REG - Atalaya Mining PLC - Update on Exploration Activities

Atalaya MiningAnnouncement

24/11/2022 07:00

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RNS Number : 4246H  Atalaya Mining PLC  24 November 2022

Atalaya Mining Plc

1 Lampousas Street

1095 Nicosia, Cyprus

Tel: +357 22442705

Fax: +357 22442708

www.atalayamining.com

 

24 November 2022

Atalaya Mining Plc.

("Atalaya" or "the Company")

Update on Exploration Activities

Drilling results include a potential new massive sulphide discovery

at the Mojarra Trend and a new high-grade zone at Masa Valverde

 

Atalaya Mining Plc (AIM: ATYM, TSX: AYM) is pleased to provide an update on
the ongoing exploration programme at its projects in southern Spain which
include Proyecto Masa Valverde ("PMV"), Proyecto Ossa Morena ("POM") and
Proyecto Riotinto East ("PRE"). A total of four rigs are currently active,
with three at PMV and one at POM.

Highlights

·      Mojarra Trend at PMV: New potential discovery via intersection of
18.75m of polymetallic massive sulphides from the 2(nd) hole in a previously
undrilled area

‒      MR02: 18.75m at 0.84% Cu, 0.63% Zn, 0.66% Pb and 76.24 g/t Ag
including a higher-grade zone of 6.80m at 1.22% Cu and 101.60 g/t Ag

·      Masa Valverde deposit at PMV: Step-out drilling in the western area
has discovered a new high-grade zinc zone

‒      MJ54: Including a main mineralised interval of 18.00m at 0.25% Cu,
8.30% Zn, 2.49% Pb, 60.17 g/t Ag and 0.89 g/t Au (4.06% CuEq)

‒      New mineralised zone remains open laterally

·      Campanario Trend at PMV: Resource definition drilling encountered
new zones of shallow polymetallic mineralisation, including:

‒      CA42: 7.50m at 0.45% Cu, 1.09 g/t Ag and 6.67 g/t Au from 35m

‒      CA40: 9.80m at 0.44% Cu, 8.16 g/t Ag and 0.15 g/t Au from 11m

‒      Drillholes are located west and east of the historical Campanario
mine where previously announced drilling defined shallow higher-grade zones

·      Campanario Trend at PMV: Additional drilling around the historical
Campanario mine confirmed the lateral and up-dip continuity of the previously
defined mineralisation, including:

‒      CA25: 9.10m at 0.72% Cu, 3.60% Zn, 2.65% Pb, 73.79 g/t Ag and 0.99
g/t Au from 100.90m (2.90% CuEq)

·      Hinchona Cu-Au prospect at POM: Initial results from a four-hole
campaign included an intersection of 3.40m at 0.80% Cu, 1.84 g/t Ag and 479
ppm Co

·      Riotinto East: First drilling is expected to commence shortly

 

Alberto Lavandeira, CEO, commented:

"The discovery of the Mojarra Trend is very promising and demonstrates the
value of the systematic exploration approach being implemented by our
geological team.

We acquired PMV in 2020, having discovered the small but high-grade
polymetallic Majadales deposit, and in April 2022 announced a new NI 43-101
compliance resource estimate for the Masa Valverde and Majadales deposits.
Since then we have defined new, shallow and potentially economic
mineralisation at the Campanario Trend and have now made a potentially new
discovery at the previously undrilled Mojarra Trend.

All of these achievements, together with the numerous geophysical targets that
remain untested, confirm our belief that the ultimate resource potential of
PMV is underexplored and far from defined.

At POM, the encouraging initial results at Hinchona provide confidence that
further drilling is warranted, with a focus on finding new zones of economic
mineralisation and also increasing the currently defined resources at the
flagship Alconchel Cu-Au deposit.

Exploration will remain a key activity for Atalaya in 2023 and our exploration
budget is expected to reflect our geological team's recent successes and the
growing list of targets across our exploration portfolio. We remain focused on
expanding our resource base and identifying higher grade material that could
be processed at our Riotinto plant, potentially providing an uplift to copper
production by increasing the blended head grade."

Ongoing Exploration Programmes

In the past years, Atalaya has assembled a substantial portfolio of
exploration projects in southern Spain. These include PMV and PRE, which are
located in the Riotinto District, as well as POM, which is located north of
Riotinto. Exploration activities at these projects are consistent with
Atalaya's strategy to develop its existing 15 Mtpa mill into a central
processing hub for material sourced from its deposits in the region.

