SOURCE: Atalaya Mining PLC

April 20, 2017 02:00 ET

Atalaya Mining Plc: First Quarter 2017 Operations Update

NICOSIA, CYPRUS--(Marketwired - Apr 20, 2017) - Atalaya Mining plc ("Atalaya" or the "Company") (AIM: ATYM) (TSX: AYM), the European mining and development company, announces its operations update for the three months to 31 March 2017.

PROYECTO RIOTINTO

  First Quarter   Fourth Quarter   Full year forecast
2017   2016 *   2016   2017
 Ore mined   (M tonnes) 2.3   1.1   2.3   9.5 - 9.8
 Waste mined   (M tonnes) 4.3   2.7   3.6   18.1 - 18.2
 Ore milled   (M tonnes) 2.2   1.1   2.0   9.5
 Cu grade   (%) 0.48   0.43   0.52   0.49 - 0.51
 Cu recovery   (%) 84.63   82.93   84.47   79 - 82
 Cu production   (tonnes) 8,805   4,048   8,938   34,000 - 40,000
 Cash cost   ($/lb payable) 1.83   2.28   1.95   1.90 - 2.10
 All-in cost   ($/lb payable) 2.15   2.55   2.15   2.00 - 2.20
 Sustaining capital   ($ millions) 0.6   0   0.4   2.1

*Note: Commercial production declared 1 February 2016.

Production results at Proyecto Riotinto were in line with targets for the quarter ended 31 March 2017. The operation set new records for both throughput tonnage and copper recovery as 2.2 million tonnes of ore were milled at a recovery rate of 84.63%. Full year annual forecasts for copper remain as previously guided at 34,000 - 40,000 tonnes.

Mining operations continue to run according to mine plans. Blending different ore types from the Cerro Colorado pit has provided consistent feed quality to the processing plant which resulted in higher than anticipated metallurgical recoveries and concentrate grades. Adjustments to geological modelling are currently under evaluation to improve mine-to-mill efficiencies. Drilling and blasting parameters have been adjusted to improve fragmentation, loading rates and crushing capacity.

Surface re-contouring on the south waste dump has been initiated as part of ongoing rehabilitation works and additional rehabilitation methodologies are being evaluated.

On-site concentrate inventories at the end of the quarter were reduced to minimum levels. Concentrate deliveries to the port at Huelva amounted to 41,131 tonnes. Concentrate sales were not affected by disruptions at other ports across Spain.

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