysical survey
covering the entire permit area (see Figure 4 in the Website
Announcement) and an 8,000-metre drilling programme are already in
progress. Depending on the results of the TEM survey, the proposed
drilling programme will be expanded to accommodate further targets
deserving drill testing.
The main objectives of the current programme are:
-- to define a compliant resource;
-- to look for extensions to the already known mineralised zones; and
-- to delineate drill targets which could lead to the discovery
of new massive sulphide orebodies.
Atalaya has filed for the environmental permits which are
expected during 2022 and plans to publish a scoping study in due
course.
Alberto Lavandeira, CEO, commented: "We continue to work on
expanding our footprint in the highly prospective Iberian Pyrite
Belt, where four new deposits have been found within the last six
years, including world-class Magdalena. With the MoU for Proyecto
Riotinto East, Atalaya expands its access to one of the most
prospective areas of the Iberian Pyrite Belt. Surprisingly, the
area has not been the subject of modern and systematic exploration
to date, in particular, the Peñas Blancas and Cerro Negro
investigation permits since they cover the potential east
extensions of both the Riotinto and Aguas Teñidas-La Magdalena
trends (see Figure 2 Website Announcement). The Herreros
investigation permit is located northeast of First Quantum's Las
Cruces Copper Mine in a similar geological setting and with a
promising coincident gravity and TEM geophysical anomaly ready for
drill testing."
"This is an exciting project that, following on from the Masa
Valverde acquisition in October 2020, has the potential to add
significant additional resources for Atalaya. This latest
transaction underlines the Board's commitment to both operational
expansion and new exploration to secure growth and deliver value
for shareholders ."
Contacts:
Elisabeth Cowell / Adam Lloyd / + 44 20 3757
SEC Newgate Tom Carnegie 6880
+44 20 3170
4C Communications Carina Corbett 7973
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Canaccord Genuity
(NOMAD and Joint Henry Fitzgerald-O'Connor / James +44 20 7523
Broker) Asensio 8000
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BMO Capital Markets +44 20 7236
(Joint Broker) Tom Rider 1010
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Peel Hunt LLP +44 20 7418
(Joint Broker) Ross Allister / David McKeown 8900
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About Atalaya Mining Plc
Atalaya is an AIM and TSX-listed mining and development group
which produces copper concentrates and silver by-product at its
wholly owned Proyecto Riotinto site in southwest Spain. In
addition, the Group has a phased, earn-in agreement for up to 80%
ownership of Proyecto Touro, a brownfield copper project in the
northwest of Spain. For further information, visit
www.atalayamining.com
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