TIDMATYM
RNS Number : 8663O
Atalaya Mining PLC
13 October 2021
13 October 2021
Atalaya Mining Plc.
("Atalaya" or the "Company")
Third Quarter 2021 Operations Update and Increase in 2021
Guidance
Atalaya Mining Plc (AIM:ATYM, TSX:AYM) is pleased to announce
its operations update for the third quarter of 2021 ("Q3 2021" or
"the Period").
Proyecto Riotinto Operating Highlights
Q3 Q2 Year-to-date Full year
guidance
2021 2020 2021 2021
------- ------- ------- ---------------------------
Ore mined (M tonnes) 3.4 3.8 3.3 10.0 13.2
------------ ------- ------- ------- ------------- ------------
Waste mined (M tonnes) 7.8 6.6 8.0 23.3 30.0
------------ ------- ------- ------- ------------- ------------
Ore milled (M tonnes) 3.9 4.0 4.0 12.0 15.5 - 16.0
------------ ------- ------- ------- ------------- ------------
Cu grade (%) 0.40 0.44 0.42 0.42 0.42
------------ ------- ------- ------- ------------- ------------
Cu recovery (%) 87.29 83.78 84.83 85.76 84 - 86
------------ ------- ------- ------- ------------- ------------
54,000 -
Cu production (tonnes) 13,933 14,695 14,353 42,670 56,000
------------ ------- ------- ------- ------------- ------------
-- Copper production in Q3 2021 remained strong at 13,933
tonnes, and Atalaya is now increasing its production guidance for
the full year 2021.
-- The plant processed 3.9 million tonnes of ore during Q3 2021,
equivalent to a throughput rate of nearly 16 Mtpa, which included a
planned SAG mill maintenance shutdown in the Period (previously
scheduled for Q4 2021).
-- Recoveries of 87.2 9 % were better than budgeted and helped
to offset the impact of the mill shutdown and lower grades,
resulting in only a modest decrease in copper production compared
with previous quarters.
-- Despite COVID-19 restrictions during the Period, mining
operations have continued normally with mining rates consistent
with plant performance (including the planned mill shutdown). From
1 October 2021, Proyecto Riotinto reviewed some of the COVID-19
safety measures as the number of cases and the severity decreased
significantly during Q3 2021.
-- On-site copper concentrate inventories at the end of Q3 2021
were approximately 4,232 tonnes. All concentrate in stock at the
beginning of the Period was delivered to the port at Huelva.
-- Average spot copper prices moved from US$4.40/lb in Q2 2021
to US$4.25/lb during the Period. Atalaya's average realised price
increased to US$4.31/lb from US$4.27/lb in the previous quarter.
When excluding the QPs, the realised price during Q3 2021 was
US$4.24/lb. On a year-to-date basis, the realised price has been
US$4.08/lb and US$4.17/lb including and excluding QPs,
respectively.
-- Cash operating costs for the Period are expected to be below
full year 2021 cost guidance owing mainly to the Euro/U.S. dollar
exchange rate together with higher copper production and better
recoveries. Further details on costs will be provided with the Q3
Financial Statements due to be reported in mid-November.
Proyecto Riotinto Optimisation
-- During Q3 2021, some cost reduction initiatives were
implemented including an expert system to control SAG mill
operation that resulted in lower energy consumption as well as
associated reduction of CO2 emissions.
-- Permitting of a 50 MW solar plant for self-consumption has
advanced significantly and final permits are expected in the next
weeks, with construction to start immediately after. The selection
of construction contractor for the solar plant is ongoing.
-- Flotation improvements are being investigated with the use of
new reagents focused on increased recoveries.
Reserves and Resources Updates at Proyecto Riotinto
-- Following an independent reserve estimate which confirmed a
long mine life at the Cerro Colorado open pit, studies have
advanced focusing on the addition of new resources contained in
satellite deposits at Proyecto Riotinto.
-- Work is ongoing on the preparation of a NI 43-101 compliant
technical report for the San Dionisio and San Antonio deposits. A
significant portion of the resources at San Dionisio is potentially
mineable by open pit and further polymetallic mineralization could
be exploited using underground mining methods at both the San
Dionisio and San Antonio deposits.
