Atalaya Mining PLC First Quarter 2019 Operations Update (0768W)
April 15 2019 - 2:00AM
UK Regulatory
TIDMATYM
RNS Number : 0768W
Atalaya Mining PLC
15 April 2019
15 April 2019
Atalaya Mining Plc. ("Atalaya" or the "Company")
First Quarter 2019 Operations Update
Atalaya Mining Plc. (AIM:ATYM, TSX:AYM), the European mining and
development company, is pleased to provide an operations update for
the first quarter of 2019.
Proyecto Riotinto
Q1 Q4 Full year
2019 2018 2018 2019 Guidance
------- ------ ------- --------------
Ore mined (M tonnes) 2.5 2.6 2.8 11.4
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Waste mined (M tonnes) 3.8 5.4 4.3 17.8
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Ore milled (M tonnes) 2.4 2.2 2.6 11.4
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Cu grade (%) 0.46 0.48 0.48 0.47
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Cu recovery (%) 90.27 88.47 88.99 85 - 87
------------ ------- ------ ------- --------------
45,000 -
Cu production (tonnes) 10,219 9,441 11,172 46,500
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Q1 2019 copper production was 10,219 tonnes, an 8% increase over
the same equivalent quarter of 2018. A total of 2.4Mt of ore was
processed with an average copper head grade of 0.46% and a recovery
rate of 90.27%. In comparison with the same quarter of 2018,
throughput and recovery increased 9% and 2% respectively, while
copper head grade was 4% lower. Compared with Q4 2018, which was a
record quarter, copper production decreased 9% as a result of
slightly lower throughput and head grade, but was in line with the
Company's expectations.
As previously stated, guidance for copper production in 2019 is
estimated to be in the range of 45,000 to 46,500 tonnes. This year
is anticipated to be one of transition given the upcoming
commissioning of the plant expansion which is expected to increase
production to within the range of 50,000 to 55,000 tonnes in
2020.
Mining operations are progressing according to plan and at
similar levels to previous quarters. On a combined basis, ore,
waste and marginal ore amounted to 2.3 million m(3) in Q1 2019
versus 2.5 million m(3) in Q4 2018. Additional mining equipment is
available on site in anticipation of the increase in production
scheduled for H2 2019.
On-site concentrate inventories at the end of the quarter were
approximately 2,937 tonnes. All concentrate in stock at the
beginning of the quarter and produced during the quarter was
delivered to the port at Huelva.
Copper prices slightly decreased during the quarter compared
with the previous quarter, with an average realised price per pound
of copper payable, including the QPs closed in the period, of
$2.80/lb compared with $2.85/lb in Q4 2018. The average copper spot
price during the quarter was $2.81/lb. The realised price during
the quarter, excluding QPs, was approximately $2.82/lb.
Cash operating costs for Q1 2019 are expected to be lower than
the annual cost guidance ranges previously provided of
$1.95-2.15/lb. Further details on costs will be provided with Q1
Financial Statements to be reported in May 2019.
Exploration around Proyecto Riotinto is progressing well with
two drilling programmes under way. Remaining massive sulphides and
stockwork mineralisation are being targeted under the Atalaya pit.
Lateral extensions of massive sulphides and stockwork are also
being drilled around Filon Sur. Geological modelling is being
updated as information becomes available.
Expansion to 15Mtpa at Proyecto Riotinto
The 15Mtpa expansion project has progressed materially during
the quarter with expected mechanical completion on track for the
end of Q2 2019. Overall progress completion at the end of the
quarter was 97% with construction reporting 72% completion. The new
primary crushing area is mechanically well advanced with electrical
works progressing. In the new milling area, mechanical activities
are progressing according to plan. New flotation and concentrate
handling areas are in the final stages of commissioning.
Proyecto Touro
During the quarter, feedback has been received from the relevant
Administration bodies as part of the assessment of the
environmental impact studies. The Company is busy addressing
additional requests to complement current management plans. This
stage of the process is expected to last until the end of Q2
2019.
Alberto Lavandeira, CEO commented:
"During the first quarter of 2019 our operations at the Riotinto
mine continued to deliver strong operating results. Simultaneously
the construction activities for the modernisation and expansion of
the plant are expected to meet our self-imposed tight schedule of
mechanical completion by the end of the second quarter. Based on
the excellent expertise of the teams on site we are confident that
the project will be concluded on time and on budget and that we
will achieve our full year production guidance."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no 596/2014.
Contacts:
Elisabeth Cowell / Adam + 44 20 3757
Newgate Communications Lloyd / Tom Carnegie 6880
+44 20 3170
4C Communications Carina Corbett 7973
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Martin Davison / Henry
Canaccord Genuity Fitzgerald-O'Connor / James +44 20 7523
(NOMAD and Joint Broker) Asensio 8000
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BMO Capital Markets Jeffrey Couch / Tom Rider +44 20 7236
(Joint Broker) / Michael Rechsteiner 1010
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About Atalaya Mining Plc
Atalaya is an AIM and TSX-listed mining and development group
which produces copper concentrates and silver by-product at its
wholly owned Proyecto Riotinto site in southwest Spain. In
addition, the Group has a phased, earn-in agreement for up to 80%
ownership of Proyecto Touro, a brownfield copper project in the
northwest of Spain which is currently in the permitting stage. For
further information, visit www.atalayamining.com
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END
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