Atalaya Mining PLC Updated Reserves and Resources Statement (1263E)

TIDMATYM

RNS Number : 1263E

Atalaya Mining PLC

14 July 2016

14 July 2016

Atalaya Mining plc ("Atalaya" or the "Company")

(AIM: ATYM, TSX: AYM)

Updated Reserves and Resources Statement

Atalaya, the European mining and development company, announces an updated Mineral Reserves and Resources estimate for the Riotinto Copper Project ("Proyecto Riotinto") as at 30 June 2016. These estimates, outlined below, have been compiled in accordance with the guidelines set out in Canadian National Instrument 43-101.

Highlights

-- Total open pit Mineral Reserves estimate of 153 million tonnes averaging 0.45% Cu using variable, declining cut-off grades for 681,000 tonnes of contained Cu metal, (previous total 606,000 tonnes), representing over a 12% increase.

-- Total open pit Measured and Indicated Mineral Resources estimate of 193 million tonnes averaging 0.43% Cu and an additional Inferred open pit Mineral Resource estimate of 23 million tonnes averaging 0.48% , both calculated using a 0.20% Cu cut-off grade.

Total Mineral Reserves for Proyecto Riotinto

 
                                           June 2016 Estimate 
------------------------------------------------------------------------------------------------------- 
                     Proven              Probable                       Mineral Reserve 
-------------  ------------------  -------------------  ----------------------------------------------- 
                  Tonnes     % Cu     Tonnes     % Cu      Tonnes     % Cu   Contained Cu t   Waste:Ore 
-------------               -----               ------               -----  --------------- 
                (millions)          (millions)           (millions)                             ratio 
-------------  -----------  -----  -----------  ------  -----------  -----  ---------------  ---------- 
 New Reserve        78       0.45       74        0.44      153       0.45      681,000          1.9 
 Previous 
  Reserve           39       0.38       84       0.54       123       0.49      606,000          1.1 
-------------  -----------  -----  -----------  ------  -----------  -----  ---------------  ---------- 
 

Totals may not equal the sum of the components due to rounding adjustments

-- Reserve estimates are based on the mined surface of the open pit as at 30 April 2016 and a deposit model dated 3 May 2016;

-- The pit design and internal cut-off grade are based on a long term copper price of US$2.60/lb.;

-- Declining cut-off grades were applied to estimate Mineral Reserves. Cut-off grades are initially 0.25% Cu, declining to an internal cut-off of 0.16% Cu after 14 years, and remaining at 0.16% Cu until completion of open pit mining. The mine life is presently estimated at 16.5 years;

   --    Mineral Reserves are included in the estimates of Mineral Resources; 
   --    Long term US$/Euro exchange rate of 1.12; 
   --    Ultimate open pit design has a waste to ore ratio of 1.9:1; 
   --    Underground orebodies do not form part of the open pit reserves estimate. 

Total Mineral Resources for Proyecto Riotinto at variable cut-off grades

 
                Measured            Indicated               M+I                Inferred              M+I+I 
--------  -------------------  -------------------  -------------------  -------------------  ------------------- 
  % Cu       Tonnes               Tonnes               Tonnes               Tonnes               Tonnes 
  Cutoff    (million)    %Cu     (million)    %Cu     (million)   %Cu      (million)    %Cu     (million)    %Cu 
--------  -----------  ------  -----------  ------  -----------  ------  -----------  ------  -----------  ------ 
  0.15        115       0.374      122       0.384      237       0.379       25       0.450      262       0.386 
  0.20         90       0.430      103       0.424      193       0.427       23       0.484      216       0.433 
  0.25         73       0.479       87       0.459      160       0.468       20       0.517      180       0.474 
  0.30         61       0.519       73       0.497      134       0.507       18       0.547      152       0.512 
  0.35         50       0.562       59       0.537      109       0.549       15       0.584      124       0.553 
  0.40         40       0.610       45       0.587       85       0.598       12       0.635       97       0.602 
  0.45         32       0.658       34       0.638       66       0.648       10       0.690       76       0.653 
  0.50         24       0.712       25       0.695       49       0.704       8        0.741       57       0.709 
--------  -----------  ------  -----------  ------  -----------  ------  -----------  ------  -----------  ------ 
 

Totals may not equal the sum of the components due to rounding adjustments

-- The effective date of the mineral resource model is 03 May 2016. The Mineral Resource estimate is summarised using the mined surface of the open pit as at 30 April 2016;

-- The Mineral Resource estimate uses all available assays through the end of March 2016 and includes 171,987 metres of historical and new drilling with 86,052 sample intervals;

   --    Mineral Resources are reported inclusive of Mineral Reserves; 

-- The resources are estimates of recoverable tonnes and grades using Inverse Distance to various Power factors;

   --    Resources are pit-constrained at US$3.20/lb Cu; 

-- The resource model extends from 4174900mN to 4176500mN, 711900mE to 714750mE and to a maximum depth of 0mRL.

Alberto Lavandeira, CEO commented:

"We have completed our infill drilling programme, assays and updating of the block model. These results have provided us with greatly improved confidence in the overall distribution of mineralization and a much better understanding of the potential impurity levels which will enhance the efficiency of our mine planning."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

Contacts:

 
 Atalaya Mining         Roger Davey / Alberto        +34 959 
  plc                    Lavandeira                   59 28 50 
---------------------  ---------------------------  ------------ 
 Canaccord Genuity 
  (NOMAD and Joint      Henry Fitzgerald-O'Connor    [phone] 
  Broker)                / Martin Davison             8000 
---------------------  ---------------------------  ------------ 
 BMO Capital Markets    Jeffrey Couch/Neil           [phone] 
  (Joint Broker)         Haycock/Tom Rider            1010 
---------------------  ---------------------------  ------------ 
 

QUALIFIED PERSON AND QUALITY CONTROL

Information of a scientific or technical nature in this document was prepared under the supervision of Alan C. Noble P.E., an independent Qualified Person under the Canadian National Instrument 43-101.

