ATLYF Frankfurt: TSGA Page 1 | 7 Altaley Year-End 2021 Shareholder Update
Altaley Mining Corporation
1000-1111 Melville St.
Vancouver, BC, V6E 3V6
TSX.V: ATLY OTCQX:
ATLYF Frankfurt: TSGA
Page 1 | 7
Altaley Year-End 2021 Shareholder Update
Vancouver, British Columbia, January 5, 2022
Altaley Mining Corporation (“Altaley” or the “Company” (TSX-V: ATLY, OTCQX: ATLYF, Frankfurt-
TSGA) is pleased to provide the following year-end update to shareholders and investors.
2021 has been a year of excellent growth for Altaley Mining Corporation where our Company
has seen steady construction progress at its Tahuehueto gold mine which will soon be entering
into production and a t the producing Campo Morado Mine, the operations team has made
steady improvement to increase production and reduce operating costs resulting in increased
revenues and mine operating profit throughout 2021
CAMPO MORADO OPERATIONS
Campo Morado mine operational improvements have resulted in steady growth of revenues
and decreasing All in Sustaining Costs (“AISC”) and C1 Cash Costs quarter over quarter.
Campo Morado continues to perform above expectations during Q4 2021 where between Oct 1
to December 31, 2021, the mine has processed 183,092 tonnes of mineralized material (Q3 2021 –
168,500 tonnes) producing 1 2,221 t onnes zinc concentrate (Q3 2021 10 ,800 tonnes) and 2, 767
tonnes lead concentrate (Q3 – 2,700 tonnes). This Q4 2021 production is the highest production
achieved at Campo Morado by Altaley since acquiring the mine in June 2017 ,
Chart 1
Altaley Mining Corporation
1000-1111 Melville St.
Vancouver, BC, V6E 3V6
TSX.V: ATLY OTCQX:
ATLYF Frankfurt: TSGA
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Metal sale prices remain strong with Altaley average Q4 sale prices for zinc at US$2,972/tonne
and for lead at US$2,352 per tonne, compared to Q3 2021 average realized prices of US $2,915 per
tonne of zinc and US$2,193 per pound of lead.
Campo Morado operations team have completed a five -year mine plan that includes mining
the El Largo , Fish, G9 and Southwest zones. Dewatering operations on the G9 and Southwest
zones is nearing completion with the zone expected to be fully dewatered by the end of January
2022.
The mine plan is scheduling the commencement of copper concentrate production during Q2
2022 which will add another mine revenue stream.
Metallurgical testing to identify pathways to increase base metal and precious metal recoveries
at Campo Morado are ongoing.
• Altaley is testing pneumatic flotation techn ologies with m icro-fine grinding . Th is
metallurgical program upon completion, will have tested three technologies, Imhoflot™,
Jameson Cell and Woodgrove Direct Flotation Reactor (DFR®). The program is expected
to be completed near the end of the first quarter of 2022.
• Altaley will be conducting 2nd stage testing of both the AlbionTM Process and Leachox™
Process, both proven technologies for forced oxidation and leaching of precious metals.
Both technologies have returned successful results in first phase testing at Campo
Morado showing excellent potential to significantly increase both gold and silver
recoveries.
• Ongoing internal metallurgical testing continues at the Campo Morado laboratory and
to date has successful shown the projects ability to recover copper in sufficient quantities
to produce a salable copper concentrate and,
• Campo Morado Laboratory testing has successfully produced lab scale precious metal
rich p yrite concentrate s, from both freshly processed mineralization as well as from
historic tailings.
The ability to produce a precious metal rich pyrite concentrate, successfully obtained in recent
internal laboratory testing at Campo Morado, is considered a significant and positive step
towards the possibility of increasing precious metal recoveries as most of the unrecovered
precious metals currently being rejected to the tailings are contained in pyrite . Only the pyrite
concentrate would need to be oxidized through Albion or Leachox or other process, as opposed
to the entire tailings. This could lead to substantially improved gold and silver recoveries while
reducing operating and capital costs associated with the oxidation and leaching processes.
Alternatively precious metal rich pyrite concentrate could be marketed for sale.
