Atico Reports 2019 Fourth Quarter and Full Year Production Results
January 16 2020 - 4:30PM
Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY |
OTC: ATCMF) is pleased to announce operating results for the three
and twelve month periods ended December 31, 2019 from its El Roble
mine. Production totaled 5.62 million pounds of copper with 3,492
ounces of gold for the fourth quarter (“Q4 2018”) and 16.85 million
pounds of copper with 10,480 ounces of gold in concentrates for the
full year 2019.
“Atico has successfully concluded its sixth full
year of operating the El Roble mine and despite a 75-day strike in
the first two quarters, the Company was able to recover and exceed
most of the adjusted 2019 operational guidance,” said Fernando E.
Ganoza, CEO. “Along with outstanding operational performance in the
second half of the year, the Company is expecting strong revenues
for the fourth quarter as two concentrate shipments were made, and
overall, robust financials for year-end 2019. In the upcoming year,
we will continue aggressive exploration at El Roble and La Plata
properties to unlock value of the respective land packages while
working towards achieving operational guidance for 2020.”
Fourth Quarter and Full Year Operational
Highlights
Fourth Quarter
- Production of 5.62 million pounds of copper contained in
concentrates; a decrease of 3% over Q4 2018.
- Production of 3,492 ounces of gold contained in concentrates;
an increase of 20% over Q4 2018.
- Average processed tonnes per day of 859; no significant change
over Q4 2018.
- Copper and gold head grades of 3.61% and 2.41 grams per tonne;
a decrease of 1% for copper and an increase of 21% for gold over Q4
2018.
- Copper and gold recovery of 92.0% and 59.0%; a decrease of 1%
for copper and 2% for gold over Q4 2018.
2019 Year-end
- Production of 16.85 million pounds of copper contained in
concentrates; a decrease of 23% over 2018.
- Production of 10,480 ounces of gold contained in concentrates;
a decrease of 8% over 2018.
- Average processed tonnes per day of 855; an increase of 3% over
2018.
- Copper and gold head grades of 3.51% and 2.35 grams per tonne;
a decrease of 5% for copper and an increase of 15% for gold over
2018.
- Copper and gold recovery of 92.0% and 58.5%; a decrease of 2%
for copper and 3% for gold over 2018.
Fourth Quarter and Full Year Operational
Details
|
Q1 Total |
Q2 Total |
Q3 Total |
Q4 Total |
2019 Total |
Production (Contained in Concentrates) |
|
|
|
|
|
Copper (000s pounds) |
2,362 |
3,157 |
5,712 |
5,615 |
16,853 |
Gold (ounces) |
1,552 |
2,116 |
3,320 |
3,492 |
10,480 |
Mine |
|
|
|
|
|
Tonnes of ore mined |
34,796 |
47,321 |
74,462 |
75,167 |
231,746 |
Mill |
|
|
|
|
|
Tonnes processed |
35,581 |
47,534 |
76,532 |
76,707 |
236,354 |
Tonnes processed per day |
885 |
839 |
863 |
859 |
855 |
Copper grade (%) |
3.29 |
3.28 |
3.66 |
3.61 |
3.51 |
Gold grade (g/t) |
2.24 |
2.34 |
2.34 |
2.41 |
2.35 |
Recoveries |
|
|
|
|
|
Copper (%) |
91.6 |
91.7 |
92.5 |
92.0 |
92.0 |
Gold (%) |
60.6 |
58.4 |
58.0 |
58.0 |
58.5 |
Concentrates |
|
|
|
|
|
Copper and Gold Concentrates (dmt) |
4,921 |
6,561 |
11,757 |
11,669 |
34,908 |
|
|
|
|
|
|
Payable copper produced (000s lbs) |
2,244 |
2,999 |
5,426 |
5,334 |
16,003 |
Note: Metal production figures are subject to
adjustments based on final settlement.
2020 Operating and Capital
Guidance
2020 Production and Cost Guidance |
|
Copper (000s pounds) |
20,000 to 21,000 |
Gold (ounces) |
10,500 to 11,500 |
C1 Cash Cost ($US)(1) |
$1.25 to $1.35 |
Note: Please see “Non-GAAP Financial Measures”
at the end of this release. C1 cash cost per pound of payable
copper produced net of by-product credits and selling costs.
El Roble Mine
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.
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, 2019 as filed on SEDAR and as
available on the Company's website for further details.
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
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