19
November 2024
Atalaya Mining
Plc.
("Atalaya" or "the Company")
New Earn-in Agreements on VMS
Projects in Sweden
Opportunity to enter
prospective mining districts with an experienced
partner
Atalaya Mining Plc (LSE: ATYM) is
pleased to announce that it has entered into two binding agreements
with Mineral Prospektering i Sverige AB ("MPS") pursuant to which
Atalaya can earn an initial 75% interest in two separate land
packages in Sweden.
The Skellefte Belt land package
("Skellefte Belt Project") and the Rockliden land package
("Rockliden Project") are located in two notable districts that
host many large-scale volcanogenic massive sulphide ("VMS")
deposits and mines owned by Boliden AB, including the operating
Kristineberg and Renström mines. Both regions are underexplored and
could increase Atalaya's exposure to critical minerals in
Europe.
Highlights
· Agreements cover large land packages located in two notable
VMS districts
‒ The
Skellefte Belt Project is situated in a region where Boliden has
operated almost 30 mines over the last 100 years
‒ The
Rockliden Project is situated in an underexplored VMS camp and
surrounds a known deposit owned by Boliden
· Both
regions are prospective and underexplored with modern
techniques
‒ MPS
completed airborne electromagnetic surveys in 2022
‒ Key
targets and anomalies have been prioritised for drilling in the
upcoming winter season
· Exploration programmes will be managed by the highly
experienced exploration teams at MPS and Atalaya
‒ MPS's
multi-discovery, award-winning founders Jim Coppard and Graham
Brown discovered the Sakatti magmatic copper-nickel-PGM deposit in
Finland and led the team that discovered the Los Sulfatos porphyry
copper deposit in Chile
· Each
earn-in agreement includes staged funding commitments of US$3
million within 24 months and elections of up to a further US$9
million that allow Atalaya to reach an initial 75% interest in each
land package
· The
agreements have the potential to increase Atalaya's exposure to
critical minerals in Europe
‒ Mines
and deposits in the regions contain copper, zinc and lead, as well
as gold, silver and other metals
Alberto Lavandeira, CEO, commented:
"Given Atalaya's roots in the Iberian Pyrite Belt, one of the
largest VMS districts globally, we are excited to participate in
the exploration of two VMS districts including the world-class
Skellefte Belt. Sweden has a long mining history, and we believe
there is significant potential to make new discoveries by using
modern exploration techniques.
We
are pleased to partner with Jim Coppard and Graham Brown, who have
significant exploration experience in Scandinavia and are credited
with making a number of world-class discoveries during their
careers.
As
a European miner that operates the Riotinto copper mine, controls a
portfolio of deposits in the Iberian Pyrite Belt, and is focused on
developing the Touro copper project, we look forward to further
increasing our exposure to critical metals in
Europe."
Heads of Agreement
Overview
Atalaya and MPS have entered into
two separate binding heads of agreements in relation to the
Skellefte Belt Project ("Skellefte Belt HOA") and the Rockliden
Project ("Rockliden HOA"), respectively. Each heads of agreement
sets out the key terms agreed by the parties and provides the
framework for negotiating formal definitive governing agreements,
including a farm-in agreement and a joint venture agreement for
each land package.
Figure 1: Land Package Locations
The Skellefte Belt HOA and the
Rockliden HOA have identical commercial terms and under each heads
of agreement, Atalaya has been granted the option to earn an
initial 75% interest in the respective land package by funding
exploration expenditures and making certain cash payments totalling
US$12 million for each land package. The following terms apply to
each of the heads of agreement.
Minimum Expenditure Stage
For each land package, Atalaya has
committed to fund exploration expenditures and make certain cash
payments totalling US$3 million within 24 months from the execution
of the heads of agreement, after which Atalaya may elect to proceed
to Stage 1 Exploration Operations in respect of either or both land
packages.
During the Minimum Expenditure
Stage, MPS will serve as project manager.
Stage 1 Exploration Operations
For each land package, in exchange
for electing to fund exploration expenditures and making certain
cash payments totalling US$3 million within 48 months from the
execution of the heads of agreement, Atalaya will have the right to
earn a 51% interest in each land package where it has elected to
proceed to Stage 1 Exploration Operations.
During the Stage 1 Exploration
Operations, MPS will serve as project manager.
