Atico Continues to Intercept Bonanza Grades Including 6.8 Meters of 19.5g/t Au, 224g/t Ag, 12.2% Cu, and 3.7% Zn at La Plata VMS Project, Ecuador
VANCOUVER, British Columbia, Aug. 05, 2020 (GLOBE NEWSWIRE) -- Atico Mining Corporation (the “Company” or “Atico”) (TSX.V: ATY | OTC: ATCMF) is pleased to report additional high grade drill results from its 10,000 meter drilling program on the La Plata property in Ecuador. Today’s results are from 3 holes completed in the South Block as the drill program continues to confirm and expand the La Plata mineralized footprint with bonanza grades gold & copper intercepts encountered within larger massive sulfides lenses.
La Plata Drilling Highlights Include:
| Hole | From (m) | To (m) | Interval (m) | Au (g/t) | Ag (g/t) | Cu (%) | Zn (%) |
| CMLP-20-107 | 242.49 | 248.15 | 5.66 | 4.14 | 137.11 | 1.07 | 6.10 |
| Including | 242.49 | 243.53 | 1.04 | 6.62 | 359.00 | 2.30 | 14.90 |
| Including | 243.53 | 245.20 | 1.67 | 7.32 | 224.00 | 1.34 | 5.64 |
| CMLP-20-110 | 341.28 | 348.12 | 6.84 | 19.54 | 223.98 | 12.19 | 3.70 |
| Including | 341.28 | 344.00 | 2.72 | 45.51 | 478.86 | 17.34 | 3.71 |
True widths are dependent on uncertainties in the local strike and dip of the mineralization and are estimated to be between 76% and 83% of the drill intercept.
Infill Drilling Program
The infill and step-out drilling program has been implemented to upgrade and potentially expand resources of the La Plata project. Two drill rigs are currently active on the project with one rig currently starting to drill on the North Block in order to in-fill and potentially grow the La Plata resource.
The three diamond drill holes reported today successfully demonstrated the thickness and continuity of the La Plata VMS lenses, as well as potential expansion of the mineralized envelope of the South Block.
- Hole CMLP-20-107 was collared above the known VMS envelope and reported good values of precious and base metal grades within massive to semi-massive sulfides over a 5.66 meter intercept mineralised mostly by sphalerite.
- Hole CMLP-20-108, drilled for infill purposes in the South Block, demonstrated continuity of the mineralization with an intercept of 5.22 meters composed of both VMS and stockwork also dominated by sphalerite.
- Hole CMLP-20-110, in addition to intercepting a high-grade VMS zone within the South Body, cut a second intercept 10 meters below the main zone with 5.48 meters of mineralized stockwork.
The Company also reports that it continues to intercept visible massive and semi-massive sulfide mineralization as the ongoing drilling program continues, the core is currently being sent to the lab for analysis and will be released in due course. This current step-out drilling is targeting potential new zones that may lead to further extensions of the South Block mineralized envelope. Additional drill holes are planned to continue testing VMS mineralization outside of the known envelope and along strike of the La Mina area. This includes stepping out towards the north to further test the Guatuza target area which reported high grade values from the earlier trenching program. The 2020 exploration program on the La Plata property, as well as the El Roble drilling program are both fully funded from the highly profitable El Roble mining operation in Colombia.
