REG - Atalaya Mining PLC - Positive Drilling Results from Campanario Trend

Atalaya MiningAnnouncement

05/07/2022 07:00

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RNS Number : 2690R  Atalaya Mining PLC  05 July 2022

A version of this announcement containing all referenced figures can be found
on

the Company's website at www.atalayamining.com (http://www.atalayamining.com)
(the "Website Announcement").

 

5 July 2022

Atalaya Mining Plc.

("Atalaya" or "the Company")

Positive Drilling Results from the Campanario Trend

Shallow polymetallic mineralisation including massive and semi-massive
sulphides intersected as part of four-rig drilling campaign at Proyecto Masa
Valverde

 

Atalaya Mining Plc (AIM: ATYM, TSX: AYM) is pleased to announce the results of
the first 22 exploration drill holes completed to date on the Campanario
Trend, one of several mineralised zones comprising Proyecto Masa Valverde
("PMV"). PMV is located in southern Spain approximately 28 km to the south of
Atalaya's 15 Mtpa mill at Proyecto Riotinto (see Figure 1 in the Website
Announcement).

Highlights

·    Initial drilling results confirm PMV's continued exploration
potential and the possibility to quickly define a shallow mineral resource

·    Shallow polymetallic mineralisation includes:

‒     CA15: 35.20m at 0.70% Cu, 1.53% Zn, 1.39% Pb and 62.50 g/t Ag
(1.71% CuEq) from 77.80m from surface

‒     CA21: 18.10m at 1.19% Cu, 0.08% Zn, 0.32% Pb and 36.66 g/t Ag
(1.40% CuEq) from 43.20m from surface

·    Drilling to date has focused around the historical Campanario
workings, which only represents approximately 10% of the entire strike length
of the mineralised structure

·    Intersected mineralisation includes massive and semi-massive
sulphides as well as stockwork-type material, consistent with the Masa
Valverde and Majadales deposits

·    Initial drilling results demonstrate the significant exploration
potential of Atalaya's strategic land package in the world-class Iberian
Pyrite Belt

 

Alberto Lavandeira, CEO, commented:

"We are pleased with these initial drilling results from the Campanario Trend
which confirm the expectations we had on the exploration potential of PMV. We
continue working on defining the potential shallow mineral resource in the
short term which to date has only been drill tested in approximately 10% of
the entire mineralised structure. In addition, we have several coincident
geochemical and geophysical targets pending for drill testing indicating that
we are still far from knowing the ultimate exploration potential of PMV.

We believe that these initial results will not only have a positive impact on
future development scenarios and project economics, but they also highlight
the significant exploration potential of the Iberian Pyrite Belt."

About Proyecto Masa Valverde

PMV consists of several volcanogenic massive sulphide ("VMS") type deposits
including Masa Valverde, Majadales, the Campanario Trend and other drill ready
targets. Atalaya's exploration team discovered the Majadales deposit and in
2020 acquired a 100% interest in PMV.  The project is strategically located
approximately 28 km from Proyecto Riotinto, therefore future development
scenarios are expected to utilise the Company's existing 15 Mtpa processing
plant.

In April 2022, Atalaya announced a new independent resource estimate for PMV
that was prepared in accordance with CIM guidelines and disclosure
requirements of NI 43-101, including:

·    Masa Valverde Indicated Mineral Resource of 16.9 Mt at 0.66% Cu,
1.55% Zn, 0.65% Pb, 27 g/t Ag and 0.55 g/t Au (1.51% CuEq)

·    Masa Valverde Inferred Mineral Resource of 73.4 Mt at 0.61% Cu, 1.24%
Zn, 0.61% Pb, 30 g/t Ag and 0.62 g/t Au (1.37% CuEq)

·    Majadales Inferred Mineral Resource of 3.1 Mt at 0.94% Cu, 3.08% Zn,
1.43% Pb, 54 g/t Ag and 0.32 g/t Au (2.55% CuEq)

Atalaya expects to complete a PEA for PMV by the end of the year.

