Atico Produces 2.0 Million Pounds of Cu and 2,291 Ounces of Au in First Quarter 2015
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 30, 2015) - Atico Mining Corp. (the "Company" or "Atico") (TSX VENTURE:ATY)(OTC PINK:ATCMF) announces its operating results for the three months ended March 31, 2015 from its El Roble mine. Production for the quarter totaled 2.0 million pounds of copper and 2,291 ounces of gold in concentrates, an increase of 43% and 99% respectively for copper and gold over the same period in 2014.
"First quarter 2015 was a significant improvement over the same period last year but concluded well below our expectations. Reduced mill availability and throughput during January and February affected production results for the quarter," said Fernando E. Ganoza, CEO. "Despite the challenging start to the year, we are experiencing a strong start to the second quarter and remain optimistic that we will have the opportunity to compensate over the next three quarters and achieve our 2015 targets."
First Quarter Operational Highlights
- Production of 2.0 million pounds of copper contained in concentrates; an increase of 43% over Q1 2014.
- Production of 2,291 ounces of gold contained in concentrates; an increase of 99% over Q1 2014.
- Average processed tonnes per day of 557, an increase of 57% over Q1 2014.
- Copper head grade of 2.91%, a decrease of 3.3% over Q1 2014.
- Gold head grade 3.14 grams per tonne; an increase of 29% over Q1 2014.
- Copper and gold recovery of 93.06% and 67.59%; an increase of 1.7% and 6.1% for copper and gold respectively over Q1 2014.
First Quarter Operational Review
In late January and for all of February, the Company experienced intermittent production and lower than planned throughput. This was a result of a malfunction during commissioning of the newly installed main screen before the secondary crusher. The operations team quickly redesigned the flow sheet bypassing the screen and stabilizing throughput in March at about 600 tonnes per day and reaching during certain days 650 tonnes per day.
The main screen has since been overhauled and is scheduled to be reinstalled in early May. Along with the recent redesign and pending a successful reintegration of the main screen, management believes that the mill's nominal capacity could increase beyond 650 tonnes per day.
The Company experienced a reduction in the average in-situ copper grade of stopes mined in the quarter, reducing the head grade for the same period by approximately 7% relative to 2014 head grades. Gold head grade for the period was in line with expectations. The head grade is expected to increase during second quarter of 2015 to levels seen in the fourth quarter of 2014.
First Quarter Operational Details
| Q1 2015 Total | Q1 2014 Total | % Change | |
| Production (Contained in Concentrates) | |||
| Copper (000s pounds) | 2,003 | 1,398 | 43% |
| Gold (ounces) | 2,291 | 1,147 | 99% |
| Mine | |||
| Tonnes of ore mined | 32,664 | 26,791 | 22% |
| Mill | |||
| Tonnes processed | 33,558 | 23,016 | 45% |
| Tonnes processed per day | 557 | 354 | 57% |
| Copper grade (%) | 2.91 | 3.01 | -3% |
| Gold grade (g/t) | 3.14 | 2.43 | 29% |
| Recoveries | |||
| Copper (%) | 93.2 | 91.5 | 2% |
| Gold (%) | 67.5 | 63.7 | 6% |
| Concentrates | |||
| Copper and Gold Concentrates (dmt) | 4,839 | 2,735 | 77% |
| Payable copper produced (000s lbs) | 1,890 | 1,332 | 42% |
El Roble Mine
The El Roble mine is a high grade underground copper and gold mine with nominal processing plant capacity of 650 tpd, 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 nominal capacity of 400 tonnes per day. The mine has a continuous operating history of twenty two years, with recorded production of 1.5 million tonnes of ore at an average head grade of 2.6% copper and an estimated gold grade of 2.5 g/t. Copper and gold mineralization at the El Roble property occurs in volcanogenic massive sulfide ("VMS") lenses.
Since entering into the option agreement in January 2011 to acquire 90% of El Roble, Atico has aggressively explored the mine and surrounding claims. The Company has completed 11,740 meters of diamond drilling and identified numerous prospective targets for VMS deposits on the 6,679-hectare property. This exploration led to the discovery of high-grade copper and gold mineralization below the 2000 level, the lowest production level of the El Roble mine. Atico has developed a new adit access from the 1880 elevation to develop these new resources.
National Instrument 43-101 compliant inferred mineral resource are 1.58 million tonnes grading 4.45 % copper and 3.17 g/t gold, at a cut-off grade of 0.72 % copper equivalent. Mineralization is open at depth and along strike and the Company plans to further test the limits of the resource.
On the larger land package, the Company has identified a prospective stratigraphic contact between volcanic rocks and black and grey 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 15 prospective target areas for VMS type mineralization occurrence, which is the focus of the surface drill program at El Roble.
Qualified Person
Mr. Thomas Kelly (SME Registered Member 1696580), Chief Operating Officer of 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 operates the El Roble mine and is pursuing additional acquisition opportunities. For more information, please visit www.aticomining.com.
ON BEHALF OF THE BOARD
Fernando E. Ganoza, CEO
Trading symbols: TSX.V: ATY / OTC: ATCMF
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