TIDMATYM
RNS Number : 9907E
Atalaya Mining PLC
13 July 2021
13 July 2021
Atalaya Mining Plc.
("Atalaya" or the "Company")
Second Quarter 2021 Operations Update
Atalaya Mining Plc (AIM:ATYM, TSX:AYM) is pleased to announce
its operations update for the second quarter of 2021 ("Q2 2021" or
the "Period").
Proyecto Riotinto Operating Highlights
Q2 Q1 Full year
2021 2020 2021 2021 Guidance
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Ore mined (M tonnes) 3.3 3.2 3.3 15.1
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Waste mined (M tonnes) 8.0 5.7 7.4 25.9
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Ore milled (M tonnes) 4.0 3.6 4.0 15.0 - 15.5
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Cu grade (%) 0.42 0.44 0.41 0.42
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Cu recovery (%) 84.83 85.89 84.90 82 - 84
------------ ------- ------- ------- --------------
52,000 -
Cu production (tonnes) 14,353 13,635 13,979 54,000
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-- Copper production in Q2 2021 was 14,353 tonnes, 2.7 % higher
than Q1 2021 and 5.3 % higher than Q2 2020.
-- The plant processed 4.03 million tonnes of ore during Q2 2021
equivalent to a throughput rate of approximately 16 Mtpa. Low grade
stockpiles added extra tonnage.
-- The increase in copper production, when compared with the
Company's guidance, is mainly attributable to higher throughput
and, to a lesser extent, to better recoveries than planned.
-- Despite ongoing COVID-19 restrictions, mining operations have
continued normally with higher production levels compared with
previous quarters.
-- On-site copper concentrate inventories at the end of Q2 2021
were approximately 15,103 tonnes. All concentrate in stock at the
beginning of the Period was delivered to the port at Huelva.
-- Copper prices increased during the Period compared with the
previous quarter. Average spot prices increased from US$3.85/lb in
Q1 2021 to US$4.40/lb in Q2 2021. The average realised price per
pound of copper payable was $ 4.27 /lb compared with $ 3.62 /lb in
the previous quarter. The realised price during Q2 2021 excluding
QPs was approximately $ 4.40 /lb.
-- 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 of 1.2058 compared with 1.22 budgeted by the Company
in its 2021 guidance, together with higher copper production and
better recoveries. Further details on costs will be provided with
the Q2 Financial Statements due to be reported in August.
Proyecto Riotinto Optimisation
-- During Q2 2021 some cost reduction initiatives were
implemented such as the commissioning of a tailings thickener and
changes to the lime circuit, both of which resulted in lower lime
and energy consumption as well as a reduction in CO2 emissions.
-- Permitting of a 50 Mw solar plant for self-consumption
advanced significantly and final construction permits are expected
imminently.
-- New initiative focused on increased recoveries using
different grinding media in the regrind mill.
Reserves and Resources Updates at Proyecto Riotinto
-- Following an independent reserve estimate which confirmed the
status of a long life at the Cerro Colorado open pit, studies have
advanced around the addition of further resources at Proyecto
Riotinto.
-- A sizeable resource has been identified at San Dionisio
deposit that is potentially mineable by open pit. Further
polymetallic mineralization could be exploited using underground
mining methods at the San Antonio and San Dionisio deposits.
-- Work has started on the preparation of an NI 43-101 compliant
technical report which will be followed by PEA or PFS studies.
Outlook for 2021
-- The Company maintains its 2021 guidance but now expects to be
towards the high end of production guidance and the lower end of
costs guidance.
Growth Projects
Proyecto Touro
-- The Company is finalising a new project to be presented to
the Xunta de Galicia during Q3 2021. The new project for Touro
includes a new design to address and resolve all the concerns
previously raised by stakeholders during the Environmental Impact
Evaluation Assessment.
-- The Company continues to be confident that its approach to
Proyecto Touro is in line with international best practice and
includes fully plastic lined tailings with zero discharge which
will satisfy the most stringent environmental conditions that may
be imposed by the authorities prior to development of the
project.
Proyecto Masa Valverde
-- Exploration at Masa Valverde has started with ground
geophysics and two rigs currently drilling around the new Majadales
and the historic Masa Valverde deposits.
-- NI 43-101 compliant resource estimates have been started for these two properties.
Proyecto Riotinto Este
-- The Los Herreros investigation permit was granted in May 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, is expected to be granted in
the coming months.
-- A proposal and quotes for an electromagnetic airborne
geophysics survey covering Cerro Negro and Peñas Blancas
investigation permits at Riotinto Este have been requested from
three geophysical operators and the Company will provide a further
update on activity for this area in due course.
E-LIX Update
-- A feasibility study continues for an industrial plant using
the third party-patented E-LIX System followed by conventional
SX-EW to produce cathodes on site. Results of the feasibility study
are expected in Q3 2021.
-- The E-LIX pilot plant is fully operational and continues
gathering real data to be incorporated in the copper and zinc
concentrates leaching section of the feasibility studies.
-- The work at the pilot plant continues to support the
viability of the E-LIX system and further details will be provided
in due course.
Astor Update
-- As previously announced by the Company, the hearing of the
summary Judgment application took place on 14(th) and 15(th) June
2021. The application for the summary Judgment was based on
evidence given in a witness statement by Astor's Chief Executive,
Ashwath Mehra.
-- The Court dismissed Astor's application and the question as
to whether any residual interest is payable to Astor therefore
remains to be resolved at trial. Astor is required to pay Atalaya's
costs of the application (the fourth time Astor has been ordered to
pay costs in this long-running case).
-- Trial will take place in February 2022 and Atalaya continues
to be confident in its case, reinforced by this judgment in which
the Judge concluded by saying, "it is obvious from what I have said
in this judgment that I expect Astor's case to fail at trial and
they will no doubt consider carefully whether they wish to pursue
this case to trial".
Alberto Lavandeira, CEO commented:
"Our mining operations continue to perform strongly with higher
production levels compared with previous quarters. Adding to this
continued robust performance, our team continues to focus on
delivering new efficiencies and growth projects, which includes
cost reduction initiatives at Proyecto Riotinto and additional
exploration across prospective landholdings to create shareholder
value.
"The Company maintains its 2021 guidance but now expects to be
towards the high end of production guidance and the lower end of
costs guidance."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no 596/2014.
Contacts:
Elisabeth Cowell / Adam Lloyd / + 44 20 3757
SEC Newgate UK Tom Carnegie 6880
+44 20 3170
4C Communications Carina Corbett 7973
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Canaccord Genuity
(NOMAD and Joint Henry Fitzgerald-O'Connor / James +44 20 7523
Broker) Asensio 8000
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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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