Riotinto is Atalaya's flagship asset and currently consists of the operating
PEA Highlights
Strong potential economic results over a range of metals price assumptions
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
Mineralised material of
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
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
After delivering a major expansion of processing capacity at Riotinto in recent years and announcing new mineral resource estimates for San Dionisio and
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
The objective of the PEA was to develop a new integrated mine plan based on existing Riotinto mineral resources that considers concurrent mining of
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
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
The Technical Report has an effective date of
Mining
A production plan for Riotinto was developed based on the existing mineral resources for
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
At San Dionisio, mining will begin using the same open pit methods, equipment and contractors as
Contact:
Tel: + 44 20 3757 6882
About
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
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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