Four rigs are currently operating at PMV, as part of the Company's €10
million exploration programme for 2022. Two rigs are devoted to the Campanario
Trend and the rest are drill testing the Fix Loop Electromagnetic ("FLEM")
anomalies west of the Masa Valverde deposit. So far, three holes were
completed at two of the FLEM anomalies. The results of that programme will be
released in a future announcement.

About the Campanario Trend

The Campanario Trend is a five kilometre north-west trending mineralised
corridor, located one kilometre north of the Masa Valverde and Majadales VMS
deposits. Campanario is characterised by the presence of numerous small
historical workings and coincident soil geochemical and geophysical anomalies
(see Figure 2 in the Website Announcement).

Historical mining activity (from 1876 - 1917) along the Campanario Trend was
at a small scale and focused on narrow zones of massive sulphides.
Near-surface oxidation of the massive sulphides, mainly pyrite, generated
gossans which were also investigated for gold potential.

Total historical mine production is estimated to be 0.22 million tonnes at
1.5% Cu from six main mining areas situated from the east to the west: Cruz
Infante, Cibeles, Campanario, California, Descamisada and Descamisada Oeste.
Drilling to date by Atalaya has focused around the historical Campanario
workings which, by size, are the most important along the Campanario Trend.

Notably, immediately to the west of the historical Descamisada Oeste mine, the
FLEM geophysical survey delineated a significant conductor (Loop 14 in Figure
2 in the Website Announcement) which is interpreted to be the potential west
extension of the main mineralised corridor. To the east of the historical
Campanario workings and coincident with the Cruz Infantes and old Cibeles
mines, a previous VTEM ("Versatile Time Domain Electromagnetic") survey
delineated a zone of elevated conductivity which could be related with the
presence of massive sulphides at depth.

Despite the numerous historical workings, the semi-continuous outcropping
mineralisation and the proximity to the large Masa Valverde deposit, the
Campanario Trend remained under-explored for many years.  The last drilling
campaign was carried out in 1995 by the Spanish state-owned company Adaro.

 

Campanario Trend Initial Drilling Results

Atalaya has completed 22 drill holes at the Campanario Trend with assay
results produced by the certified laboratory at Proyecto Riotinto. In
addition, assays including gold were produced by an independent external
laboratory (ALS) up to hole CA-13.

Drilling was focused around the historical Campanario workings, located in the
central part of the five kilometre long Campanario Trend (see drill hole map
in Figure 3 in the Website Announcement). Assay results received to date
included intersections that are the best so far in terms of "grade x
thickness" factor.

Local stratigraphy consists of black shales with varying graphite content,
coherent acid rocks of rhyodacitic composition and, to a lesser extent,
volcanic tuffs. Mineralised zones are mainly hosted in the black shale levels
which are intensely folded and sheared and often show zones of sericitic,
chloritic and silicic alteration.

Except near surface where it is oxidised (gossans), the main mineralisation
styles are massive and semi-massive sulphides and stockwork-type. Pyrite is
the predominant sulphide mineral with subordinate chalcopyrite, sphalerite,
galena and sulphosalts. Mineralisation is polymetallic with elevated As, Sb,
Hg and Bi values, therefore Atalaya believes the E-LIX System has strong
potential to unlock value from any future mined material from the Campanario
Trend.

The geometry of the mineralised zones varies down dip from steeply dipping to
moderately dipping to the north-north-east and may include several parallel
lenses of massive and semi-massive sulphides, with individual true thicknesses
varying from 1-2 metres up to 20-25 metres.  Two representative cross
sections are included in Figure 4 in the Website Announcement.

The mineralised system remains completely open laterally but seems to get
thinner at depth in some sections. Pinch and swell geometry is evident, quite
likely due to syn/late deformation.