Figure 1: Atalaya Exploration Permits

 

PMV

Overview

PMV is strategically located approximately 28km from Proyecto Riotinto, and
consists of several volcanogenic massive sulphide ("VMS") type deposits
including Masa Valverde ("MV"), Majadales, the Campanario Trend and now the
Mojarra Trend. In April 2022, Atalaya announced a new independent resource
estimate for MV and Majadales.

Three core rigs are currently active and focused on step-out drilling at MV,
resource definition drilling at the Campanario Trend and drill testing the
lateral continuity of the new discovery made at the Mojarra Trend.

Since the Company's last exploration update, 34 holes have been completed at
Campanario, five at MV West Extension and two at Mojarra Trend for a total of
about 20,871m.

Figure 2: PMV Drill Hole Map and Geophysical Anomalies

Mojarra Trend

The Mojarra Trend is a 2km long, north-west trending structural corridor,
located 1km north of the Campanario Trend. It is defined by the presence of
small, historical manganese and pyrite mines, elevated Cu values in soils and
associated fix-loop electromagnetic ("FLEM") anomalies, all along a complex
structural (low angle faulting) and stratigraphic (including basic volcanics)
setting.

Figure 3: Mojarra Trend Drill Hole Map and Geophysical Anomalies

Two holes totalling 1,162m have been completed to date and one more hole is
under way. The first hole (MR01) failed to hit any significant mineralisation
but the second hole (MR02), located in the westernmost part of the FLEM
anomaly, intersected 18.75m of massive sulphides at 434m depth. Pyrite is the
predominant sulphide mineral, but is also associated with visible sphalerite,
galena and chalcopyrite. Host rocks are graphitic black shales with felsic
tuffs and minor volcanics interbedded. Assay results returned 18.75m at 0.84%
Cu, 0.63% Zn, 0.66% Pb and 76.24 g/t Ag including a higher-grade interval of
6.80m at 1.22% Cu and 101.60 g/t Ag.

Figure 4: MR02 Discovery Hole Preliminary Section at Mojarra Trend

The next round of drilling will test the lateral continuity of this new zone
which, if confirmed, could represent a significant discovery not only at PMV
but also in the Iberian Pyrite Belt.

MV West Extension

Five holes totalling 5,034m were completed in the western part of the MV
deposit with the aim of extending the known mineralisation in that direction
(see Figure 5). The holes were distributed as follows:

·      Holes MJ54 and MJ55 were drilled in the westernmost section of the
deposit which currently represents the west limit of the resource envelope

·      Hole MJ53 was targeting the FLEM anomaly located 300m west of MV

·      Holes OD01 and OD02 drill tested another FLEM anomaly located 1km
west of MV

Figure 5: MV West Extension Drill Hole Map and Geophysical Anomalies

MJ54 and MJ55 hit wide intervals of massive sulphide mineralisation
demonstrating that the system remains open to the west. Hole MJ54 intersected
90.10m from 823.00m depth while drill hole MJ55 hit 19.40m from 908.20m depth.
In both cases, visible sphalerite, galena, and chalcopyrite is associated with
the massive pyrite mineralisation.

Assay results for hole MJ54 returned two high grade mineralised intervals of
18.00m at 0.25% Cu, 8.30% Zn, 2.49% Pb, 60.17 g/t Ag and 0.89 g/t Au plus
3.00m at 0.36% Cu, 6.11% Zn, 0.22% Pb, 29.33 g/t Ag and 0.98 g/t Au.  A
separate lower grade interval returned 12.00m at 0.09% Cu, 2.54% Zn, 1.58% Pb,
51.08 g/t Ag and 0.75 g/t Au. Stockwork type mineralisation intersected above
and below the massive sulphides returned low-grade results.

Assay results for hole MJ55 returned 28.50m at 0.42% Cu, 0.27% Zn, 0.20% Pb
and 19.50 g/t Ag.  Gold values are not yet available for this hole. A
preliminary section through these holes is included in Figure 6.

