Atalaya Mining PLC First Quarter 2017 Operations Update (7860C)
April 20 2017 - 1:00AM
UK Regulatory
TIDMATYM
RNS Number : 7860C
Atalaya Mining PLC
20 April 2017
Atalaya Mining Plc
("Atalaya" or the "Company")
First Quarter 2017 Operations Update
Atalaya Mining plc (AIM:ATYM, TSX:AYM), the European mining and
development company, announces its operations update for the three
months to 31 March 2017.
PROYECTO RIOTINTO
First Quarter Fourth Full year
Quarter forecast
-------------------------------------- ---------------- --------- ----------
2017 2016 2016 2017
*
-------------------- ---------------- ------- ------- --------- ----------
Ore mined (M tonnes) 2.3 1.1 2.3 9.5 - 9.8
-------------------- ---------------- ------- ------- --------- ----------
18.1 -
Waste mined (M tonnes) 4.3 2.7 3.6 18.2
-------------------- ---------------- ------- ------- --------- ----------
Ore milled (M tonnes) 2.2 1.1 2.0 9.5
-------------------- ---------------- ------- ------- --------- ----------
0.49 -
Cu grade (%) 0.48 0.43 0.52 0.51
-------------------- ---------------- ------- ------- --------- ----------
Cu recovery (%) 84.63 82.93 84.47 79 - 82
-------------------- ---------------- ------- ------- --------- ----------
34,000
Cu production (tonnes) 8,805 4,048 8,938 - 40,000
-------------------- ---------------- ------- ------- --------- ----------
1.90 -
Cash cost ($/lb payable) 1.83 2.28 1.95 2.10
-------------------- ---------------- ------- ------- --------- ----------
2.00 -
All-in cost ($/lb payable) 2.15 2.55 2.15 2.20
-------------------- ---------------- ------- ------- --------- ----------
Sustaining capital ($ millions) 0.6 0 0.4 2.1
-------------------- ---------------- ------- ------- --------- ----------
*Note: Commercial production declared 1 February 2016.
Production results at Proyecto Riotinto were in line with
targets for the quarter ended 31 March 2017. The operation set new
records for both throughput tonnage and copper recovery as 2.2
million tonnes of ore were milled at a recovery rate of 84.63%.
Full year annual forecasts for copper remain as previously guided
at 34,000 - 40,000 tonnes.
Mining operations continue to run according to mine plans.
Blending different ore types from the Cerro Colorado pit has
provided consistent feed quality to the processing plant which
resulted in higher than anticipated metallurgical recoveries and
concentrate grades. Adjustments to geological modelling are
currently under evaluation to improve mine-to-mill efficiencies.
Drilling and blasting parameters have been adjusted to improve
fragmentation, loading rates and crushing capacity.
Surface re-contouring on the south waste dump has been initiated
as part of ongoing rehabilitation works and additional
rehabilitation methodologies are being evaluated.
On-site concentrate inventories at the end of the quarter were
reduced to minimum levels. Concentrate deliveries to the port at
Huelva amounted to 41,131 tonnes. Concentrate sales were not
affected by disruptions at other ports across Spain.
Cash costs during Q1 2017 of $1.83/lb of copper were lower than
in the same period in 2016 when operations were starting to ramp up
and also as compared with Q4 2016 owing to lower penalty levels and
lower TC/RCs. The full year forecast remains as previously guided
with a range of $1.90/lb to $2.10/lb.
Sustaining capital for the quarter was $0.6 million with a full
year forecast of $2.1 million. The majority of spending in the
quarter related to improvements in process water supply and
services, modifications to the processing flowsheet and upgrades at
the main incoming substation. A number of studies are under way to
further debottleneck processing capacity. Capital will also be
allocated to improve environmental requirements.
Accumulated capitalized stripping since the start of operations
amounted to $18.8 million slightly lower than the forecast as less
waste than expected was mined.
Copper prices continued to rise in Q1 2017, with an average
price realised of $2.48/lb, compared with an average of $2.18/lb
for Q4 2016.
Near-mine exploration drilling is under way with one RC drilling
rig and one DDH rig. The programme is designed to confirm the
lateral extension of Filon Sur as well as the northern extension of
the Atalaya pit. During the quarter 2,660 m have been drilled out
of a total of 7,200 m at Filon Sur and at the Atalaya pit.
An in-fill drilling campaign of 4,400 m at Cerro Colorado is
also under way with one RC drilling rig. This campaign is targeting
inferred resources with the objective of increasing confidence
levels and potential reclassification.
PROYECTO TOURO
As previously announced, the Company exercised an option to
acquire a 10% interest in Proyecto Touro located in northwest
Spain. The acquisition of the project is based on a staged earn-in
agreement increasing from 10% and up to an 80% interest once
commercial production is declared.
The permitting process has been initiated during Q1 2017, with
submission to the relevant authorities of the environmental impact
study, exploitation plan and rehabilitation plan. Geological,
hydrogeological and geotechnical studies have also been completed
and incorporated into the study.
In-fill and step-out drilling is ongoing across the property
with two RC drilling rigs and one DDH rig for a campaign of 7,900
m. Resource modelling is well advanced based on both historic and
current knowledge of the deposit.
Metallurgical test work at feasibility study level was completed
during 2016 with modelling confirmed based on this latest
information. Further details will be released before the end of the
second quarter.
Basic engineering is progressing with a view to completing a
capital and operating cost estimate as part of the study. Long-lead
items have been identified together with suppliers' quotations.
Alberto Lavandeira, CEO commented: "Since reaching nameplate
capacity at Riotinto at the end of 2016, the plant continues to run
smoothly and we are on track to meet our production targets. While
our aim is to seek further operating efficiencies within the plant,
we are also focused on infill and near-mine exploration drilling in
order to maintain our 16-year mine life and extend our reserves and
resources. We have also carried out an extensive drilling programme
at Proyecto Touro and are pleased with the progress made to
date."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
Contacts:
Atalaya Mining Roger Davey / Alberto +34 959
plc Lavandeira 59 28 50
--------------------- --------------------------- ------------
Canaccord Genuity
(NOMAD and Joint Henry Fitzgerald-O'Connor +44 20 7523
Broker) / Martin Davison 8000
--------------------- --------------------------- ------------
BMO Capital Markets Jeffrey Couch/Neil +44 20 7236
(Joint Broker) Haycock/Tom Rider 1010
--------------------- --------------------------- ------------
This information is provided by RNS
The company news service from the London Stock Exchange
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