RNS17 Jan 2017 07:13
ATALAYA MINING PLC
("Atalaya" or the "Company")
2016 Operations Update
Copper production in line with high end of production guidance
Atalaya (AIM: ATYM, TSX: AYM), the European mining and development company provides an operations update for Proyecto Riotinto in respect of 2016.
The Company achieved nameplate capacity of 9.5Mtpa, with copper production, recoveries and ore processed increasing on a quarter-on-quarter basis throughout the period.
2016 Highlights
· Copper production during 2016 amounted to 26,179 tonnes, in line with the high end of our 2016 production guidance. Contained copper production during Q4 2016 was 8,938 tonnes (Q3 2016: 8,752 tonnes).
· Average copper recoveries during 2016 were 83.29%. Recoveries increased to 84.47% during Q4 2016, compared with 83.60% during Q3 2016.
· A total of 6.5Mt of ore was processed during 2016. Processing rates during Q4 2016 were similar to those of Q3 2016, reporting 2.0 million tonnes of ore.
· 2017 production guidance is forecast to be between 34,000 and 40,000 tonnes of copper in concentrate.
Production Ramp-up
During 2016, the processing plant was running at 5.0 Mtpa up until May when the Expansion Project was brought on line. Since then, a ramp-up programme was executed resulting in the attainment of nameplate capacity of 9.5 Mtpa in December 2016.
Overall, the Company achieved an annual processing rate of 6.5Mt of ore for 2016. Processing rates during Q4 2016 were similar to Q3 2016 reporting 2.0 million tonnes of ore.
Scheduled maintenance inspections were executed at the end of December 2016 and early January 2017, resulting in an overall availability of the process plant of 94.8% for 2016.
Mining and Processing
During 2016, production amounted to 26,179 tonnes of copper contained in concentrate, in line with the high end of our production guidance of 23,500 to 27,000 tonnes. Contained copper production during Q4 2016 was 8,938 tonnes, slightly above the Q3 2016 figure of 8,752 tonnes.
· Copper recoveries during 2016 averaged 83.29%, well above historical records. Q4 2016 reported recoveries of 84.47%, up from 83.60% during Q3 2016 mainly as a result of modifications to the process flowsheet.
· Copper grade in concentrate averaged 21.56% during 2016, with copper grade in concentrate for Q4 2016 increasing to 22.79%, compared with 20.47% in Q3 2016.
· Total ore extraction during 2016 amounted to 6.8 million tonnes. Q4 2016 ore extraction was slightly above Q3 2016, reaching 2.3 million tonnes compared with the 2.1 million tonnes for Q3 2016.
· Marginal ore extracted during 2016 reached 1.4 million tonnes and waste removed amounted to 3.5 million cubic meters.
Exploration and Geology
Exploration drilling was concentrated on the northern extension of the historic Atalaya pit. Results are positive, but preliminary, with fur