Figure 6: MJ54 and MJ55 Sections at MV West Extension

Drill hole MJ53 was the second attempt to hit the core of the FLEM anomaly
located 300m west of the western limit of MV deposit. However, and as occurred
with previous hole MJ47, it failed due to severe drifting problems. Despite
those issues, the first hole (MJ47) had intersected massive sulphides which
returned 14m at 0.36% Cu, 0.61% Zn, 0.32% Pb, 18.04 g/t Ag and 0.54 g/t Au
(0.78% CuEq).

Drill holes OD01 and OD02 failed to find any significant mineralisation.
However, a down hole EM survey on those holes showed a moderate off-hole
conductor immediately north of OD1 which will deserve further drill testing.

Mineralisation found in holes MJ54 and MJ55 has several positive exploration
implications for the following main reasons:

·      Improves the geological model in the west sector of the deposit
providing more lateral continuity to the massive sulphide zones

·      Suggests that several historical holes were stopped prematurely

·      Confirms that mineralisation remains open laterally, especially to
the west but, more importantly, with associated high-grade results which could
be economic even at those depths

·      Will help to target more accurately the two main FLEM anomalies
west of the deposit

An additional step-out hole, MJ56, is currently in progress with the goal of
proving the continuity of the high-grade zone encountered in hole MJ54
approximately 150m to the NW. Complete results from the MV West Extension are
included in Table 1.

Campanario Trend

Resource definition drilling continues in progress at the Campanario Trend
with one rig. Since the beginning of the programme, the Company completed a
total of 14,676m in 56 holes (see Figure 7). Assay results for the first 22
holes were announced in July 2022 which corresponded to drilling around the
historical Campanario mine, located in the central part of the Campanario
Trend. Drilling since then has been distributed as follows:

·      20 holes on the western part of the Campanario Trend, mainly around
the California, Descamisada and Descamisada West historical mines

·      11 holes around the Campanario historical mine to fill gaps in
previously drilled sections to test lateral and up-dip continuities

·      3 holes around the Cibeles historical mine, situated in the
easternmost part of the Campanario Trend

Figure 7: Campanario Trend Drill Hole Map and Main Intersections to Date

Most of the holes drilled at California, Descamisada and Descamisada West
intersected narrow zones of massive, semi-massive and, in some cases,
stockwork-type sulphide mineralisation.  The structural and stratigraphic
setting is similar to that at the central part of the Campanario Trend as well
as the mineralogy and geochemistry. However, assay results received to date
were in general lower grade than at Campanario except for some very high Au-Ag
intercepts, such as in hole CA42. Among the best results were 7.50m at 0.45%
Cu, 1.09 g/t Ag and 6.67 g/t Au (1.62% CuEq) from 35m depth in hole CA42 and
9.80m at 0.44% Cu, 8.16 g/t Ag and 0.15 g/t Au from 11m depth in hole CA40.

All the recent holes drilled around the Campanario historical mine hit massive
sulphide zones and returned higher-grade polymetallic results, confirming the
lateral and up-dip continuity of the previously defined mineralisation. Among
the best results was 9.10m at 0.72% Cu, 3.60% Zn, 2.65% Pb, 73.79 g/t Ag and
0.99 g/t Au (2.90% CuEq) from 100.90m depth in hole CA25.

Of the three holes completed so far at Cibeles, located 1.8km east of the
Campanario historical mine, one of them, CA55, intersected a narrow interval
of massive sulphide mineralisation which returned 2.90m at 0.69% Cu, 0.11% Zn,
2.61% Pb and 118.10 g/t Ag. Gold values are not yet available for this hole.
Complete results from the Campanario Trend are included in Table 2.

Based on the drilling conducted to date, the Company may conclude that the
central and eastern sectors of the Campanario Trend are the most favourable
areas to define a small but shallow and higher-grade mineral resource.
Consequently, priority will be given to complete systematic drilling along the
1.8km gap between Cibeles and Campanario and where the promising Cruz Infantes
historical mine is located.

PMV Exploration Potential

Several FLEM anomalies remain pending for drill testing inside the current
limits of the property. Priority will be given to the anomalies located south
of MV (Alcolea Trend), NW extension of the Campanario Trend (Campanario NW
extension) and NE of the Mojarra Trend (Madroño Trend) as shown in Figure 2.

