Proyecto Riotinto – 29% Increase in Open Pit Mineral Reserves Updated 43-101 Technical Report

9 July, 2018

Atalaya Mining Plc (AIM:ATYM, TSX:AYM) is pleased to announce the completion of a NI43-101 compliant technical report on an updated resources and reserves estimate for Proyecto Riotinto in south western Spain.


Strong Project Economics

  • Total open pit proven and probable mineral reserves at Cerro Colorado are estimated at 197 Mt grading 0.42% Cu
  • Updated resources and reserves estimate reports a 29% increase in mineral reserves
  • Contained copper increases 21% to 822,000 tonnes
  • NPV post-tax at 8% discount rate of US$512 million using long term copper price of US$3.00/lb and life-of-mine average Euro to US dollars exchange rate of €1:$1.18.
  • Total cash flow of US$1,207 million


Reduced Operating Costs

  • Estimated average C1 cash costs of US$2.10/lb of payable Cu net of silver credits
  • All-in sustaining costs (“AISC”) of US$2.22/lb of payable Cu net of silver credits


Capital Costs

  • Development capital expenditure of US$95 million to increase throughput to 15 Mt/y
  • LOM sustaining capital expenditure of US$84 million


Project Parameters

  • Recoverable copper within P&P open pit reserves is estimated at 696,500 tonnes and 9.4 million ounces of silver
  • Life of Mine (“LOM”) of 13.8 years
  • 2019 ramp-up production to 11 Mt/y and 2020 production at 15 Mt/y
  • Average yearly production of 50,000 tonnes of copper and 670,000 ounces of silver in concentrate
  • Reduced strip ratio, waste to ore, of 1.43:1


Alberto Lavandeira, CEO of Atalaya Mining Plc commented:

This is a significant milestone in Atalaya’s development. This report shows that we have increased our total open pit proven and probable reserves at Cerro Colorado by almost 30%. The study results strongly support the Company’s decision to increase the mine process plant throughput from 9.5Mtpa to 15 Mtpa by 2020 with a LOM of 13.8 years. The Company anticipates that the new mining plan will report a lower operating cost whilst simultaneously reducing the strip ratio to 1.43:1.


These results reinforce the significant long-term potential of Atalaya, and are a reflection both of the quality of the asset and the technical expertise of the operational team. We are confident that we can continue to expand the resources and reserves both through continued targeted drilling campaigns and underground upside whilst ramping up production, thereby maximising the exciting opportunity that Proyecto Riotinto represents for the business.


Read the full update here “Proyecto Riotinto – 29% Increase in Open Pit Mineral Reserves Updated 43-101 Technical Report” (625kb PDF)