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Atico Mining (TSXV: ATY) is reporting strong drill results that expand its El Roble copper-gold mine in Colombia.
The drilling was aimed at infilling areas of mineralization while seeking to extend the main massive sulphide bodies at the deposit where mining was done before Atico acquired the site in 2013, the company said on Thursday.
Drill hole ATD-0262 cut 20.7 metres grading 5.76% copper and 4.46 grams gold per tonne from 58.2 metres depth. Drill hole ATD-0252 returned 11.5 metres at 8.16% copper and 8.09 grams gold from 38.6 metres down hole.
“We continue to see very encouraging results with high grade intercepts from our mine vicinity drill campaign,” CEO Fernando E. Ganoza said in a release. “Additional high-grade copper and gold mineralization remains both within the historically defined bodies and beyond the previously outlined mineralized shell.”
So far this year, the company has drilled 7,880 metres in 77 holes. Drilling is to continue while the company updates a resource estimate, it said.
El Roble, located in the department of Choco, has processing capacity of 1,000 tonnes per day, increased from 400 tonnes a day when it acquired the mine. It produced 13.2 million lb. of copper and 10,149 oz. of gold in concentrates last year.
The deposit has proven and probable reserves of 1 million tonnes grading 3.02% copper and 1.76 grams gold per tonne at a cut-off grade of 1.3% copper equivalent, according to a September 2020 resource. Mineralization is open at depth and along strike, the company said.
Shares in Atico Mining dropped nearly 5% on Friday in Toronto to C$0.20 apiece, valuing the company at C$24.3 million. They’ve traded in a 52-week range of C$0.095 to C$0.27.
