Atalaya Mining Plc (AIM: ATYM, TSX: AYM) is pleased to announce the results from a new preliminary economic assessment ('PEA') for the Cerro Colorado, San Dionisio and San Antonio deposits at its Proyecto Riotinto ('Riotinto') operation in Spain.

Riotinto is Atalaya's flagship asset and currently consists of the operating Cerro Colorado open pit mine, a modern 15 Mtpa processing plant and significant supporting infrastructure. The San Dionisio and San Antonio deposits are located adjacent to the Cerro Colorado pit and the objective of the PEA was to incorporate these deposits into a new integrated mine plan for Riotinto.

PEA Highlights

Strong potential economic results over a range of metals price assumptions $1.07 billion NPV(8%) after-tax at $3.50/lb Cu, $1.20/lb Zn and $0.95/lb Pb ('Base Case' metals prices) $1.57 billion NPV(8%) after-tax at $4.03/lb Cu, $1.20/lb Zn and $0.95/lb Pb ('Sensitivity Case' metals prices)

Economics benefit from significant in-place infrastructure at Riotinto

Potential uplift in production as a result of processing higher grade material 60 ktpa Cu during copper stockwork-only phase (2023-2026) 90 ktpa CuEq during polymetallic massive sulphide phase (2027+)

Potential reduction in cash costs due to higher grades and by-product credits $2.00/lb Cu payable Cash Costs (LOM average) $2.03/lb Cu payable Cash Costs + Sustaining (LOM average)

Mineralised material of 241 Mt supports a potential mine life of 15.6 years

Provides significant long-term optionality to rising metals prices

The PEA is preliminary in nature, and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as Mineral Reserves, and there is no certainty that the PEA will be realised. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Optimisation Opportunities and Other Riotinto District Highlights

PEA serves as a foundation for continued optimisation

E-LIX System has the potential to unlock additional value by increasing recoveries, reducing offsite costs and lowering the carbon footprint

Revised mining sequence could bring forward highest value material

Unused processing equipment at Riotinto could be refurbished, potentially lowering capital costs associated with the Zn and Pb circuits

Results reinforce the strategic nature of Atalaya's assets in the Riotinto District

Uniquely positioned to deliver low capital intensity growth due to Atalaya's large resource base and significant infrastructure in the region

High quality mining jurisdiction, with access to the critical inputs required for modern and sustainable operations, including experienced labour and renewable sources of electricity and water

Atalaya's other projects in the Riotinto District, such as Masa Valverde, could become further sources of mineralised material

Alberto Lavandeira, CEO, commented: We are pleased to announce the outcome of the PEA, which demonstrates strong economics and confirms the results of prior internal studies on the future of our flagship Riotinto operation.

After delivering a major expansion of processing capacity at Riotinto in recent years and announcing new mineral resource estimates for San Dionisio and San Antonio in 2022, we set out to quantify the significant value of an integrated Riotinto approach.

The Riotinto District has many advantages over more remote mining regions around the world, where the ability to bring assets into production in a sustainable and economic manner is becoming increasingly difficult. Our region has a long mining history, the workforce is highly experienced, infrastructure is modern and we benefit from good access to sustainable sources of water and energy. Together, these advantages reduce execution risk, capital intensity and development timelines.

As we progress the permitting process for San Dionisio, we shall continue to evaluate ways to further optimise the development plan for Riotinto. This is an exciting time for Atalaya, and we look forward to leveraging our execution capabilities to grow our copper production and deliver further value for our shareholders.'

Exploration permits, including at Proyecto Riotinto East ('PRE') The Company's focus is to develop its existing facilities into a centralised processing hub for ore sourced from its various projects in the region.

Mineral Resource Estimates and PEA Objectives

Atalaya announced new independent mineral resource estimates for the San Dionisio and San Antonio deposits in April 2022. These estimates confirmed prior internal estimation work on the deposits and quantified their significant contained metal as well as their higher grades compared to the material currently being mined at Cerro Colorado.

The objective of the PEA was to develop a new integrated mine plan based on existing Riotinto mineral resources that considers concurrent mining of Cerro Colorado, San Dionisio and San Antonio and the processing of polymetallic massive sulphide ('PolyMS') material in addition to the copper stockwork ('CuSW') material currently being processed. Other operations in the Iberian Pyrite Belt, including MATSA and mines in Portugal, currently process similar PolyMS material. The production plan includes Inferred Mineral Resources, which are too speculative in nature to be classified as Mineral Reserves.

