Atico Mining Corporation (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
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
|Production (Contained in Concentrates)|
|Copper (000s pounds)||4,503||4,926||-8%|
|Tonnes of ore mined||64,101||72,777||-12%|
|Tonnes processed per day||954||878||9%|
|Copper grade (%)||3.23||3.31||-2%|
|Gold grade (g/t)||1.71||1.96||-12%|
|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.
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
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