|March 03, 2014
Atico Drifts Along 44 Meters of 7.0% Cu and 1.2g/t Au in Goliath
|Vancouver, March 03, 2014 - Atico Mining Corporation (TSX.V: ATY | OTC: ATCMF) is pleased to announce the new 5 by 5 meter adit at the 1880 level has been completed ahead of schedule and has crosscut the Goliath massive sulfide body perpendicular to its strike direction. Initial development results, along with underground sampling, confirm the inferred high copper and gold grades and increase the width of Goliath over the width reported in the inferred resource model at the intersection point.
1880 level Crosscut
North wall: 14.0 meters of channel samples averaging 2.27% Cu, 1.25 g/t Au
South Wall: 21.9 meters of channel samples averaging 2.52% Cu, 2.18 g/t Au
South East drift
Back: 44 meters of drift with 7.0% Cu, 1.2 g/t Au with average sample width of 4.3 meters and sample spacing along the drift every 4 meters
Note: All channel samples are perpendicular to the strike direction of mineralization
"We are very pleased to have reached the new high-grade ore ahead of schedule, achieving an important milestone in our optimization and scale-up plan for El Roble. We are gathering more information on the massive sulfide body and are very encouraged to have confirmed grades and increased the inferred width of Goliath at the intersection point," said Fernando E. Ganoza, CEO. "Thanks to the efforts of our team and contractors on the ground, we are on track to deliver on our promises."
Goliath Massive Sulfide Body
The Goliath massive sulfide body is located near the center of the 360 meter strike length of the mineralized system at the El Roble. The crosscut intercepted Goliath at the 1894 level (masl), 100 meters below historic workings, increasing the width at the point of intersection to 19.0 meters from an estimated 17.0 meters, as reported in the El Roble NI 43-101 technical report of August 27, 2013. Continuous channel samples were taken along the north and south wall of the crosscut within VMS mineralization. Assay results are reported in table 1.
The Company is drifting within the Goliath massive sulfide body along strike to the South east. Channel samples were taken every 4 meters over a length of 44 meters along the drift (assay results reported in table 1). The entire drift is within the mineralized body, which has an average inferred width of 19 meters as reported in the 43-101 resource estimate. The company will initiate crosscuts to the East and West of the drift to continue to confirm the width of the massive sulphide body.
Underground stope preparation work for future production will provide additional information on the limits and geology of the mineralization of the Goliath body. This information will be enhanced by a drill program now under way, designed to intercept the mineralization above and below the crosscut level.
The Company also plans to access the Maximus massive sulfide body at the same elevation, which is expected to be encountered approximately 40 meters South West of Goliath.
Table 1 - Goliath Channel Sample Results
The El Roble mine continues to operate at approximately 320 tonnes per day processing ore from the upper levels of the mine. The Company expects that underground stope preparation in the Goliath and Maximus massive sulfide deposits will provide some high-grade ore prior to the start of full-scale stoping activities, which are planned for the third quarter of 2014.
As a part of the Company's integration process an on-site training program at the 1880 level is being performed by a team comprised of experienced operators and local miners. Other on-going activities key to the integration process include improving safety and environmental standards as well as upgrading supporting processes, all of which are proceeding according to schedule.
Scale-up of the El Roble mill to 650 tonnes per day is on schedule to be completed in the third quarter of 2014. The Company has secured all major equipment, with some components already on site and the remainder expected to be delivered during the first quarter of 2014.
Construction of the new tailings dam is expected to be completed as originally planned in the second quarter of 2014.
El Roble Mine
El Roble is an operating underground copper and gold mine with a nominal mineral processing 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 occurs within volcanogenic massive sulfide ("VMS") lenses.
Since entering into an option agreement in January 2011 to acquire 90% of El Roble, Atico has aggressively explored the mine and surrounding claims. The Company has completed 11,740 meters of diamond drilling and identified numerous prospective targets for VMS deposits on the 6,679-hectare property. This exploration led to the discovery of high-grade copper and gold mineralization below the 2000 level, the lowest production level of the El Roble mine.
National Instrument 43-101 compliant inferred mineral resource are 1.58 million tonnes grading 4.45 % copper and 3.17 g/t gold, at a cut-off grade of 0.72 % copper equivalent. Mineralization is open at depth and along strike and the Company plans to 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 ten kilometers. 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.
Mr. Thomas Kelly (SME Registered Member 1696580), Chief Operating Officer of the Company and a qualified person under National Instrument 43-101 standards, 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 is a growth-oriented company, focused on exploring, developing and mining copper and gold projects in Latin America. The Company operates the El Roble mine and is pursuing additional acquisition opportunities. For more information, please visit 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