Atico Produces 4.50 Million Pounds of Cu and 2,134 Ounces of Au First Quarter 2021
April 26 2021 - 5:00PM
Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY |
OTC: ATCMF) announces its operating results for the three months
ended March 31, 2021 from its El Roble mine. Production for the
quarter totaled 4.50 million pounds of copper and 2,134 ounces of
gold in concentrates, a decrease of 8% and 22% for copper and gold,
respectively, over the same period in 2020.
“At the El Roble mine production faced
significant challenges this quarter, as we experienced heavy rains
during the dry season along with a week-long mill stoppage in
February. Despite these challenges, the team was able to adjust and
deliver with in guidance for most metrics while setting a course to
compensate for downtime,” said Fernando E. Ganoza, CEO. “At the
current metal price environment, the Company anticipates robust
financials to follow at these production levels. We remain
committed to complying with COVID-19 guidelines and regulations
from local authorities in the jurisdictions where we operate while
putting tremendous emphasis on the health and safety of all of our
employees.”
First Quarter Operational
Highlights
- Production of 4.50 million pounds
of copper contained in concentrates; a decrease of 9% over Q1
2020.
- Production of 2,134 ounces of gold
contained in concentrates; a decrease of 22% over Q1 2020.
- Average processed tonnes per day of
954, an increase of 9% over Q1 2020.
- Copper head grade of 3.23%, a
decrease of 2% over Q1 2020.
- Gold head grade of 1.71 grams per
tonne; a decrease of 12% over Q1 2020.
- Copper and gold recovery of 92.4%
and 56.9%; no significant change for copper and a decrease of 3%
for gold over Q1 2020
First Quarter Operational
Review
Mined and processed ore was below Company budget
for the first quarter caused primarily by the temporary work
stoppage as a result of a tailings pipe malfunction and to a lesser
extent by a much heavier rainy season this year. The decrease for
copper and gold output for the quarter relative to Q1 2020 is
mostly explained by 7% decrease in processed ore, while for gold an
additional factor was a 12% decrease in head grade. Copper
recoveries slightly improved when compared to the same period last
year, while gold recoveries during the quarter were in line with
Company projections. Gold recovery decrease is due to an increase
in the copper content in the concentrate, this increase in the
copper content in the concentrate provides a net economic benefit,
especially at current copper prices, offsetting the decrease in
gold recovery. The Company will continue to explore improving the
copper content in the concentrate in the following quarters while
increasing the gold recovery.
First
Quarter Operational Details
|
Q1 2021 Total |
|
Q1 2020 Total |
|
% Change |
|
Production (Contained in Concentrates) |
|
|
|
|
|
|
Copper (000s pounds) |
4,503 |
|
4,926 |
|
-8% |
|
Gold (ounces) |
2,134 |
|
2,736 |
|
-22% |
|
Mine |
|
|
|
|
|
|
Tonnes of ore mined |
64,101 |
|
72,777 |
|
-12% |
|
Mill |
|
|
|
|
|
|
Tonnes processed |
68,282 |
|
73,374 |
|
-7% |
|
Tonnes processed per day |
954 |
|
878 |
|
9% |
|
Copper grade (%) |
3.23 |
|
3.31 |
|
-2% |
|
Gold grade (g/t) |
1.71 |
|
1.96 |
|
-12% |
|
Recoveries |
|
|
|
|
|
|
Copper (%) |
92.4 |
|
91.9 |
|
Nil% |
|
Gold (%) |
56.8 |
|
59.0 |
|
-3% |
|
Concentrates |
|
|
|
|
|
|
Copper and Gold Concentrates (dmt) |
10,365 |
|
10,213 |
|
1% |
|
|
|
|
|
|
|
|
Payable copper produced (000s lbs) |
4,278 |
|
4,680 |
|
-9% |
|
Note: Metal production figures are subject to
adjustments based on final settlement. The reported results are
preliminary in nature and are awaiting independent lab
verification.
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 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
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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
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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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