A sampling program was designed and implemented to collect large representative samples
from the historic Naranjo Bajo tailing storage facility . Testing plans for these tailings are to first
test the ability to recover previously unrecovered base metal and precious metals with micro-
fine grinding and pneumatic floatation and then to test the ability to produce a precious metal
rich pyrite concentrate that might be sold or subjected to forced oxidation and leaching .
Altaley Mining Corporation
1000-1111 Melville St.
Vancouver, BC, V6E 3V6
TSX.V: ATLY OTCQX:
ATLYF Frankfurt: TSGA
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Campo Morado purchased FLSmdth advanced process control system LoadIQ to better
monitor and regulate SAG Mill ore-water feed and rotation al speed, which equipment has
been proven in other operations to increase average
throughput and extend mill liner life. This equipment
should be operational in February 2022 and
management hope s to gain in creased average daily
production and reduce operating costs associated
with the Sag Mill grinding.
Local resident training for various mining skills
continues at Campo Morado . Altaley encourages
training and hiring of local resident personnel and is
currently training 5 women in underground drilling
techniques, 2 with long-hole drilling equipment and 3
with small diameter exploration core drilling . Local
residents are also being trained in the operation of
underground scoop-tram loader mucker equipment
(Figure 1).
On a community social basis, Campo Morado
continues its program of ongoing support providing road improvements to nearby local
communities (Figure 2) and recently provided equipment to dig and install a w ater well and
septic field for the nearby rural federal primary school, Lazaro Cardenas in the San Miguelito
community and retabulated, by smoothing and flattening , a sport play ing field at Varal
community (Figure 3).
Figure 1 - Training Locals in Drilling Techniques
Figure 2 - Road Improvements for local community
Figure 3 - School and sport field improvements
Altaley Mining Corporation
1000-1111 Melville St.
Vancouver, BC, V6E 3V6
TSX.V: ATLY OTCQX:
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TAHUEHUETO OPERATIONS
Construction at the Tahuehueto Gold Mine has progressed very well since resumption of
construction in mid -2021. Management predicted that construction would be nearing
completion close to end of 2021. A year -end report from site indicates that the project is on
budget and on time with operational testing being scheduled during late January 2022 and
commencing ore milling and metal recovery during February 2022.
Initial production is to commence using one ball mill with a rated capacity of approximately 500
tonnes per day, half of the mines’ planned capacity. A second ball mill will be installed d uring
Q2 2022 and when operational, ore throughput at the mine will increase to approximately 1,000
tonnes per day.
Mine Planning & Underground Development
Previous underground d evelopment h ad advance d to ap proximately 80 % o f re quired
development to initiate ore production.
New underground mine development was reinitiated during November 2021 with the arrival to
site of the mining contractor MGA Contratista Minera S.A. de C.V. and is following a mine plan
developed by consultants, Resource Development Associates Inc (“ RDA”). RDA is currently
finalizing an independent life of mine plan(“LOM”) which will be incorporated into an updated
Pre-Feasibility Study (“PFS”) for Tahuehueto. The economic results of the PFS are expected to
be release d publicly early January 2022 with a NI 43 -101 compliant PFS report to be filed on
SEDAR within 45 days of disclosure of the PFS economic results.
Underground development and mine stope preparation has to date , produced approximately
18,000 tonnes of ore ready to feed the mill at commencement of production and with ongoing
underground development during January, management expects that up to two months of ore
will be stockpiled to feed the mill at start -up. Underground development will have provided
access to numerous mining faces that will easily allow adequate mill ore feed to sustain
continuous mining operations at the mines targeted capacity of 1,000 tonnes per day.
03 de Mayo Vein Exploration Works .
The m ining c ontractor Copromig m obilized e quipment early November to the 03 de M ayo
underground exploration workings and is preparing the underground dewaterin g pumping
station and the water that will be extracted is going to be delivered to the processing plant.
Figure 4 - Water Management
Altaley Mining Corporation
1000-1111 Melville St.
