Atico Reports 2021 Fourth Quarter and Full Year Production Results

Rhea-AI Summary

Atico Mining Corporation reported its Q4 and full-year 2021 operating results, achieving production of 4.93 million pounds of copper and 3,152 ounces of gold in Q4, and 18.07 million pounds of copper and 11,016 ounces of gold for the year. Copper production was slightly below budget due to a decline in head grade, while gold met guidance. The company aims to pursue the La Plata Feasibility Study and continue exploration in 2022. Guidance for 2022 includes 15,000 to 16,500 thousand pounds of copper and 12,500 to 14,000 ounces of gold.

Positive

• Q4 2021 copper production was 4.93 million pounds, with gold production up 11% YoY.
• 2021 copper production totaled 18.07 million pounds, maintaining production despite challenges.
• Average processed tonnes per day increased by 5% to 918 tonnes.
• Copper and gold recovery rates improved by 2% and 3% respectively.

Negative

• Q4 copper production decreased by 5% YoY, and full-year production fell 12% compared to 2020.
• Copper head grade decreased by 12% for the year, impacting production targets.

VANCOUVER, British Columbia, Feb. 01, 2022 (GLOBE NEWSWIRE) -- Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY | OTCQX: ATCMF) is pleased to announce operating results for the three and twelve month periods ended December 31, 2021 from its El Roble mine. Production totaled 4.93 million pounds of copper with 3,152 ounces of gold for the fourth quarter (“Q4 2021”) and 18.07 million pounds of copper with 11,016 ounces of gold in concentrates for the full year 2021.

“2021 was a challenging year where the operations team had to navigate through strict health and safety protocols caused by the global pandemic while also facing tough weather conditions in the first half of the year. Despite these challenges, we came very close to deliver on our production guidance. Copper production came just under budget mostly explained by a decline in head grade, while gold production was at the high end of our guidance. We are still anticipating that these results will lead to strong revenues for the fourth quarter and robust financials for year-end 2021,” said Fernando E. Ganoza, CEO. “In the upcoming year, we will continue moving towards getting the La Plata Feasibility Study across the finish line while also aggressively exploring both El Roble and La Plata properties as well as working towards achieving operational guidance for 2022.”

Fourth Quarter and Full Year Operational Highlights

Fourth Quarter

• Production of 4.93 million pounds of copper contained in concentrates; a decrease of 5% over Q4 2020.
• Production of 3,152 ounces of gold contained in concentrates; an increase of 11% over Q4 2020.
• Average processed tonnes per day of 908; an increase of 4% over Q4 2020.
• Copper and gold head grades of 3.23% and 2.16 grams per tonne; a decrease of 7% for copper and an increase of 6% for gold over Q4 2020.
• Copper and gold recovery of 93.0% and 61.3%; an increase of 2% and 4% for copper and gold, respectively over Q4 2020.
  

2021 Year-end

• Production of 18.07 million pounds of copper contained in concentrates; a decrease of 12% over 2020.
• Production of 11,016 ounces of gold contained in concentrates; an increase of 2% over 2020.
• Average processed tonnes per day of 918; an increase of 5% over 2020.
• Copper and gold head grades of 3.06% and 1.98 grams per tonne; a decrease of 12% for copper and no significant change for gold over 2020.
• Copper and gold recovery of 92.6% and 59.8%; no significant change for copper and an increase of 3% for gold over 2020.
  

Fourth Quarter and Full Year Operational Details

	Q1 Total	Q2 Total	Q3 Total	Q4 Total	2021 Total
Production (Contained in Concentrates)
Copper (000s pounds)	4,386	4,309	4,441	4,928	18,065
Gold (ounces)	2,189	2,698	2,978	3,152	11,016
Mine
Tonnes of ore mined	64,101	71,437	76,276	74,864	286,678
Mill
Tonnes processed	68,282	68,238	77,816	74,414	288,750
Tonnes processed per day	954	892	919	908	918
Copper grade (%)	3.16	3.10	2.80	3.23	3.06
Gold grade (g/t)	1.75	2.00	2.01	2.16	1.98
Recoveries
Copper (%)	92.3	92.3	92.6	93.0	92.6
Gold (%)	57.3	61.7	59.2	61.3	59.8
Concentrates
Copper and gold concentrates (dmt)	10,366	10,012	10,704	11,159	42,241
Payable copper produced (000s lbs)	4,166	4,093	4,219	4,682	17,162

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

2022 Operating and Cost Guidance

Copper (000s pounds)	15,000 to 16,500
Gold (ounces)	12,500 to 14,000
C1 Cash Cost ($US)(1)	$1.35 to $1.50

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 1,000 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 1.00 million tonnes grading 3.02% copper and 1.76 g/t gold, at a cut-off grade of 1.3% copper equivalent with an effective date of September 30, 2020. 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 | OTCQX: 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.

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; the world-wide economic and social impact of COVID-19 is managed and the duration and extent of the coronavirus pandemic is minimized or not long-term; disruptions related to the COVID-19 pandemic or other health and safety issues, or the responses of governments, communities, the Company and others to such pandemic or other issues; 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

FAQ

What were Atico Mining's Q4 2021 operational results?

In Q4 2021, Atico Mining produced 4.93 million pounds of copper and 3,152 ounces of gold, with copper production down 5% YoY.

What are the full-year production totals for Atico Mining in 2021?

For the full year 2021, Atico Mining reported 18.07 million pounds of copper and 11,016 ounces of gold.

What are Atico Mining's production guidance for 2022?

Atico Mining's 2022 guidance includes 15,000 to 16,500 thousand pounds of copper and 12,500 to 14,000 ounces of gold.

Did Atico Mining meet its production guidance for 2021?

Atico Mining's copper production came just under budget due to a decline in head grade, but gold production was at the high end of guidance.

How did the average processed tonnes per day change in 2021?

The average processed tonnes per day increased by 5% to 918 tonnes in 2021.