Atico Produces 5.55 Million Pounds of Cu and 2,487 Ounces of Au in Q3 2020; Successful Production Continuity during Covid-19 Restrictions; Maintaining Production Guidance for 2020
Page 1 of 4
Atico Produces 5.55 Million Pounds of Cu and 2,487 Ounces of Au in Q3 2020;
Successful Production Continuity during Covid-19 Restrictions; Maintaining Production
Guidance for 2020
Vancouver, October 19, 2020 -- Atico Mining Corporation (the “Company” or “Atico”)
(TSX.V: ATY | OTC: ATCMF) announces its operating results for the three months ended
September 30, 2020 from its El Roble mine. Production for the quarter totaled 5.55 million
pounds of copper and 2,487 ounces of gold in concentrates, a decrease of 3% for copper and
25% for gold over the same period in 2019.
“The production results for the quarter were mostly in line with our 2020 objectives while the
mine continued to operate under strict preventative protocols and health policies. The decrease
in gold production is mainly driven by a lower head grade, expected in the mine plan for the
quarter while operations still remain on track for record revenues in the second half of the
year” said Fernando E. Ganoza, CEO. “We will continue operating with the highest health and
safety standards during these unprecedented times, while at the same time keeping a focus on
delivering our 2020 production guidance.”
Third Quarter Operational Highlights
• Production of 5.55 million pounds of copper contained in concentrates; a decrease of 3%
over Q3 2019.
• Production of 2,487 ounces of gold contained in concentrates ; a decrease of 25% over
Q3 2019.
• Average processed tonnes per day of 860, no significant change over Q3 2019.
• Copper head grade of 3.74%, an increase of 2% over Q3 2019.
• Gold head grade of 1.87 grams per tonne; a decrease of 20% over Q3 2019.
• Copper and gold recover y of 91.4% and 56.3%; an increase of 2% for copper and a
decrease of 25% for gold over Q3 2019.
Third Quarter Operational Review
Overall production was mostly in line with Company budget for the third quarter. The decrease
in gold head grade and production is primarily explained by the mine plan for the quarter and to
a lesser extent by the lower than anticipated gold recovery . The operation remains on track to
deliver on set guidance throughout the remainder of the year.
The Company continues to closely monitor developments around the C ovid-19 pandemic and
continues to maintain strict preventative measures at the El Roble mine site, La Plata project, as
well as our corporate offices to safeguard the health of its employees, while continuing to
operate effectively and responsibly in its communities.
Page 2 of 4
Third Quarter Operational Details
Q3 2020
Total
Q3 2019
Total
% Change
Production (Contained in Concentrates)
Copper (000s pounds) 5,550 5,712 -3%
Gold (ounces) 2,487 3,320 -25%
Mine
Tonnes of ore mined 71,993 74,462 -3%
Mill
Tonnes processed 73,603 76,532 -4%
Tonnes processed per day 860 863 Nil
Copper grade (%) 3.74 3.66 2%
Gold grade (g/t) 1.87 2.34 -20%
Recoveries
Copper (%) 91.4 92.5 -1%
Gold (%) 56.3 58.0 -3%
Concentrates
Copper and Gold Concentrates (dmt) 11,956 11,757 2%
Payable copper produced (000s lbs) 5,273 5,426 -3%
Note: Metal production figures are subject to adjustments based on final settlement.
Concentrate Inventory
The number of shipments the Company can export in any given quarter depends on several
variables some of which the Company does not control, hence there may be an inherent
variability in tonnes shipped quarter to quarter.
Q3 2020 Total
Amounts in dry metric tonnes
Opening inventory 2,655
Production 11,956
Sales 9,285
Number of shipments 1
Closing inventory 5,326
Note: Concentrate figures are subject to adjustments based on final settlement.
Page 3 of 4
El Roble Mine
The El Roble mine is a high grade, underground copper and gold mine with nominal processing
plant capacity of 1,000 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, 201 3, Atico has upgraded the operation
from a historical nominal capacity of 400 tonnes per day.
El Roble has Proven and Probable reserves of 1.47 million tonnes grading 3.40% copper and
1.88 g/t gold, at a cut-off grade of 1.93% copper equivalent as of June 30th, 2018. Mineralization
is open at depth and along strike and the Company plans to further test the limits of the deposit.
On the larger land package, the Company has identified a prospective stratigraphic contact
between volcanic rocks and black and grey pelagic sediments and 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 numerous target areas prospective for
VMS type mineralization occurrence, which is the focus of the current surface drill program at
El Roble.
Qualified Person
Mr. Thomas Kelly (SME Registered Member 1696580), advisor to the Company and a qualified
person under National Instrument 43-101 standards, is responsible for ensuring that the technical
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 generates significant cash flow through the
operation of the El Roble mine and is developing it’s high -grade La Plata VMS project in
Ecuador. The Company is also pursuing additional acquisition of advanced stage opportunities.
For more information, please visit www.aticomining.com.
Page 4 of 4
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 Unit ed 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 re sults 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; uncerta inty of meeting anticipated
program milestones for the Company’s mineral projects; the world -wide economic and social impact of COVID -
19 is managed and the duration and extent of the coronavirus pandemic is minimized or not long-term; disruptions
related to the COVID-19 pandemic or other health and safety issues, or the responses of governments, communities,
the Company and others to such pandemic or other issues; 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