Atico Reports 2016 Fourth Quarter and Full Year Production Results
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 17, 2017) - Atico Mining Corp. (the "Company" or "Atico") (TSX VENTURE:ATY)(OTC PINK:ATCMF) is pleased to announce operating results for the three and twelve month periods ended December 31, 2016 from its El Roble mine. Production totaled 5.15 million pounds of copper with 2,832 ounces of gold for the fourth quarter and 18.72 million pounds of copper with 11,159 ounces of gold in concentrates for the full year 2016.
"Atico has successfully concluded its third full year of operating the El Roble mine, exceeding the 2016 guidance while achieving the highest production to date and significantly improving the safety standards," said Fernando E. Ganoza, CEO. "In the new year the Company will continue optimizing the El Roble operation while focusing on increasing the resources at the mine and exploring the prospective 6,600 ha land package surrounding the El Roble mine."
Fourth Quarter and Full Year Operational Highlights
Fourth Quarter
- Production of 5.15 million pounds of copper contained in concentrates; an increase of 33% over Q4 2015.
- Production of 2,832 ounces of gold contained in concentrates; a decrease of 18% over Q4 2015.
- Average processed tonnes per day of 790; an increase of 8% over Q4 2015.
- Copper and gold head grades of 3.92% and 2.19 grams per tonne; an increase of 17% for copper and a decrease of 17% for gold over Q4 2015.
- Copper and gold recovery of 94.7% and 63.8%; an increase of 0% for copper and a decrease 12% for gold over Q4 2015.
2016 Year-end
- Production of 18.72 million pounds of copper contained in concentrates; an increase of 55% over 2015.
- Production of 11,159 ounces of gold contained in concentrates; an increase of 2% over 2015.
- Average processed tonnes per day of 788; an increase of 24% over 2015.
- Copper and gold head grades of 3.71% and 2.17 grams per tonne; an increase of 14% for copper and a decrease of 22% for gold over 2015.
- Copper and gold recovery of 94.2% and 66.1%; an increase of 0% for copper and a decrease of 5% for gold over 2015.
Fourth Quarter and Full Year Operational Details
| Q1 Total | Q2 Total | Q3 Total | Q4 Total | 2016 Total | |
| Production (Contained in Concentrates) | |||||
| Copper (000s pounds) | 4,277 | 4,787 | 4,515 | 5,146 | 18,724 |
| Gold (ounces) | 2,566 | 2,948 | 2,813 | 2,832 | 11,159 |
| Mine | |||||
| Tonnes of ore mined | 53,752 | 63,112 | 63,539 | 64,314 | 244,717 |
| Mill | |||||
| Tonnes processed | 53,715 | 64,246 | 61,886 | 62,870 | 242,717 |
| Tonnes processed per day | 778 | 814 | 766 | 790 | 788 |
| Copper grade (%) | 3.81 | 3.63 | 3.48 | 3.92 | 3.71 |
| Gold grade (g/t) | 2.21 | 2.19 | 2.08 | 2.19 | 2.17 |
| Recoveries | |||||
| Copper (%) | 94.4 | 93.0 | 94.6 | 94.7 | 94.2 |
| Gold (%) | 67.3 | 65.0 | 67.9 | 63.8 | 66.1 |
| Concentrates | |||||
| Copper and Gold Concentrates (dmt) | 9,674 | 10,718 | 10,221 | 10,881 | 41,494 |
| Payable copper produced (000s lbs) | 4,048 | 4,527 | 4,312 | 4,889 | 17,776 |
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 nominal processing plant capacity of 800 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. 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 31,377 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.
El Roble has a measured and indicated resource of 1.87 million tonnes grading 3.46% copper and 2.27 g/t gold, at a cut-off grade of 0.93% 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), 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 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.
The Company has not based its production decisions and ongoing mine production on mineral reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Non-GAAP Financial Measures
The items marked with a "(1)" are alternative performance measures and readers should refer to Non-GAAP Financial Measures in the Company's Management's Discussion and Analysis for the nine months ended September 30, 2016 as filed on SEDAR and as available on the Company's website for further details.