POM

A four-hole drilling programme totalling 1,874m was completed at the La
Hinchona Cu-Au project, located in the central part of POM. Mineralisation at
La Hinchona is related to a north-northwest trending structure which controls
the emplacement of a diorite porphyry and associated alteration and
hydrothermal mineralisation. The main target zone is 1km long as defined by
the alignment of several small historical mines, soil geochemical and induced
polarization anomalies. So far only 450m of the 1 km long target zone has been
drill tested.

Figure 8: La Hinchona Drill Holes with Main Intersections and Mineralisation
Styles

The four holes encountered centimetric to metric scale zones of hydrothermal
alteration and pyrite, chalcopyrite, arsenopyrite and pyrrhotite
mineralisation associated with quartz (+/-carbonate) veinlets, veins, breccia
veins, stockworks and, in some cases, sulphide breccias.

The best results were obtained in the southernmost hole, HIN04, which returned
several mineralised intervals such as 14.95m at 0.29% Cu from 239.35m depth
and included two higher-grade intervals of 3.40m at 0.80% Cu, 1.84 g/t Ag and
479 ppm Co and 1.45m at 1.01% Cu and 6.04 g/t Ag. Gold values are not yet
available.

Mineralisation found in hole HIN04 has positive exploration implications
mainly because it represents a mineralogical, textural and geochemical vector
towards better grades to the south.  Complete results are included in Table
3.

Drilling has just started at the Chaparral Cu-Au prospect where previous
drilling had intersected narrow intervals of high-grade Cu mineralisation
(0.40m at 2.26 % Cu from 92.40m depth). Drilling at the flagship
Alconchel-Pallares Cu-Au-Fe project is expected to start at the beginning of
next year.

PRE

Final granting of the Peñas Blancas investigation permit was received in
August 2022. Drill target definition work carried out to date, which included
soil and rock geochemistry as well as re-interpretation of the original SkyTEM
geophysical data, has evidenced a main east-west trending mineralised
corridor, Coto Vicario, which will deserve immediate drill testing. This
corridor is characterised by the alignment of several small historical mines
(mainly pyrite), Cu soil geochemical and geophysical SkyTEM anomalies (see
Figure 9). Grab samples taken from old dumps returned up to 10.25% and 5.90%
Cu. Several historical holes drilled on this corridor encountered
stockwork-type mineralisation, mainly pyritic, but results were not available.

Figure 9: PRE Target Definition Compilation and Coto Vicario Mineralised
Corridor

 

Atalaya Exploration Programme Next Steps

Drilling will continue with four rigs until the end of the year. Priority will
be given to:

·      Investigate the lateral continuity of the new discovery at Mojarra
Trend

·      The area between Campanario and Cibeles historical mines where the
potential to find more shallow, high-grade polymetallic sulphide
mineralisation is high

·      The west extension of the high-grade mineralisation discovered in
hole MJ-54

·      Drill testing the Chaparral Cu-Au prospect at POM and to commence
infill and step-out drilling at the flagship Alconchel Cu-Au deposit

·      Commence drilling at the Coto Vicario anomaly at PRE

An airborne gravity gradiometry ("AGG") and magnetic survey is planned to
start before year end at PMV and subsequently at PRE. AGG is a leading
technology in the search for buried mineral deposits, especially those of the
size that is typical in the Pyrite Belt.

Table 1: Masa Valverde Deposit Drill Results Summary

 Notes  Hole ID  Length     From    To      Interval  Cu    Zn    Pb    Ag     Au    CuEq (1)
                 (m)        (m)     (m)     (m)       %     %     %     g/t    g/t   %

 2      OD01     1017.10
 2      OD02     1025.40
 2      MJ53     914.80
 3      MJ54     1037.40    796.80  797.90  1.10      0.49  0.19  0.13  12.00  0.89  0.76
                            823.00  888.00  65.00     0.23  2.72  0.81  42.68  0.84  1.64
                 Including  852.00  870.00  18.00     0.25  8.30  2.49  60.17  0.89  4.06
                 Including  880.00  883.00  3.00      0.36  6.11  0.22  29.33  0.98  2.87
                            898.00  910.00  12.00     0.09  2.54  1.58  51.08  0.75  1.59
 4      MJ55     1039.40    908.20  936.70  28.50     0.42  0.27  0.20  19.50  n/a   0.62
                 Including  909.00  916.00  7.00      0.56  0.02  0.09  17.01  n/a   0.64
                 Including  923.00  927.60  4.60      0.58  0.18  0.24  23.49  n/a   0.77

 

Note: Table showing detailed drilling results over 0.10% Cu.