Infill Drill Program Assay Results:
| Intercept* | |||||||||||||||||
| Hole ID | Azimuth (°) | Dip (°) | Total Length (m) | From (m) | To (m) | Interval (m) | Au (g/t) | Ag (g/t) | Cu (%) | Pb (%) | Zn (%) | ||||||
| CMLP-20-107 | 318 | -57 | 254.97 | 242.49 | 248.15 | 5.66 | 4.14 | 137.11 | 1.07 | 2.20 | 6.10 | ||||||
| Including | 242.49 | 243.53 | 1.04 | 6.62 | 359.00 | 2.30 | 4.33 | 14.90 | |||||||||
| Including | 243.53 | 245.20 | 1.67 | 7.32 | 224.00 | 1.34 | 1.37 | 5.64 | |||||||||
| CMLP-20-108 | 285 | -67 | 388.00 | 381.34 | 386.56 | 5.22 | 3.99 | 77.99 | 0.22 | 0.88 | 2.18 | ||||||
| Including | 381.34 | 382.96 | 1.62 | 9.15 | 200.00 | 0.61 | 2.24 | 6.02 | |||||||||
| CMLP-20-110 | 308 | -74 | 370.00 | 341.28 | 348.12 | 6.84 | 19.54 | 223.98 | 12.19 | 0.33 | 3.70 | ||||||
| Including | 341.28 | 344.00 | 2.72 | 45.51 | 478.86 | 17.34 | 0.55 | 3.71 | |||||||||
| and | 357.40 | 362.88 | 5.48 | 0.43 | 5.35 | 1.03 | 0.03 | 0.65 | |||||||||
True widths are dependent on uncertainties in the local strike and dip of the mineralization and are estimated to be between 76% and 83% of the drill intercept.
La Plata Project
Gold-bearing sulphide mineralization at La Plata occurs as compositional banding composed of chalcopyrite, sphalerite and pyrite laminae with barite occurring as clasts and also as layers. The mineralised lenses have also been dislocated by a few faults and dolerite dikes cutting the body.
The La Plata project is amongst the highest-grade gold-copper VMS deposits in which base and precious metal mineralization is interpreted to have formed as part of multiple volcanic episodes that created a stacked volcanic-exhalite hydrothermal sequence considered favorable for hosting additional VMS lenses. The recent drilling results in the southern portion of the deposit have encountered deeper mineralisation, and an extension of mineralisation to the north has been discovered by recent trenching results.
The La Plata independent Preliminary Economic Assessment (“PEA”) dated March 30th 2019, was prepared pursuant to National Instrument 43-101 (“NI 43-101”) and reports the La Plata inferred resources at 1.9 million tons at an average grade of 4.1 g/t Au, 49.4g/t silver, 3.3% Cu, 4.5% Zn, 0.6% Pb as available on SEDAR.
The La Plata project consists of two concessions covering a total area of 2,300 hectares along its 9-kilometer length, which contains known mineralization in two VMS lenses and nine priority exploration targets.
The Company has a binding option agreement with a private Ecuadorean company to earn up to 75% in the La Plata project, of which the first option to acquire the initial 60% ownership has been exercised. Please refer to the Company’s MD&A for the year ended December 31, 2019 for further details.
Quality Assurance & Quality Control
Before sampling, a centreline, representing bottom of hole (or a reference line when this is not known) is marked on the drill core. The core is cut and sampled, always sampling the right-hand side of the drill core. Samples are selected based on logged geological features, such as rock type, mineralization, alteration, veining etc. Sample length does not exceed 2.5 m nor is smaller than 20 cm. A total of 10% of the samples submitted are certified blanks and standards and field duplicates with, as a minimum, one blank submitted at the beginning of each sample batch. Certified standards are submitted at an average of 6% of the samples submitted. Field duplicates are taken at a rate of 1 in 20 of the samples taken. For all drill holes, analysis was completed by ALS Chemex in North Vancouver with sample preparation completed in Quito. The lab is accredited with International Standards ISO/IEC 17025:2005 and ISO 9001:2015.
All major ALS Geochemistry analytical laboratories are accredited to ISO/IEC 17025:2005 for specific analytical procedures.
Qualified Person
Dr. Michael Druecker, CPG, is a qualified person under NI 43-101 standards and independent of the company, is responsible for ensuring that the information contained in this news release is an accurate summary of the original reports and data provided to or developed by Atico Mining Corporation. Dr. Druecker has approved the scientific and technical content of this news release.
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 generates significant cash flow through the operation of the El Roble mine and is developing it’s high-grade La Plata VMS project in Ecuador. The Company is also pursuing additional acquisition of advanced stage 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 | OTC: ATCMF
Investor Relations
Igor Dutina
Tel: +1.604.633.9022
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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
