Atico Reports 1.58 Mt at 4.45% Cu and 3.17 g/t Au Inferred Mineral Resources at El Roble Mine, Colombia
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/26/13 -- Atico Mining Corporation (TSX VENTURE: ATY)(PINKSHEETS: ATCMF) is pleased to announce that an initial NI 43-101 mineral resource estimate for its El Roble project has established an inferred mineral resource of 1.58 million tonnes at 4.45% Cu and 3.17 g/t Au using a cut-off grade of 0.72% Cu Eq. All of these announced resources occur at depth below the existing El Roble mine workings. In the coming months, Atico will continue to further drill test the extensions of the defined inferred mineral resources at depth and strike, as well as other prospective areas.
Fernando E. Ganoza, CEO, commented: "We are extremely pleased with the outcome of our initial mineral resource estimate for El Roble mine. The grades continue to be remarkable at depth and the volume is very encouraging given the deposit is still open at depth and along strike." Mr. Ganoza added, "The resource estimate, along with the recently completed engineering studies and assessment of current operations, support Atico's plan to exercise the option agreement this year and quickly bring newly discovered resources into production using the existing operating mine and mill infrastructure."
The resource estimate was prepared in accordance with the definitions in the Canadian National Instrument 43-101 and based on data from 30 drill holes totaling 6,084 meters completed by Atico, during 2012 and up to February 20, 2013. An additional 33 drill holes totaling 1,784 meters completed by Minera El Roble (MINER), current operator of the mine and independently reviewed, logged and sampled by Atico were also included. Mr. Michael Lechner and Mr. Donald Earnest have acted as independent qualified persons, as defined by the Canadian National Instrument 43-101 and have reviewed and approved the resource estimate.
Inferred Resource Estimate Table
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Contained Metal
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Cu Eq Cu Eq
Cutoff Tonnes Cu Eq Cu Au Ag Cu Lbs Au oz Lbs
(%) (000) (%) (%) (g/t) (g/t) (000) (000) (000)
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0.5 1,627 6.19 4.33 3.10 11.10 155,420 162 221,968
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0.6 1,597 6.30 4.41 3.15 11.25 155,205 162 221,747
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0.72 1,581 6.35 4.45 3.17 11.30 155,090 161 221,267
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0.8 1,581 6.35 4.45 3.17 11.30 155,090 161 221,267
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0.9 1,579 6.36 4.46 3.18 11.31 155,112 161 221,335
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1.0 1,556 6.44 4.51 3.21 11.41 154,811 161 220,855
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1.1 1,554 6.45 4.52 3.22 11.42 154,806 161 220,914
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1.2 1,515 6.58 4.63 3.26 11.58 154,491 159 219,710
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1.3 1,463 6.77 4.78 3.33 11.72 154,052 157 218,295
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1.4 1,431 6.90 4.88 3.36 11.80 154,045 154 217,621
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1.5 1,430 6.90 4.89 3.36 11.80 154,011 154 217,469
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1.6 1,406 6.99 4.96 3.38 11.82 153,731 153 216,608
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1.7 1,386 7.07 5.03 3.40 11.80 153,509 152 215,970
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1.8 1,345 7.23 5.15 3.46 11.92 152,794 150 214,325
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1.9 1,326 7.30 5.22 3.47 11.96 152,669 148 213,343
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2.0 1,283 7.48 5.35 3.55 12.21 151,356 147 211,514
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Note: Copper equivalency estimates were derived using metal prices of US$ 3.59/lb for Copper and US$ 1472/oz for gold
Resource Estimate Methodology
Data obtained from the Atico diamond drill program were used to construct three-dimensional geometric wireframes representing the massive sulfide zones extending below the 2000 level in the El Roble mine. These zones (named Maximus, Goliath, Apolo, Andromeda, Orion, Transformador, Zeus, Aquiles, and Ares) were used to constrain the estimation of an NI 43-101 compliant inferred resource at El Roble mine. Copper, gold, silver, lead, zinc and cobalt grades were estimated for 5m x 5m x 5m blocks within the wireframes. Prior to estimation of the block grades, copper grades were capped at 20% Cu, gold was capped at 20g/t Au and silver was capped at 100g/t Ag. A three-pass inverse distance cubed (1/d3) method was used for the block grade estimates, along a trend plane having an azimuth of 320 degrees and a minus 75-degree dip to the north. The first pass used search distances along strike and down dip of 25m, and 5m perpendicular to the trend plane. The second pass used search distances along strike and down dip of 75m, and 10m perpendicular to the trend plane. The third pass used search distances along strike and down dip of 150m, and 20m perpendicular to the trend plane. The first pass required a minimum of one composite and allowed a maximum of three composites, with no more than one composite per drill hole. The second pass required a minimum of three composites and allowed a maximum of six composites, with a limit of two composites per drill hole, while the third pass required a minimum of three composites, a maximum of eight composites allowed and a limit of two composites per drill hole. The first pass resulted in grade estimates for 56 percent of the blocks. The second pass resulted in 26 percent of the blocks receiving grade estimates, while the third pass resulted in grade estimates for the remaining 18 percent of the blocks.