Upon completion of Stage 1
Exploration Operations, a new joint venture company to be owned 51%
by Atalaya and 49% by MPS will be formed to hold the exploration
licences. The new joint venture company will be governed by a joint
venture agreement that will reflect certain key terms that have
been agreed by Atalaya and MPS.
Stage 2 Exploration Operations
For each land package, in exchange
for electing to fund exploration expenditures and making certain
cash payments totalling US$6 million and completing a scoping study
within 66 months from the execution of the heads of agreement,
Atalaya will have the right to increase its ownership interest in
the joint venture to 75%.
During the Stage 2 Exploration
Operations, Atalaya will serve as project manager.
Stage 3 and Other Key Terms
Upon reaching a 75% ownership
interest in the joint venture and electing to continue advancing
the relevant project, Atalaya will be responsible for funding all
future evaluation and capital expenditures, including MPS's share
via a loan to MPS that will be repaid from any future
dividends.
Atalaya has also been granted
options to acquire MPS's remaining interest in the joint venture at
fair market value at the prevailing time, in two separate tranches.
Skellefte Belt Project
Overview
The Skellefte Belt Project is
located in the Skellefte Belt of Västerbotten County in northern
Sweden. It consists of six granted exploration licences and one
valid application, covering approximately 224 km2 in the
central core portion of the Skellefte Belt VMS mining district. The
Skellefte Belt Project is the second largest land package in the
region (after Boliden's interests) and includes a prospective and
underexplored 45 km corridor within the district where Boliden is
currently operating three underground mines, a concentrator, the
Rönnskär copper smelter and a leaching plant for gold and
tellurium.
Since starting production in the
district in the 1920s, Boliden has mined ore from nearly 30 mines.
The Skellefte Belt Project is situated between two of Boliden's
producing mines, Kristineberg and Renström, both of which are
mining sulphide mineralisation. In its 2023 Annual Report, Boliden
disclosed combined Mineral Reserves at these deposits of 10.4 Mt at
1 g/t Au, 84 g/t Ag, 0.5% Cu, 5.1% Zn and 0.8% Pb. At Kankberg,
Boliden's other active mine located 10 km to the east, Mineral
Reserves were 3.8 Mt at 3.9 g/t Au, 9.5 g/t Ag and 194 g/t
Te.
The area benefits from developed
infrastructure, including a well-maintained network of all-season
paved and gravel roads. The region has a deep-rooted history of
mining, and is home to the main Boliden Area concentrator and the
historic Boliden Mine, which yielded approximately 8.3 Mt at 15 g/t
Au, 50 g/t Ag and 1.4% Cu. The major population centre is
Skelleftea, located approximately 40 km to the south-east of
Boliden, and Boliden's Rönnskär copper smelter is located on the
coast.
Figure 2: Skellefte Belt Project Region
Exploration started in the district
in the 1920's and still remains successful with new discoveries,
including the Strömfors discovery made by Boliden in 2019 (Inferred
Resource of 2.6 Mt at 3 g/t Au, 81 g/t Ag, 0.2% Cu, 4.4% Zn and
0.8% Pb) and by the MPS team (via Sakumpu Exploration) at the Svan
Vit prospect in 2016 and in 2023 with the extension of the
Bjurtraskgruvan deposit, which remains open.
The Skellefte Belt district is a
classic volcanic arc formed in a continental crust of
Paleoproterozoic age. The mineralisations are closely associated
with the Skellefte Group which includes bimodal volcanic rocks. The
favourable host rocks and the sulphide assemblage (including
pyrrhotite, chalcopyrite and pyrite, among others) translate into
an efficient use of conventional geophysical methods like magnetic
and electromagnetics to discover massive and semi-massive sulphide
orebodies up to depths of 300-400m. Despite its long exploration
history, the area was not surveyed with a modern deep penetrating
electromagnetic system until 2016. In 2022, MPS flew a 1,528 line
kilometre airborne Versatile Time-Domain Electromagnetic ("VTEM")
survey, which, combined with the 2016 VTEM survey data by its
former entity Sakumpu Exploration (via Open File from the SGU
(Geological Survey of Sweden)), provided a detailed 100m line
spacing coverage. Additionally, over the most recently granted and
application licences (Snåttermyran nr 2), MPS has acquired further
Open File VTEM data from the SGU for a full coverage of the entire
tenure area albeit at 200m line spacing.
