Atalaya Mining PLC Operations Update (1689M)
October 11 2016 - 2:00AM
UK Regulatory
TIDMATYM
RNS Number : 1689M
Atalaya Mining PLC
11 October 2016
ATALAYA MINING PLC
("Atalaya" or the "Company")
Q3 2016 Operational Update
Copper Production Doubles as Plant Expansion Ramp-Up
Continues
Atalaya (AIM: ATYM, TSX: AYM), the European mining and
development company provides an operations update for Q3 2016 for
Proyecto Riotinto.
Q3 2016 Highlights
-- Production during Q3 2016 was 8,752 tonnes of copper in
concentrate (Q2 2016: 4,442 tonnes). This represents a 97% increase
quarter on quarter.
-- Recoveries increased to 83.60% during Q3 2016 (Q2 2016:
79.80%), with a recovery rate of 84.72% being achieved during
September 2016.
-- 2.0 million tonnes of ore were processed during Q3 2016 (Q2 2016: 1.3 million tonnes).
-- Atalaya maintains its copper production guidance of 23,500 to 27,000 tonnes for 2016.
-- Filing of an updated NI 43-101 technical report for the Riotinto Copper Project.
-- Completion of US$14 million copper concentrate prepayment
funding agreement with Transamine Trading S.A.
Production Ramp-up
During Q3 2016, the Company focused on ramping up production to
9.5Mtpa. Plant availability during the quarter improved over
previous quarters. The Company is aiming to be operating at
nameplate capacity by the end of 2016.
Mining and Processing
Total production of copper in concentrate almost doubled to
8,752 tonnes in Q3 2016, compared with production of 4,442 tonnes
in Q2 2016.
-- Recovery rates improved during Q3 2016, averaging 83.60%, with September reporting 84.72%.
-- Final grade in concentrate for Q3 2016 was 20.47% compared with 21.54% in Q2 2016.
-- Tonnes processed during Q3 2016 increased by over 50% to 2.0
million tonnes, up from 1.3 million tonnes in Q2 2016.
-- Ore extraction during Q3 2016 totalled 2.1 million tonnes
compared with 1.3 million tonnes in Q2 2016.
-- Marginal ore extracted during Q3 2016 was 557 thousand tonnes
compared with 177 thousand tonnes in Q2 2016.
-- A total of 3.4 million cubic metres of waste was removed
during Q3 2016 compared with 1.3 million cubic metres in Q2
2016.
Exploration and Geology
An updated Reserves and Resources statement was released on 14
July 2016 with a 12% increase in contained reserves, extending the
life of mine to 16.5 years. The Company filed a NI 43-101 technical
report update for its Riotinto Copper Project on 29 September 2016,
on a voluntary basis, as part of its continuing efforts to keep the
market fully updated. The lead author was Alan C. Noble, P.E., a
"Qualified Person" within the meaning
of NI 43-101 and the AIM rules for Companies. Mr. Noble is independent of the Company.
Infrastructure
A water treatment plant is now fully operational after
successful commissioning during the quarter. Dewatering of Cerro
Colorado open pit is progressing according to plan.
Financial
On 5 September 2016, the Company announced the completion of a
significant portion of its funding requirements for the expansion
project by entering into a US$14 million copper concentrate
prepayment funding agreement with Transamine Trading S.A., a
privately owned commodity trading company based in Geneva,
Switzerland. The Company continues to work on additional
alternative funding solutions to improve its working capital
position during the final phase of its ramp-up to nameplate
capacity.
The Company anticipates releasing its Q3 2016 Financial
Statements with sales and operating costs towards the end of
November 2016.
Alberto Lavandeira, CEO commented:
"We are pleased with the plant's performance during Q3. During
the quarter we focused on removing bottlenecks in the plant. As a
result, production reported a substantial increase when compared
with Q2 2016 and the recovery rate has rebounded and exceeded our
previously stated target rate for the plant. We continue to work
towards nameplate capacity which we hope to achieve before the year
end."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
Contacts:
+34 959 59
Atalaya Mining plc Roger Davey / Alberto Lavandeira 28 50
--------------------------- ---------------------------------- ------------
Canaccord Genuity Henry Fitzgerald-O'Connor +44 20 7523
(NOMAD and Joint Broker) / Martin Davison 8000
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BMO Capital Markets Jeffrey Couch/Neil Haycock/Tom +44 20 7236
(Joint Broker) 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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