23rd Feb 2023 15:57
(Alliance News) - Atalaya Mining PLC on Thursday said results from a new preliminary economic assessment for its three deposits at its flagship Riotinto project in Spain demonstrated strong economic and production growth potential.
The Cyprus-based copper producer said the Riotinto probe showed a potential uplift for production on higher grades, alongside a possible reduction in cash costs.
Riotinto has a potential mine life of 15.6 years and between USD1.07 billion and USD1.57 billion in net present value, according to the assessment.
The Riotinto project currently consists of the operating Cerro Colorado open pit mine, a 15 million tonnes per year processing plant and "significant" supporting infrastructure.
This is alongside the San Dionisio and San Antonio deposits, located adjacent to the Cerro Colorado pit.
Atalaya Mining said the objective of the assessment was to incorporate these deposits into a new integrated mine plan for Riotinto.
"The Riotinto district has many advantages over more remote mining regions around the world, where the ability to bring assets into production in a sustainable and economic manner is becoming increasingly difficult," said Chief Executive Officer Alberto Lavandeira.
"Our region has a long mining history, the workforce is highly experienced, infrastructure is modern and we benefit from good access to sustainable sources of water and energy. Together, these advantages reduce execution risk, capital intensity and development timelines."
On Monday, Atalaya Mining said it applied for a voluntary delisting of its ordinary shares from the Toronto Stock Exchange, effective from close of trading on March 7, when shares will continue to trade on the AIM market of the London Stock Exchange.
It said trading on AIM has accounted for about 99% of all trading volume on both platforms over the past year, with the company deciding that the financial costs and administrative requirements associated with its Toronto listing can no longer be justified.
Shares in Atalaya Mining were up 0.3% to 350.18 pence each in London on Thursday afternoon.
By Greg Rosenvinge, Alliance News reporter
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