Atico Mining (ATY-V) has successfully advanced the transition phase with the current owners and operators of the mine to close the transaction on Nov. 22, 2013. In preparation of assuming control and operation of the mine, Atico has developed an integration plan in conjunction with the current operators, and has incorporated staff at the project to support the optimization and scale-up plans. "The transition phase is proceeding according to schedule, and we expect to conclude the exercise of the option agreement and take over the existing operation as planned on Nov. 22," commented Fernando E. Ganoza, chief executive officer. "I thank all the current employees of the El Roble mine and our staff for their hard work in preparing the integrating of our teams and plans. I am confident the smooth and efficient transition will carry through to integration."
Atico will retain all of the current employees while adding experienced staff to advance its mining plans, and improve mine safety and environmental standards. The immediate focus for underground operations is the new 1880-level adit, which will be the main extraction point for newly discovered resources. The company's plans for the operation also include the optimization and scale-up of the mill and processing facility, along with construction of a new tailings dam.
El Roble mine
The El Roble property is the site of an operating underground copper and gold mine with a nominal capacity of 400 tonnes per day. Over the past 22 years, the mine has processed 1.5 million tonnes of ore at an average head grade of 2.5 per cent copper and an estimated 2.5 grams per tonne gold. Copper and gold mineralization at El Roble occurs as volcanogenic massive sulphide (VMS) lenses.
In Jan. 28, 2011, Atico signed an option agreement to acquire 90 per cent of the shares of Miner, and has since been aggressively exploring the El Roble mine and surrounding claims. To date, Atico has completed 11,740 metres of diamond drilling on the property and has identified 15 prospective targets for VMS deposits in the 6,679 hectares surrounding the mine.
As a result of this exploration program, the company has discovered high-grade copper and gold mineralization below the 2000 level, the lowest production level at the El Roble mine, and has established a National Instrument 43-101-compliant inferred mineral resource of 1.58 million tonnes at 4.45 per cent copper and 3.17 grams per tonne gold using a cut-off grade of 0.72 per cent copper equivalent. Mineralization is open at depth and along strike, and the company will further test the limits of the resource.
On the larger land package, the company has identified a prospective stratigraphic contact between volcanic rocks, and black and grey cherts that has been traced by Atico geologists for 10 kilometres across the El Roble project area. This contact has been determined to be an important control on VMS mineralization, on which Atico has identified 15 prospective target areas for VMS-type mineralization occurrence, which is the focus of the surface drill program at El Roble.
Qualified person
Dr. Demetrius Pohl, PhD, AIPG-certified geologist, a qualified person under NI 43-101 standards and independent of the company, is responsible for ensuring that the information contained in this news release is an accurate summary of the original reports and data provided to or developed by Atico.
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