Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY |
OTC: ATCMF) is pleased to report of an updated NI 43-101 mineral
resource and reserve estimate as on March 12th 2024 for the El
Roble Mine located in Colombia.
“Our infill and mine vicinity exploration
drilling at El Roble mine has yielded very good results
intercepting additional high-grade mineralization in proximity to
current mining activity. What is particularly exciting is that we
still continue to intercept further mineralization beyond the
cutoff date of this report which is telling us that these areas
remain open at depth and along strike,” said Fernando E. Ganoza,
CEO. “Aggressive mine vicinity drilling will continue this year
looking for additional massive sulphide deposits and to replace
what is currently being mined.”
Resource and Reserve Estimate
Highlights
- Measured and Indicated Mineral
Resources are estimated at 881 thousand tonnes averaging 3.40% Cu,
and 2.98 g/t Au.
- Proven and Probable Mineral
Reserves are estimated at 828 thousand tonnes averaging 2.49% Cu,
and 2.20 g/t Au.
- A conversion rate of 88% of
Measured and Indicated resources to Proven and Probable reserve
categories over the current resource estimate.
- Life of Mine extended until first
quarter of 2027
El Roble Resource and Reserve Estimate
The updated mineral resource and reserve
estimate for El Roble was prepared by staff and consultants of
Miner SA, an Atico Mining operating subsidiary. Mr. Thomas Kelly
(SME Registered Member 1696580) has reviewed the reserve estimate
and Mr. Antonio Cruz (AIG Registered Member 7065) has reviewed the
resource estimate and both have acted as the qualified persons as
defined by Canadian National Instrument 43-101. The Mineral
Reserves reported herein were estimated using the Canadian
Institute of Mining, Metallurgy and Petroleum (CIM) Standards on
Mineral Resources and Reserves, Definitions and Guidelines prepared
by the CIM Standing Committee on Reserve Definitions and adopted by
CIM Council. This reserve estimate is based on all data available
through March 12, 2024.
Category |
Tonnes (000) |
Cu Eq. (%) |
Cu (%) |
Au (g/t) |
Proven |
528 |
3.31 |
2.47 |
1.92 |
Probable |
300 |
3.75 |
2.54 |
2.71 |
Proven + Probable Reserves |
828 |
3.47 |
2.49 |
2.20 |
Category |
Tonnes (000) |
Cu Eq. (%) |
Cu (%) |
Au (g/t) |
Measured Resources |
500 |
4.39 |
3.28 |
2.63 |
Indicated Resources |
381 |
5.10 |
3.56 |
3.45 |
Measured + Indicated Resources |
881 |
4.69 |
3.40 |
2.98 |
- Mineral Resources and Mineral
Reserves are as defined by CIM definition Standards on Mineral
Resources and Mineral Reserves 2014.
- Mineral Resources and Mineral
Reserves are estimated provided above have an effective date of
March 12th 2024. The Mineral Resource estimates and the Mineral
Reserve estimates were prepared by the Company's Internal QPs, who
have the appropriate relevant qualifications, and experience in
resource mineral estimation and reserves mineral estimation.
- The Mineral Reserves were estimated
from the M&I portions of the Mineral Resource estimates.
Inferred Mineral Resources were not considered to be converted into
Mineral Reserve estimates.
- Mineral Reserves are reported using
an NSR breakeven cut-off value of 130.11 USD/t (basis 2023 cost)
this value is considered for the Zeus, A, B, D, D2, Afrodita and
Rosario ore bodies and using an NSR breakeven cut-off value of
74.43 USD/t is considered for the Maximus, Maximus Sur, Perseo,
Goliath ore bodies.
- Mineral Resources are reported
using an NSR cut-off grade value of US$51.05/t, this value is
considered for the Maximus, Maximus Sur and Perseo deposits. And
using an NSR cut-off grade of US$72.59/t for A, B, D, D2, Afrodita,
Rosario and Principal ore body.
- Metal prices used were
US$1,991.00/troy ounce Au and US$ 4.12/t Cu.
- Metallurgical recoveries have been
considered based on historical results as of 2023. For the mine
designated as low zone (Zeus, Maximus, Maximus South, Goliath and
Perseus ore bodies) Cu recovery is 91.67% and Au recovery is
59.74%. For the mine designated as high zone (Principal, A, B, D,
D2, Afrodita and Rosario orebodies) Cu is 93% and Au is 63%.
- Metal payable recovery used 92.40%
for gold and 94.03% for copper (2023 commercialization basis).
- The average density for the
ore-body was designated as follows; Goliath = 3.34t/m3, Maximus =
3.50t/m3, Maximus Sur = 3.26t/m3, Zeus = 3.53t/m3 and Perseo =
3.35t/m3. for A, B, D, D2, Afrodita, Rosario and Principal ore body
the density was estimated using IDW.
- Mineral Resources, as reported, are
undiluted.
- Mineral Resources are reported to
0.87% CuEq cut-off for ore-body Zeus. 0.61% CuEq cut-off for
ore-bodies Goliath, Maximus, Maximus Sur and Perseo. 0.86%CuEq
cut-off for ore-bodies A, B, D, D2, Afrodita, Rosario and Cuerpo
Principal.
- CuEq for each block was calculated
by multiplying one tonne of mass of each block-by-block grade for
both Au and Cu by their average recovery, metal payable recovery
and metal price. If the block was higher than CuEq cut-off, the
block is included in the estimate (resource or reserve estimate as
appropriate).
