TIDMATYM
RNS Number : 4793D
Atalaya Mining PLC
10 October 2018
10 October 2018
Atalaya Mining Plc.
("Atalaya" or the "Company")
Third Quarter 2018 Operations Update
Increase in Full Year Guidance following record production
Atalaya Mining Plc. (AIM:ATYM, TSX:AYM) is pleased to announce
its operations update for the third quarter of 2018.
PROYECTO RIOTINTO
Third quarter Second quarter Year-to-date Updated full
year guidance
2018 2017 2018 2018
------- ------- --------------- ------------------------------
Ore mined (M tonnes) 2.8 2.4 2.6 7.9 9.7
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Waste mined (M tonnes) 3.2 5.2 4.8 13.4 16.5
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Ore milled (M tonnes) 2.5 2.2 2.5 7.2 9.6
------------ ------- ------- --------------- ------------- ---------------
Cu grade (%) 0.50 0.58 0.48 0.49 0.48
------------ ------- ------- --------------- ------------- ---------------
Cu recovery (%) 88.40 85.95 87.31 88.06 87 - 88
------------ ------- ------- --------------- ------------- ---------------
39,000 -
Cu production (tonnes) 11,055 10,679 10,446 30,942 41,000
------------ ------- ------- --------------- ------------- ---------------
Copper production at Proyecto Riotinto for Q3 2018 has exceeded
expectations, reaching a record 11,055 tonnes. This is the highest
quarterly copper production since the project was re-started. The
previous highest quarterly copper production was 10,679 tonnes,
reported in Q3 2017. In addition, this is the second consecutive
quarter where copper production has exceeded 10,000 tonnes.
In terms of ore milled, 2.5 million tonnes were processed in the
quarter, reporting a consistent quarterly throughput. Copper head
grade was slightly above plan. The increase in copper production
during the quarter is mainly attributable to slightly higher than
budgeted head grade, ore milled and better metallurgical
recoveries, which averaged 88.40% during the quarter.
The Company is pleased to increase its previous 2018 production
guidance from 37,000 - 40,000 tonnes to 39,000 - 41,000 tonnes of
copper.
Mining operations are progressing to plan and at similar levels
to previous quarters. On a combined basis, ore, waste and marginal
ore amounted to 2.2 million m(3) in Q3 2018 versus 2.6 million m(3)
in Q2 2018. Additional mining equipment is available on site in
anticipation of the increase in production in 2019.
As part of the Company's continuous improvements programme, an
additional secondary cone crusher, installed during the previous
quarter, is now fully operational. Crushing capacity is no longer a
bottleneck in the production process. A detailed analysis of the
current screening section is now under way. Construction of the
dome to cover the coarse ore stockpile has been put on hold due to
re-engineering activities.
During the first week of August a wildfire broke out in close
proximity to the north of Proyecto Riotinto which affected 1,600 ha
of pine trees and eucalyptus. Although there was some damage to
water pipelines at Proyecto Riotinto, production was minimally
affected.
On-site concentrate inventories at the end of the quarter were
approximately 2,725 tonnes. All concentrate in stock at the
beginning of the quarter and produced during the quarter was
delivered to the port at Huelva.
Copper prices decreased during the quarter compared with the
previous quarter, with an average realised price per pound of
copper payable, including the QPs closed in the period, of $2.89/lb
compared with $3.12/lb in Q2 2018. The average copper spot price
during the quarter was $2.77/lb. The realised price during the
quarter excluding QPs was approximately $2.75/lb.
Cash operating costs for Q3 2018 are expected to be slightly
lower than the 2018 cost guidance ranges previously provided.
Further details on costs will be provided with the Q3 Financial
Statements to be reported in November 2018.
Exploration is under way at the Atalaya pit where massive
sulphides and stockwork mineralisation are targeted. The first
1,500 m of a 19,000 m drilling campaign of have already been
drilled with positive preliminary results received. Drilling around
the high grade underground workings in Filon Sur is also
ongoing.
EXPANSION TO 15Mtpa AT PROYECTO RIOTINTO
The 15Mtpa expansion project is progressing according to
schedule with engineering essentially complete and site
construction activities picking up. Overall progress completion at
the end of the reporting quarter was 65%. Procurement has
progressed to 64% completed. Earthworks are almost completed with
only minor final activities pending. Civil engineering works are
progressing with main activities now concentrated on completion of
the new SAG area and the crusher and coarse stockpile buildings.
Structural steel works are well advanced in the flotation area.
Piping is also close to completion in the concentrate handling area
with electrical installation commencing. Installation of mechanical
equipment is progressing in the concentrate handling area. The
milling area is the critical path to completion. The expansion
project is scheduled for mechanical completion at the end of Q2
2019.
PROYECTO TOURO
At the end of the reporting quarter, additional studies and
detailed reports addressing certain project improvements and
recommendations from the public hearing process were formally
submitted to the authorities. This is the last step to complete the
public hearing process initiated in August 2017.
An environmental monitoring programme similar to the programme
carried out in Riotinto is fully implemented at Touro.
Alberto Lavandeira, CEO commented:
"We are delighted to report copper production at Proyecto
Riotinto for Q3 2018, reaching a record 11,055 tonnes. This is the
highest quarterly copper production since the project was
re-started. Positively our production guidance for the year has
also increased. The delivery of another consistent record quarter
is testimony to the quality and commitment of the Company's teams
and provides a good indication that the growth plans through the
Riotinto expansion and Touro are solid and on track."
About Atalaya Mining Plc
Atalaya is an AIM and TSX-listed mining and development group.
It produces copper concentrates and silver by-product at its wholly
owned Proyecto Riotinto site in southwest Spain, which is also
undergoing a brownfield expansion. In addition, the Group has a
phased, earn-in agreement for up to 80% ownership of Proyecto
Touro, a brownfield copper project in the northwest of Spain which
is currently in the permitting stage. For further information,
visit www.atalayamining.com
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no 596/2014.
Contacts:
Elisabeth Cowell / Adam +44 20 3757
Newgate Communications Lloyd / Tom Carnegie 6882
+44 20 3170
4C Communications Carina Corbett 7973
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Henry Fitzgerald-O'Connor
Canaccord Genuity / Martin Davison / James +44 20 7523
(NOMAD and Joint Broker) Asensio 8000
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BMO Capital Markets Jeffrey Couch / Tom Rider +44 20 7236
(Joint Broker) / Michael Rechsteiner 1010
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END
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