SOURCE: Atalaya Mining PLC

July 31, 2017 02:00 ET

Atalaya Mining PLC: Second quarter operations update

NICOSIA, CYPRUS--(Marketwired - Jul 31, 2017) - Atalaya Mining PLC (AIM: ATYM) (TSX: AYM)

31 July 2017

Atalaya Mining Plc
("Atalaya" or the "Company")
Second Quarter 2017 Operations Update

Atalaya Mining plc (AIM:ATYM, TSX:AYM), the European mining and development company, announces its operations update for the three months ended June 30, 2017.

PROYECTO RIOTINTO

    Second Quarter   First Quarter   Full year forecast
  2017   2016   2017   2017
Ore mined   (M tonnes)   2.3   1.3   2.3   9.5 - 9.8
Waste mined   (M tonnes)   4.6   3.8   4.3   18.1 - 18.2
Ore milled   (M tonnes)   2.2   1.3   2.2   9.5
Cu grade   (%)   0.49   0.44   0.48   0.49 - 0.51
Cu recovery   (%)   85.09   79.80   84.63   79 - 82
Cu production   (tonnes)   9,058   4,442   8,805   34,000 - 40,000
                     

Production results at Proyecto Riotinto have improved compared to the previous quarter and were in line with targets for the quarter ended June 30, 2017. The operation reports throughput rate of 2.2 million tonnes of ore processed, similar to the previous quarter with an improvement in the recovery rate to a record of 85.09%. The overall tonnage processed was affected negatively by the replacement of one of the main transformers to improve energy efficiencies. Full year forecasts for copper production remain as previously guided at 34,000 - 40,000 tonnes.

Mining operations are running at an increasing rate quarter-on-quarter, as a result of adjusted drilling and blasting parameters. On a combined basis, ore, waste and marginal ore amounted to 2.8 Mm3 in Q2 2017 versus 2.5 Mm3 in Q1 2017. The mining contractor has launched a replacement programme for the mining fleet. New loaders and trucks are expected to be delivered to site over the next two quarters in anticipation of a potential increase in mining rates. Additionally, modifications to the primary milling circuit, which includes a pebble crusher in closed circuit with the primary mill, have already reported better milling efficiencies.

The Company continues to implement initiatives to reduce operating costs of the mine such as adding additional rougher flotation capacity in order to increase plant recoveries and installing a partial plastic lining to parts of the tailings pond to improve water recycle management.

To view the full announcement, please click on the follow link.

http://www.rns-pdf.londonstockexchange.com/rns/5106M_1-2017-7-31.pdf

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