Figure 3: Skellefte Belt Project with VTEM (BFz30), Key
Anomalies and Key Ore Deposits
This is an advanced exploration
project that includes a number of advanced drill-ready targets and
a significant number of untested VTEM anomalies that require
follow-up. In addition, the Skellefte Belt Project includes a new
discovery, Bjurtraskgruvan, for which select intercepts from recent
and historical drilling are shown below in Figure 4.
Figure 4: Bjurtraskgruvan Select Recent and Historical
Drilling Results
|
Hole ID
|
Company
|
|
From
|
To
|
Interval
|
Cu
|
Zn
|
Ag
|
Au
|
|
|
|
|
m
|
m
|
m
|
%
|
%
|
g/t
|
g/t
|
|
23SBJK009
|
MPS
|
|
194.35
|
225.70
|
31.35
|
1.15
|
0.08
|
4.81
|
0.16
|
|
|
|
incl.
|
194.65
|
210.25
|
15.60
|
1.96
|
0.15
|
8.69
|
0.26
|
|
|
|
incl.
|
194.35
|
201.30
|
6.95
|
3.79
|
0.32
|
17.25
|
0.42
|
|
23SBJK012
|
MPS
|
|
277.45
|
296.00
|
18.55
|
0.91
|
6.54
|
16.68
|
0.77
|
|
|
|
incl.
|
277.45
|
292.00
|
14.55
|
0.85
|
8.32
|
17.05
|
0.87
|
|
|
|
and
|
308.90
|
314.40
|
5.50
|
0.61
|
0.14
|
3.00
|
0.06
|
|
23SBJK014
|
MPS
|
|
197.25
|
237.00
|
39.75
|
0.88
|
0.07
|
4.01
|
0.50
|
|
|
|
incl.
|
197.25
|
200.55
|
3.30
|
4.25
|
0.34
|
18.67
|
0.34
|
|
|
|
incl.
|
225.65
|
233.05
|
7.40
|
1.66
|
0.12
|
8.57
|
1.99
|
|
SBJK170003
|
S2/Sakumpu
|
|
175.50
|
190.71
|
15.21
|
0.95
|
1.82
|
4.85
|
0.16
|
|
|
|
incl.
|
176.00
|
180.48
|
4.48
|
1.38
|
4.42
|
6.40
|
0.26
|
|
SBJK170006
|
S2/Sakumpu
|
|
220.70
|
245.10
|
24.40
|
1.07
|
0.08
|
4.60
|
0.18
|
|
|
|
incl.
|
221.50
|
227.90
|
6.40
|
2.06
|
0.22
|
9.31
|
0.29
|
Sources: MPS and S2 Resources Ltd
With all necessary permits in place,
exploration works for the current season are underway. Systematic
prioritisation of untested VTEM anomalies using ground Transient
ElectroMagnetics ("TEM") and detailed drone-borne magnetic surveys
is progressing, while a drill rig will be mobilised in early 2025
to test drill-ready targets. A second drill rig will be added to
the Skellefte Belt Project once drilling is completed at the
Rockliden Project. This second rig will be initially focused on
expansion and infill drilling at Bjurtraskgruvan.
Rockliden Project
Overview
The Rockliden Project consists of
the Rockliden nr 101 licence, which covers approximately 130
km2 in a potential VMS camp situated in the
Västernorrland County of northern Sweden, an area with developed
infrastructure. The Rockliden nr 101 licence completely surrounds a
small mining concession owned by Boliden that contains its
"Rockliden" deposit, which has an Inferred Resource of 9.2 Mt at
1.7% Cu, 3.9% Zn and 47 g/t Ag (plus an Indicated Resource of 0.8
Mt) according to Boliden's 2023 Annual Report.
Figure 5: Rockliden Project with VTEM (BFz30), Drillhole
Collars and Key Anomalies
Limited historical exploration has
been conducted in the region. No modern airborne electromagnetic
surveys were flown over the area until 2022 when MPS completed a
detailed 974 line kilometre VTEM survey over the entire licence.
The survey has highlighted a number of high priority targets that
are in the process of being drill tested following positive results
from ground TEM surveys. Similarly to the Skellefte Belt,
mineralisation at Rockliden is a typical VMS deposit which displays
a sulphide assemblage that often includes pyrrhotite, chalcopyrite
and pyrite, giving rise to very conductive ores with a strong
electromagnetic response.