The open pit mineral resource was prepared by Alan C. Noble, P.E. The open pit mineral reserve was prepared by William L. Rose, P.E., an independent Qualified Person working under the direction of Mr. Noble.

Mr. Noble has verified the data disclosed, including sampling, analytical, and test data underlying the information or opinions contained in this announcement in accordance with standards appropriate to their qualifications.

An updated NI 43-101 resource and reserve report will be completed and filed in due course on SEDAR at www.sedar.com and on the Company's website.

In relation to historical resources and reserves, refer to the technical report entitled "NI 43-101 Technical Report on EMED's Rio Tinto Copper Project, Huelva Province, Spain " dated February 2013 and filed on SEDAR at www.sedar.com, for further discussion of the extent to which the estimate of mineral resources/reserves may be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, or other relevant issues.

GLOSSARY of TECHNICAL TERMS

 
 Cu          Copper 
----------  ------------------------------------------------ 
 Cut-off     The minimum grade at which mineralized 
  grade       material can be economically mined 
              and processed for the purpose of 
              the reserve calculation 
----------  ------------------------------------------------ 
 Inferred    That part of a Mineral Resource 
  Mineral     for which quantity and grade or 
  Resource    quality are estimated on the basis 
              of limited geological evidence and 
              sampling. Geological evidence is 
              sufficient to imply but not verify 
              geological and grade or quality 
              continuity. An Inferred Mineral 
              Resource has a lower level of confidence 
              than that applying to an Indicated 
              Mineral Resource and must not be 
              converted to a Mineral Reserve. 
              It is reasonably expected that the 
              majority of Inferred Mineral Resources 
              could be upgraded to Indicated Mineral 
              Resources with continued exploration. 
----------  ------------------------------------------------ 
 Indicated   That part of a Mineral Resource 
  Mineral     for which quantity, grade or quality, 
  Resource    densities, shape and physical characteristics 
              are estimated with sufficient confidence 
              to allow the application of Modifying 
              Factors in sufficient detail to 
              support mine planning and evaluation 
              of the economic viability of the 
              deposit. Geological evidence is 
              derived from adequately detailed 
              and reliable exploration, sampling 
              and testing and is sufficient to 
              assume geological and grade or quality 
              continuity between points of observation. 
              An Indicated Mineral Resource has 
              a lower level of confidence than 
              that applying to a Measured Mineral 
              Resource and may only be converted 
              to a Probable Mineral Reserve. 

----------  ------------------------------------------------ 
 lb          Pound 
----------  ------------------------------------------------ 
 Inverse     Statistical interpolation method 
  distance 
----------  ------------------------------------------------ 
 Measured    That part of a Mineral Resource 
  Mineral     for which quantity, grade or quality, 
  Resource    densities, shape, and physical characteristics 
              are estimated with confidence sufficient 
              to allow the application of Modifying 
              Factors to support detailed mine 
              planning and final evaluation of 
              the economic viability of the deposit. 
              Geological evidence is derived from 
              detailed and reliable exploration, 
              sampling and testing and is sufficient 
              to confirm geological and grade 
              or quality continuity between points 
              of observation. A Measured Mineral 
              Resource has a higher level of confidence 
              than that applying to either an 
              Indicated Mineral Resource or an 
              Inferred Mineral Resource. It may 
              be converted to a Proven Mineral 
              Reserve or to a Probable Mineral 
              Reserve 
----------  ------------------------------------------------ 
 Mineral     The economically mineable part of 
  Reserve     a Measured and/or Indicated Mineral 
              Resource. It includes diluting materials 
              and allowances for losses, which 
              may occur when the material is mined 
              or extracted and is defined by studies 
              at Pre-Feasibility or Feasibility 
              level as appropriate that include 
              application of Modifying Factors. 
              Such studies demonstrate that, at 
              the time of reporting, extraction 
              could reasonably be justified. Mineral 
              Reserves are sub-divided in order 
              of increasing confidence into Probable 
              Mineral Reserves and Proven Mineral 
              Reserves. A Probable Mineral Reserve 
              has a lower level of confidence 
              than a Proven Mineral Reserve. 
----------  ------------------------------------------------ 
 Mineral     A concentration or occurrence of 
  Resource    solid material of economic interest 
              in or on the Earth's crust in such 
              form, grade or quality and quantity 
              that there are reasonable prospects 
              for eventual economic extraction. 
              The location, quantity, grade or 
              quality, continuity and other geological 
              characteristics of a Mineral Resource 
              are known, estimated or interpreted 
              from specific geological evidence 
              and knowledge, including sampling. 
----------  ------------------------------------------------ 
 RL          Relative level or elevation 
----------  ------------------------------------------------ 
 

The above definitions of "Mineral Resource", "Inferred Mineral Resource", "Indicated Mineral Resource", and "Measured Mineral Resource" conform to CIM Definition Standards - For Mineral Resources and Mineral Reserves, as prepared by the CIM Standing Committee on Reserve Definitions, and adopted by CIM Council on 10 May 2014, and as required by NI 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators.

This information is provided by RNS

The company news service from the London Stock Exchange

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July 14, 2016 02:00 ET (06:00 GMT)