Atico Reports 2015 Fourth Quarter and Full Year Production Results
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 18, 2016) - Atico Mining Corp. (TSX VENTURE:ATY)(OTC PINK:ATCMF) is pleased to announce operating results for the three and twelve month periods ended December 31, 2015 from its El Roble mine. Production totaled 3.88 million pounds of copper with 3,436 ounces of gold and 12.0 million pounds of copper with 10,994 ounces of gold in concentrates for the fourth quarter and full year 2015, respectively.
"Atico has successfully concluded its second full year of operating the El Roble mine, exiting the year with a run rate above budgeted 650 tonnes per day. In the fourth quarter the operation saw its highest throughput to date with further opportunities still remaining to optimize the mill. These achievements along with the tremendous effort from our operations team have resulted in the operation catching-up on most of the shortfall from the first two quarters of 2015," said Fernando E. Ganoza, CEO. "In the new year, the operations team will continue to focus on further optimizing the El Roble mill, completing the ramp to the lowest levels of discovered mineralization and the second phase of the tailings facility."
Fourth Quarter and Full Year Operational Highlights
Fourth Quarter
- Production of 3.88 million pounds of copper contained in concentrates; an increase of 33% over Q4 2014.
- Production of 3,436 ounces of gold contained in concentrates; an increase of 4% over Q4 2014.
- Average processed tonnes per day of 729; an increase of 32% over Q4 2014.
- Copper and gold head grades of 3.34% and 2.63 grams per tonne; a decrease of 7% and 29% over 2014.
- Copper and gold recovery of 94.4% and 72.7%; increase of 3% and 5% over Q4 2014.
2015 Year-end
- Production of 12 million pounds of copper contained in concentrates; an increase of 32% over 2014.
- Production of 10,994 ounces of gold contained in concentrates; an increase of 15% over 2014.
- Average processed tonnes per day of 626; an increase of 35% over 2014.
- Copper and gold head grades of 3.24% and 2.81 grams per tonne; a decrease of 4% and 15% over 2014.
- Copper and gold recovery of 94.1% and 69.2%; increase of 3% and 3% over 2014.
Fourth Quarter and Full Year Operational Details
| Q1 Total | Q2 Total | Q3 Total | Q4 Total | 2015 Total | |
| Production (Contained in Concentrates) | |||||
| Copper (000s pounds) | 2,003 | 2,910 | 3,255 | 3,876 | 12,044 |
| Gold (ounces) | 2,291 | 2,298 | 2,969 | 3,436 | 10,994 |
| Mine | |||||
| Tonnes of ore mined | 32,664 | 41,287 | 48,319 | 57,725 | 179,995 |
| Mill | |||||
| Tonnes processed | 33,558 | 40,747 | 48,015 | 55,775 | 178,095 |
| Tonnes processed per day | 557 | 575 | 641 | 729 | 638 |
| Copper grade (%) | 2.91 | 3.45 | 3.26 | 3.34 | 3.26 |
| Gold grade (g/t) | 3.14 | 2.65 | 2.81 | 2.63 | 2.78 |
| Recoveries | |||||
| Copper (%) | 93.2 | 93.7 | 94.4 | 94.4 | 94.1 |
| Gold (%) | 67.5 | 66.2 | 68.5 | 72.7 | 69.2 |
| Concentrates | |||||
| Copper and Gold Concentrates (dmt) | 4,839 | 6,938 | 7,830 | 9,417 | 29,024 |
| Payable copper produced (000s lbs) | 1,890 | 2,764 | 3,092 | 3,682 | 11,428 |
Note: Metal production figures are subject to adjustments based on final settlement.
El Roble Mine
The El Roble mine is a high grade underground copper and gold mine with a current processing plant capacity of 650 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 nominal capacity of 400 tonnes per day to the current 650 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, which at that time was 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.
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, Atico Mining Corp.
Trading symbols: (TSX VENTURE:ATY)(OTC PINK: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.