Positive Drilling Results from the Campanario Trend
Shallow polymetallic mineralisation including massive and semi-massive sulphides intersected as part of four-rig drilling campaign at Proyecto Masa Valverde
Sponsored content:
NICOSIA, CYPRUS / ACCESSWIRE / 5 July, 2022 / Atalaya Mining Plc (AIM:ATYM)(TSX:AYM) is pleased to announce the results of the first 22 exploration drill holes completed to date on the Campanario Trend, one of several mineralised zones comprising Proyecto Masa Valverde (“PMV”). PMV is located in southern Spain approximately 28 km to the south of Atalaya’s 15 Mtpa mill at Proyecto Riotinto (see Figure 1 in the Website Announcement).
Highlights
Initial drilling results confirm PMV’s continued exploration potential and the possibility to quickly define a shallow mineral resourceShallow polymetallic mineralisation includes:CA15: 35.20m at 0.70% Cu, 1.53% Zn, 1.39% Pb and 62.50 g/t Ag (1.71% CuEq) from 77.80m from surfaceCA21: 18.10m at 1.19% Cu, 0.08% Zn, 0.32% Pb and 36.66 g/t Ag (1.40% CuEq) from 43.20m from surfaceDrilling to date has focused around the historical Campanario workings, which only represents approximately 10% of the entire strike length of the mineralised structureIntersected mineralisation includes massive and semi-massive sulphides as well as stockwork-type material, consistent with the Masa Valverde and Majadales depositsInitial drilling results demonstrate the significant exploration potential of Atalaya’s strategic land package in the world-class Iberian Pyrite Belt
Alberto Lavandeira, CEO, commented:
Sponsored content: OurLifeStore.com is a veteran owned e-commerce with over 40k items at great prices & always free shipping
“We are pleased with these initial drilling results from the Campanario Trend which confirm the expectations we had on the exploration potential of PMV. We continue working on defining the potential shallow mineral resource in the short term which to date has only been drill tested in approximately 10% of the entire mineralised structure. In addition, we have several coincident geochemical and geophysical targets pending for drill testing indicating that we are still far from knowing the ultimate exploration potential of PMV.
We believe that these initial results will not only have a positive impact on future development scenarios and project economics, but they also highlight the significant exploration potential of the Iberian Pyrite Belt.”
About Proyecto Masa Valverde
PMV consists of several volcanogenic massive sulphide (“VMS”) type deposits including Masa Valverde, Majadales, the Campanario Trend and other drill ready targets. Atalaya’s exploration team discovered the Majadales deposit and in 2020 acquired a 100% interest in PMV. The project is strategically located approximately 28 km from Proyecto Riotinto, therefore future development scenarios are expected to utilise the Company’s existing 15 Mtpa processing plant.
In April 2022, Atalaya announced a new independent resource estimate for PMV that was prepared in accordance with CIM guidelines and disclosure requirements of NI 43-101, including:
Masa Valverde Indicated Mineral Resource of 16.9 Mt at 0.66% Cu, 1.55% Zn, 0.65% Pb, 27 g/t Ag and 0.55 g/t Au (1.51% CuEq)Masa Valverde Inferred Mineral Resource of 73.4 Mt at 0.61% Cu, 1.24% Zn, 0.61% Pb, 30 g/t Ag and 0.62 g/t Au (1.37% CuEq)Majadales Inferred Mineral Resource of 3.1 Mt at 0.94% Cu, 3.08% Zn, 1.43% Pb, 54 g/t Ag and 0.32 g/t Au (2.55% CuEq)
Atalaya expects to complete a PEA for PMV by the end of the year.
Four rigs are currently operating at PMV, as part of the Company’s €10 million exploration programme for 2022. Two rigs are devoted to the Campanario Trend and the rest are drill testing the Fix Loop Electromagnetic (“FLEM”) anomalies west of the Masa Valverde deposit. So far, three holes were completed at two of the FLEM anomalies. The results of that programme will be released in a future announcement.