The VTEM processing and
interpretation highlighted a large number of anomalies, three of
which were followed up with detailed UAV Magnetometry (drone-borne)
for a total of 1,249 line kilometres during 2023. Detailed ground
FLEM-SQUID (fixed-loop electromagnetics equipped with
superconductive quantum interference device) surveys have been
undertaken over six VTEM targets to determine prioritisation for
drill testing and 3D modelling of interpreted conductive plates.
Additional regional VTEM targets will be ground truthed in 2025
prior to future drill testing.
In 2023 and 2024, MPS completed two
drill holes on Target 1, returning 12.5m at 1.1% Cu and 17 g/t Ag,
including 3.3m at 2.6% Cu and 38 g/t Ag, from 23RCK001. Select
intercepts from recent and historical drilling are shown below in
Figure 6. BHEM (electromagnetic performed in the borehole) returned
significant off-hole responses which are in the process of being
fully tested.
Figure 6: Rockliden Project Target 1 Select Recent and
Historical Drilling Results
|
Hole ID
|
Company
|
|
From
|
To
|
Interval
|
Cu
|
Zn
|
Pb
|
Ag
|
Au
|
|
|
|
|
m
|
m
|
m
|
%
|
%
|
%
|
g/t
|
g/t
|
|
23RCK001
|
MPS
|
|
170.00
|
182.50
|
12.50
|
1.10
|
0.30
|
0.10
|
16.98
|
0.04
|
|
|
|
incl.
|
179.20
|
182.50
|
3.30
|
2.60
|
0.38
|
0.19
|
37.61
|
0.12
|
|
24RCK003
|
MPS
|
|
97.65
|
113.30
|
15.65
|
1.09
|
0.30
|
0.07
|
18.10
|
0.16
|
|
|
|
incl.
|
100.75
|
110.20
|
9.45
|
1.55
|
0.43
|
0.10
|
26.00
|
0.23
|
|
ROCKL37
|
Boliden
|
|
53.60
|
59.60
|
6.00
|
1.36
|
0.26
|
0.10
|
25.80
|
0.13
|
|
|
|
and
|
85.50
|
92.10
|
6.60
|
2.40
|
0.24
|
0.04
|
29.03
|
0.10
|
|
ROCKL4
|
Boliden
|
|
34.70
|
60.40
|
25.70
|
0.75
|
1.10
|
0.26
|
35.77
|
0.10
|
Sources: MPS and Boliden
The next drilling campaign at the
Rockliden Project will begin in early 2025, with infill holes
planned at Target 1 and initial drill testing of three regional
targets, for a total of 3,500m of drilling.
Qualified Person Statement
Juan Manuel Pons Pérez has reviewed
the technical information contained within this announcement in his
capacity as a Qualified Person as defined in National Instrument
43-101 Standards of Disclosure for Mineral Projects. Juan Manuel
Pons Pérez is a senior geologist with the Company, a member of good
standing with the College of Geologists of Andalusia, and has
over 30 years' experience.
Glossary of Terms
|
Ag
|
Silver
|
|
Au
|
Gold
|
|
Cu
|
Copper
|
|
FLEM-SQUID
|
Fixed-loop electromagnetics equipped
with superconductive quantum interference device
|
|
g/t
|
Grams per tonne
|
|
Indicated Mineral
Resource
|
An Indicated Mineral Resource is
that part of a Mineral Resource for which quantity, grade or
quality, densities, shape and physical characteristics are
estimated with sufficient confidence to allow the application of
Modifying Factors in sufficient detail to support mine planning and
evaluation of the economic viability of the deposit. Geological
evidence is derived from adequately detailed and reliable
exploration, sampling and testing and is sufficient to assume
geological and grade or quality continuity between points of
observation. An Indicated Mineral Resource has a lower level of
confidence than that applying to a Measured Mineral Resource and
may only be converted to a Probable Mineral Reserve.
