Atalaya Mining PLC Announces Proyecto Masa Valverde Exploration Update

2021-10-05 23:01:26

Positive drilling results from Proyecto Masa Valverde including significant high-grade zones from both Masa Valverde and Majadales massive sulphide deposits.

NICOSIA, CYPRUS / ACCESSWIRE / October 6, 2021 / Atalaya Mining Plc (AIM:ATYM)(TSX:AYM) is pleased to announce positive progress regarding ongoing resource definition drilling at Proyecto Masa Valverde (“Proyecto Masa Valverde”) in Huelva, Spain.

A version of this announcement containing all referenced maps can be found on the Company’s website at www.atalayamining.com (the “Website Announcement”).

About Proyecto Masa Valverde

As announced on 21 October 2020, the Company entered into a definitive purchase agreement to acquire 100% of Proyecto Masa Valverde which includes the Masa Valverde polymetallic deposit, the Majadales discovery and the unexplored Campanario-Descamisada area.

Masa Valverde is a large single undeveloped massive sulphide deposit strategically located 28 km south of Atalaya’s 15 Mtpa mill at Proyecto Riotinto and 6 km south from Sotiel underground mine owned by MATSA recently acquired by Sandfire Resources (SFR). Refer to figure 1 on the Website Announcement.

Recent Drilling Highlights

The recent drilling campaign has intersected broad intervals of massive and stockwork type polymetallic sulphide mineralization including significant high grade intercepts at both Masa Valverde and Majadales.

A summary of select recent drill holes intersections is inserted below:

Masa Valverde

DDH

From

(m)

To

(m)

Interval

(m)

Cueq

(%)

Cu

(%)

Zn

(%)

Pb

(%)

Au

(g/t)

Ag

(g/t)

MJ-38

421

590

169

1.55

0.52

2.00

0.94

0.47

26

including

423

444

21

2.63

0.43

5.23

1.56

0.72

34.90

Including

478

486

8

2.18

1.99

0.30

0.08

0.11

10.50

Including

538

553

15

3.24

0.32

6.83

2.47

0.65

39.27

including

580

586

6

3.63

0.18

6.84

3.88

0.83

65.67

MJ-40

460

612

152

1.24

0.39

1.77

0.44

n.a.

27.79

including

506

564

58

2.27

0.42

4.28

0.96

n.a.

43.28

and

688

789

101

1.67

0.70

2.31

0.41

n.a.

22.52

including

710

789

79

1.93

0.72

2.93

0.52

n.a.

27.18

Majadales

DDH

From

(m)

To

(m)

Interval (m)

Cueq

(%)

Cu

(%)

Zn

(%)

Pb

(%)

Au

(g/t)

Ag

(g/t)

MJ-39

351.80

370

18.2

2.83

0.87

3.58

2.03

0.21

53.79

including

351.80

364

12.2

3.94

1.21

4.91

2.83

0.27

76.72

Complete assay results are presented in tables 1 and 2 below.

Campanario-Descamisada

Campanario-Descamisada is a 5 km long NW trending mineralized corridor located approximately 1.5 km NE of Masa Valverde and Majadales and defined by numerous small, old workings with Au-rich gossans and occasionally relicts of massive sulphides. Limited historical drilling had returned promising results at shallow depths: for example, 8.25 meters at 1.27% Cu from 86.25 meters depth.

Forward plan for Proyecto Masa Valverde

Drilling will continue beyond the initial 8,000 meters planned for this campaign with two rigs and an aim to: (i) gain confidence in the resource estimate and obtain samples for metallurgical testing; (ii) define the extensions of known mineralization at both the Masa Valverde and Majadales deposits; (iii) test the main geophysical anomalies generated during the recently completed FLEM survey; and (iv) determine the ultimate exploration potential of the promising new area named Campanario-Descamisada target zone.

Current and new drilling data will be incorporated into the NI 43-101 compliant report for Proyecto Masa Valverde that is currently being prepared by CSA Global and expected by early Q1 2022.

Alberto Lavandeira, CEO, commented:

These excellent drilling results from both Masa Valverde and Majadales confirm our belief that the historical resource at Masa Valverde, which excluded Majadales, can be improved and also expanded. The definition of higher grade Cu and Zn zones inside the larger mineralized intervals will be one of the keys for moving this project to production. Based on these encouraging results we have decided to extend the 8,000 meter drilling program initially planned for this campaign to include the first systematic drilling program at the promising Campanario-Descamisada target zone. We believe that Proyecto Masa Valverde is an important growth project for Atalaya and has the potential to become a source of high grade ore to supplement mill feed at Proyecto Riotinto, which continues to operate above nameplate capacity.

