TIDMATYM
RNS Number : 0791H
Atalaya Mining PLC
05 June 2017
5 June 2017
Atalaya Mining Plc.
("Atalaya" or the "Company")
Proyecto Touro - Progress update
Atalaya (AIM:ATYM, TSX:AYM), the European mining and development
company, is pleased to provide an update on the development
progress at its Touro copper project ("Proyecto Touro") in
North-western Spain.
Significant milestones include:
-- Successful completion of metallurgical test-work which has
demonstrated that high grade clean concentrates and high recovery
rates can be expected at Proyecto Touro.
-- Completion of 26,557 metres of exploration and in-fill
drilling to provide the basis of an NI 43-101 technical report.
-- Signing of a new purchase option agreement on the exploration
concessions around Proyecto Touro that gives the Company control
over the entire geological district hosting additional mineralised
zones.
Metallurgical test-work
A comprehensive test-work programme has been completed by SGS
Australia to confirm the process flowsheet design and assess the
geo-metallurgical response of the Proyecto Touro ores. The
programme included mineralogical analysis, comminution, flotation
and materials handling testing. Composite and variability samples
were prepared using fresh drill core and were tested using both
batch and locked cycle test procedures.
Predicted metallurgical recoveries for primary ores, based on
logarithmic modelling, reported very strong correlation with actual
recovery in locked cycle composite tests. In the case of
transitional ore, a fixed tail grade model best fitted results for
the transitional samples tested. On an overall basis, the locked
cycle tests, which emulate the expected plant performance, gave
copper recoveries ranging from 83% to 96% with an average of
89%.
Results from the programme indicate that high grade concentrates
can be produced with an average grade of 29% copper and
metallurgical recoveries of 89%. The concentrates produced were
very clean and free of deleterious elements such as arsenic and
lead.
These results have been incorporated into the process design
criteria, equipment sizing and capital and operating cost estimates
for the project.
Exploration and in-fill drilling completed
Atalaya has carried out exploration activities during the
exclusivity period which included:
-- Compilation of historic exploration drilling and mining data
-- Soil geochemistry
-- Reverse circulation and diamond drill hole drilling for a
total of 272 holes and 26,557 metres
-- Block modelling and resource and reserve estimates
Historic exploration and mining records were collected and
compiled into a newly created database. The exploration database
has been independently validated for resource estimation
purposes.
Soil geochemistry was completed around historical prospects and
outcrops. Anomalies outlined were followed up with drilling,
confirming that this technique is a valid method for further
exploration.
Exploration drilling was divided into step-out and in-fill
drilling. A total of 88 step-out holes for 11,388 metres and 184
infill holes for 15,169 metres were drilled and incorporated into
the exploration database. Of particular significance is the fact
that the programme has confirmed that Arinteiro and Vieiro, known
historically as two separate orebodies, are in fact a single
orebody.
The detailed exploration programme has confirmed that the
mineralisation in Proyecto Touro is hosted in a series of lenses of
metabasites (amphibolites) that occur continuously interbedded and
concordant within a thick horizon of metasediments
(paragneiss).
Copper mineralisation is hosted in amphibolite lenses and the
ore zones consist of a strata-bound level of disseminated
chalcopyrite and minor pyrrhotite that occurs as lenses closely
associated with coarse garnet amphibolite. In general, the
orebodies are tabular, shallow dipping, very consistent and
continuous in terms of geometry and grade-thickness values.
Block modelling, which incorporates a revised geological
interpretation, is essentially complete with only final
verification pending by independent QPs. Resource and reserve
estimates are also at an advanced stage with results to be released
as part of an NI 43-101 compliant technical report in due
course.
Option to acquire exploration concessions surrounding Proyecto
Touro
Atalaya has signed an option to acquire 100% of the shares of
EGC, a privately held company that controls 100% of the exploration
concessions immediately surrounding Proyecto Touro.
The concessions cover a surface of 122.7 km(2) , and include
some well documented mineralised copper occurrences. (See map at
the end of this release for reference).
The financial terms of the deal are subject to a confidentiality
agreement and will be announced in due course if the option is
exercised. If the acquisition is finally agreed to, the conditions
will be similar to the payment terms (based on USD cents per pound
of reserves) of the current earn-in agreement at Proyecto Touro.
The option period is for 2.5 years and approximately 75% of the
payment is conditional on receiving all the permits required to
produce from a drilled out zone known to contain potentially
mineable resources being granted.
The exploration option agreement has been structured so that the
key payments will only occur once the project is substantially
de-risked and permitted. The current owners will retain a royalty
on the new discoveries found at their concessions and have granted
Atalaya Mining a royalty buy-back option at pre-agreed terms.
Alberto Lavandeira, CEO, commented:
"We are very pleased with the results of the metallurgical test
work at Proyecto Touro. The combination of high concentrate grades
and recoveries, together with the lack of deleterious elements,
will provide additional value to the project.
Furthermore, the very detailed exploration work carried out
during our earn-in option period at Proyecto Touro has demonstrated
the significant potential to add new copper reserves to the
project. In order to confirm the potential of the whole belt we
have signed a purchase option over all the concessions that
surround Proyecto Touro and will start exploration of these
shortly.
Proyecto Touro is rapidly emerging as our next near term copper
producing asset in Spain and I am confident that our team's proven
efficient development skills will be applied at Proyecto Touro in
order to replicate the success of our Riotinto copper mine."
For images relating to the work undertaken at Proyecto Touro,
please see the attached PDF.
http://www.rns-pdf.londonstockexchange.com/rns/0791H_-2017-6-2.pdf
Contacts:
Charles Chichester
/ James Ash / James +44 20 7680
Newgate Communications Browne 6550
------------------------ --------------------------- ------------
Canaccord Genuity Henry Fitzgerald-O'Connor
(NOMAD and Joint / Martin Davison +44 20 7523
Broker) / James Asensio 8000
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BMO Capital Markets Jeffrey Couch/Neil +44 20 7236
(Joint Broker) Haycock/Tom Rider 1010
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This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
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