Regional Advantages

Atalaya is well positioned to execute on its 'central processing hub' growth strategy due to several factors

Experience gained from operating the large Cerro Colorado open pit mine and Riotinto processing plant since 2016

The 15 Mtpa processing plant at Riotinto is the largest mill in the region

Riotinto's existing tailings storage facility has significant capacity, with land available for future expansion

The Company has access to multiple sources of water via nearby reservoirs

Riotinto is connected to the national power grid, where the share of electricity from renewable sources continues to grow

Highly experienced workforce lives in close proximity to Atalaya's operations

The long history of mining in the region has developed a strong network of suppliers and service providers, including open pit and underground mining contractors with vast experience at similar deposits

Combined, these attributes are expected to allow Atalaya to continue to increase the scale of its operations while avoiding many of the well-publicised challenges that miners are facing in other minerals districts.

PEA Independent Consultant

Tetra Tech was retained by Atalaya to develop a PEA of the Cerro Colorado, San Dionisio, and San Antonio deposits at Riotinto. Tetra Tech prepared its report (the 'Technical Report') in accordance with the Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101) guidelines. The PEA is preliminary in nature and includes Inferred Mineral Resources that are too speculative in nature to be classified as Mineral Reserves. There is no certainty that the economic results presented in this PEA will be realized. Mineral Resources are not Mineral Reserves and therefore do not have demonstrated economic viability.

The Technical Report has an effective date of 31 October 2022 and incorporates project information developed by Atalaya and its consultants. The Technical Report will be made available on the Company's website at www.atalayamining.com and under the Company's corporate profile on SEDAR at www.sedar.com. For readers to fully understand the information in this announcement, they should read the Technical Report in its entirety, including all qualifications, assumptions and exclusions that relate to the PEA. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context.

Mining

A production plan for Riotinto was developed based on the existing mineral resources for Cerro Colorado, San Dionisio and San Antonio.

Mining at Cerro Colorado is currently conducted by a contractor using conventional open pit mining methods and produces CuSW material. The PEA contemplates continued open pit mining at Cerro Colorado, but at a reduced annual rate to provide capacity for material mined from the San Dionisio and San Antonio deposits.

At San Dionisio, mining will begin using the same open pit methods, equipment and contractors as Cerro Colorado. The conceptual open pit design includes two phases, with Phase 1 containing primarily CuSW mineralised material and Phase 2 containing a majority of PolyMS mineralised material. During Phase 1, PolyMS material is assumed to be stockpiled until the necessary plant modifications are implemented.

Contact:

Tel: + 44 20 3757 6882

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.

Forward Looking Statements

This announcement contains certain forward-looking statements and forward-looking information (collectively referred to herein as 'forward-looking statements') within the meaning of applicable securities laws. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as 'anticipate', 'achieve', 'could', 'believe', 'plan', 'intend', 'objective', 'continuous', 'ongoing', 'estimate', 'outlook', 'expect', 'may', 'will', 'project', 'should' or similar words, including negatives thereof, suggesting future outcomes. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Company's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements.

Forward looking statements contained herein include, but are not limited to, statements regarding the PEA and the associated increases or improvements in production, metallurgical recovery, capital costs, operating costs, project economics and financial metrics, future permitting activities, all of which are based on various assumptions including that the new development plan will proceed on schedule, that the development deposits are mineable as described, that metals prices will be at levels that render Riotinto economic and that internal data and analyses prove to be accurate. Forward-looking statements also include those relating to the future financial and operating performance of the Company and Riotinto, the estimates and realisation of Mineral Resources and Mineral Reserves, the timing and amount of estimated future production, plans relating to future exploration, expansion, development and production activities and the realisation of expected production and life of mine economics of Riotinto.

Certain risks, uncertainties and factors that may cause the actual results, performance or achievements to differ materially from forward-looking statements include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration, production and expansion activities; the actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; the future costs of capital to the Company; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; environmental risks; uncertainties regarding reclamation expenses, title disputes or claims, limitations of insurance coverage, and the timing and possible outcome of litigation and regulatory matters; political instability, terrorist attacks, insurrection or war and delays in obtaining governmental approvals or financing or in the completion of development, construction or expansion activities.

The reader is cautioned that such forward-looking statements are not a guarantee of future performance and may prove to be incorrect. These forward-looking statements are statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the Company's and/or its subsidiaries' results of operations, financial condition, prospects, growth, strategies, the industry in which the Company and its subsidiaries operate and are based on the opinions and estimates of management at the date the statements are made and should not be unduly relied on. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future.

These forward-looking statements speak only as of the date of this announcement and the Company does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof, except as required by applicable securities laws.

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