NICOSIA, CYPRUS / ACCESSWIRE / October 17, 2019 / Atalaya Mining Plc (AIM:ATYM) (TSX:AYM), is pleased to announce its third quarter 2019 operating update.

The Draft Rioton

On 19 August 2019, the Company reached full mechanical completion of its 15Mtpa expansion (“Expansion Project”) and commenced ramping up. As explained in the mechanical completion announcement of 19 August 2019, the increase in throughput capacity and full completion relied on additional electricity supply to be provided by power supplier, Endesa. While Endesa has begun the necessary work to provide the additional electricity supply, it has not yet completed it and consequently the ramp-up of the Expansion Project is slightly delayed. As a result, the Company has reviewed its existing production guidance and now expects ore processed in 2019 to be 10.6Mt with copper produced expected to be in the range of 44,000 to 45,000 tonnes compared to the 45,000 to 46,500 tonnes previously reported. All other key production metrics remain as previously guided. The Company remains confident that the Expansion Project will reach nameplate capacity by the end of 2019 with production in 2020 expected to be in the range of 55,000 to 58,000 tonnes.

Mining operations are progressing as planned and compared to previous quarters. Combined, ore and waste production increased to 2.6 million m3 in Q3 2019 compared to 2.3 million m3 in Q2 2019.

On-site concentrate stocks at the end of the quarter were approximately 2,186 tons. All concentrate in stock at the beginning of the quarter and produced during the quarter was delivered to the port in Huelva.

The realized price of copper in the third quarter of 2019 was lower than in the previous quarter, with the average realized price per pound of copper supplied in the period being $2.76 / pound compared to $2.81/pound in the second quarter of 2019. The average spot copper price during the quarter was $2.61 / lb. The realized price during the quarter, excluding CP, was approximately $2.74/lb, well above the spot price, but we expect lower realized prices in the coming months.

Cash and AISC operating expenses for Q3 2019 are expected to be below budget. More detailed information on expenses will be presented in the financial statements for the 3rd quarter, which will be presented in November 2019.

Exploration and the completion of the drilling servie continue to operate two rigs in Filon sur and Cerro Colorado. One deep hole is drilled in Cerro Colorado in order to explore the rich Cu storage area that occurs under the Salomon zone. RC drilling the fill drilling program continues in order to better determine the occurrence of penalty elements in the mine.

Expansion to 15Mtpa in Proyecto Riotinto

The expansion project has completed the cold mechanical commissioning of all sections and the last new plant (Sag Mill and auxiliary plant plants) has now started processing the ore. The delay in the availability of electricity is currently being addressed by the electricity supplier and the company continues to plan for a 15 Mtpa capacity expansion by the end of 2019. To achieve full commissioning, three stages of production ramp – up are expected-the first in October reached 65% of 15 Mtpa, the second in November to 85% and one final stage in December to 100%.

The new primary crusher works steadily during the quarter with waste for testing and commissioning. The new concentrate flotation and processing areas are finished and launched as expected.

Taurus Project

During the quarter, the Company continued to make additional information requests from administrative authorities. Atalaya addressed the remarks of Aguas de Galicia, natural heritage and the General Directorate of mining.

Alberto Lavandeira, CEO, commented: “the expansion Project is ramping up to full production and despite delays in increasing power supply, the company expects the new plant to reach its full capacity of 15Mtpa by December 2019. Despite a slight decline in production this quarter, we remain confident that our guidance levels for the rest of the year will be met.” This announcement contains internal information for the purposes of article 7 of Regulation (EC) No 596/2014.

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About Atalaya Mining Plc

Atalaya is an AIM and TSX-listed mining and development group that produces copper concentrates and silver byproduct at its wholly owned Proyecto Riotinto site in southwestern Spain. In addition, the Group has a phased agreement to earn up to an 80% stake in Proyecto Touro, a copper mining project in northwestern Spain that is currently in the permitting phase. For more information visit www.atalayamining.com

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