Table 1: Selected Campanario Drill Holes

 Hole ID    From   To      Interval  Cu    Zn    Pb    Ag      Au(1)   CuEq(2)

(m)
(m)
(m)
(%)
(%)
(%)
(g/t)
(g/t)
(%)

 CA15       77.80  113.00  35.20     0.70  1.53  1.39  62.50   n/a     1.71
 Including  92.00  102.10  10.10     1.27  3.32  1.87  77.17   n/a     3.08
 CA16       88.00  116.00  28.00     0.45  0.14  0.25  22.61   n/a     0.62
 Including  88.00  99.30   11.30     0.97  0.08  0.27  41.03   n/a     1.19
 Inc.       90.80  93.30   2.50      2.21  0.13  0.61  72.31   n/a     2.61
 CA21       43.20  61.30   18.10     1.19  0.08  0.32  36.66   n/a     1.40
 Including  43.20  48.00   4.80      3.85  0.16  0.86  95.34   n/a     4.38

 (1) Assays are from the certified laboratory at Proyecto Riotinto, which does
 not assay for gold, therefore gold is not included in the CuEq calculation.
 (2) Metal prices and recoveries used for CuEq calculation are: $9,600/t Cu and
 80%; $3,500/t Zn and 80%; $2,300/t Pb and 60%; $23/oz Ag and 35%.

The full set of results from the 22 holes is shown below in Table 2.

Next Steps

Drilling at PMV will continue testing the shallow lateral extensions of
mineralisation found to date at the Campanario Trend as well as drill testing
the FLEM geophysical anomalies west of the Masa Valverde deposit.

Mineralogical and petrographic studies are already in progress as well as
sampling for initial metallurgical testwork.

Data gathering during the current drilling programme at Campanario will form
the basis of the new geological model which will support an initial mineral
resource estimation.

Qualified Person Statement

Alberto Lavandeira has reviewed the technical information contained within
this announcement in his capacity as a Qualified Person, as required under the
AIM Rules for Companies. Alberto Lavandeira is the Chief Executive Officer for
the Company and is a member of good standing with the Association of Mining
Engineers of Spain, with over 41 years' experience.

 

Table 2: Campanario Trend Drill Hole Data

         Hole ID  Length     From    To      Interval  Cu        Zn        Pb        Ag        Au(1)     CuEq(2)

(m)
(m)
(m)
(m)
(%)
(%)
(%)
(g/t)
(g/t)
(%)

