Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY |
OTC: ATCMF) is pleased to report of an updated NI 43-101 mineral
resource and reserve estimate as on September 30th, 2020 for the El
Roble Mine located in Colombia.
“Our infill and mine vicinity exploration
drilling at El Roble mine has partially replenished some of the
mined resources since the previous reserve and resource update in
2018. The updated reserve report shows the operations ability to
continue delivering robust cashflow for the Company in the years to
come, especially in the current metal price environment,” said
Fernando E. Ganoza, CEO. “We will continue looking for
opportunities to further extend the life of mine at El Roble while
also aggressively drilling for additional massive sulphide deposits
on the contiguous 6,300 hectare land package we control.”
Resource and Reserve Estimate
Highlights
- Measured and Indicated Mineral
Resources are estimated at 1.17 million tonnes averaging 3.26% Cu,
and 2.33 g/t Au.
- Proven and Probable Mineral
Reserves are estimated at 1.00 million tonnes averaging 3.02 % Cu,
and 1.76 g/t Au.
- A conversion rate of 87% of
Measured and Indicated resources to Proven and Probable reserve
categories over the current resource estimate.
El Roble Resource and Reserve Estimate
The updated mineral resource and reserve
estimate for El Roble was prepared by staff and consultants of
Miner SA, an Atico Mining operating subsidiary. Mr. Thomas Kelly
(SME Registered Member 1696580) has reviewed the resource and
reserve estimate and acted as the independent qualified person as
defined by Canadian National Instrument 43-101. The Mineral
Resources and Reserves reported herein were estimated using the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM)
Standards on Mineral Resources and Reserves, Definitions and
Guidelines prepared by the CIM Standing Committee on Reserve
Definitions and adopted by CIM Council. This resource and reserve
estimate is based on all data available through September 30,
2020.
Category |
Tonnes (000) |
Cu (%) |
Au (g/t) |
Proven |
950.2 |
3.05 |
1.78 |
Probable |
51.3 |
2.51 |
1.45 |
Proven + Probable Reserves |
1,002 |
3.02 |
1.76 |
Category |
Tonnes (000) |
Cu (%) |
Au (g/t) |
Measured Resources |
1,039 |
3.31 |
2.29 |
Indicated Resources |
135 |
2.89 |
2.62 |
Measured + Indicated Resources |
1,174 |
3.26 |
2.33 |
Category |
Tonnes (000) |
Cu (%) |
Au (g/t) |
Inferred Resources |
17 |
0.49 |
3.41 |
- Mineral Resources and Mineral
Reserves are as defined by CIM definition Standards on Mineral
Resources and Mineral Reserves 2014.
- Mineral Resources and Mineral
Reserves are estimated as of September 30th 2020.
- Mineral Reserves are reported using
an NSR breakeven cut-off value of US$104.44/t (cost basis October
2019 to September 2020) for the Zeus body.
- Mineral Resources are reported based
on an NSR cut-off grade of US$54.39/t (cost basis October 2019
through September 2020),
- Metal prices used were
US$1,543.13/troy ounce Au and US$ 3.01/t Cu.
- Metallurgical recoveries are based in
the historical recovery (El Roble process plant results October
2019 through September 2020): Au is 57.94% and Cu is 92.13%.
- Metal payable recovery used 90.67%
for gold and 94.87% for copper (basis October 2019 through
September 2020).
- Reserves are based on break-even
cut-off grade of 1.80 percent copper equivalent, which is based on
actual El Roble operating costs from October 2019 – September 2020
along with other factors
- Density was estimated for each
ore-body (Goliath = 3.34t/m3, Maximus = 3.50t/m3, Maximus Sur =
3.26t/m3, Zeus = 3.53t/m3).
- Mineral Resources, as reported, are
undiluted.
- Mineral Resources are reported to
0.89% CuEq cut-off.
- CuEq for each block was calculated by
multiplying one tonne of mass of each block by block grade for both
Au and Cu by their average recovery, metal payable recovery and
metal price. If the block is higher that CuEq cut-off, the block is
included in the estimate (resource or reserve estimate as
appropriate).
- Mineral Resources are Inclusive of
Mineral Reserves.
- Mineral Resources are not Mineral
Reserves and do not have demonstrated economic viability.
- There is no certainty that all or any
part of the Mineral Resources estimated will be converted into
Mineral Reserves.
- There are no known legal, political,
environmental or other risks that could materially affect the
development and mining of the Mineral Reserves in the Zeus
deposit;
- Mineral Reserves were reviewed by Mr.
Thomas Kelly, RM-SME, president of Andes Colorado Corp., who is a
Qualified Person for the estimate and independent of Atico Mining
and its subsidiaries;
- Figures in the table are rounded to
reflect estimate precision; small differences are not regarded as
material to the estimate;
- Reserves are estimated based on
mining material that will be mined, processed and smelted.
Resource and Reserve Estimation
Methodology
The Mineral Resource estimation considers
channel and core samples, in addition to the underground mine
mapping for the construction of three-dimensional wireframes of the
lithology and mineralized bodies. Estimation of grades in the block
models only considers samples located inside the mineralized bodies
solid, which are applied to anomalous grade or top cut treatment
and a further compositing process. The model was constructed using
2m x 2m x 2m blocks, which represents the selective mining unit
(SMU). The orebodies estimation is conducted separately body by
body and element by element (Cu and Au). The methods used for grade
estimation are cubic inverse distance (Goliat, Maximus and Maximus
Sur Orebodies) and Ordinary Kriging (Zeus Orebody).
A density factor specific for each ore-body was
assumed for conversion of block volumes to tonnes (Goliat =
3.34t/m3, Maximus = 3.50t/m3, Maximus Sur = 3.26t/m3, Zeus =
3.53t/m3). Mineral Resources are reported to 0.88% CuEq cut-off.
For each block, the CuEq value was calculated by multiplying one
tonne of mass of each by block grade by its average recovery, metal
payable recovery and metal price. Blocks with CuEq grade higher
than the CuEq cut-off were included in the resource estimate.
Proven and Probable Mineral Reserves were
derived from the Measured and Indicated Resources by applying
modifying factors related to mining methods, mining dilution and
historical operating costs detailed as follows: mining (US
$56.94/t), processing (US $15.95/t), general services (US $7.89/t),
on-site administration and indirect (US $14.03/t), selling and
concentrate shipping (US $9.63/t). Operating costs total US
$104.44/t and comprise the lower NSR value for reserve reporting
purposes. Mining dilution was estimated at variable percentages
depending on the mining activity and labour, and ranges from 3.5%
for breasting within the ore-body to 13.5% for crown pillar
recovery.
The resource and reserve models have been
validated by reconciliation against actual mined production
continuously for several years with reconciliation results being
acceptable for all ore bodies that have experienced a significant
amount of production.
A full NI43-101 report authored by Mr. Thomas
Kelly will be available on www.sedar.com within 45 days of this
news release.
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
1.00 million tonnes grading 3.02% copper and 1.76 g/t gold, at a
cut-off grade of 1.3% copper equivalent as of September 30th, 2020.
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;
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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