About the Campanario Trend
The Campanario Trend is a five kilometre north-west trending mineralised corridor, located one kilometre north of the Masa Valverde and Majadales VMS deposits. Campanario is characterised by the presence of numerous small historical workings and coincident soil geochemical and geophysical anomalies (see Figure 2 in the Website Announcement).
Historical mining activity (from 1876 – 1917) along the Campanario Trend was at a small scale and focused on narrow zones of massive sulphides. Near-surface oxidation of the massive sulphides, mainly pyrite, generated gossans which were also investigated for gold potential.
Total historical mine production is estimated to be 0.22 million tonnes at 1.5% Cu from six main mining areas situated from the east to the west: Cruz Infante, Cibeles, Campanario, California, Descamisada and Descamisada Oeste. Drilling to date by Atalaya has focused around the historical Campanario workings which, by size, are the most important along the Campanario Trend.
Notably, immediately to the west of the historical Descamisada Oeste mine, the FLEM geophysical survey delineated a significant conductor (Loop 14 in Figure 2 in the Website Announcement) which is interpreted to be the potential west extension of the main mineralised corridor. To the east of the historical Campanario workings and coincident with the Cruz Infantes and old Cibeles mines, a previous VTEM (“Versatile Time Domain Electromagnetic”) survey delineated a zone of elevated conductivity which could be related with the presence of massive sulphides at depth.
Despite the numerous historical workings, the semi-continuous outcropping mineralisation and the proximity to the large Masa Valverde deposit, the Campanario Trend remained under-explored for many years. The last drilling campaign was carried out in 1995 by the Spanish state-owned company Adaro.
Campanario Trend Initial Drilling Results
Atalaya has completed 22 drill holes at the Campanario Trend with assay results produced by the certified laboratory at Proyecto Riotinto. In addition, assays including gold were produced by an independent external laboratory (ALS) up to hole CA-13.
Drilling was focused around the historical Campanario workings, located in the central part of the five kilometre long Campanario Trend (see drill hole map in Figure 3 in the Website Announcement). Assay results received to date included intersections that are the best so far in terms of “grade x thickness” factor.
Local stratigraphy consists of black shales with varying graphite content, coherent acid rocks of rhyodacitic composition and, to a lesser extent, volcanic tuffs. Mineralised zones are mainly hosted in the black shale levels which are intensely folded and sheared and often show zones of sericitic, chloritic and silicic alteration.
Except near surface where it is oxidised (gossans), the main mineralisation styles are massive and semi-massive sulphides and stockwork-type. Pyrite is the predominant sulphide mineral with subordinate chalcopyrite, sphalerite, galena and sulphosalts. Mineralisation is polymetallic with elevated As, Sb, Hg and Bi values, therefore Atalaya believes the E-LIX System has strong potential to unlock value from any future mined material from the Campanario Trend.
The geometry of the mineralised zones varies down dip from steeply dipping to moderately dipping to the north-north-east and may include several parallel lenses of massive and semi-massive sulphides, with individual true thicknesses varying from 1-2 metres up to 20-25 metres. Two representative cross sections are included in Figure 4 in the Website Announcement.
The mineralised system remains completely open laterally but seems to get thinner at depth in some sections. Pinch and swell geometry is evident, quite likely due to syn/late deformation.
Table 1: Selected Campanario Drill Holes
Hole ID
From
(m)
To
(m)
Interval
(m)
Cu
(%)
Zn
(%)
Pb
(%)
Ag
(g/t)
Au1
(g/t)
CuEq2
(%)
CA15
77.80
113.00
35.20
0.70
1.53
1.39
62.50
n/a
1.71
Including
92.00
102.10
10.10
1.27
3.32
1.87
77.17
n/a
3.08
CA16
88.00
116.00
28.00
0.45
0.14
0.25
22.61
n/a
0.62
Including
88.00
99.30
11.30
0.97
0.08
0.27
41.03
n/a
1.19
Inc.
90.80
93.30
2.50
2.21
0.13
0.61
72.31
n/a
2.61
CA21
43.20
61.30
18.10
1.19
0.08
0.32
36.66
n/a
1.40
Including
43.20
48.00
4.80
3.85
0.16
0.86
95.34
n/a
4.38
1 Assays are from the certified laboratory at Proyecto Riotinto, which does not assay for gold, therefore gold is not included in the CuEq calculation.2 Metal prices and recoveries used for CuEq calculation are: $9,600/t Cu and 80%; $3,500/t Zn and 80%; $2,300/t Pb and 60%; $23/oz Ag and 35%.