In the opinion of Atico and its Qualified Persons, the methodology used is appropriate and provides a reasonable estimate of the copper and gold content of inferred mineral resources for the El Roble deposit that conform to NI 43-101 guidelines. The wireframes interpreted by Atico as part of the estimation process provide an excellent guide for the planned in-fill drilling and other work required to estimate measured and indicated mineral resources and an eventual mineral reserve estimate.
A NI 43-101 technical report will be filed on www.sedar.com and posted on the company's website within 45 days of this news release.
El Roble drill program and exploration update
On-going underground drilling at El Roble mine is currently focused on further defining the interpreted boundaries of the Maximus and Goliath massive sulfide bodies, which are considered primary targets for mining operations below the 2000 level given their close proximity to current mine workings. Nine drill holes have been planned for this purpose and are scheduled to be completed in early July. The underground program will continue at the south end of the known mineralized strike length and below the 2000 level, with the goal of discovering additional massive sulfide bodies.
Drilling at El Roble mine was interrupted in April (see news releases dated April 15, 2013 and April 23, 2013) with news flow further delayed in May due to consecutive failure of holes 31a, 31b and 32 caused by ground conditions. The company expects the drilling results news flow will resume in early July.
The company recently completed 1,329 meters of drilling in 4 drill holes at the Archie area. Drill results have confirmed strong continuity of the favorable black chert formation to the north of El Roble mine with presence of chalcopyrite and pyrite stringers up to 5 cm in length, but massive sulphide mineralization was not intercepted. The company is evaluating the results from the Archie area and conducting additional interpretation of the zone. The drill program at Archie will be revised as a result of the enhanced understanding of the area.
Target preparation work has been completed at Santa Anita anomaly with 8 drill targets defined within this area. Work in the San Lorenzo prospective target has begun and includes in-fill geochemical sampling, structural interpretation, detailed geological mapping and interpretation of geophysical anomalies. In addition, surface soil and rock geochemistry and geology work continues in newly identified as well as known target areas to better understand and prioritize drilling targets.
El Roble operation assessment update
In the first quarter of 2013, the company initiated a comprehensive assessment of the El Roble mine operation through technical and engineering studies aimed at gaining a thorough understanding of the existing mining operation. Studies produced by engineering firms and independent consultants have assessed the potential to scale up the mill and processing facilities, the mine's design and optimization, the tailings dam expansion and the operation's environmental standards.
As part of this assessment, the company has validated the location and upgraded the design of a new adit at the 1886 level, 114 meters below current mine workings. The adit will provide access to new resources and allow building of an underground drill platform from which diamond drilling can intercept the newly discovered massive sulphide bodies perpendicular to their strike direction, which the company believes is necessary to estimate measured and indicated resources and, eventually, a mineral reserve estimate.
Qualified Person
Michael J. Lechner of Resource Modeling Inc. and Donald F. Earnest of Resource Evaluation Inc. are the Qualified Persons as defined by National Instrument 43-101 and are responsible for the accuracy of the technical information in this news release regarding the resource estimate.
Dr. Demetrius Pohl, Ph.D., AIPG Certified Geologist, a qualified person under NI 43-101 standards, and independent of the company is responsible for ensuring that the information contained in this news release not related to the resource estimate is an accurate summary of the original reports and data provided to or developed by Atico Mining Corporation.
The El Roble Property
The El Roble property is the site of an operating underground copper and gold mine with nominal capacity of 400 tonnes per day. Over the past 22 years the mine has processed 1.5 million tonnes of ore at an average grade of 2.5% copper and an estimated 2.5 g/t gold. Copper and gold mineralization at El Roble occurs as volcanogenic massive sulfide ("VMS") lenses. Atico's underground drilling has discovered additional high-grade mineralization below the mine workings. Exploration on the surrounding 6,679 ha property over the past two years has defined a productive contact and an enclosing package of host rocks that extend 10 kilometers across the property. The entire strike length is marked by ("VMS") mineralization occurrence indicators.
About Atico Mining Corporation
Atico is a growth oriented, copper and gold exploration and development company focused on mining opportunities in Latin America. The company's primary property is the El Roble project. The company is selectively pursuing additional acquisition opportunities. For more information, please visit our website at www.aticomining.com.
ON BEHALF OF THE BOARD
Fernando E. Ganoza, CEO, Atico Mining Corporation
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.
Contacts:
Atico Mining Corporation
Igor Dutina
Investor Relations
+1.604.633.9022
info@aticomining.com
www.aticomining.com