Atico Reports 2016 Fourth Quarter and Full Year Production Results
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Atico Reports 2016 Fourth Quarter and Full Year Production Results
Vancouver, January 17, 2017 -- Atico Mining Corporation (the “Company” or “Atico”)
(TSX.V: ATY | OTC: ATCMF) is pleased to announce operating results for th e three and
twelve month period s ended December 31, 2016 from its El Roble mine. Production totaled
5.15 million pounds of copper with 2,832 ounces of gold for the fourth quarter and 18.72
million pounds of copper with 11,159 ounces of gold in concentrates for the full year 2016.
“Atico has successfully concluded its third full year of operating the El Roble mine, exceeding
the 2016 guidance while achieving the highest production to date and significantly improving
the safety standards ,” said Fernando E. Ganoza, CEO. “In the new year the Company will
continue optimizing the El Roble operation while focusing on increasing the resources at the
mine and exploring the prospective 6,600 ha land package surrounding the El Roble mine.”
Fourth Quarter and Full Year Operational Highlights
Fourth Quarter
Production of 5.15 million pounds of copper contained in concentrates ; an increase of
33% over Q4 2015.
Production of 2,832 ounces of gold contained in concentrates; a decrease of 18% over
Q4 2015.
Average processed tonnes per day of 790; an increase of 8% over Q4 2015.
Copper and gold head grades of 3.92% and 2.19 grams per tonne; an increase of 17%
for copper and a decrease of 17% for gold over Q4 2015.
Copper and gold recover y of 94.7% and 63.8%; an increase of 0% for copper and a
decrease 12% for gold over Q4 2015.
2016 Year-end
Production of 18.72 million pounds of copper contained in concentrates; an increase of
55% over 2015.
Production of 11,159 ounces of gold contained in concentrates; an increase of 2% over
2015.
Average processed tonnes per day of 788; an increase of 24% over 2015.
Copper and gold head grades of 3.71% and 2.17 grams per tonne; an increase of 14%
for copper and a decrease of 22% for gold over 2015.
Copper and gold recovery of 94.2% and 66.1%; an increase of 0% for copper and a
decrease of 5% for gold over 2015.
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Fourth Quarter and Full Year Operational Details
Q1 Total Q2 Total Q3 Total Q4 Total 2016 Total
Production (Contained in Concentrates)
Copper (000s pounds) 4,277 4,787 4,515 5,146 18,724
Gold (ounces) 2,566 2,948 2,813 2,832 11,159
Mine
Tonnes of ore mined 53,752 63,112 63,539 64,314 244,717
Mill
Tonnes processed 53,715 64,246 61,886 62,870 242,717
Tonnes processed per day 778 814 766 790 788
Copper grade (%) 3.81 3.63 3.48 3.92 3.71
Gold grade (g/t) 2.21 2.19 2.08 2.19 2.17
Recoveries
Copper (%) 94.4 93.0 94.6 94.7 94.2
Gold (%) 67.3 65.0 67.9 63.8 66.1
Concentrates
Copper and Gold Concentrates (dmt) 9,674 10,718 10,221 10,881 41,494
Payable copper produced (000s lbs) 4,048 4,527 4,312 4,889 17,776
Note: Metal production figures are subject to adjustments based on final settlement.
El Roble Mine
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 avera ge 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
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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 d iscovery 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 indica ted 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 la nd 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 be 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 Person
Mr. Thomas Kelly (S ME Registered Member 1696580), a dvisor 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.
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
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Neither the TSX Venture Exchange nor its Regulation Services Provid er (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 th e 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 mil estones 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
The Company has not based its production decisions and ongoing mine production on mineral reserve estimates,
preliminary economic assessments or feasibility studies, and historically such projects have increased
uncertainty and risk of failure. Mineral res ources that are not mineral reserves do not have demonstrated
economic viability.
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 Man agement'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.