News ReleasesNovember 22, 2013
Atico completes acquisition of producing copper-gold mine and closes US$8 million debt facility
|Vancouver, November 22, 2013 -- Atico Mining Corporation (TSX.V: ATY | OTC: ATCMF) has successfully completed the acquisition of 90% of Minera El Roble (MINER), the owner of El Roble mine and surrounding claims located in Carmen de Atrato, Colombia. As operator of the high grade underground copper-gold mine, Atico will immediately embark on a program to improve operational efficiency and scale-up production of the El Roble mine.
"The El Roble Mine acquisition marks our transition into a producing mining company and is an important milestone in our strategy to become a mid-tier copper-gold producer in Latin America," commented Fernando E. Ganoza, CEO. "We see significant upside potential for the mine and the project's large land package that we plan to aggressively pursue in the coming year."
The Company also successfully closed on November 22, 2013 a US$8 million senior secured debt financing facility with Trafigura Pte. Ltd., as announced on September 17, 2013.
Mine scale-up plans
Atico will continue to operate El Roble at approximately 320 tonnes per day, while completing underground developments to access the recently discovered resources and the plans to scale-up production. The emphasis during this phase will be on improving safety and environmental standards and training of personnel.
The Company has started driving a new adit on level 1880. The adit will be 830 meters long and is expected to be the main extraction point for the recently established mineral resource. The Company anticipates completion of the new adit by the second quarter of 2014.
A new tailings dam is an essential component of the El Roble mine plan. The Company is pleased to announce that it has received environmental permits for a new tailings dam and has begun construction. Completion is expected for the second quarter of 2014.
Upgrades to the mill and processing facility to scale up to nominal capacity of 650 tonnes per day, is expected to be completed prior to the beginning of mining operations in the newly discovered resources. The Company anticipates completion of this upgrade by the third quarter of 2014 with the production ramp up concluding in the fourth quarter of 2014.
The company reports three underground drill holes (ATDHR-42 through ATDHR-44) from the 2000 level have been completed at El Roble mine to explore the southern part of the known mineralized strike length. Mineralization was not intercepted and the geological information gathered is being assessed and incorporated into the exploration program for the mine.
El Roble Property
The El Roble property is the site of an operating underground high grade 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% copper and an estimated 2.5 g/t gold. Copper and gold mineralization at El Roble occurs as volcanogenic massive sulfide lenses.
Since acquiring the option on the El Roble Property in early 2011, Atico has completed 11,740 meters of drilling, a district-scale mapping program of the 6,679-hectare property and, most recently, a comprehensive assessment of the potential to increase the production and efficiency of the El Roble Mine.
Drilling by the Company led to the discovery of high-grade, copper-and-gold mineralization below the current working levels of the mine. Within this mineralization, the Company has established a National Instrument 43-101 compliant inferred mineral resource of 1.58 million tonnes at 4.45 % copper and 3.17 g/t gold, using a cut-off grade of 0.72 % copper equivalent. The mineralization is open at depth and along strike.
Dr. Demetrius Pohl, Ph.D., AIPG Certified Geologist, a qualified person under National Instrument 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.
About Atico Mining Corporation
Atico operates the El Roble Mine in Carmen de Atrato, Colombia. We are focused on becoming a leading mid-tier copper-gold producer in Latin America through organic growth and acquisitions, while maintaining our commitment to safety, social and environmental responsibility. For more information, please visit our website at www.aticomining.com.
ON BEHALF OF THE BOARD
Fernando E. Ganoza
Atico Mining Corporation
Trading symbols: TSX.V: ATY | OTC: ATCMF
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the ''U.S. Securities Act''), or any state securities laws, and may not be offered or sold in the United States, or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S of the U.S. Securities Act) unless pursuant to an exemption therefrom. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.
Cautionary Note Regarding Forward Looking Statements
This announcement includes certain "forward-looking statements" within the meaning of Canadian securities legislation. All statements, other than statements of historical fact, included herein, without limitation the use of net proceeds, are forward-looking statements. Forward- looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs; the need to obtain additional financing to maintain its interest in and/or explore and develop the Company's mineral projects; uncertainty of meeting anticipated program milestones for the Company's mineral projects; and other risks and uncertainties disclosed under the heading "Risk Factors" in the prospectus of the Company dated March 2, 2012 filed with the Canadian securities regulatory authorities on the SEDAR website at www.sedar.com