The full set of results from the 22 holes is shown below in Table 2.
Next Steps
Drilling at PMV will continue testing the shallow lateral extensions of mineralisation found to date at the Campanario Trend as well as drill testing the FLEM geophysical anomalies west of the Masa Valverde deposit.
Mineralogical and petrographic studies are already in progress as well as sampling for initial metallurgical testwork.
Data gathering during the current drilling programme at Campanario will form the basis of the new geological model which will support an initial mineral resource estimation.
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.
Table 2: Campanario Trend Drill Hole Data
Hole ID
Length
(m)
From
(m)
To
(m)
Interval
(m)
Cu
(%)
Zn
(%)
Pb
(%)
Ag
(g/t)
Au1
(g/t)
CuEq2
(%)
CA1
533.50
No Significant Intersection
CA2
414.20
No Significant Intersection
3
CA3
326.30
148.10
160.50
12.40
0.17
0.66
0.25
5.16
0.22
0.51
3
CA4
251.20
161.50
167.00
5.50
0.27
1.30
0.77
24.36
0.34
1.02
182.00
183.00
1.00
0.15
3.69
1.94
22.00
0.21
1.95
3
CA5
299.50
154.00
169.00
15.00
0.38
1.56
0.91
14.27
0.18
1.18
Including
158.00
161.00
3.00
1.04
3.69
2.27
32.00
0.51
2.98
189.00
191.00
2.00
0.12
0.09
0.03
1.00
0.05
0.17
209.00
213.00
4.00
0.15
0.43
0.26
6.50
0.05
0.38
3
CA6
328.30
149.70
158.10
8.40
Adit intercepted. Fill material up to 0.90% Cu
3
CA7
248.60
150.00
160.00
10.00
0.18
0.67
0.21
7.80
0.10
0.51
3
CA8
275.00
159.00
169.00
10.00
0.35
2.53
1.27
25.40
0.31
1.63
215.00
223.00
8.00
0.43
0.19
0.15
8.38
0.17
0.58
227.00
231.00
4.00
0.16
0.27
0.11
4.50
0.11
0.31
CA9
268.40
No Significant Intersection
3
CA10
272.50
159.00
161.00
2.00
0.25
0.17
0.05
12.00
0.08
0.38
3
CA11
341.00
123.70
144.00
20.30
0.50
0.56
0.73
55.87
0.66
1.12
Including
123.70
133.00
9.30
0.76
0.66
0.86
85.82
1.07
1.61
Inc.
131.00
133.00
2.00
1.50
0.12
0.22
63.00
1.02
1.95
165.00
166.30
1.30
0.28
0.19
0.89
56.23
0.23
0.73
184.00
194.00
10.00
0.38
0.05
0.15
42.90
1.11
0.73
Including
186.00
188.00
2.00
0.76
0.09
0.23
100.00
0.23
1.21
3
CA12
260.00
117.00
125.50
8.50
0.46
0.96
0.65
35.31
0.45
1.12
Including
118.60
120.00
1.40
1.17
0.12
0.67
114.14
1.08
1.89
3
CA13
280.20
116.00
123.00
7.00
0.14
1.03
0.36
4.86
0.05
0.61
4
CA14
218.00
78.10
83.10
5.00
0.49
4.33
1.47
77.83
n/a
2.60
90.20
92.70
2.50
0.62
0.97
1.08
123.31
n/a
1.58
100.40
103.50
3.10
0.46
6.09
1.46
92.04
n/a
3.25
114.40
116.00
1.60
1.04
0.48
0.57
23.33
n/a
1.39
123.20
125.00
1.80
0.33
0.06
0.16
12.10
n/a
0.42
4
CA15
290.00
77.80
113.00
35.20
0.70
1.53
1.39
62.50
n/a
1.71
Including
79.00
81.00
2.00
1.56
0.09
1.13
171.40
n/a
2.37
Including
92.00
102.10
10.10
1.27
3.32
1.87
77.17
n/a
3.08
Including
108.90
113.00
4.10
0.51
2.40
1.77
54.13
n/a
1.89
158.00
161.00
3.00
0.70
1.31
0.69
24.53
n/a
1.39
Including
158.00
158.80
0.80
1.73
1.10
0.95
66.73
n/a
2.53
4
CA16
179.40
88.00
116.00
28.00
0.45
0.14
0.25
22.61
n/a
0.62
Including
88.00
99.30
11.30
0.97
0.08
0.27
41.03
n/a
1.19
Inc.
