Atalaya Mining drills 0.70% copper over 35.20 metres at PMV, Spain

Atalaya Mining PLC [AYM-TSX; ATYM-AIM] reported results of the first 22 exploration drill holes completed to date on the Campanario Trend, one of several mineralized zones comprising the 100%-owned Proyecto Masa Valverde (PMV) project. PMV is located in southern Spain approximately 28 km to the south of Atalaya’s 15 Mtpa mill at Proyecto Riotinto.

Initial drilling results confirm PMV’s continued exploration potential and the possibility to quickly define a shallow mineral resource. Shallow polymetallic mineralisation includes drill hole CA15 that returned 35.20 metres at 0.70% copper, 1.53% zinc, 1.39% lead and 62.50 g/t silver (1.71% CuEq – copper equivalent) from 77.80 metres from surface. CA21 returned 18.10 metres at 1.19% copper, 0.08% zinc, 0.32% lead and 36.66 g/t silver (1.40% CuEq) from 43.20 metres from surface.

Drilling to date has focused around the historical Campanario workings, which only represents approximately 10% of the entire strike length of the mineralised structure. Intersected mineralization includes massive and semi-massive sulphides as well as stockwork-type material, consistent with the Masa Valverde and Majadales deposits.

Initial drilling results demonstrate the significant exploration potential of Atalaya’s strategic land package in the world-class Iberian Pyrite Belt.

Alberto Lavandeira, CEO, commented: “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 mineralized 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.”

Proyecto Masa Valverde consists of several volcanogenic massive sulphide 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 utilize 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. Masa Valverde Indicated Mineral Resource is 16.9 Mt at 0.66% copper, 1.55% zinc, 0.65% lead, 27 g/t silver and 0.55 g/t gold (1.51% CuEq). Masa Valverde Inferred Mineral Resource is 73.4 Mt at 0.61% copper, 1.24% zinc, 0.61% lead, 30 g/t silver and 0.62 g/t gold (1.37% CuEq). Majadales Inferred Mineral Resource is 3.1 Mt at 0.94% copper, 3.08% zinc, 1.43% lead, 54 g/t silver and 0.32 g/t gold (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.

Atalaya has completed 22 drill holes at the Campanario Trend. Drilling was focused around the historical Campanario workings, located in the central part of the 5 km long Campanario Trend. Assay results received to date included intersections that are the best so far in terms of “grade x thickness” factor.

The mineralized 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.

Drilling at PMV will continue testing the shallow lateral extensions of mineralization 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 program at Campanario will form the basis of the new geological model which will support an initial mineral resource estimation.

Atalaya produces copper concentrates and silver by-product at its Proyecto Riotinto site in southwest Spain.