REG - Atalaya Mining PLC - Filing of Proyecto Riotinto Technical Report

Canaccord GenuityAnnouncement

05/10/2022 09:34

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RNS Number : 7796B  Atalaya Mining PLC  05 October 2022

Atalaya Mining Plc

1 Lampousas Street

1095 Nicosia, Cyprus

Tel: +357 22442705

Fax: +357 22421956

www.atalayamining.com

 

5 October 2022

Atalaya Mining Plc.

("Atalaya" or "the Company")

Filing of Proyecto Riotinto Technical Report

Report covers the entire Riotinto property including the San Dionisio and San
Antonio deposits

 

Atalaya Mining Plc (AIM: ATYM, TSX: AYM) is pleased to announce the filing on
SEDAR of a technical report on Proyecto Riotinto which is dated September 2022
(the "Technical Report") and prepared in accordance with National Instrument
43-101 ("NI 43-101"). The Technical Report includes independent Mineral
Resource Estimates for the Company's San Dionisio and San Antonio deposits,
which form part of Proyecto Riotinto and are located adjacent to the Company's
operating Cerro Colorado open pit and 15 Mtpa processing plant.

The Technical Report is entitled "Technical Report on the Riotinto Copper
Project - Located in Huelva Province, Spain" and is available under the
Company's profile on SEDAR at www.sedar.com (http://www.sedar.com) and on the
Company's website at www.atalayamining.com (http://www.atalayamining.com) .

San Dionisio Mineral Resource Estimation Details

The drilling data used for mineral resource estimation was based on 1,003
drillholes over 83,554 metres, of which 45 holes over 16,991 metres were
completed by Atalaya between 2015-2021, while the remainder by past operators.

The Mineral Resource model was created as a three-dimensional block model
using Datamine Studio RM software. The model block size is 10x10x10 metres,
which is consistent with the estimated mining bench height and the estimated
selective mining unit. The horizontal extent of the model is defined to cover
the San Dionisio deposit, plus sufficient space outside the deposit to cover
the ultimate pit.

San Dionisio Mineral Resource Estimate (December 2021)

Table 1: San Dionisio Open Pit - Total

 San Dionisio Open Pit - Total Mineral Resource
 % Cu                           Grade                      Contained Metal
 cut-off       Class      Mt    Cu %  Zn %  Pb %      Cu kt        Zn kt   Pb kt
 0.15          Measured   49.7  0.94  1.11  0.22      466          552     107

 (Base Case)
               Indicated  6.4   0.71  1.33  0.35      46           86      23
               M+I        56.1  0.91  1.14  0.23      511          638     130
               Inferred   0.8   0.78  0.55  0.23      7            5       2

Notes: July 2021 Model (21G) - 31 Dec 2020 Topo - $3.60/lb Cu Pit; totals may
not sum due to rounding

Table 2: San Dionisio Open Pit - By Ore Type

 San Dionisio Open Pit - Copper Resource (MinZ & Zone2a)
 % Cu                           Grade                      Contained Metal
 cut-off       Class      Mt    Cu %  Zn %  Pb %      Cu kt        Zn kt   Pb kt
 0.15          Measured   27.0  0.78  0.28  0.06      212          75      17

 (Base Case)
               Indicated  2.0   0.66  0.18  0.04      13           4       1
               M+I        29.0  0.78  0.27  0.06      225          78      18
               Inferred   0.4   0.95  0.19  0.03      4            1       0

 San Dionisio Open Pit - Polymetallic Resource (Contact & MS)
 % Cu                           Grade                      Contained Metal
 cut-off       Class      Mt    Cu %  Zn %  Pb %      Cu kt        Zn kt   Pb kt
 0.15          Measured   22.6  1.12  2.11  0.40      253          477     90

 (Base Case)
               Indicated  4.4   0.73  1.85  0.49      32           82      22
               M+I        27.0  1.06  2.07  0.41      286          559     112
               Inferred   0.4   0.62  0.91  0.43      3            4       2

Notes: July 2021 Model (21G) - 31 Dec 2020 Topo - $3.60/lb Cu Pit; totals may
not sum due to rounding

Table 3: San Dionisio Underground

 San Dionisio Underground - Total Mineral Resource
                                  Grade                              Contained Metal
                           Mt     Cu %   Zn %   Pb %          Cu kt         Zn kt  Pb kt
 Inferred Resource         12.4   1.01   2.54   0.62          125           315    76

Notes: July 2021 Model (21G); totals may not sum due to rounding

San Antonio Mineral Resource Estimation Details

The drilling data used for resource estimation was based on 185 drillholes
over 18,305 metres, of which 8 holes over 1,504 metres were completed by
Atalaya, while the remainder by past operators.

The Mineral Resource model for the mineralised zone of San Antonio was created
as a three-dimensional block model using Datamine Studio RM software. The
model block size is 2x2x2 metres, which is used to more accurately define the
geometry of the deposit. The horizontal extent of the model is defined to
cover the San Antonio deposit and the adjacent Planes deposit, plus sufficient
space outside the deposit for mine planning.

San Antonio Mineral Resource Estimate (December 2021)

Table 4: San Antonio Underground

 San Antonio Underground - Total Mineral Resource
                                  Grade                              Contained Metal
                           Mt     Cu %   Zn %   Pb %          Cu kt         Zn kt  Pb kt
 Inferred Resource         11.8   1.32   1.79   0.99          155           210    117

Notes: May 2021 Model (21E); totals may not sum due to rounding

Technical Report and Qualified Person Statement

The Technical Report was prepared in accordance with NI 43-101 and was filed
today on SEDAR (www.sedar.com (http://www.sedar.com) ). Readers are encouraged
to read the Technical Report in its entirety, including all qualifications,
assumptions and exclusions that relate to the Mineral Resource estimates. The
Technical Report is intended to be read as a whole, and sections should not be
read or relied upon out of context.

The Technical Report was prepared by Ore Reserves Engineering ("ORE") under
the supervision of Alan Noble, PE of ORE. Mr. Noble is a Qualified Person as
defined under NI 43-101 and the AIM Rules and is independent of the Company.
Mr. Noble has reviewed and approves the contents of this press release.  He
also consents to the inclusion of information related to Mineral Resources in
this disclosure, in the form and context it appears.

Glossary of Terms

 CIM                          Canadian Institute of Mining, Metallurgy and Petroleum
 Cu                           Copper
 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.
 M&I Mineral Resources        The aggregate of Measures Mineral Resources and Indicated Mineral Resources.
 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
 ORE                          Ore Reserves Engineering
 Pb                           Lead
 S                            Sulphur
 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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