Atico Mining Provides Exploration Update
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Atico Mining Provides Exploration Update
Vancouver, July 11, 2018 -- Atico Mining Corporation (TSX.V: ATY | OTC: ATCMF)(“Atico”
or the “Company”) is pleased to announce the completion of two IP-DAS surveys covering the
area from northwestern Archi e prospect through the mine to the southern Estrella target area,
which have indicated exciting new exploration targets near and below the mine.
Fernando E. Ganoza, CEO, commented: “The exploration work and drilling we have completed
since late 2017 have returned encouraging results for the occurrence of massive sulphide
mineralization at the El Roble property. These results confirm the need to continue drill testing
the anomalous targets and merits scaling-up the drill program for the remainder of the year. We
continue to believe the property remains highly prospective to host additional massive sulphide
mineralization.”
Exploration Update
During the first quarter the Co mpany completed 315 stations on 120 channels of IP -DAS
geophysics over an area 2 km x 1 km covering an area from the Archie prospect in the north,
through the El Roble Mine area and over the Estrella area southeast of the mine. (Figure 1) The
IP-DAS has a depth penetration capability exceeding 700 m and has outlined several linear
trends of combined chargeability and resistivity anomalies coincident with the mapped “black
chert” lithology. These trends are designated as the Eastern trend, the Central or Min e trend,
and the Western trend . Each trend contains several, distinct, strong chargeability -resistivity
anomalies similar to that expressed over the mine area.
More significantly, the IP-DAS shows an intense anomaly associated with the immediate mine
area, which is part of a linear northwest-southeast trend of anomalies coincident with the “black
chert” unit. A second, linear trend of anomalies appears coincident with eastern occurrence of
the ‘black chert” in the Archie area. The IP-DAS anomalies clearly show fault offsets. The IP-
DAS has outlined 6 targets (18 anomalies inside all) on the Mine trend Western and the Eastern
trend which warrant drill testing (Figure 2). Of particular significance is a strong anomaly offset
by faulting to the SE o f the mine workings as well as strong anomalies in the Archie area and
Eastern trend. The IP-DAS anomalies in the Eastern and Central trends are coincident with Ag
and Zn trace element vector anomalies and narrow massive sulfide intersections.
A major re-interpretation of the structural geology based on recent drilling and surface mapping
suggests that the Zeus mineralization is faulted off at depth and the favorable contact geology
offset some 140 meters to the east. The IP -DAS data shows similar offsets but also shows the
chargeability-resistivity anomaly continuing at depth.
Structural logging of the drill core and integration of the results into the regional mapping
program has refined the Company’s understanding of the local structural geology and its
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relationship to mineralization. The local structure is now interpreted as a southwest verging
recumbent fold with the steeper limb hosting the El Roble mine mineralization and the shallower
limb cropping out on the east side of the El Roble ridge . The anticlinal fold has been offset by
an array of N -S and ENE -WSW faults and NW -SE strike -parallel thrusts, which offset the
mineralization by up 140 meters (Figure 3).
The recent drilling clearly demonstrated a thickening of the “black chert” unit over a strik e
length of approximately 600 meters indicative of a sub -basin favorable for the deposition and
preservation of massive sulfides. The sub -basin appears to be bounded by faults which may
have acted as feeders for mineralization. The “black chert” unit contains 5-10% bedding-parallel
stringers and blebs of pyrite -pyrrhotite suggesting a more distal sulfide depositional
environment. Hole ATSA-005, drilled on the northern margin of the sub -basin intersected two
intervals of highly anomalous gold (3.9 meters at 2.25 g/t Au from 114.80 meters and 5.3 meters
at 2.31 g/t Au from 138.55 meters) supporting the alteration and pathfinder element vectors.
The multi-element geochemistry vectors are concentrated with the sub -basin and trend toward
the northern margin of the basin.
During Q1-2018, 1,245 meters of underground drilling were completed at the El Roble mine.
The Company anticipates that by the end of Q2-2018 the underground drill program will return
to the schedule of 3,000 meters drilled per quarter . The program uses one underground rig to
test for massive sulfide bodies adjacent to and down-dip of currently known mineralization and
to extend the deposit at depth and along strike.
At the Archie target area, approximately 500 meters northeast of the El Roble mine, 1,970 meter
of core drilling program was completed in Q1-2018.
A second drill rig is being mobilized to accelerate the testing of IP -DAS anomalies in the
Eastern and Central trends . A first program of 5 ,000 meters of core drilling is planned to test
IP-DAS anomalies below and to the southeast of the mine mineralization (Zeus plunge target)
and an additional 10,000 meters of drilling is planned to test the Eastern trend where previous
drilling following trace element vectors intersected thin m assive sulfide mineralization in the
“black chert” horizon.
The Company is highly encouraged by these results, which have outlined several strong IP -
DAS anomalies within three parallel trends within the “black chert” unit are supported by trace
element vectors and a re-interpretation of the structural geology. A program of 15,000 meters
in 36 diamond core holes from the surface is planned for the remainder of 2018 and 2019 to test
these targets, in addition to the 3,000 meters of underground drilling to test the down-dip ‘Zeus
plunge’ target
El Roble Mine
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The El Roble mine is a high-grade underground copper and gold mine with nominal processing
plant capacity of 800 tonnes per day, located in the Department of Choco in Colombia. Its
commercial product is a copper-gold concentrate.
Since obtaining control of the mine on November 22, 2013, Atico has upgraded the operation
from a nominal capacity of 400 tonnes per day. The mine has a continuous operating history of
twenty-two years, with recorded production of 1.5 million tonnes of ore at an average head grade
of 2.6% copper and an estimated gold grade of 2.5 g/t. Copper and gold mineralization at the El
Roble property occurs in volcanogenic massive sulfide (“VMS”) lenses.
Since entering into the option agreement in January 2011 to acquire 90% of El Roble, Atico has
aggressively explored the mine and surrounding claims. The Company has completed 31,377
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. Atico
has developed a new adit access from the 1880 elevation to develop these new resources.
El Roble has a measured and indicated resource of 1.87 million tonnes grading 3.46% copper
and 2.27 g/t gold, at a cut-off grade of 0.93% 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 b e 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.
Qualified Control
Dr. Demetrius Pohl, Ph.D., AIPG Certified Geologist, a qualified person under NI 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 Mining Corporation. Dr. Pohl has approved the scientific and
technical content of this news release
About Atico Mining Corporation
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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
CEO
Atico Mining Corporation
Trading symbols: TSX.V: ATY | OTC: ATCMF
Investor Relations
Igor Dutina
Tel: +1.604.633.9022
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 juris diction.
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 here in, 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
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