Proyecto Masa Valverde drilling

The aim of the current drilling program at Proyecto Masa Valverde is to confirm, expand and upgrade historical NI 43-101 resources reported to be 66 Mt at 0.67% Cu, 1.92% Zn, 0.90% Pb, 34 g/t Ag and 0.63 g/t Au (refer to the announcement made on 21 October 2020). The core obtained during the drilling campaign will also be used for metallurgical test work.

To date, a total of 5,874 meters through 8 diamond drill holes have been completed by Atalaya and two more holes are in progress. Four holes were drilled at the Masa Valverde polymetallic sulphide deposit and four in the Majadales satellite body (refer to figures 2 and 3 of the Website Announcement). Majadales, located 1 km to the east of Masa Valverde, was discovered by Atalaya’s exploration team in July 2019 when drill testing a coincident gravity and ground electromagnetic geophysical anomaly.

First resource estimation for Majadales will be included in the NI 43-101 report for Proyecto Masa Valverde that is currently in progress.

Drill holes at Masa Valverde deposit

Three drill holes at Masa Valverde, MJ36, MJ-38 and MJ-40, were designed as infill holes while MJ-34 was a step out hole that did not extend known mineralization to the east.

Results so far confirm and improve the previously known mineralization in terms of widths and grades. Mineralization remains open in several sections of the deposit as indicated in figure 4 of the Website Announcement.

Additional drilling at Masa Valverde will continue filling the main gaps of the historical drilling as well as testing the potential extensions. Priority will be given to demonstrate the continuity and size of the higher-grade Cu and Zn zones.

Drill holes at Majadales deposit

The four holes completed at Majadales sulphide body were step out holes, three of which (MJ-35, MJ-39 and MJ-41) extended known mineralization to the east, up dip and down dip 70, 30 and 15 meters respectively as can be seen in figure 5 of the Website Announcement. Additional drilling at Majadales will be focused on testing those zones that remain open.

Overall drill results

Assay results were received for six holes while two more were not sampled due to lack of visible mineralization. Table 1 below includes most significant intercepts received from the current campaign over Masa Valverde deposit, while Table 2 includes all the intercepts had so far at Majadales.

Table 1.

Masa Valverde Drill Hole Table1

Hole ID

Length (m)

From (m)

To (m)

Interval (m)

2 CuEq %

Cu %

Zn %

Pb %

Au g/t

Ag g/t

MJ34BIS

622.1

No Significant Intersection

MJ36

632

412.00

575.00

163.00

1.14

0.48

1.09

0.65

0.42

23.15

Including

425.00

466.90

41.90

2.17

0.46

3.41

1.65

0.64

38.94

Inc.

431.00

450.00

19.00

2.69

0.42

5.05

1.78

0.75

43.84

Including

509.00

575.00

66.00

1.00

0.72

0.18

0.22

0.50

22.12

Inc.

515.00

532.00

17.00

1.45

1.06

0.37

0.44

0.33

22.13

Inc.

566.00

573.00

7.00

1.26

1.02

0.02

0.17

1.13

24.57

MJ38

739.5

421.00

590.00

169.00

1.55

0.52

2.00

0.94

0.47

26.63

Including

423.00

444.00

21.00

2.63

0.43

5.23

1.56

0.72

34.90

Inc.

423.00

428.00

5.00

4.70

0.21

10.11

4.45

1.07

57.20

Including

444.00

488.00

44.00

1.27

0.82

0.76

0.40

0.24

16.20

Inc.

478.00

486.00

8.00

2.18

1.99

0.30

0.08

0.11

10.50

Including

538.00

553.00

15.00

3.24

0.32

6.83

2.47

0.65

39.27

Inc.

545.00

553.00

8.00

4.35

0.27

9.48

3.72

0.73

49.38

Including

557.00

576.00

19.00

1.50

0.64

0.89

1.08

1.11

43.32

Including

580.00

586.00

6.00

3.63

0.18

6.84

3.88

0.83

65.67

3MJ40

831.5

460.00

612.00

152.00

1.24

0.39

1.77

0.44

NA

27.79

Including

506.00

564.00

58.00

2.27

0.42

4.28

0.96

NA

43.28

688.00

789.00

101.00

1.67

0.70

2.31

0.41

NA

22.52

Including

710.00

789.00

79.00

1.93

0.72

2.93

0.52

NA

27.18

Inc.