 

1.     Metal prices and recoveries used for CuEq calculation are: Cu
$9,600/t, 80%; Zn $3,500/t, 80%; Pb $2,300/t, 60%; Ag $23/oz, 35%; Au
$1,800/oz, 20%.

 

2.     No significant intersection.

 

3.     Assays from ALS laboratory.

 

4.     Assays from Proyecto Riotinto's certified laboratory. Gold is not
assayed in this laboratory and not included in the CuEq calculation.

 

Table 2: Campanario Trend and Mojarra Drill Results Summary

 Notes  Hole ID   Length     From    To      Interval  Cu    Zn    Pb    Ag      Au     CuEq (1)
                  (m)        (m)     (m)     (m)       %     %     %     g/t     g/t    %

 2      CA14      218.00     78.10   92.70   14.60     0.28  1.72  1.74  74.86   1.33   1.67
                             78.10   83.10   5.00      0.49  4.26  3.48  78.26   0.52   3.01
                             90.20   92.70   2.50      0.60  0.94  2.80  139.00  0.64   2.01
                             100.40  103.50  3.10      0.47  6.60  4.32  104.13  0.43   4.07
                             114.40  116.00  1.60      1.03  0.49  0.57  23.88   0.23   1.42
                             123.20  125.00  1.80      0.32  0.06  0.16  14.61   0.07   0.43
 2      CA15      290.00     77.80   113.00  35.20     0.71  1.52  1.72  61.09   0.68   1.88
                  Including  79.00   81.00   2.00      1.51  0.08  1.33  160.50  1.74   2.58
                  Including  92.00   102.10  10.10     1.29  3.34  2.56  76.02   0.60   3.32
                  Including  108.90  113.00  4.10      0.54  2.25  2.16  55.39   0.17   1.96
                             158.00  161.00  3.00      0.71  1.25  0.71  25.20   0.15   1.40
                  Including  158.00  158.80  0.80      1.67  1.03  0.95  67.00   0.10   2.46
 2      CA16      179.40     88.00   118.00  30.00     0.42  0.14  0.26  21.27   0.33   0.64
                  Including  88.00   99.30   11.30     0.96  0.09  0.28  40.70   0.77   1.29
                  Inc.       90.80   93.30   2.50      2.25  0.14  0.65  76.56   1.01   2.83
 2      CA17      200.00     100.20  101.50  1.30      0.92  0.02  0.18  24.00   0.16   1.06
 2      CA18      227.00     104.50  109.10  4.60      1.04  0.04  0.13  21.96   0.24   1.18
 2      CA19      141.00     60.30   65.30   5.00      0.27  0.04  0.13  31.82   0.34   0.46
                             73.00   84.30   11.30     0.37  0.04  0.11  23.54   0.80   0.60
                  Including  77.00   77.50   0.50      2.16  0.04  0.09  18.00   0.78   2.37
                  Including  80.00   84.30   4.30      0.47  0.06  0.20  23.26   1.60   0.84
 5      CA20      157.10
 2, 4   CA21      139.30     43.20   61.30   18.10     1.26  0.08  0.64  36.64   0.40   1.59
                  Including  43.20   48.00   4.80      4.10  0.16  2.03  92.98   1.03   4.99
 2      CA22      298.80     105.60  117.00  11.40     0.13  1.04  0.53  23.05   0.25   0.72
 5      CA23      257.40
 2      CA24      203.30     124.20  127.60  3.40      0.30  1.55  0.33  10.59   0.29   1.01
                             136.70  138.00  1.30      0.27  1.34  0.66  10.00   0.71   1.01
 2      CA25      281.20     100.90  110.00  9.10      0.72  3.60  2.65  73.79   0.99   2.90
                  Including  105.90  109.00  3.10      0.98  5.67  3.37  88.71   0.99   4.10
 2      CA26      194.50     57.20   57.40   0.20      0.51  0.08  0.16  5.00    0.30   0.63
 5      CA27      169.80
 2      CA28      218.00     117.80  128.30  10.50     0.44  0.06  0.17  36.96   0.85   0.74
                  Including  121.30  125.30  4.00      0.72  0.07  0.33  78.88   1.17   1.25
 2      CA29      284.30     209.90  237.00  27.10     0.21  0.87  0.39  5.86    0.03   0.62
                  Including  209.90  210.10  0.20      1.42  0.01  0.06  20.00   0.03   1.51
                  Including  214.80  220.70  5.90      0.44  2.34  1.08  13.61   0.04   1.54
 2      CA30      290.30     62.00   70.70   8.70      0.51  2.51  2.17  49.79   0.34   2.03
