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Atico Reports 2019 Fourth Quarter and Full Year Production Results

VANCOUVER, British Columbia, Jan. 16, 2020 (GLOBE NEWSWIRE) -- Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY | OTC: ATCMF) is pleased to announce operating results for the three and twelve month periods ended December 31, 2019 from its El Roble mine. Production totaled 5.62 million pounds of copper with 3,492 ounces of gold for the fourth quarter (“Q4 2018”) and 16.85 million pounds of copper with 10,480 ounces of gold in concentrates for the full year 2019.

“Atico has successfully concluded its sixth full year of operating the El Roble mine and despite a 75-day strike in the first two quarters, the Company was able to recover and exceed most of the adjusted 2019 operational guidance,” said Fernando E. Ganoza, CEO. “Along with outstanding operational performance in the second half of the year, the Company is expecting strong revenues for the fourth quarter as two concentrate shipments were made, and overall, robust financials for year-end 2019. In the upcoming year, we will continue aggressive exploration at El Roble and La Plata properties to unlock value of the respective land packages while working towards achieving operational guidance for 2020.”

Fourth Quarter and Full Year Operational Highlights

Fourth Quarter

  • Production of 5.62 million pounds of copper contained in concentrates; a decrease of 3% over Q4 2018.
  • Production of 3,492 ounces of gold contained in concentrates; an increase of 20% over Q4 2018.
  • Average processed tonnes per day of 859; no significant change over Q4 2018.
  • Copper and gold head grades of 3.61% and 2.41 grams per tonne; a decrease of 1% for copper and an increase of 21% for gold over Q4 2018.
  • Copper and gold recovery of 92.0% and 59.0%; a decrease of 1% for copper and 2% for gold over Q4 2018.

2019 Year-end

  • Production of 16.85 million pounds of copper contained in concentrates; a decrease of 23% over 2018.
  • Production of 10,480 ounces of gold contained in concentrates; a decrease of 8% over 2018.
  • Average processed tonnes per day of 855; an increase of 3% over 2018.
  • Copper and gold head grades of 3.51% and 2.35 grams per tonne; a decrease of 5% for copper and an increase of 15% for gold over 2018.
  • Copper and gold recovery of 92.0% and 58.5%; a decrease of 2% for copper and 3% for gold over 2018.

Fourth Quarter and Full Year Operational Details

  Q1 Total Q2 Total Q3 Total Q4 Total 2019 Total
Production (Contained in Concentrates)          
Copper (000s pounds) 2,362 3,157 5,712 5,615 16,853
Gold (ounces) 1,552 2,116 3,320 3,492 10,480
Mine          
Tonnes of ore mined 34,796 47,321 74,462 75,167 231,746
Mill          
Tonnes processed 35,581 47,534 76,532 76,707 236,354
Tonnes processed per day 885 839 863 859 855
Copper grade (%) 3.29 3.28 3.66 3.61 3.51
Gold grade (g/t) 2.24 2.34 2.34 2.41 2.35
Recoveries          
Copper (%) 91.6 91.7 92.5 92.0 92.0
Gold (%) 60.6 58.4 58.0 58.0 58.5
Concentrates          
Copper and Gold Concentrates (dmt) 4,921 6,561 11,757 11,669 34,908
           
Payable copper produced (000s lbs) 2,244 2,999 5,426 5,334 16,003

Note: Metal production figures are subject to adjustments based on final settlement.

2020 Operating and Capital Guidance

2020 Production and Cost Guidance  
Copper (000s pounds) 20,000 to 21,000
Gold (ounces) 10,500 to 11,500
C1 Cash Cost ($US)(1) $1.25 to $1.35

Note: Please see “Non-GAAP Financial Measures” at the end of this release. C1 cash cost per pound of payable copper produced net of by-product credits and selling costs.

El Roble Mine

The El Roble mine is a high grade, underground copper and gold mine with nominal processing plant capacity of 850 tonnes per day, 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 historical nominal capacity of 400 tonnes per day.

El Roble has Proven and Probable reserves of 1.47 million tonnes grading 3.40% copper and 1.88 g/t gold, at a cut-off grade of 1.93% copper equivalent as of June 30th, 2018. Mineralization is open at depth and along strike and the Company plans to further test the limits of the deposit.

On the larger land package, the Company has identified a prospective stratigraphic contact between volcanic rocks and black and grey pelagic sediments and 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 numerous target areas prospective for VMS type mineralization occurrence, which is the focus of the current surface drill program at El Roble.

Qualified Person

Mr. Thomas Kelly (SME Registered Member 1696580), advisor to the Company and a qualified person under National Instrument 43-101 standards, is responsible for ensuring that the technical information contained in this news release is an accurate summary of the original reports and data provided to or developed by Atico.

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

Trading symbols: TSX.V: ATY | OTC: ATCMF

Investor Relations
Igor Dutina
Tel: +1.604.633.9022

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.

Non-GAAP Financial Measures

The items marked with a "(1)" are alternative performance measures and readers should refer to Non-GAAP Financial Measures in the Company's Management's Discussion and Analysis for the nine months ended September 30, 2019 as filed on SEDAR and as available on the Company's website for further details.

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