772.00

788.00

16.00

2.83

0.53

5.45

1.26

NA

47.31

1 Table showing detailed drill results over sulphide mineralized intervals.
2 Metal prices used: Cu 4.00 USD/lb, Zn 1.20 USD/lb, Pb 0.90 USD/lb, Ag 22 USD/oz. Copper Equivalent (CuEq) values are for exploration purposes only and no metallurgical recovery was applied. Au is not included.
3 Assays from Proyecto Riotinto laboratory. See QA/QC section for further details.

Table 2.

Majadales Drill Hole Table1

Hole ID

Length (m)

From (m)

To (m)

Interval (m)

2 CuEq %

Cu %

Zn %

Pb %

Au g/t

Ag g/t

MVE-1

127.55

No Significant Intersection

MVE-1-BIS

593.4

No Significant Intersection

MVE-3

612.9

No Significant Intersection

MVE-4-BIS

484.9

350.20

365.60

15.40

1.58

0.75

1.45

0.62

0.17

31.59

Including

350.20

355.50

5.30

3.30

1.82

2.18

0.92

0.32

77.57

MJ01

452.5

336.70

340.60

3.90

1.74

0.98

0.06

0.54

0.15

76.92

349.90

354.10

4.20

3.99

1.81

4.23

1.78

0.65

63.52

MJ02

417.9

323.15

327.15

4.00

3.74

1.17

3.86

2.31

0.40

111.35

MJ03

608.4

No Significant Intersection

MJ04

610.8

No Significant Intersection

MJ05

471.65

389.55

396.00

6.45

0.54

0.33

0.14

0.13

0.44

17.43

MJ06

428.5

354.90

380.50

25.60

2.56

0.96

2.95

1.38

0.21

50.21

Including

357.90

369.00

11.10

3.64

1.22

4.39

2.18

0.29

76.47

MJ07

428.45

377.65

392.70

15.05

2.26

0.60

3.14

1.54

0.17

46.58

Including

377.65

385.15

7.50

3.61

0.81

5.04

2.70

0.23

84.63

403.00

405.00

2.00

0.64

0.61

0.05

0.01

0.07

1.00

MJ08

440.2

383.90

407.80

23.90

2.96

1.12

3.77

1.56

0.32

44.36

Including

383.90

393.50

9.60

4.34

1.47

6.09

2.25

0.32

67.41

MJ09

458.6

397.50

422.20

24.70

1.92

1.14

1.45

0.53

0.36

27.72

MJ10

509.5

419.50

424.50

5.00

1.25

1.08

0.29

0.10

0.21

7.80

MJ11

425.5

337.55

349.65

12.10

3.53

0.95

5.26

2.21

0.43

62.70

361.50

371.50

10.00

1.29

1.18

0.24

0.02

0.02

4.00

MJ12

465.9

No Significant Intersection

MJ13

451.5

392.10

404.90

12.80

3.38

0.89

4.38

2.51

0.30

75.64

MJ14

488.65

No Significant Intersection

MJ15

405

343.20

349.50

6.30

0.56

0.32

0.31

0.19

0.28

13.00

MJ16

452.6

386.75

398.60

11.85

1.12

0.59

0.83

0.18

0.23

29.49

MJ17

830.5

No Significant Intersection

MJ18

446.55

376.20

385.15

8.95

2.58

0.72

3.52

1.75

0.22

50.88

Including

376.20

382.90

6.70

3.28

0.86

4.57

2.29

0.26

66.81

391.20

393.20

2.00

0.39

0.31

0.08

0.07

0.36

5.00

MJ19

449

403.80

410.80

7.00

2.55

0.99

2.58

1.70

0.19

50.81

MJ20

555.5

426.40

427.90

1.50

3.99

1.64

5.33

1.32

0.53

56.00

MJ21

515.5

409.65

411.15

1.50

2.05

1.66

0.05

0.22

0.70

41.00

MJ23

451.55

369.90

370.90

1.00

0.39

0.37

0.03

0.03

0.08

0.01

MJ26

497.6

381.20

385.20

4.00

1.12

0.06

2.09

1.42

0.09

14.00

MJ27

520.85

No Significant Intersection

MJ28

554.8

No Significant Intersection

MJ29

494.45

424.65

425.65

1.00

0.71

0.60

0.04

0.11

0.23

9.00

431.05

432.05

1.00

0.54

0.33

0.13

0.33

0.27

12.00

MJ33

504.2

No Significant Intersection

MJ35

452.8

336.20

341.00

4.80

1.20

0.91

0.07

0.14

0.17

29.17

MJ37

582

No Significant Intersection

MJ39

458

351.80

370.00

18.20

2.83

0.87

3.58

2.03

0.21

53.79

Including

351.80

364.00

12.20

3.94

1.21

4.91

2.83

0.27

76.72

3MJ41

476.7

399.50

413.00

13.50

0.66

0.41

0.14

0.12

NA

22.44

1 Table showing detailed drill results over 0.30% Cu.
