Tahuehueto Pre-Production Update
Altaley Mining Corporation
1000 – 1111 Melville St.
Vancouver, BC, V6E 3V6
www.altaleymining.com
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Altaley Mining Corporation
TAHUEHUETO PRE-PRODUCTION UPDATE
AVERAGE RECOVERIES SINCE SEPT 1, 2022 - GOLD 89.9% AND SILVER 83.2%
VANCOUVER, BRITISH COLUMBIA – January 09, 2023
Altaley Mining Corporation (the “ Company” or “Altaley”) is pleased to provide the following update on
its pre-production efforts during mill commissioning at its Tahuehueto Gold Mine Project.
Tahuehueto is currently operating one ball mill in a commissioning phase, as part of the initial 500tpd
project, producing precious metals- rich, commercial grade lead and zinc concentrate s. All the
associated production systems are operating satisfactorily, and pre -production will continue to
generate revenue whilst the remaining definitive operations systems are completed.
Sept. 2022 to Dec. 2022 – Lead and Zinc Concentrate Production
During September and October 2022 approximately 11,259 tonnes of mill feed was provided by a
temporary crushing system, whilst the definitive crusher circuit was being completed. During this
period throughput was constrained by the non-ideal feed sizing from these temporary systems to the
mill, but this was resolved in late October with the commissioning of the definitive crushing system.
The current installed comminution capacity is 350 tpd, and s ince crusher commissioning the mill has
processed approximately 18,341 tonnes of ore at an average of 297 tonnes per day over 62 operating
days. The nameplate 500 tpd installed comminution capacity will be achieved by the installation of
closed-circuit cyclones , and this is expected to be completed before end Q1, 2023 , subject to a
successful outcome from the forthcoming rights offering.
Recoveries
Excellent precious metal recoveries have been achieved since Sept 1, averaging 89.95% gold and 83.23%
silver, with a peak daily recovery of gold at 97.52% and silver 92.33%. Over the same period, average base
metal recoveries of 76.68% lead report ing to the lead concentrate and 54.31% zinc report ing to z inc
concentrate were also achieved.
CONCENTRATE PRODUCTION AND AVERAGE GRADES
(Sep 1st to Dec 31st, 2022)
Lead Concentrate - 882 Tonnes
Lead Gold Silver
Grades 26.31% 46.92 g/t 642.86 g/t
Recoveries 76.68% 76.72% 68.11%
Zinc Concentrate - 878 Tonnes
Zinc Gold Silver
Grades 47.51% 7.50 g/t 145.14 g/t
Recoveries 54.31% 13.23% 15.12%
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Recoveries and concentrate grades continue to improve, and in December exceed ed expectations ,
partly as a result of the mining of fresh and high -grade ores from underground. December 2022
recoveries and grades for lead concentrates were 84.23% (grade 29.22% Pb), gold 81.32% (grade 55.74
g/t Au) and silver 73.94% (grade 693.20 g/t Ag) respectively. Similarly for zinc concentrates; zinc 6 5.28%
(grade 51.30% Zn), gold 10.62% (grade 5.96 g/t), silver 10.85% (grade 77.91 g/t Ag).
CONCENTRATE PRODUCTION AND AVERAGE GRADES (December 2022)
Lead Concentrate - 223 Tonnes
Lead Gold Silver
Grades 29.22% 55.74 g/t 693.20 g/t
Recoveries 84.23% 81.32% 73.94%
Zinc Concentrate - 287 Tonnes
Zinc Gold Silver
Grades 51.30% 5.96 g/t 77.91 g/t
Recoveries 65.28% 10.62% 10.85%
Mike Struthers, CEO commented : “We have been very pleased with the progressive
improvements in the pre-production plant performance at Tahuehueto, thanks largely to the team on
site and helped by the mining of higher-grade ores from the Creston vein. Early pre -production was
largely from stockpiled material, and some of this was partially oxidized which impacted on the plant
performance. However, the fresh ores are performing well, in line with expectations from metallurgical
testwork. This gives us confidence in future plant performance. Some initial challenges with zinc
suppression in the lead circuit were resolved, so we are now producing zinc concentrates with grades
above the minimum commercial specification. The precious metals grades in our lead concentrates
are also especially pleasing with, for example, an average of 55.74 g/t Au and 693.2 g/t Ag in December.
I look forward to providing further updates as we finalize Tahuehueto construction.”
Debt Settlement
The Company has also entered into a debt settlement agreement with an arms’ length mining
contractor (the “Creditor”) to settle CDN$1,176,297 which is owing to the Credit or as a result of
underground mine development work. The Company and the Creditor have agreed that the issuance
to the Creditor of 735,186 common shares of the Company at a deemed price of CDN$1.60 per common
share will extinguish and settle the debt. The completion of the debt settlement and issuance of the
common shares is subject to TSXV approval. All shares issued in connection with the debt settlement
will be subject to a hold period of four months and one day from the date of issuance.
The Company is pleased to have this vote of confidence , with the settlement being made at a
significant premium to the market, from such a reputable mining contractor.
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About Altaley Mining Corporation
Altaley Mining Corporation is a Canadian based mining company with two 100% owned Mexican gold,
silver, and base metal mining projects.
Altaley’s Tahuehueto Gold Mine Project is in north-western Durango State, Mexico where construction
of an initial 500 tonnes pe r day (“ tpd”) operation is well advanced. The second stage, the 1000 tpd
expansion project, will follow. The operation is generating gold, silver, lead, and zinc in concentrates.
Campo Morado is an operating polymetallic base and precious metals mine currently producing at an
average of 2,400 tpd and is currently estimated to be Mexico’s 6th largest zinc producer and is
progressively increasing its copper revenues.
Visit: www.altaleymining.com
On Behalf of the Board of Directors
(signed) Mike Struthers
Mike Struthers,
CEO 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 limited to conditions or financial performance that are based on assumptions about
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 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 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.
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For further information about Altaley Mining Corporation, please contact:
Glen Sandwell
Corporate Communications Manager
Tel: +1 (604) 684-8071