|
|
Inferred Mineral Resource
|
An Inferred Mineral Resource is that
part of a Mineral Resource for which quantity and grade or quality
are estimated on the basis of limited geological evidence and
sampling. Geological evidence is sufficient to imply but not verify
geological and grade or quality continuity. An Inferred Mineral
Resource has a lower level of confidence than that applying to an
Indicated Mineral Resource and must not be converted to a Mineral
Reserve. It is reasonably expected that the majority of Inferred
Mineral Resources could be upgraded to Indicated Mineral Resources
with continued exploration.
|
|
Measured Mineral Resource
|
A Measured Mineral Resource is that
part of a Mineral Resource for which quantity, grade or quality,
densities, shape, and physical characteristics are estimated with
confidence sufficient to allow the application of Modifying Factors
to support detailed mine planning and final evaluation of the
economic viability of the deposit. Geological evidence is derived
from detailed and reliable exploration, sampling and testing and is
sufficient to confirm geological and grade or quality continuity
between points of observation. A Measured Mineral Resource has a
higher level of confidence than that applying to either an
Indicated Mineral Resource or an Inferred Mineral Resource. A
Measured Mineral Resource may be converted to a Proved Mineral
Reserve or to a Probable Mineral Reserve.
|
|
Mineral Reserve
|
A Mineral Reserve is the
economically mineable part of a Measured Mineral Resource and/or
Indicated Mineral Resource. A Mineral Reserve includes diluting
materials and allowances for losses, which may occur when the
material is mined or extracted and is defined by studies at a
Pre-Feasibility Study or Feasibility Study level, as appropriate,
that include application of Modifying Factors. Such studies
demonstrate that, at the time of reporting, extraction could
reasonably be justified. The reference point at which Mineral
Reserves are defined, usually the point where the Mineral is
delivered to the processing plant, must be stated. It is important
that, in all situations where the reference point is different,
such as for a saleable product, a clarifying statement is included
to ensure that the reader is fully informed as to what is being
reported. Mineral Reserves are subdivided in order of increasing
confidence into Probable and Proved categories.
|
|
Mt
|
Million tonnes
|
|
Pb
|
Lead
|
|
Scoping study
|
A Scoping Study is an order of
magnitude technical and economic study of the potential viability
of Mineral Resources that includes appropriate assessments of
realistically assumed Modifying Factors together with any other
relevant operational factors that are necessary to demonstrate at
the time of reporting that progress to a Pre- Feasibility Study can
be reasonably justified.
|
|
Te
|
Tellurium
|
|
TEM
|
Transient electromagnetic
survey
|
|
VMS
|
Volcanogenic massive
sulphide
|
|
VTEM
|
Versatile time-domain
electromagnetic survey
|
|
Zn
|
Zinc
|
Contacts:
|
SEC Newgate UK
|
Elisabeth Cowell / Tom Carnegie /
Matthew Elliott
|
+44 20
3757 6882
|
|
Atalaya Mining
|
Michael Rechsteiner
|
+34 959 59
28 50
|
About Atalaya Mining Plc
Atalaya is a European copper
producer that owns and operates the Proyecto Riotinto complex in
southwest Spain. Atalaya's shares trade on the London Stock
Exchange's Main Market under the symbol "ATYM".
Atalaya's operations include the
Cerro Colorado open pit mine and a modern 15 Mtpa processing plant,
which has the potential to become a central processing hub for ore
sourced from its wholly owned regional projects around Riotinto,
such as Proyecto Masa Valverde and Proyecto Riotinto East. In
addition, Atalaya has a phased earn-in agreement for up to 80%
ownership of Cobre San Rafael S.L., which fully owns the Proyecto
Touro brownfield copper project in the northwest of Spain, as well
as a 99.9% interest in Proyecto Ossa Morena. For further
information, please visit www.atalayamining.com
About Mineral Prospektering i Sverige AB
MPS is an unlisted Private Limited
Company based in Malå, Västerbotten, Sweden. The controlling
shareholders - Graham Brown and Jim Coppard have over 80 years of
combined exploration expertise which has resulted in a number of
significant mineral deposit discoveries including Sakatti in
Finland and Los Sulfatos in Chile, both during their time at Anglo
American plc.
MPS is focused on both Greenfield
and Brownfield discovery with its core expertise in VMS, IOCG-IOA
and Gold within Sweden. The MPS Group of Companies have three
additional separate geographical Exploration Licence blocks within
one of which the Ahmavuoma Cu-Au-Co-Mo deposit has been recently
granted the status of a Deposit of National Interest in Sweden.