2 Metal prices used: Cu 4.00 USD/lb, Zn 1.20 USD/lb, Pb 0.90 USD/lb, Ag 22 USD/oz. Copper Equivalent (CuEq) values are for exploration purposes only and no metallurgical recovery was applied. Au is not included.
3 Assays from Proyecto Riotinto laboratory. See QA/QC section for further details.

Anomalous cobalt values are being encountered at both Masa Valverde and Majadales, such as hole MJ-36 with an interval of 17.8 meters at 384 ppm cobalt and 1.00% Cu or hole MJ-39 with 7.2 meters at 331 ppm cobalt and 1.81% copper. Frequently, the elevated cobalt values are associated with high Cu values. Possibilities to economically recover this cobalt content will be investigated.

Geophysical survey

A comprehensive Fixed Loop Electromagnetic survey (“FLEM”) survey covering most of the permit area was recently finalised (refer to figure 6 in the Website Announcement).

Data interpretation is near completion. Based on internal preliminary reports we anticipate that several high priority anomalies potentially associated with massive sulphides will be delineated. These will be recommended for immediate drill testing to confirm the presence of a large and very conductive anomaly located 1,300 meters to the NW and along the same structural and stratigraphic setting as Masa Valverde and Majadales.

Additional metallurgical and mineralogical work is already in progress and results will be incorporated into next NI 43-101 compliant report.

Qualified Person Statement

Alberto Lavandeira has reviewed the technical information contained within this announcement in his capacity as a Qualified Person, as required under the AIM Rules for Companies. Alberto Lavandeira is the Chief Executive Officer for the Company and is a member of good standing with the Association of Mining Engineers of Spain, with over 41 years’ experience.

Glossary of Terms

Ag Silver
As Arsenic
Au Gold
Cu Copper
Co Cobalt
FLEM Fixed Loop Electromagnetic Survey
g/t Grams per tonne
Gal Unit of gravity
Hg Mercury
Inferred mineral resource That part of a Mineral Resource for which quantity, grade or quality, 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.
Mt Million tonnes
n.a. Not available
N.I. 43-101 National Instrument for the standards of Disclosure for Mineral Projects for Canada
Pb Lead
PPM Part per million
Stockwork It’s a complex 3D network of structurally controlled or randomly oriented veins. They are common in many ore deposit types. They are also referred to as stringer zones.
Zn Zinc

Contacts:

Newgate Communications Elisabeth Cowell / Adam Lloyd / Tom Carnegie

+ 44 20 3757 6880

4C Communications Carina Corbett

+44 20 3170 7973

Canaccord Genuity
(NOMAD and Joint Broker)
Henry Fitzgerald-O’Connor / James Asensio

+44 20 7523 8000

BMO Capital Markets
(Joint Broker)
Tom Rider / Andrew Cameron

+44 20 7236 1010

Peel Hunt LLP
(Joint Broker)
Ross Allister / David McKeown

+44 20 7418 8900

About Atalaya Mining Plc

Atalaya is an AIM and TSX-listed mining and development group which produces copper concentrates and silver by-product at its wholly owned Proyecto Riotinto site in southwest Spain. Atalaya’s current operations include the Cerro Colorado open pit mine and a modern 15 Mtpa processing plant, which has the potential to become a centralised processing hub for ore sourced from its wholly owned regional projects around Riotinto that include Proyecto Masa Valverde and Proyecto Riotinto East. In addition, the Group has a phased, earn-in agreement for up to 80% ownership of Proyecto Touro, a brownfield copper project in the northwest of Spain. For further information, visit www.atalayamining.com

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