 ( )     CA1      533.50     No Significant Intersection
 ( )     CA2      414.20     No Significant Intersection
 (3)     CA3      326.30     148.10  160.50  12.40     0.17      0.66      0.25      5.16      0.22      0.51
 (3)     CA4      251.20     161.50  167.00  5.50      0.27      1.30      0.77      24.36     0.34      1.02
 ( )                         182.00  183.00  1.00      0.15      3.69      1.94      22.00     0.21      1.95
 (3)     CA5      299.50     154.00  169.00  15.00     0.38      1.56      0.91      14.27     0.18      1.18
 ( )              Including  158.00  161.00  3.00      1.04      3.69      2.27      32.00     0.51      2.98
 ( )                         189.00  191.00  2.00      0.12      0.09      0.03      1.00      0.05      0.17
 ( )                         209.00  213.00  4.00      0.15      0.43      0.26      6.50      0.05      0.38
 (3)     CA6      328.30     149.70  158.10  8.40      Adit intercepted. Fill material up to 0.90% Cu
 (3)     CA7      248.60     150.00  160.00  10.00     0.18      0.67      0.21      7.80      0.10      0.51
 (3)     CA8      275.00     159.00  169.00  10.00     0.35      2.53      1.27      25.40     0.31      1.63
 ( )                         215.00  223.00  8.00      0.43      0.19      0.15      8.38      0.17      0.58
 ( )                         227.00  231.00  4.00      0.16      0.27      0.11      4.50      0.11      0.31
 ( )     CA9      268.40     No Significant Intersection
 (3)     CA10     272.50     159.00  161.00  2.00      0.25      0.17      0.05      12.00     0.08      0.38
 (3)     CA11     341.00     123.70  144.00  20.30     0.50      0.56      0.73      55.87     0.66      1.12
 ( )              Including  123.70  133.00  9.30      0.76      0.66      0.86      85.82     1.07      1.61
 ( )              Inc.       131.00  133.00  2.00      1.50      0.12      0.22      63.00     1.02      1.95
 ( )                         165.00  166.30  1.30      0.28      0.19      0.89      56.23     0.23      0.73
 ( )                         184.00  194.00  10.00     0.38      0.05      0.15      42.90     1.11      0.73
 ( )              Including  186.00  188.00  2.00      0.76      0.09      0.23      100.00    0.23      1.21
 (3)     CA12     260.00     117.00  125.50  8.50      0.46      0.96      0.65      35.31     0.45      1.12
 ( )              Including  118.60  120.00  1.40      1.17      0.12      0.67      114.14    1.08      1.89
 (3)     CA13     280.20     116.00  123.00  7.00      0.14      1.03      0.36      4.86      0.05      0.61
 (4)     CA14     218.00     78.10   83.10   5.00      0.49      4.33      1.47      77.83     n/a       2.60
 ( )                         90.20   92.70   2.50      0.62      0.97      1.08      123.31    n/a       1.58
 ( )                         100.40  103.50  3.10      0.46      6.09      1.46      92.04     n/a       3.25
 ( )                         114.40  116.00  1.60      1.04      0.48      0.57      23.33     n/a       1.39
 ( )                         123.20  125.00  1.80      0.33      0.06      0.16      12.10     n/a       0.42
 (4)     CA15     290.00     77.80   113.00  35.20     0.70      1.53      1.39      62.50     n/a       1.71
 ( )              Including  79.00   81.00   2.00      1.56      0.09      1.13      171.40    n/a       2.37
 ( )              Including  92.00   102.10  10.10     1.27      3.32      1.87      77.17     n/a       3.08
 ( )              Including  108.90  113.00  4.10      0.51      2.40      1.77      54.13     n/a       1.89
 ( )                         158.00  161.00  3.00      0.70      1.31      0.69      24.53     n/a       1.39
 ( )              Including  158.00  158.80  0.80      1.73      1.10      0.95      66.73     n/a       2.53
 (4)     CA16     179.40     88.00   116.00  28.00     0.45      0.14      0.25      22.61     n/a       0.62
 ( )              Including  88.00   99.30   11.30     0.97      0.08      0.27      41.03     n/a       1.19
 ( )              Inc.       90.80   93.30   2.50      2.21      0.13      0.61      72.31     n/a       2.61
 (4)     CA17     200.00     100.20  101.50  1.30      0.94      0.02      1.19      22.58     n/a       1.24
 (4)     CA18     227.00     104.50  109.10  4.60      1.03      0.04      0.12      21.64     n/a       1.14
 (4)     CA19     141.00     60.30   65.30   5.00      0.28      0.04      0.13      31.45     n/a       0.42
 ( )                         73.00   84.30   11.30     0.37      0.04      0.11      22.70     n/a       0.48
 ( )              Including  77.00   77.50   0.50      2.14      0.05      0.08      16.62     n/a       2.23
 ( )              Including  81.00   84.30   3.30      0.47      0.06      0.17      27.07     n/a       0.61
 (4)     CA20     157.10     No Significant Intersection
 (4, 5)  CA21     139.30     43.20   61.30   18.10     1.19      0.08      0.32      36.66     n/a       1.40
 ( )              Including  43.20   48.00   4.80      3.85      0.16      0.86      95.34     n/a       4.38
 (4)     CA22     298.80     105.60  117.00  11.40     0.12      1.03      0.50      22.56     n/a       0.66
 (1  ) Table showing detailed drilling results over 0.10% Cu.
 (2)   Metal prices and recoveries used for CuEq calculation are: $9,600/t Cu
 and 80%; $3,500/t Zn and 80%; $2,300/t and 60%; $23/oz Ag and 35%; $1,800/oz
 and 20%.
 (3  ) Assays from ALS laboratory, which assays for gold.
 (4  ) Assays are from the certified laboratory at Proyecto Riotinto, which
 does not assay for gold, therefore gold is not included in the CuEq
 calculation.
 (5  ) This intersection includes 3m not recovered, probably that is an adit
 from 55 to 58m. Metal content of this interval is considered as zero in the
 calculations of the intercepts.

