Atico Provides Operations Update in Response to COVID-19 and First Quarter 2020 Production Results
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Atico Provides Operations Update in Response to COVID-19 and First Quarter
2020 Production Results
Vancouver, April 07, 2020 -- Atico Mining Corporation (the “Company” or “Atico”) (TSX.V:
ATY | OTC: ATCMF) announces its operating results for the three months ended March 31,
2020 from its El Roble mine. Production for the quarter totaled 4.93 million pounds of copper
and 2,736 ounces of gold in concentrates, an increase of 108% and 85% for copper and gold,
respectively, over the same period in 2019.
“The El Roble mine operated continuously under strict prevention protocols and newly
implemented health policies for predominance of the quarter, with results in line with 2020
objectives” said Fernando E. Ganoza, CEO. “We will continue to comply with guid elines and
regulations from local authorities in the jurisdictions where we operate while putting
tremendous emphasis on the health and safety of all of our employees. At the same time, we
have deployed efforts to support local communities and hospitals in their prevention and
treatment efforts during these unprecedented times.”
First Quarter Operational Highlights
• Production of 4.93 million pounds of copper contained in concentrates ; an increase of
108% over Q1 2019.
• Production of 2,736 ounces of gold contained in concentrates ; an increase of 85% over
Q1 2019.
• Average processed tonnes per day of 878, no significant change over Q1 2019.
• Copper head grade of 3.31%, no significant change over Q1 2019.
• Gold head grade of 1.96 grams per tonne; a decrease of 13% over Q1 2019.
• Copper and gold recovery of 91.9% and 59.0%; no significant change for copper and a
decrease of 2% for gold over Q1 2019
COVID-19 Response Measures
In March 2020, the World Health Organization declared coronavirus disease (COVID-19) a
global pandemic. The Company is closely monitoring developments and has implemented
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. To date, we have no confirmed cases of the COVID -19 at the mine site or
the El Carmen community. The El Roble mine continue s to operate with minimum
personnel and very strict health and safety protocols in coordination with the local hospital and
authorities. The mine site currently has 42% of the usual work force and contractors are down
to a minimum. We will continue to asse ss the situation and are prepared to swiftly make any
necessary adjustments within the regulatory framework issued by the Colombian and
Ecuadorian Ministry of Health and Social Protection.
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The Company, in coordination with local authorities has deployed r esources to help in the
prevention and treatment of the disease as well as support the local communities were we
operate. The following are some of the measures undertaken by the Company;
• The provision of medical and hospital supplies to the San Ramon Hospital at Carmen de
Atrato to control, monitor and diagnose COVID-19 as well as to treat patients.
• Hiring medical staff for the San Ramon Hospital to work on a prevention campaign in
the local community.
• Donation of food and basic supplies to vulnerable families in the Carmen de Atrato
community.
• Providing basic supplies to local authorities to aid in preventative measures.
• Donations of medical supplies to Hospitals in the Choco Province and Municipalities
close to El Carmen de Atrato.
• Donation of medical grade personal protection equipment to the local medical clinic in
Palo Quemado.
• Participation in the RadioThon initiative organized by the provincial government to
recollect medical supplies and equipment in Ecuador.
First Quarter Operational Details
Q1 2020
Total
Q1 2019
Total
% Change
Production (Contained in Concentrates)
Copper (000s pounds) 4,926 2,362 108%
Gold (ounces) 2,736 1,552 85%
Mine
Tonnes of ore mined 72,777 34,796 82%
Mill
Tonnes processed 73,374 35,581 106%
Tonnes processed per day 878 885 Nil%
Copper grade (%) 3.31 3.29 Nil%
Gold grade (g/t) 1.96 2.24 -13%
Recoveries
Copper (%) 91.9 91.6 Nil%
Gold (%) 59.0 60.6 -2%
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Concentrates
Copper and Gold Concentrates (dmt) 10,213 4,921 108%
Payable copper produced (000s lbs) 4,680 2,244 108%
Note: Metal production figures are subject to adjustments based on final settlement. The reported results
are preliminary in nature and are awaiting independent lab verification.
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 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 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 operates the El Roble mine and is pursuing
additional acquisition opportunities. For more information, please visit www.aticomining.com.
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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 w ill 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 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 results and the geology, continuity and g rade 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
Non-GAAP Financial Measures
The items marked with a "(1)" are alternative performance measures and readers should refer to Non -GAAP
Financial Measures in the Company's Management's Discussion and Analysis for the nine months ended September
30, 2016 as filed on SEDAR and as available on the Company's website for further details.