Altaley Mining Reports on Q2 2022 Financials
Altaley Mining Corporation
1000 – 1111 Melville St.
Vancouver, BC, V6E 3V6
www.altaleymining.com
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Altaley Mining Reports on Q2 2022 Financials
VANCOUVER, BRITISH COLUMBIA – AUGUST 29, 2022
Altaley Mining Corporation (TSXV: ATLY) (OTCQX: ATLYF) (FSE: TSGA) (the " Company" or
"Altaley") is pleased to announce the release of its Q2 2022 financial results.
Q2 2022 Financials
Campo Morado Mine
During the three months ended June 30, 2022, Campo Morado produced 8,603 tonnes of zinc
concentrate grading an average of 45% zinc, 1.73 g/t gold, 404 g/t silver and sold 8,194 tonnes
generating Q2-2022 revenue from zinc concentrate of US$9.02 million. In May 2022, the mine
began producing copper concentrate, of which 1,870 tonnes was produced during Q2 -2022
grading an average of 14% copper, 6.3 g/t gold, 650 g/t silver and approximately 1,516 tonnes
were sold generating Q2 -2022 revenue from copper concentrate of US$ 2.1 million.
Additionally, 951 tonnes of lead concentrate was produced grading an average of 16% lead,
3.58% copper, 4.71 g/t gold, 654 g/t silver and 2,626 tonnes were sold, genera ting Q2 -2022
revenue from lead concentrate of US$0.34 million.
During Q2 -2022, approximately 189,194 tonnes of mineralized material were processed
through the processing plant at a C1 cash cost per lbs of US$1.13 with average grades of 3.01%
zinc, 0.51% copper, 0.74% lead, 0.88 g/t gold, and 84 g/t silver achieving recoveries of 68.4% in
zinc, 27.5% in copper, 10.8% in lead, 8.1% in gold, and 18.1% in silver.
Ralph Shearing states, "Q2 2022 second quarter financial results reflect a challenging quarter
for the Company . Campo Morado operations saw a decrease in profitability over H1 2022
compared to H2 2021 as a result of the El Largo zone nearing depletion delivering lower grade
ore to the mill which negatively affected both recoveries and concentrate grades. In addition,
the mine installed a copper recovery flotation circuit to begin producing copper concentrate,
foregoing lead concentrate production to take advantage of the significantly higher price of
copper over lead. These factors along with downtime due to equipment failure and regular
maintenance plus some inflationary cost increases resulted in decreased Campo Morado
profit during the first half of 2022 . Management however, is confident that these difficulties
are behind us with Campo Morado back on track mining higher grade ore from the
G9/Southwest allowing the project to achieve significantly better recoveries and concentrate
grades during August, resulting in increased concentrate grades and increased production
tonnages.
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The following table and subsequent discussion provide a summary of the operating
performance of the Company for the three months ended March 31, 2022, and June 30, 2022.
TABLE 1
During the three months ended June 30, 2022, the Company reported total mine operating
income of $1,933, total comprehensive loss of $847, and basic loss per share of $0.01.
During Q2 -2022, Campo Morado installed its copper recovery flotation circuit and began
producing copper concentrate. The timing between installation and commissioning of the
recovery circuit resulted in increased production costs, thus lowering mine operating income
for the quarter in comparison to Q2 -2021. Additionally, depletion of m ineral resources has
begun to be recognized during 2022 given the reversal of previous impairment charges on
Three months ended Three months ended S ix months ended
30-Jun-22 31-Mar-22 30-Jun-22
Operational
Ore Processed 189,194 176,610 365,804
Zn concentrate produced (ton) 8,603 9,657 18,260
Average realized zinc price per tonne (,000 US$) 3,452$ 3,255$ 3,320$
Zn grade 45% 46% 46%
Zn recovery 68% 70% 69%
Cu concentrate produced (ton) 1,870 - 1,870
Average realized copper price per tonne (,000 US$) 9,161$ -$ 9,161$
Cu grade 14% 0% 14%
Cu recovery 27% 0% 17%
Pb concentrate produced (ton) 951 2,379 3,330
Average realized lead price per tonne (,000 US$) 2,114$ 2,306$ 2,248$
Pb grade 16% 19% 18%
Pb recovery 11% 28% 20%
Cost Analysis
C1 Cash Cost (US$/lb) 1.13$ 1.26$ 1.20$
All-in Sustaining Cost (US$/lb) 1.47$ 1.49$ 1.48$
Financial (,000 US$)
Gross revenues 19,210$ 21,534$ 40,744$
Mine operating profit 1,933$ 1,215$ 3,148$
Income (Loss) for the period (2,051)$ (155)$ (2,206)$
Non-restricted cash 1,535$ 1,822$ 1,535$
Working capital deficiency (13,619)$ (9,496)$ (13,619)$
Shareholders
Basic earnings (loss) per share (0.01)$ 0.00$ (0.01)$
Diluted earnings per share (0.01)$ 0.00$ (0.01)$
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the Campo Morado mine in 2021. As a result, mine operating income is being impacted from
such depletion during 2022 that was not able to be recognized in 2021.
During the three months ended June 30, 2022, the Company generated revenues in the
amount of US$13.9 million from the sale of 8,194 tonnes of zinc concentrate with an average
of 44.8% zinc and 406 g/t silver at an average selling price of US$3,452 per tonne of zinc and
US$19.90/oz of silver. During June 2022, the Company sold 1,512 tonnes of copper concentrate
with an average of 13.7% copper, 590 g/t silver, and 6.2 g/t gold at an average selling price of
US$ 9,161 per tonne of copper, US$21.70/oz of silver, and US$1,848/oz of gold. Additionally, 1,012
tonnes of lead concentrate was sold with an average of 15.5% lead, 537 g/t sil ver and 3.2 g/t
gold at an average selling price per tonne of lead of US$2,114, US$19.90/oz silver and
US$1,800/oz gold. Net revenues of US$13.9 million were inclusive of treatment charges and
penalties in the amount of US$3.51 million and freight and sell ing costs in the amount of
US$1.78 million were reported during the period.