- CuEq is estimated considering metal
price assumptions, metallurgical recovery for the corresponding
mineral type/mineral process and the metal payable of the selling
contract. (a) The AgEq grade formula used was: CuEq Grade = Cu
Grade + Au Grade * (Au Recovery * Au Payable * Au Price) / (Cu
Recovery * Cu Payable * Cu Price). (b) Metal prices considered for
Mineral Reserve estimates were US$4.12/lb Cu and US$1,991/oz Au for
all sites. (c) Other key assumptions and parameters include:
metallurgical recoveries; metal payable terms; direct mining costs,
processing costs, and G&A costs.
- Modifying factors for conversion of
resources to reserves included consideration for planned dilution
which is based on spatial and geotechnical aspects of the designed
stopes and economic zones, additional dilution consideration due to
unplanned events, materials handling and other operating aspects,
and mining recovery factors. Mineable shapes were used as geometric
constraints.
- Mineral Resources are not Mineral
Reserves and do not have demonstrated economic viability.
- There is no certainty that all or
any part of the Mineral Resources estimated will be converted into
Mineral Reserves.
- There are no known political,
environmental or other risks that could materially affect the
development and mining of the Mineral Reserves in the El Roble
mine.
- Figures in the table are rounded to
reflect estimate precision; small differences are not regarded as
material to the estimates.
- Reserves are estimated based on
mining material that can be mined, processed and smelted.
Resource and Reserve Estimation
Methodology
The Mineral Resource estimation considers
channel and core samples, in addition to the underground mine
mapping for the construction of three-dimensional wireframes of the
lithology and mineralized bodies. Estimation of grades in the block
models only considers samples located inside the mineralized bodies
solid, which are applied to anomalous grade or top cut treatment
and a further compositing process. The model was constructed using
2m x 2m x 2m blocks, which represents the selective mining unit
(SMU). The orebodies estimation is conducted separately body by
body and element by element (Cu and Au). The methods used for grade
estimation are cubic inverse distance (Goliath, Maximus, Maximus
Sur, Perseo, A, B, D, D2, Afrodita, Rosario and Cuerpo Principal
Orebodies) and Ordinary Kriging (Zeus Orebody).
A specific density factor was assumed for each
site to convert block volumes to tons for the bodies: Goliath =
3.34 t/m3, Maximus = 3.50 t/m3, Maximus Sur = 3.26 t/m3 , Zeus =
3.53 t/m3 and Perseus = 3.35 t/m3. For mineralized bodies A, B, D,
D2, Afrodita and Rosario the densities were estimated with IDW.
Mineral resources are reported with a limit of 0.87% CuEq cut-off
for ore-body Zeus, 0.61% CuEq cut-off for ore-body Goliath,
Maximus, Maximus Sur and Perseo and 0.86%CuEq cut-off for ore-body
body A, B, D, D2, Afrodita, Rosario and Cuerpo Principal. For each
block, the CuEq value was calculated by multiplying one ton of mass
of each block grade by its average recovery, payable metal
recovery, and metal price. Blocks with a CuEq grade higher than the
CuEq limit were included in the resource estimate.
Proven and Probable Mineral Reserves were
derived from the Measured and Indicated Resources by applying
modifying factors related to mining methods, mining dilution and
historical operating costs detailed as follows: mining for Zeus, A,
B, D, D2, Afrodita, Rosario y Cuerpo Principal (US $61.72/t) and
mining for Maximus, Maximus Sur, Goliath and Perseo (US $33.82/t) ,
processing (US $31.93/t), general services (US $16.79/t), on-site
administration and indirect (US $10.99/t), selling and concentrate
shipping (US $8.68/t). Operating costs total and comprise the lower
NSR value for reserve reporting purposes. Mining dilution was
estimated at variable percentages depending on the mining activity
and labor.
The resource and reserve models have been
validated by reconciliation against actual mined production
continuously for several years with reconciliation results being
acceptable for all ore bodies that have experienced a significant
amount of production.
A full NI 43-101 report reviewed and approved by
Mr. Thomas Kelly will be available on www.sedar.com within 45
days of this news release.
El Roble Mine
The El Roble mine is a high grade, underground
copper and gold mine with nominal processing plant capacity of
1,000 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 historical
nominal capacity of 400 tonnes per day to 850 tons per day by
mechanizing and modernizing their mining operations and
processes.
El Roble has Proven and Probable reserves of 828
thousand tonnes grading 2.49% copper and 2.20 g/t gold, at a
cut-off grade of 2% copper equivalent this value is considered for
the Zeus, A, B, D, D2, Afrodita and Rosario ore bodies and 1.1% is
considered for the Maximus, Maximus Sur, Perseo and Goliath ore
bodies as of March 12th 2024. Mineralization is open at depth and
along strike and the Company plans to further test the limits of
the deposit.
On the larger land package, the Company has
identified a prospective stratigraphic contact between volcanic
rocks and black and grey pelagic sediments and 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 numerous target areas prospective for
VMS type mineralization occurrence, which is the focus of the
current surface drill program at El Roble.
Qualified Persons
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.
Mr. Antonio Cruz (AIG Registered Member 7065),
employee 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 generates significant cash flow through the
operation of the El Roble mine and is developing its high-grade La
Plata VMS project in Ecuador. The Company is also pursuing
additional acquisition of advanced stage opportunities. For more
information, please
visit www.aticomining.com.
ON BEHALF OF THE BOARD
Fernando E. GanozaCEOAtico Mining
Corporation
Trading symbols: TSX.V: ATY | OTC: ATCMF
Investor RelationsIgor DutinaTel:
+1.604.633.9022
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
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