Atalaya Mining PLC Proyecto Riotinto production study to proceed (9182G)
June 02 2017 - 1:00AM
UK Regulatory
TIDMATYM
RNS Number : 9182G
Atalaya Mining PLC
02 June 2017
Atalaya Mining Plc
("Atalaya" or the "Company")
ATALAYA TO PROCEED WITH STUDY TO INCREASE COPPER PRODUCTION
AT PROYECTO RIOTINTO
June 2, 2017
Atalaya Mining Plc. (AIM:ATYM, TSX:AYM), the European mining and
development company, announces that the Board of Directors
("Board") has approved a study to demonstrate the feasibility of
increasing the mining and processing capacity beyond the current
9.5Mtpa to a maximum of 15.0Mtpa at Proyecto Riotinto. If proven
feasible, this could translate into an increase in copper
production to 50,000 - 55,000 tonnes per annum.
The plan is to revisit existing geological modelling and
resource and reserve estimates with a view to maintaining the life
of mine in the range of 12-14 years. Mine planning and the existing
mining fleet will be re-assessed. The study will also assess the
potential for maximising processing capacity including
complementing it with additional crushing and milling equipment.
Flotation and concentrate handling modifications will be evaluated
but are not expected to be significant. Tailings storage facilities
and auxiliary infrastructure will also be re-evaluated.
This detailed assessment will be carried out over the next three
months. Should the Company decide to proceed with the increase in
mining and processing capacity, the indicative construction period
is estimated to be 18 months after the investment has been
approved.
The intention is to develop this new project with a competitive
capital intensity, similar to the original 5.0Mtpa refurbishment
programme and the 9.5Mtpa expansion. With regards to operating
costs, economies of scale are expected to further improve C1 cash
costs as was the case when the targeted 9.5Mtpa rate was
implemented and achieved.
In anticipation of a positive outcome of this study, the Company
is currently evaluating different sources of financing.
Alberto Lavandeira, CEO commented:
"By commissioning this study, the Board has shown great faith in
the further potential of Proyecto Riotinto. We look forward to
providing a further update in due course."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no 596/2014.
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 information is provided by RNS
The company news service from the London Stock Exchange
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