                  Including  67.80   70.70   2.90      1.07  3.28  3.53  111.31  0.72   3.38
                             87.90   90.70   2.80      0.42  2.96  3.19  53.21   0.35   2.30
                  Including  87.90   88.90   1.00      1.33  2.88  5.92  118.00  0.83   3.97
 6                           92.70   100.60  7.90
                             100.60  101.00  0.40      0.42  0.04  0.13  107.00  0.13   0.84
                             124.15  132.50  8.35      0.25  1.61  0.64  14.93   0.18   1.03
                             188.30  190.00  1.70      0.20  0.07  0.14  13.06   0.08   0.30
 2      CA31      290.40     187.90  191.50  3.60      0.39  2.79  0.89  20.89   0.07   1.65
                             197.40  198.00  0.60      0.23  0.92  0.47  9.00    0.11   0.70
 2      CA32      97.70      38.00   53.40   15.40     0.12  0.78  0.29  4.09    0.22   0.50
 5      CA33      298.30
 2      CA34      112.60     45.00   48.00   3.00      0.16  0.84  0.05  3.33    0.07   0.50
 5      CA35      193.30
 5      CA36      209.50
 2      CA37      233.00     61.30   65.00   3.70      0.31  1.08  0.16  1.35    0.03   0.74
                             67.50   69.00   1.50      0.26  0.06  0.18  4.67    0.14   0.35
 2      CA38      265.80     253.00  256.00  3.00      0.17  0.00  0.00  0.00    0.01   0.17
 2      CA39      184.00     24.80   28.20   3.40      0.02  1.06  0.01  0.00    0.02   0.41
                             31.00   36.10   5.10      0.17  0.24  0.04  2.43    0.13   0.29
 2      CA40      91.70      11.00   20.80   9.80      0.44  0.06  0.07  8.16    0.15   0.52
                  Including  13.60   16.00   2.40      1.05  0.08  0.15  8.00    0.17   1.16
 2      CA41      158.00     76.90   78.00   1.10      0.60  0.06  0.17  7.00    0.10   0.69
 2      CA42      195.60     35.00   42.50   7.50      0.45  0.42  0.02  1.09    6.67   1.62
                  Including  37.10   38.10   1.00      2.22  1.50  0.03  4.00    0.20   2.82
                  Including  38.10   41.80   3.70      0.12  0.06  0.01  0.00    13.02  2.11
 5      CA43      223.80
 2      CA44      184.80     83.10   84.20   1.10      0.28  0.81  0.46  9.00    0.30   0.73
                             86.50   87.10   0.60      0.09  2.35  1.32  15.00   0.12   1.25
 2      CA45BIS2  119.40     29.70   30.90   1.20      0.94  4.00  3.18  91.00   0.60   3.37
 6                           30.90   38.10   7.20
                             38.10   40.90   2.80      0.57  5.37  4.05  78.37   0.21   3.55
                  Including  38.10   40.15   2.05      0.71  7.02  5.23  94.61   0.27   4.57
 2      CA46      269.00     114.00  117.00  3.00      0.17  0.09  0.04  1.33    0.03   0.22
 6      CA47      83.10      10.40   19.40   9.00
                             23.90   25.40   1.50
                             41.80   54.60   12.80
 2      CA48      186.60     71.10   71.40   0.30      1.80  0.00  0.01  1.00    0.26   1.84
 2      CA49      131.90     24.00   25.00   1.00      0.54  0.07  0.19  130.00  1.59   1.28
                             46.80   49.30   2.50      0.95  0.46  1.57  26.40   1.53   1.72
 2      CA50      134.90     17.20   21.80   4.60      0.57  0.03  0.03  1.46    0.05   0.60
                  Including  19.00   20.00   1.00      1.04  0.04  0.05  3.00    0.08   1.09
 5      CA51      224.00
 3      CA52      196.70     79.60   85.80   6.20      0.26  0.22  0.40  110.23  n/a    0.78
                  Including  80.90   81.70   0.80      0.80  0.10  0.45  174.40  n/a    1.51
 5      CA53      260.00
 3      CA54      211.90     85.80   89.00   3.20      0.59  5.60  4.95  129.79  n/a    3.96
 3      CA55      300.60     82.10   85.00   2.90      0.69  0.11  2.61  118.10  n/a    1.60
 5      MR01      542.00
 3      MR02      620.00     434.05  452.80  18.75     0.84  0.63  0.66  76.24   n/a    1.45
                  Including  441.00  444.00  3.00      0.68  2.41  1.50  63.99   n/a    2.04
                  Including  446.00  452.80  6.80      1.22  0.07  0.22  101.60  n/a    1.63