90.80
93.30
2.50
2.21
0.13
0.61
72.31
n/a
2.61
4
CA17
200.00
100.20
101.50
1.30
0.94
0.02
1.19
22.58
n/a
1.24
4
CA18
227.00
104.50
109.10
4.60
1.03
0.04
0.12
21.64
n/a
1.14
4
CA19
141.00
60.30
65.30
5.00
0.28
0.04
0.13
31.45
n/a
0.42
73.00
84.30
11.30
0.37
0.04
0.11
22.70
n/a
0.48
Including
77.00
77.50
0.50
2.14
0.05
0.08
16.62
n/a
2.23
Including
81.00
84.30
3.30
0.47
0.06
0.17
27.07
n/a
0.61
4
CA20
157.10
No Significant Intersection
4, 5
CA21
139.30
43.20
61.30
18.10
1.19
0.08
0.32
36.66
n/a
1.40
Including
43.20
48.00
4.80
3.85
0.16
0.86
95.34
n/a
4.38
4
CA22
298.80
105.60
117.00
11.40
0.12
1.03
0.50
22.56
n/a
0.66
1 Table showing detailed drilling results over 0.10% Cu.2 Metal prices and recoveries used for CuEq calculation are: $9,600/t Cu and 80%; $3,500/t Zn and 80%; $2,300/t and 60%; $23/oz Ag and 35%; $1,800/oz and 20%.3 Assays from ALS laboratory, which assays for gold.4 Assays are from the certified laboratory at Proyecto Riotinto, which does not assay for gold, therefore gold is not included in the CuEq calculation.5 This intersection includes 3m not recovered, probably that is an adit from 55 to 58m. Metal content of this interval is considered as zero in the calculations of the intercepts.
Figure 1: Proyecto Masa Valverde Location (refer to Website Announcement)
Figure 2: Campanario Trend Anomalies (refer to Website Announcement)
Figure 3: Drill Hole Locations (refer to Website Announcement)
Figure 4: Representative Cross Sections (refer to Website Announcement)
Glossary of Terms
AgSilverAsArsenicAuGoldBiBismuthCIMCanadian Institute of Mining, Metallurgy and PetroleumCuCopperCuEqCopper EquivalentFLEMFixed Loop Electromagnetic Surveyg/tGrams per tonneHgMercuryIndicated Mineral Resources
An Indicated Mineral Resource is 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.
Inferred Mineral Resource
An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or 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.
ktThousand tonnesMeasured Mineral Resources
A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, 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 ResourcesA concentration or occurrence of material of intrinsic economic interest in or on the Earth’s crust in such a form and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.MtMillion tonnesMtpaMillion tonnes per annumn.a.Not availableNI 43-101Canadian National Instrument for the Standards of Disclosure for Mineral ProjectsPbLeadPEAPreliminary Economic AssessmentPPMParts per millionSbAntimonyStockworkIt’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.VMSVolcanic Massive SulphideZnZinc
Contacts:
SEC Newgate UKElisabeth Cowell / Axaule Shukanayeva / Max Richardson
+ 44 20 3757 6882
4C CommunicationsCarina 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, as well as a 51% interest in Proyecto Ossa Morena. For further information, visit www.atalayamining.com
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
SOURCE: Atalaya Mining PLC
View source version on accesswire.com:
https://www.accesswire.com/707498/Atalaya-Mining-PLC-Announces-Positive-Drilling-Results-from-Campanario-Trend