 

Figure 1: Proyecto Masa Valverde Location (refer to Website Announcement)

 

Figure 2: Campanario Trend Anomalies (refer to Website Announcement)

 

Figure 3: Drill Hole Locations (refer to Website Announcement)

 

Figure 4: Representative Cross Sections (refer to Website Announcement)

 

Glossary of Terms

 Ag                           Silver
 As                           Arsenic
 Au                           Gold
 Bi                           Bismuth
 CIM                          Canadian Institute of Mining, Metallurgy and Petroleum
 Cu                           Copper
 CuEq                         Copper Equivalent
 FLEM                         Fixed Loop Electromagnetic Survey
 g/t                          Grams per tonne
 Hg                           Mercury
 Indicated Mineral Resources  An Indicated Mineral Resource is that part of a Mineral Resource for which
                              quantity, grade or quality, densities, shape and physical characteristics are
                              estimated with sufficient confidence to allow the application of Modifying
                              Factors in sufficient detail to support mine planning and evaluation of the
                              economic viability of the deposit.

                              Geological evidence is derived from adequately detailed and reliable
                              exploration, sampling and testing and is sufficient to assume geological and
                              grade or quality continuity between points of observation.

                              An Indicated Mineral Resource has a lower level of confidence than that
                              applying to a Measured Mineral Resource and may only be converted to a
                              Probable Mineral Reserve.
 Inferred Mineral Resource    An Inferred Mineral Resource is that part of a Mineral Resource for which
                              quantity and grade or quality are estimated on the basis of limited geological
                              evidence and sampling. Geological evidence is sufficient to imply but not
                              verify geological and grade or quality continuity.

                              An Inferred Mineral Resource has a lower level of confidence than that
                              applying to an Indicated Mineral Resource and must not be converted to a
                              Mineral Reserve. It is reasonably expected that the majority of Inferred
                              Mineral Resources could be upgraded to Indicated Mineral Resources with
                              continued exploration.
 kt                           Thousand tonnes
 Measured Mineral Resources   A Measured Mineral Resource is that part of a Mineral Resource for which
                              quantity, grade or quality, densities, shape, and physical characteristics are
                              estimated with confidence sufficient to allow the application of Modifying
                              Factors to support detailed mine planning and final evaluation of the economic
                              viability of the deposit.

                              Geological evidence is derived from detailed and reliable exploration,
                              sampling and testing and is sufficient to confirm geological and grade or
                              quality continuity between points of observation. A Measured Mineral Resource
                              has a higher level of confidence than that applying to either an Indicated
                              Mineral Resource or an Inferred Mineral Resource. It may be converted to a
                              Proven Mineral Reserve or to a Probable Mineral Reserve.
 Mineral Resources            A concentration or occurrence of material of intrinsic economic interest in or
                              on the Earth's crust in such a form and quantity that there are reasonable
                              prospects for eventual economic extraction. The location, quantity, grade,
                              geological characteristics and continuity of a Mineral Resource are known,
                              estimated or interpreted from specific geological evidence and knowledge.
                              Mineral Resources are sub-divided, in order of increasing geological
                              confidence, into Inferred, Indicated and Measured categories.
 Mt                           Million tonnes
 Mtpa                         Million tonnes per annum
 n.a.                         Not available
 NI 43-101                    Canadian National Instrument for the Standards of Disclosure for Mineral
                              Projects
 Pb                           Lead
 PEA                          Preliminary Economic Assessment
 PPM                          Parts per million
 Sb                           Antimony
 Stockwork                    It's a complex 3D network of structurally controlled or randomly oriented
                              veins. They are common in many ore deposit types. They are also referred to as
                              stringer zones.
 VMS                          Volcanic Massive Sulphide
 Zn                           Zinc

 

Contacts:

 SEC Newgate UK             Elisabeth Cowell / Axaule Shukanayeva / Max Richardson  + 44 20 3757 6882
 4C Communications          Carina Corbett                                          +44 20 3170 7973
 Canaccord Genuity          Henry Fitzgerald-O'Connor / James Asensio               +44 20 7523 8000

 (NOMAD and Joint Broker)
 BMO Capital Markets        Tom Rider / Andrew Cameron                              +44 20 7236 1010

 (Joint Broker)
 Peel Hunt LLP              Ross Allister / David McKeown                           +44 20 7418 8900

 (Joint Broker)

 

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, as well as a 51% interest in
Proyecto Ossa Morena. For further information, visit www.atalayamining.com
(http://www.atalayamining.com)

 

 

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