Atico Reports First Quarter 2018 Production Results and Provides
Update on Union Negotiations
Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY |
OTC: ATCMF) announces its operating results for the three months
ended March 31, 2019 from its El Roble mine. Production for the
quarter totaled 2.36 million pounds of copper and 1,552 ounces of
gold in concentrates, a decrease of -57% and -45% for copper and
gold, respectively, over the same period in 2018.
“The strike at the El Roble mine has had a
significant impact on the Company’s ability to meet operational
objectives in the first quarter. The mine has not operated for over
fifty days during this period and this is directly reflected in
this quarter’s results,” said Fernando E. Ganoza, CEO. “Once the
operation resumes and for the remainder of the year, the Company
will make its best effort to minimize the impact of lost
production.”
First Quarter Operational
Highlights
- Production of 2.36 million pounds of copper contained in
concentrates; a decrease of 57% over Q1 2018.
- Production of 1,552 ounces of gold contained in concentrates; a
decrease of 45% over Q1 2018.
- Average processed tonnes per day of 885, an increase of 9% over
Q1 2018.
- Copper head grade of 3.29%, a decrease of 13% over Q1
2018.
- Gold head grade of 2.24 grams per tonne; an increase of 10%
over Q1 2018.
- Copper and gold recovery of 91.1% and 60.6%; a decrease of 3%
for copper and 5% for gold respectively over Q1 2018.
Union Negotiations
During the quarter the Company entered into its
biennial union negotiations with the miners as reported in the news
release published on February 13, 2019. These negotiations led to a
strike which has stopped almost all Company’s activity at the mine
for the remainder of the quarter. Friday April 12, 2019 marked the
sixtieth day of the strike after which, dictated by Colombian law,
a legal mechanism to end the strike with an arbitrage process
began. According to Colombian Labor Code the process of assembling
the arbitrator’s council is anticipated for the 8th working day
proceeding April 12, 2019, after which operations should resume
within 3 working days.
Despite 20 meetings and 8 complete proposals by
the Company to solve the negotiations amicably, the strike has
lasted longer than anticipated due to unacceptable terms requested
by the union. The arbitration process contemplated in the Colombian
Law will now be the solution to the labor dispute, three
arbitrators will decide in the coming months the labor conditions
for the unionized workers.
The Company believes this is a sustainable
solution for all stakeholders and sets an important precedent for
future negotiations.
First Quarter Operational
Details
|
Q1 2019Total |
Q1 2018Total |
% Change |
Production (Contained in Concentrates) |
|
|
|
Copper (000s pounds) |
2,362 |
5,476 |
-57% |
Gold (ounces) |
1,552 |
2,825 |
-45% |
Mine |
|
|
|
Tonnes of ore mined |
34,796 |
67,022 |
-48% |
Mill |
|
|
|
Tonnes processed |
35,581 |
69,499 |
-49% |
Tonnes processed per day |
885 |
812 |
9% |
Copper grade (%) |
3.29 |
3.80 |
-13% |
Gold grade (g/t) |
2.24 |
2.03 |
10% |
Recoveries |
|
|
|
Copper (%) |
91.6 |
94.0 |
-3% |
Gold (%) |
60.6 |
62.8 |
-4% |
Concentrates |
|
|
|
Copper and Gold Concentrates (dmt) |
4,921 |
11,474 |
-57% |
|
|
|
|
Payable copper produced (000s lbs) |
2,244 |
5,202 |
-57% |
Note: Metal production figures are subject to
adjustments based on final settlement.
2019 Operational Guidance
The 2019 projections stated below and in January
29, 2019 News Release will be negatively affected by the ongoing
strike at the El Roble mine and will be adjusted by the Company
once operations resume.
The Company set the following objectives for
2019 at the El Roble mine:
- Process between 280,000 and 290,000 tonnes.
- Maintain copper recovery above 93% and 62% for gold.
- Maintain an average copper head grade between 3.4% and
3.6%
- Maintain an average gold head grade between 1.8 g/t and 2.0
g/t
- Increase production between 43,000 and 45,000 dry tonnes of
concentrate.
- Maintain production between 9,000 and 9,500 tonnes of
copper.
- Maintain production between 10,200 and 10,700 ounces of
gold.
- Mantain the mill mechanical availability to 95% with 345 days
worked.
- Continue increasing the safety and environmental
standards.
El Roble Mine
The The El Roble mine is a high grade,
underground copper and gold mine with nominal processing plant
capacity of 850 tonnes per day, located in the Department of Choco
in Colombia. Its commercial product is a copper-gold concentrate.
Since obtaining control of the mine on November 22, 2013, Atico has
upgraded the operation from a historical nominal capacity of 400
tonnes per day.
El Roble has Proven and Probable reserves of
1.47 million tonnes grading 3.40% copper and 1.88 g/t gold, at a
cut-off grade of 1.93% copper equivalent as of June 30th, 2018.
Mineralization is open at depth and along strike and the Company
plans to further test the limits of the deposit.
On the larger land package, the Company has
identified a prospective stratigraphic contact between volcanic
rocks and black and grey pelagic sediments and 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 numerous target areas prospective for
VMS type mineralization occurrence, which is the focus of the
current surface drill program at El Roble.
Qualified Person
Mr. Thomas Kelly (SME Registered Member
1696580), advisor to 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. GanozaCEOAtico Mining
Corporation
Trading symbols: TSX.V: ATY | OTC: ATCMF
Investor RelationsIgor DutinaTel:
+1.604.633.9022
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
Non-GAAP Financial Measures
The items marked with a "(1)" are alternative
performance measures and readers should refer to Non-GAAP Financial
Measures in the Company's Management's Discussion and Analysis for
the nine months ended September 30, 2016 as filed on SEDAR and as
available on the Company's website for further details.
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