 

Note: Table showing detailed drilling results over 0.10% Cu.

 

1.     Metal prices and recoveries used for CuEq calculation are: Cu
$9,600/t, 80%; Zn $3,500/t, 80%; Pb $2,300/t, 60%; Ag $23/oz, 35%; Au
$1,800/oz, 20%.

 

2.     Assays from ALS laboratory.

 

3.     Assays from Proyecto Riotinto's certified laboratory. Gold is not
assayed in this laboratory and not included in the CuEq calculation.

 

4.     This intersection includes 3m not recovered, likely due to an adit
from 55 to 58m. Metal content of this interval is considered as zero in the
calculations of the intercepts.

 

5.     No significant intersection.

 

6.     Adit intercepted.

 

Table 3: La Hinchona Drill Results Summary

 Notes  Hole ID  Length     From    To      Interval  Cu    Ag    Au   Co
                 (m)        (m)     (m)     (m)       %     g/t   g/t  ppm

 1      HIN01    538.00     43.80   44.60   0.80      0.24  1.00  n/a  41
                            173.45  174.80  1.35      0.20  2.00  n/a  91
                            210.85  213.15  2.30      0.40  0.50  n/a  192
                 Including  210.85  212.00  1.15      0.57  1.00  n/a  186
                            297.80  298.40  0.60      0.41  2.00  n/a  36
                            355.45  355.80  0.35      0.33  1.00  n/a  52
 1      HIN02    475.20     53.35   57.30   3.95      0.30  0.84  n/a  100
                            262.00  263.65  1.65      0.22  1.22  n/a  49
                            265.70  266.85  1.15      0.20  1.46  n/a  99
                            353.35  355.20  1.85      0.15  0.92  n/a  33
                            403.30  403.80  0.50      0.53  5.54  n/a  173
 1      HIN03    457.00     63.65   65.00   1.35      0.38  3.58  n/a  104
                            231.20  232.30  1.10      0.67  3.73  n/a  1952
                 Including  231.80  232.30  0.50      1.31  7.93  n/a  4266
                            258.30  260.35  2.05      0.18  0.96  n/a  80
                            269.95  270.30  0.35      0.11  0.53  n/a  97
 1      HIN04    404.00     111.35  111.80  0.45      0.17  1.00  n/a  68
                            201.85  202.30  0.45      0.26  0.02  n/a  217
                            221.75  223.30  1.55      0.34  1.13  n/a  230
                            228.65  230.45  1.80      0.29  0.00  n/a  284
                            239.35  254.30  14.95     0.29  0.71  n/a  178
                 Including  245.80  249.20  3.40      0.80  1.84  n/a  479
                 Inc.       247.80  249.20  1.40      1.41  4.48  n/a  1017
                            279.50  279.95  0.45      0.25  0.99  n/a  575
                            388.35  389.80  1.45      1.01  6.04  n/a  29

 

Note: Table showing detailed drilling results over 0.10% Cu.

 

1.     Assays from Proyecto Riotinto's certified laboratory. Gold is not
assayed in this laboratory.

 

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 40 years' experience.

Glossary of Terms

 Ag         Silver
 AGG        Airborne Gravity Gradiometry
 Au         Gold
 Co         Cobalt
 Cu         Copper
 CuEq       Copper Equivalent
 FLEM       Fixed Loop Electromagnetic Survey
 g/t        Grams per tonne
 Pb         Lead
 PPM        Parts per million
 Stockwork  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.
 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 99.9% interest in
Proyecto Ossa Morena. For further information, visit www.atalayamining.com
(http://www.atalayamining.com)

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