Atalaya Mining plc (AIM: ATYM, TSX: ATM), the Europe-based minerals development and exploration company, is pleased to provide an operations update and to announce its unaudited quarterly results for the three and nine months ended 30 September 2015, together with the unaudited, condensed interim consolidated Financial Statements.
Having received the final permitting component required to initiate mining activities at the Riotinto Project (“Proyecto Riotinto”) the Company achieved first production on 31 July 2015 and is on target to achieve commercial production by January 2016.
- The expansion project to increase processing capacity to 7.5 Mtpa is approximately 64% complete, with engineering now completed. The primary ball mill that constitutes the longest lead delivery item has been delivered to site. We remain highly confident that the expansion project will be delivered ahead of the scheduled mid-2016 timeline.
- The Company is currently evaluating financing options to increase capacity to 9.5 Mtpa. Engineering and site construction activities are currently progressing according to schedule, and the Company believes substantial capex savings for both the 7.5 Mtpa and 9.5 Mtpa expansion phases are achievable, as demonstrated during Phase I.
- Site teams fine-tuned the control systems and operating parameters of the processing plant based on Phase I design criteria during August and September.
- Following a planned ramp-up schedule, processing throughput was increased to 80% of design capacity in October, which yielded successful and sustainable results. Over 1500 tonnes of copper was produced in concentrates grading over 18% Cu. Although still not within final specifications, concentrates are saleable and with initial sales being expected before the end of the year.
- The focus for the remainder of 2015 is to achieve and maintain nominal design capacity coupled with improved concentrate grades and recovery rates, in order to achieve commercial production by January 2016.
- Appointment of four non-executive Directors (two of whom are independent), ensuring that that Company has a Board with a wealth of industry experience.
- 30-for-1 consolidation and name change to reflect the Company’s primary focus of restarting production of Proyecto Riotinto
- The Company received a formal claim from Astor regarding the payment of deferred consideration that is noted in the accounts as a contingent liability, which is being disputed.
Alberto Lavandeira, CEO, commented:
“We are very pleased with the progress on site which is in line with our plans to deliver full production at Proyecto Riotinto, ahead of schedule, while minimizing the capital required. We believe delivering ahead of schedule, under budget and with no debt will allow us to maximise shareholder returns as the copper price recovers from the current multi year lows, which we do not believe are sustainable.”
See full announcement here: FS ATALAYA Q3 2015