Graphic Cost Information
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Tahuehueto Mining Project
During the three months ended June 30, 2022, Tahuehueto produced 256 tonnes of bulk
concentrate grading an average of 72% zinc, 71% copper, 74% lead, 1.73 g/t gold, 404 g/t silver
and sold 64.3 tonnes generating Q2-2022 revenue from bulk concentrate of US$77K.
At Tahuehueto, the project has experienced an uncharacteristically strong rainy season
complicating project access and construction efforts that have negatively affected pre -
production revenues anticipated during the pre-production and commissioning phase of the
first 500 tonne per day (“tpd”) ball mill.
Although the first ball mill is currently capable of operating at 500 tpd, construction delays
have occurred on finalizing the permanent crushing circuit, permanent water pumping
station and tailings storage facility. C rushing, with 500 tpd capability , is currently being
handled by a provisional crushing facility and the projects backup water pumping system is
providing water to the mill. Completion of the permanent crushing circuit is expected by the
end of September and permanent water pumping station , although installed , will be
connected to power over the coming months with the installation of a power line from the
generator farm next to the mill to Tres de Mayo pump station.
Tailings are being stored in a temporary facility until the permanent dry stack tailings facility
is fully constructed. Work here has been temporarily suspended owing to the heavy rainfall,
after which work will be reinitiated to complete over the coming months.
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Following the commissioning of the defini tive surface ore handling system, and as the rainy
season winds down, we are expecting the project to achieve consistent production up to 500
tpd.
Installation of t he projects 2 nd 500 tpd ball mill, a key element in the 1000 tpd project is
temporarily postponed, as it requires the permanent tailings facility to be available to receive
the increased load of tailings that will be generated. Civil works for the 2 nd ball mill will
commence as soon as the 500 tpd project is fully commissioned and delivering consistent
revenues. A definitive timetable for delivery of the 1000 tpd project will be communicated in
subsequent Company announcements.
About Altaley Mining Corporation
Altaley Mining Corporation is a Canad ian based mining company with two 100% owned
Mexican gold, silver, and base metal mining projects.
Altaley's Tahuehueto mining project is in north -western Durango State, Mexico where
construction of an initial 500 tpd operation is well advanced. The second stage, the 1000 topd
project, will follow immediately after commissioning the initial stage. The operation will
generate gold, silver, lead, and zinc in concentrates.
Campo Morado is an operating polymetallic base metal mine with mining and milling
equipment currently producing at an average of 2,400 tonnes per day and is currently
estimated to be Mexico’s 6th largest zinc producer.
Visit: www.altaleymining.com
On Behalf of the Board of Directors
(signed) “Ralph Shearing”
Ralph Shearing, P. Geol,
CEO, President, and Director
CAUTIONARY NOTE REGARDING PRODUCTION DECISIONS AND FORWARD -LOOKING
STATEMENTS
It should be noted that Altaley declared commercial production at Campo Morado and elected to initiate construction to go into
production at Tahuehueto prior to completing full feasibility stud ies demonstrating economic and technical viability.
Accordingly, readers should be cautioned that Altaley’s production decisions have been made without comprehensive feasibility
studies of established reserves at Campo Morado and prefeasibility level reserves at Tahuehueto, such that there is greater risk
and uncertainty as to future economic results from the Campo Morado mine and at Tahuehueto mine where reserves are
established to the prefeasibility level of confidence and therefore a higher technical risk of failure than would be the case if full
feasibility studies were completed and relied upon to make production decisions. Altaley has completed a preliminary economic
assessment (“PEA”) mining study on the Campo Morado mine and a prefeasibility study (‘PFS”) at Tahuehueto mine that provides
a conceptual life of mine plan and a preliminary economic analysis based on the previously identified mineral resources (see
News Release dated November 8, 2017, April 4, 2018, and April 25, 2022).
Statements contained in this news release that are not historical facts are "forward -looking information" or "forward -looking
statements" (collectively, "Forward-Looking Information") within the meaning of applicable Canadian securities laws. Forward -
Looking Information includes but is not l imited to conditions or financial performance that are based on assumptions about
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future economic conditions and courses of action; the timing and costs of future activities on the Company's properties, such as
production rates and increases; success of ex ploration, development and bulk sample processing activities, and timing for
processing at its own mineral processing facility on the Tahuehueto project site. In certain cases, Forward -Looking Information
can be identified using words and phrases such as "plans," "expects," "scheduled," "estimates," "forecasts," "intends," "anticipates"
or variations of such words and phrases. In preparing the Forward -Looking Information in this news release, the Company has
applied several material assumptions, including, but not limited to, that the current exploration, development, environmental
and other objectives concerning the Campo Morado Mine and the Tahuehueto Project can be achieved: the continuity of the
price of gold and other metals, economic and political conditions, and operations. Forward-Looking Information involves known
and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the
Company to be materially different from any future results, performance or achievements expressed or implied by the Forward-
Looking Information. There can be no assurance that Forward -Looking Information will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue
reliance on Forward-Looking Information. Except as required by law, the Company does not assume any obligation to release
publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events.
Neither 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.
For further information about Altaley Mining Corporation, please contact:
Glen Sandwell
Corporate Communications Manager
Tel: +1 (604) 684-8071