Outlook for 2021
-- As a result of the strong performance at Proyecto Riotinto
year-to-date, the Company is increasing its 2021 copper production
guidance to 54,000-56,000 tonnes, up from 52,000-54,000 tonnes
previously stated. Annual cost guidance will be revisited in the
upcoming Q3 2021 Financial Statements.
Growth Projects
Proyecto Touro
-- All of the documents and reports required for the
environmental evaluation of the new project design for Touro have
been reviewed and prepared for filing. The new project design
includes initiatives to eliminate the water over the thickened
tailings that will be stored in a plastic lined basin with zero
water discharge. Initiatives to address and finally resolve the
water issues related to the old historic mine will be implemented
with the new project.
-- The Company continues to be confident that its approach to
Proyecto Touro is in line with international best practice and has
been engaging in recent months with local and regional stakeholders
prior to the public consultation period that will commence once the
Environmental Impact Evaluation starts for the new project.
Proyecto Masa Valverde
-- As announced on 6 October 2021, exploration work continues at
Proyecto Masa Valverde , which includes the Masa Valverde
polymetallic deposit, the Majadales discovery and the unexplored
Campanario-Descamisada area .
-- Following positive drilling results, including high grade
intercepts within broad intervals of massive and stockwork type
polymetallic sulphide mineralization at both Masa Valverde and
Majadales, the Company has decided to expand its drilling campaign
beyond the 8,000 meters originally planned. Updates on the drilling
results will be disclosed to the market in due course and as
appropriate.
-- These drilling results will be incorporated into the NI
43-101 compliant report for Proyecto Masa Valverde that is
currently being prepared by CSA Global and expected by early Q1
2022 .
Proyecto Riotinto Este
-- Investigation permits were granted during 2021 and the
Company now has access to two of the three investigation permits at
Riotinto Este: Cerro Negro and Los Herreros. The third
investigation permit, Peñas Blancas, continues to progress and is
expected to be granted in the coming months.
-- An electromagnetic airborne geophysical survey is planned to
start during Q4 2021. The survey will be covering the investigation
permits area, located immediately east of Proyecto Riotinto and
along the same structural and stratigraphic setting.
E-LIX Update
-- The E-LIX pilot plant continues to operate and gather data as
planned, demonstrating the significant potential range of
applications for this technology, which enables the processing of
copper and zinc concentrates to produce cathodes on site .
-- The feasibility study for the construction of an industrial
plant has shown results that are very encouraging and a process of
iterative optimisation review is ongoing.
-- The Company is currently evaluating development options with
the inventor and owner of the E-LIX System , LAIN Technologies,
with the aim of constructing a phased industrial plant.
Alberto Lavandeira, CEO commented:
"Another robust quarter with strong production figures and
healthy copper prices has allowed the Company to continue to
strengthen its balance sheet despite COVID-19 related challenges.
With the operations at Proyecto Riotinto working smoothly, and the
new project design of Proyecto Touro having been completed for the
final permitting phase, the Company is well positioned to deliver
near-term production growth and long-term extension of mine life.
We will continue to focus on maintaining a steady production
profile at Proyecto Riotinto while we unlock additional value from
the mineral resources located in our prolific land package."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no 596/2014.
Contacts:
+ 44 20 3757
Newgate Communications Elisabeth Cowell / Tom Carnegie 6880
+44 20 3170
4C Communications Carina Corbett 7973
----------------------------------- -------------
Canaccord Genuity
(NOMAD and Joint Henry Fitzgerald-O'Connor / James +44 20 7523
Broker) Asensio 8000
----------------------------------- -------------
BMO Capital Markets +44 20 7236
(Joint Broker) Tom Rider / Andrew Cameron 1010
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Peel Hunt LLP +44 20 7418
(Joint Broker) Ross Allister / David McKeown 8900
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About Atalaya Mining Plc
Atalaya is an AIM and TSX-listed mining and development group
which produces copper concentrates and silver by-product at its
wholly owned Proyecto Riotinto site in southwest Spain. Atalaya's
current operations include the Cerro Colorado open pit mine and a
modern 15 Mtpa processing plant, which has the potential to become
a centralised processing hub for ore sourced from its wholly owned
regional projects around Riotinto that include Proyecto Masa
Valverde and Proyecto Riotinto East. 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. For
further information, visit www.atalayamining.com
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