Drill Tracker Weekly: Atico Intersects High-grade Copper At El Roble Mine


Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.

Atico Mining (TSXV:ATY)

Price: $0.51

Market cap: $49 million

Working capital: $4.7 million

Project: El Roble

Country: Colombia

Ownership: 90 percent

Resources: 1.58 MT @ 4.45% Cu, 3.17 g/t Au (inferred)

Project status: Mine exploration

atico chart Atico Mining announced infill drilling results from the recent Zeus massive sulphide discovery on its 90% owned El Roble Volcanogenic Massive Sulphide (VMS) deposit in Colombia. The mineralization is outside of the resource shell as defined in the June 2013 inferred resource. Highlights from the current infill drilling include 70.10 metres grading 6.26% Cu, 1.85 g/t Au and 7.93 g/t Ag and 109.15 metres of 2.11% Cu, 3.79 g/t Au and 21.99 g/t Ag. The Company estimates that the true width of the intervals is approximately 76 to 83% of the reported drill intervals. The Company is currently developing a new adit on the 1800 level, 200 metres below the existing operation, to access the new high grade mineralization. Since exercising their option, the Company has initiated a program to expand the throughput capacity from 400 to 650 tonnes per day and expanding the tailings facility to international standards. On June 26, 2013, the Company announced an inferred mineral resource beneath the existing El Roble Mine workings of 1.58 million tonnes grading 4.45% Cu, 3.17 g/t Au and 11.30 g/t Ag using a 0.72% Cu equivalent cut-off grade. Historical mining produced 1.5 million tonnes grading 2.5% Cu and 2.5 g/t Au over a period of 22 years. Although the 43-101 does not report resources at different metal prices, and the metal prices used in the resource would be considered high in today's market, the contained metal does not appear to be overly sensitive to cut-off grades. The report indicates that when the CuEq cut-off is increased to 2.0 Cu Eq, the contained metal drops less than 10%.

atico chart 2


Development history and key intervals: Past production of 1.3 million tonnes at 2.5% Cu and 2.5 g/t Au over 22 years

Current holes: 70.1 metres @ 2.26% Cu, 1.85 g/t Au, 7.93 g/t Ag; 109.1 metres @ 2.11% Cu, 3.79 g/t Au, 21.99 g/t Ag