VANCOUVER, BRITISH COLUMBIA–(Marketwired – Sept. 29, 2015) – Atico Mining Corporation (TSX VENTURE:ATY)(OTC PINK:ATCMF) (“Atico” or the “Company”) is pleased to announce that ongoing infill drilling at the El Roble mine continues to extend mineralization at Zeus, at strike and approximately perpendicular to the strike direction of the massive sulfide body. In addition, the Company reports the results for five diamond drill core holes (ATD-0015 through ATD-0019), which included 59.8m of 5.74% copper and 2.00g/t gold.
Fernando E. Ganoza, CEO, commented: “We are extremely pleased with the continued success of our infill drilling at El Roble. Drilling continued to intercept high-grade mineralization at the Zeus-Aquiles-Ares massive sulfide body and extending the mineralization beyond the previously outlined mineralized shell.” Mr. Ganoza added, “with the tremendous success of this drill program to date, management has made the decision to use the last reported hole in this news release (ATD-0019) as the cutoff hole for the new resource update planned to be released before the end of this year. Production drilling will continue in the Zeus-Aquiles-Ares mineralization area while the exploration team will shift its focus on the perspective areas along strike and down dip.”
El Roble Drilling Highlights Include:
True widths are dependent on uncertainties in the local strike and dip of the mineralization and are estimated to be between 64% and 75% of the drill intercept.
Infill Drilling Program
The goal of the current underground drilling program at the El Roble mine is to further define the known mineralized bodies and expand the identified resource. During the fourth quarter of 2014, the Company began a drill program to specifically test the Zeus, Aquiles and Ares mineralized bodies. Infill drilling approximately perpendicular to the strike direction of the known massive sulfide bodies (318 degrees average strike, 85 degrees east average dip) and drilling of new prospective areas below the 2000-meter level is being conducted from the new main level 1880 adit. Subsequent to the five holes of the program (ATD-0010 to ATD-0014) where drilling significantly extended mineralization at Zeus and Aquiles as reported in June 2015 (See Atico news release dated June 23, 2015), the Company is reporting the next batch of five drill holes (ATD-0015 to ATD-0019). Infill hole ATD-0017 intercepted a completely new area of mineralization extending the massive sulfide body along strike to the south and to the west than had been modeled in the National Instrument 43-101 inferred resource estimate wireframes of Zeus, Aquiles and Ares (See Atico technical report dated August 27, 2013).
Figure 1 clearly shows the strong mineralized infill intervals between the Aquiles and Ares mineralized bodies relative to previous drilling and to the west of the Zeus mineralized body. The mineralization remains open to south west and down dip.
Figure 1 is also available on the following link: http://www.aticomining.com/i/Maps/Zeus-Aquiles-Ares-Schematic-Models-Figure 1.jpg
Exploration Drilling Program
Following the conclusion of Zeus-Aquiles-Ares infill program, the Company is preparing for a new underground drill program designed to test the perspective areas at strike and down dip of the known mineralization. The results to date show that in proximity to the new prospective areas Cu-Au ratios are increasing both to the south and down dip in Zeus and Aquiles and down dip Goliath and Maximus. Both patterns suggest that additional mineralization may exist down dip of Goliath and Maximus and south as well as down dip of Zeus and Aquiles. This hypothesis is strengthened by the massive sulfide intercept in ATDHR-13 (See Atico news release dated November 1, 2012) approximately 50 meters down dip of Maximus mineralized body. In addition these areas are showing favorable geochemical and the structural geology results within the black chert host rock pointing to the possibility of hosting additional mineralization.
Infill Drill Program Assay Results:
|ATD-0018||Failed due to a technical malfunction|
|*True widths are dependent on uncertainties in the local strike and dip of the mineralization and are estimated to be between 64% and 76% of the drill intercept.|
|**Between the reported intervals for holes 15 and 16 there is disseminated mineralization|
El Roble Mine
The El Roble mine is a high-grade underground copper and gold mine with nominal processing plant capacity of 650 tpd, located in the Department of Choco in Colombia. Its commercial product is a copper-gold concentrate.
