Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY |
OTCQX: ATCMF) announces its operating results for the three months
ended June 30, 2021 from its El Roble mine. Production for the
quarter totaled 4.46 million pounds of copper and 2,732 ounces of
gold in concentrates, a decrease of 10% for copper and no
significant change for gold, over the same period in 2020.
“The El Roble mine performed within expectations
in almost all metrics despite a very challenging in country
situation cause by unprecedented protests along with extreme
weather conditions during this period. So far in the third quarter
we are seeing an improvement in country and will continue to
closely monitor all developments,” said Fernando E. Ganoza, CEO.
“For the second half of the year, we will continue to look for
opportunities to further optimize the operation while aiming to
deliver on guidance. At the current metal price environment, the
Company anticipates robust financials for the second half of the
year.”
Second Quarter Operational
Highlights
- Production of 4.46 million pounds
of copper contained in concentrates; a decrease of 10% over Q2
2020.
- Production of 2,732 ounces of gold
contained in concentrates; no significant change over Q2 2020.
- Average processed tonnes per day of
892, no significant change over Q2 2020.
- Copper head grade of 3.20%, a
decrease of 5% over Q2 2020.
- Gold head grade of 2.01 grams per
tonne; no significant change over Q2 2020.
- Copper and gold recovery of 92.4%
and 56.9%; no significant change for copper and an increase of 6%
for gold over Q2 2020.
Second Quarter Operational
Review
Overall production was in line with Company
budget for the second quarter despite extreme weather conditions
resulting in less than expected processed tonnes. The decrease in
copper production is mainly explained by the decrease in processed
ore along with a slight decrease in head grade over the same period
last year. The gold output slightly improved due to an improvement
in gold recovery relative to Q2-2020. 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.
Second Quarter Operational
Details
|
Q2 2021 Total |
Q2 2020 Total |
% Change |
Production (Contained in Concentrates) |
|
|
|
Copper (000s pounds) |
4,462 |
4,952 |
-10% |
Gold (ounces) |
2,732 |
2,733 |
Nil |
Mine |
|
|
|
Tonnes of ore mined |
71,436 |
76,825 |
-7% |
Mill |
|
|
|
Tonnes processed |
68,238 |
71,804 |
-5% |
Tonnes processed per day |
892 |
903 |
-1% |
Copper grade (%) |
3.20 |
3.38 |
-5% |
Gold grade (g/t) |
2.01 |
2.02 |
Nil |
Recoveries |
|
|
|
Copper (%) |
92.6 |
92.7 |
Nil |
Gold (%) |
62.0 |
58.6 |
6% |
Concentrates |
|
|
|
Copper and Gold Concentrates (dmt) |
10,002 |
10,828 |
-8% |
|
|
|
|
Payable copper produced (000s lbs) |
4,616 |
4,704 |
-10% |
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.
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.
|
Q2 2021 Total |
Amounts in dry metric tonnes |
|
Opening inventory |
4,788 |
Production |
10,002 |
Sales |
7,812 |
Number of shipments |
1 |
Adjustment |
106 |
Closing inventory |
7,084 |
Note: Concentrate figures are subject to
adjustments based on final settlement.
Corporate Update
The Company is currently in the process of
renewing the title on its claims hosting the El Roble property
which under the current agreement are set to expire in January
2022. The renewal process was started two years prior to expiry in
January 2020 with a submission to the Colombian National Mining
Agency in accordance with governing laws and is currently at an
advanced stage. The Company believes it has followed and fulfilled
all of the renewal requirements at this stage.
In a separate process, the Company continues to
receive claims from the Colombian National Mining Agency related to
payment of copper royalties, despite the fact that the matter is
before the tribunal. For more details please refer to Company’s
previous news release announced on April 26, 2018. The Company,
based on the advice of its Colombian legal counsel, continues to
maintain its position that these claims lack merit and are in
violation of Colombian law.
The Company will continue to advance these two
separate processes and will be providing updates on their progress
in due course.
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
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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