TIDMATYM
RNS Number : 6117U
Atalaya Mining PLC
16 July 2018
16 July 2018
Atalaya Mining Plc
("Atalaya" or the "Company")
Second Quarter 2018 Operations Update
Atalaya Mining Plc (AIM:ATYM, TSX:AYM) is pleased to announce
its operations update for the second quarter of 2018.
PROYECTO RIOTINTO
Second quarter First quarter Full year guidance
2018 2017 2018 2018
--------- ------ -------------- -------------------
Ore mined (M tonnes) 2.6 2.3 2.6 9.7
------------ --------- ------ -------------- -------------------
Waste mined (M tonnes) 4.8 4.6 5.4 16.5
------------ --------- ------ -------------- -------------------
Ore milled (M tonnes) 2.5 2.2 2.2 9.6
------------ --------- ------ -------------- -------------------
Cu grade (%) 0.48 0.49 0.48 0.48
------------ --------- ------ -------------- -------------------
Cu recovery (%) 87.31 85.09 88.47 84 - 86
------------ --------- ------ -------------- -------------------
Cu production (tonnes) 10,446 9,058 9,441 37,000 - 40,000
------------ --------- ------ -------------- -------------------
Copper production at Proyecto Riotinto for Q2 2018 has increased
to 10,446 tonnes from 9,058 tonnes reported in Q2 2017, and 9,441
tonnes in Q1 2018, representing an increase of 15% and 11%
respectively. This quarter's copper production replaces Q1 2018's
as the second highest quarterly production on record.
In terms of ore milled, 2.5 million tonnes were processed in the
quarter, the highest ever quarterly throughput. Copper head grade
was in line with expectations. The increase in copper production
during the quarter is mainly attributable to the high volume of ore
milled with above-budgeted metallurgical recovery rates, averaging
87.31%. Processing throughput was better than expected mainly due
to high utilisation rates.
The Company maintains its previously stated copper production
guidance for 2018 of 37,000 - 40,000 tonnes.
Mining operations are progressing to plan and at similar levels
to previous quarters. On a combined basis, ore, waste and marginal
ore amounted to 2.6 million m(3) in Q2 2018 versus 3.0 million m(3)
in Q1 2018. After the heavy rains in March, mining operations
returned to the original mining plan from May onwards.
As part of the Company's continuous improvements programme, a
cone crusher has been installed and it will operate as a secondary
crusher. It is expected to become operational during Q3 2018. As
previously reported, modifications to current screening and
crushing arrangements are under evaluation as part of a
de-bottlenecking exercise. Structural steel fabrication of the dome
to cover the coarse ore stockpile has been completed and fully
delivered to site. Construction is expected to be completed before
the end of Q3 2018.
Dewatering of the Atalaya pit is ongoing as previously reported.
Dewatering of Cerro Colorado pit after heavy rains in March was
completed in mid-May 2018 with pumping systems now on standby.
On-site concentrate inventories at the end of the quarter were
approximately 2,089 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 increased during the quarter with an average
realised price per pound of copper payable, including the QPs
closed in the period, of $3.12/lb compared with $3.03/lb in Q1
2018. The average spot copper price during the quarter was
$3.12/lb. The realised price during the quarter excluding QPs was
approximately $3.14/lb.
Cash operating costs and all-in sustaining costs ("AISC") for Q2
2018 are expected to be within the 2018 cost guidance ranges
previously provided. Further details on costs will be provided with
the Q2 Financial Statements to be reported in September 2018.
A NI 43-101 compliant technical report on an updated resources
and reserves estimate for Proyecto Riotinto was released on 9 July
2018. Highlights of the report include a 29% increase in open pit
proven and probable mineral reserves at Cerro Colorado and a 21%
increase in contained copper, with a reduction of the average strip
ratio from 1.95:1 to 1.43:1.
Exploration focus has now turned to the underground potential of
the remaining massive sulphides below Atalaya pit. A drilling
campaign is now underway and is expected to last until June
2019.
EXPANSION TO 15 Mtpa AT PROYECTO RIOTINTO
The expansion project to 15 Mtpa is progressing according to
schedule with engineering heading to completion and site
construction activities picking up. Overall progress completion at
the end of the reporting quarter was 41%. Procurement has
progressed to 38% completed and engineering to 82% completed.
Earthworks are well advanced and are expected to be completed by
mid-Q3 2018. Civil engineering works are progressing with main
activities now concentrated on the new SAG mill area. Structural
steel works are ongoing in the flotation area. Installation of
mechanical equipment has started 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
Permitting of Proyecto Touro continues as anticipated with good
progress made on addressing additional studies from the regional
administration. During the quarter, efforts were concentrated on
progressing detailed reports to address certain project
improvements and recommendations from the public hearing process.
These reports, including those received recently, are now expected
to be submitted to the authorities before the end of Q3 2018.
During the quarter, the Company announced the completion of a
pre-feasibility study ("PFS") for the proposed open pit mine and
concentrator at Proyecto Touro. The PFS report was prepared using
the headings of, and guidance set out in the NI 43-101 report.
Highlights of the PFS report are:
-- 392,000 tonnes of contained copper in P&P reserves;
-- Average yearly production of 30,000 tonnes copper and 70,000
ounces of silver in concentrate;
-- Pre-production capital expenditure of $165 million;
-- All-in sustaining costs of US$1.85/lb of payable Cu net of silver credits; and
-- NPV post-tax at 8% discount rate of $180 million using long term copper price of US3.00/lb.
Alberto Lavandeira, CEO commented:
"This has been an operationally productive quarter which has
delivered copper production above 10,000 tonnes, providing an
excellent run-rate for the quarter. The efforts resulted in
excellent throughput rates at the plant with better-than-budget
recovery rates. The Company has completed two NI 43-101 technical
reports, which are fully supportive of our growth plans and
reinforce our projects' long-term potential. The expansion to
15Mtpa is progressing at full speed with site activities picking up
and we remain well on track for mechanical completion at the end of
Q2 2019."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no 596/2014.
Contacts:
Elisabeth Cowell / James +44 20 7680
Newgate Communications Ash / James Browne 6550
+44 20 3170
4C Communications Carina Corbett 7973
------------------------------ ------------
Henry Fitzgerald-O'Connor
Canaccord Genuity / Martin Davison / James +44 20 7523
(NOMAD and Joint Broker) Asensio 8000
------------------------------ ------------
BMO Capital Markets Jeffrey Couch / Neil Haycock +44 20 7236
(Joint Broker) / Tom Rider 1010
------------------------------ ------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDBXLFFVDFXBBZ
(END) Dow Jones Newswires
July 16, 2018 02:00 ET (06:00 GMT)
Atalaya Mining (LSE:ATYM)
Historical Stock Chart
From Apr 2024 to May 2024
Atalaya Mining (LSE:ATYM)
Historical Stock Chart
From May 2023 to May 2024