Since obtaining control of the mine on November 22, 2013, Atico has upgraded the operation from a nominal capacity of 400 tonnes per day. The mine has a continuous operating history of twenty two years, with recorded production of 1.5 million tonnes of ore at an average head grade of 2.6% copper and an estimated gold grade of 2.5 g/t. Copper and gold mineralization at the El Roble property occurs in volcanogenic massive sulfide (“VMS”) lenses.
Since entering into the option agreement in January 2011 to acquire 90% of El Roble, Atico has aggressively explored the mine and surrounding claims. The Company has completed 11,740 meters of diamond drilling and identified numerous prospective targets for VMS deposits on the 6,679-hectare property. This exploration led to the discovery of high-grade copper and gold mineralization below the 2000 level, the lowest production level of the El Roble mine. Atico has developed a new adit access from the 1880 elevation to develop these new resources.
Inferred mineral resource of 1.58 million tonnes grading 4.45 % copper and 3.17 g/t gold, at a cut-off grade of 0.72 % copper equivalent (See Atico technical report dated August 27, 2013). Mineralization is open at depth and along strike and the Company plans to further test the limits of the resource.
On the larger land package, the Company has identified a prospective stratigraphic contact between volcanic rocks and black and grey cherts that has been traced by Atico geologists for ten kilometers. This contact has been determined to be an important control on VMS mineralization on which Atico has identified 15 prospective target areas for VMS type mineralization occurrence, which is the focus of the surface drill program at El Roble.
Quality Assurance & Quality Control
Following detailed geological and geotechnical logging, drill core samples are split on-site with a diamond saw by Atico personnel. The 7 to 10 kilograms per meter of sample are submitted to the ALS Chemex laboratory in Medellin where they are dried, crushed and pulverized. After preparation, the samples are sent to ALS Chemex in Lima and assayed. The remaining half core sample is retained on-site for verification and reference purposes. All gold assays were obtained by standard 50 gram fire assay with AA finish. All copper and silver assays reported were obtained by aqua-regia sample dissolution of the sample followed by ICP analysis. The QA-QC program includes the blind insertion of certified reference standards as well as assay blanks and duplicates at a frequency of approximately one per 15 samples.
Dr. Demetrius Pohl, Ph.D., AIPG Certified Geologist, a qualified person under NI 43-101 standards and independent of the Company, is responsible for ensuring that the information contained in this news release is an accurate summary of the original reports and data provided to or developed by Atico Mining Corporation. Dr. Pohl has approved the scientific and technical content of this news release.
About Atico Mining Corporation
Atico is a growth-oriented company, focused on exploring, developing and mining copper and gold projects in Latin America. The Company operates the El Roble mine and is pursuing additional acquisition opportunities. For more information, please visit www.aticomining.com.
ON BEHALF OF THE BOARD
Fernando E. Ganoza, CEO
Atico Mining Corporation
Neither the 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.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and may not be offered or sold in the United States, or to, or for the account or benefit of, a “U.S. person” (as defined in Regulation S of the U.S. Securities Act) unless pursuant to an exemption therefrom. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.
Cautionary Note Regarding Forward Looking Statements
This announcement includes certain “forward-looking statements” within the meaning of Canadian securities legislation. All statements, other than statements of historical fact, included herein, without limitation the use of net proceeds, are forward-looking statements. Forward- looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs; the need to obtain additional financing to maintain its interest in and/or explore and develop the Company’s mineral projects; uncertainty of meeting anticipated program milestones for the Company’s mineral projects; and other risks and uncertainties disclosed under the heading “Risk Factors” in the prospectus of the Company dated March 2, 2012 filed with the Canadian securities regulatory authorities on the SEDAR website at www.sedar.com