Vancouver, BC, V6E 3V6
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The construction and installation of the 2.74 km, six-inch diameter steel waterline between 3 de
Mayo and a water storage tanks is approximately 81% complete (Figure 4). Assembly of water
storage tanks is advancing rapidly with completion estimated at approximately 85 % for two
tanks and the third tank at 50% completion. Water to supply the mill will be initially pumped
into a water storage tank and then gravity fed to a freshwater storage tank at the mill
processing facility. The third tank is for recovered processing water. All three water storage tanks
are expected to be fully operational late -January and be ready for the mill entering initial
production.
PROCESSING PLANT
Crushing
Work on the crushing circuit is underway and estimated to be completed near the end of
January 2022.
Milling
Work continues on the assembly of the ore bin, and ball mill is installed with mill precision
alignment underway. It is estimated that the ball mill will be operational near the end of January
2022.
Flotation
The flotation circuit assemble is largely complete and initial testing with water has been
successfully completed. This area will be fully operational by mid-January 2022.
Concentrate Filtration
Connection work continues with filter installation complete and concentrate filtration is
estimated to fully operational by the third week of January 2022.
Tailings Thickening, Filtration and Storage
Preparation of the tailings’ thickening area has been completed and inst allation of press filter
equipment will be underway early January. Installation is targeted to be completed near the
end of January.
Work continues on the dry stack tailing storage facility and although not estimated to be fully
completed until mid-late February, adequate tailings storage capacity is available for in itial
production.
ELECTRICAL POWER GENERATION
Diesel Generation
Electrical power will be supplied by Aggreko North America initially, with diesel generators
under an Aggreko build and operate business arrangement. All required generators have been
delivered to Tahuehueto site, are mounted in place and operational. Final connection and
power line installation for the plant is underway and estimated to be completed during January.
Natural Gas Generation
The project is wa iting for the granting of permits for natural gas fired power generation . It is
estimated that permits will be in place for gas-fired electricity generation during the second
half of 2022, and at that time electrical power generation will be converted by A ggreko from
Altaley Mining Corporation
1000-1111 Melville St.
Vancouver, BC, V6E 3V6
TSX.V: ATLY OTCQX:
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diesel fuel generation to natural gas fuel ed power generation by swapping out power
generation equipment.
Altaley is pleased and excited to report that the Tahuehueto Mine construction is very near
completion, and we anticipate entering a pre -production phase at half capacity during
February 2022, producing and selling gold rich lead and zinc concentra tes as the project
initiates production and ramps up operations over the next several months with inst allation of
a second ball mill to re ach anticipate d production at approximately 1,000 tonnes per day .
Management hopes to be able to declare commercial production during the last half of 2022 as
soon as the mine reaches a continuous state of production at 80% of management's
expectations.
Visit: www.altaleymining.com
On behalf of Altaley Mining Corporation we wish all a very happy and prosperous new year.
(signed) “Ralph Shearing” Ralph Shearing,
President, CEO and Director
Cautionary Note Regarding Production Decisions and Forward-Looking Statements
It should be noted that Altaley declared commercial production at Campo Morado prior to completing a feasibility study
of mineral reserves demonstrating economic and technical vi ability. Accordingly, readers should be cautioned that
Altaley's production decision has been made without a comprehensive feasibility study of established reserves such
that there is greater risk and uncertainty as to future economic results from the Camp o Morado mine and a higher
technical risk of failure than would be the case if a feasibility study were completed and relied upon to make a
production decision. Altaley has completed a preliminary economic assessment ("PEA") mining study on the Campo
Morado 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, and April 4,2018).
Statements contained in this news release that are no t 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 limited to, the L ender’s plans to acquire the Accendo Loan
Facility out of liquidation and other possible events; conditions or financial performance that are based on assumptions
about future economic conditions and courses of action; the timing and costs of future activi ties on the Company's
properties, such as production rates and increases; success of exploration, 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 achi eved; that recommencement of operations at Campo Morado
will proceed as planned; the continuity of the price of gold and other metals, economic and political conditions, and
operations. Forward-Looking Information involves known and unknown risks, uncertai nties 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
Altaley Mining Corporation
1000-1111 Melville St.
Vancouver, BC, V6E 3V6
TSX.V: ATLY OTCQX:
ATLYF Frankfurt: TSGA
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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