ATALAYA MINING PLC Atalaya Mining Plc announced a new Mineral Resource Estimate, prepared in accordance with CIM guidelines and disclosure requirements of NI 43-101, for its 100% owned Proyecto Masa Valverde. PMV is located in the Iberian Pyrite Belt of southern Spain approximately 28 km to the south of Atalaya's 15 Mtpa processing plant at Proyecto Riotinto. PMV consists of two deposits, Masa Valverde and Majadales, which are 1 km apart.
Majadales was initially discovered by Atalaya's exploration team in 2019. Significant increase in tonnage and contained copper, silver and gold vs. prior estimate Increases of 42%, 33%, 26% and 34%, respectively at the Masa Valverde deposit.Masa Valverde Initial Indicated Mineral Resource:16.9 Mt at 0.66% Cu, 1.55% Zn, 0.65% Pb, 27 g/t Ag and 0.55 g/t Au (1.51% CuEq); Containing an estimated 112 kt Cu, 262 kt Zn, 110 kt Pb, 14.7 Moz Ag, 0.3 Moz Au.
Masa Valverde Inferred Mineral Resource: 73.4 Mt at 0.61% Cu, 1.24% Zn, 0.61% Pb, 30 g/t Ag and 0.62 g/t Au (1.37% CuEq); Containing an estimated 448 kt Cu, 911 kt Zn, 448 kt Pb, 70.8 Moz Ag, 1.5 Moz Au; Two copper-rich zones (10.2 Mt Indicated and 48.1 Mt Inferred) could deliver higher grade material for processing at the existing Proyecto Riotinto plant with minimal modifications. Majadales Initial Inferred Mineral Resource: 3.1 Mt at 0.94% Cu, 3.08% Zn, 1.43% Pb, 54 g/t Ag and 0.32 g/t Au (2.55% CuEq). A Preliminary Economic Assessment ("PEA") on PMV is expected to be completed in H2 2022, with a focus on scenarios that would leverage the existing plant at Proyecto Riotinto and access the orebodies via a single ramp.
Permitting process continues, with submission of an exploitation concession application. Continued potential for further resource expansion, with compelling targets already identified via recent detailed ground geophysical survey. The 2022 Mineral Resource estimate has been prepared by CSA Global (UK) Limited ("CSA Global").
The geological model used is based on 122 drill holes with a total length of 76,123 metres, of which 83 drill holes and 58,993 metres relate to Masa Valverde and 39 drill holes and 17,130 metres to Majadales. Assay results were compiled and validated as of 4 March 2022. CSA Global selected a cut-off grade of 0.78% CuEq for its resource estimation.
Masa Valverde is a globally significant undeveloped single VMS-type deposit. It represents approximately 94% of the total Mineral Resource estimate of PMV. It consists of three main mineralised zones: Upper Massive Sulphide, Lower Massive Sulphide and Intermediate Stockwork-type (see Figure 3 in Website Announcement).
Inside the Massive Sulphide Zones, copper-rich (Zn
Indicated Mineral Resources totalling 16.9 million tonnes at 0.66% Cu, 1.55% Zn, 0.65% Pb, 27 g/t Ag and 0.55 g/t Au represent the first Indicated level resources declared at PMV. Based on the success of the current resource development drilling programme in converting part of the Inferred Mineral Resources to Indicated Mineral Resources, the Company's efforts will be to continue resource development activities with the aim to further upgrade the Mineral Resource base to higher categories of classification. The 2022 Mineral Resource Estimate will be used to support a PEA for PMV, which will be completed during H2 2022.
The PEA is expected to evaluate scenarios that are consistent with Atalaya's strategy to develop its existing 15 Mtpa mill into a central processing hub for material sourced from its deposits in the region. Delivering higher grade material to Proyecto Riotinto would displace feed from the Cerro Colorado pit, allowing the Company to potentially increase production while maintaining its current processing rates. The PEA is also expected to evaluate a number of mining scenarios, including selective mining of higher grade zones as well as bulk mining scenarios that are well suited to deposits of Masa Valverde's scale.
Several characteristics of PMV, combined with the Company's operations in the region and the project's location in the Iberian Pyrite Belt are expected to reduce initial capital requirements, expedite the development timeline and simplify the permitting process. These factors include: Access to Majadales and Masa Valverde would be expected to be completed via a single ramp; Mined material would be expected to be trucked via the existing public highway to Proyecto Riotinto; Modest surface infrastructure requirements due to trucking scenario, would facilitate reduced permitting requirements; Material from PMV's copper zones is expected to be well suited to the configuration of the existing plant at Proyecto Riotinto, with minimal modifications expected and Underground mines in the region (namely MATSA) have a history of being operated by local mining contractors. In addition to the copper zones, the presence of polymetallic sulphides with higher zinc, lead, silver and gold content could require the development of a new differential flotation circuit similar to other conventional systems that are operating successfully across the Iberian Pyrite Belt.
Conventional metallurgical testwork is ongoing using fresh core from the different sulphide types at PMV. Separately, preliminary leaching tests with the E-LIX System are also being completed, which has the potential to unlock significant value from similar complex ores. Exploration drilling continues at PMV, with three drill rigs currently in operation.
One rig is testing an electromagnetic anomaly (FLEM) located 300 meters west of the Masa Valverde deposit and the other two are conducting an initial drilling campaign at the Campanario target. Atalaya believes there is good potential to extend the current Masa Valverde Mineral Resource to the west as well as discover new VMS mineralisation within the broader PMV property.
