Atico Produces 5.55 Million Pounds of Cu and 2,487 Ounces of Au in Q3 2020; Successful Production Continuity during Covid-19 ...
October 19 2020 - 4:15PM
Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY |
OTC: ATCMF) announces its operating results for the three months
ended September 30, 2020 from its El Roble mine. Production for the
quarter totaled 5.55 million pounds of copper and 2,487 ounces of
gold in concentrates, a decrease of 3% for copper and 25% for gold
over the same period in 2019.
“The production results for the quarter were
mostly in line with our 2020 objectives while the mine continued to
operate under strict preventative protocols and health policies.
The decrease in gold production is mainly driven by a lower head
grade, expected in the mine plan for the quarter while operations
still remain on track for record revenues in the second half of the
year,” said Fernando E. Ganoza, CEO. “We will continue operating
with the highest health and safety standards during these
unprecedented times, while at the same time keeping a focus on
delivering our 2020 production guidance.”
Third Quarter
Operational Highlights
- Production of 5.55 million pounds
of copper contained in concentrates; a decrease of 3% over Q3
2019.
- Production of 2,487 ounces of gold
contained in concentrates; a decrease of 25% over Q3 2019.
- Average processed tonnes per day of
860, no significant change over Q3 2019.
- Copper head grade of 3.74%, an
increase of 2% over Q3 2019.
- Gold head grade of 1.87 grams per
tonne; a decrease of 20% over Q3 2019.
- Copper and gold recovery of 91.4%
and 56.3%; an increase of 2% for copper and a decrease of 25% for
gold over Q3 2019.
Third Quarter
Operational Review
Overall production was mostly in line with
Company budget for the third quarter. The decrease in gold head
grade and production is primarily explained by the mine plan for
the quarter and to a lesser extent by the lower than anticipated
gold recovery. The operation remains on track to deliver on set
guidance throughout the remainder of the year.
The Company continues to closely monitor
developments around the Covid-19 pandemic and continues to maintain
strict preventative measures at the El Roble mine site, La Plata
project, as well as our corporate offices to safeguard the health
of its employees, while continuing to operate effectively and
responsibly in its communities.
Third
Quarter Operational
Details
|
Q3 2020
Total |
Q3
2019 Total |
% Change |
|
Production (Contained in Concentrates) |
|
|
|
Copper (000s pounds) |
5,550 |
5,712 |
-3 |
% |
Gold (ounces) |
2,487 |
3,320 |
-25 |
% |
Mine |
|
|
|
Tonnes of ore mined |
71,993 |
74,462 |
-3 |
% |
Mill |
|
|
|
Tonnes processed |
73,603 |
76,532 |
-4 |
% |
Tonnes processed per day |
860 |
863 |
Nil |
|
Copper grade (%) |
3.74 |
3.66 |
2 |
% |
Gold grade (g/t) |
1.87 |
2.34 |
-20 |
% |
Recoveries |
|
|
|
Copper (%) |
91.4 |
92.5 |
-1 |
% |
Gold (%) |
56.3 |
58.0 |
-3 |
% |
Concentrates |
|
|
|
Copper and Gold Concentrates (dmt) |
11,956 |
11,757 |
2 |
% |
|
|
|
|
Payable copper produced (000s lbs) |
5,273 |
5,426 |
-3 |
% |
Note: Metal production figures are subject to adjustments based on
final settlement. |
|
Concentrate Inventory
The number of shipments the Company can export
in any given quarter depends on several variables some of which the
Company does not control, hence there may be an inherent
variability in tonnes shipped quarter to quarter.
|
Q3 2020
Total |
Amounts in dry metric tonnes |
|
Opening inventory |
2,655 |
Production |
11,956 |
Sales |
9,285 |
Number of shipments |
1 |
Closing inventory |
5,326 |
Note: Concentrate figures are subject to adjustments based on final
settlement. |
|
El Roble Mine
The El Roble mine is a high grade, underground
copper and gold mine with nominal processing plant capacity of
1,000 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 generates significant cash flow through the
operation of the El Roble mine and is developing its high-grade La
Plata VMS project in Ecuador. The Company is also pursuing
additional acquisition of advanced stage 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;
the world-wide economic and social impact of Covid-19 is managed
and the duration and extent of the coronavirus pandemic is
minimized or not long-term; disruptions related to the Covid-19
pandemic or other health and safety issues, or the responses of
governments, communities, the Company and others to such pandemic
or other issues; 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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