ATLY:CC - Altaley Mining Initiates Mining and Milling Operations at its New Tahuehueto Gold Mine in Durango Mexico
(NewsDirect)
Altaley MiningCorporation ( TSXV:ATLY ) ( OTCQX:ATLYF ) ( FSE:TSGA ) (“ Altaley ” or the “ Company ”) isexcited to announce that the Company has initiated pre-productionmining and mill commissioning operations at its Tahuehueto Gold Minein Durango, Mexico. Construction efforts at the mine site haveadvanced to allow the startup and commission of one ball mill capableof processing up to 500 tpd.
“I am very excitedto see Tahuehueto commencing pre-production activities and lookforward with anticipation to our first concentrate deliveries,anticipated in several weeks, which will bring our Company its firstrevenue from the new, on-site Tahuehueto mineral processingfacility” s tates Ralph Shearing, CEO , “The Tahuehueto goldmine coming on-line is the realization and delivery to shareholders ofthe Company’s major goal of reaching production on its flagshipasset. The robust cash flows anticipated from Tahuehueto should allowus to accelerate our debt repayments; our cash flow modeling suggestsall loan debt may be repaid in under two years. We will alsore-initiate exploration activities to expand reserves and resources,which exploration I am convinced, can unlock the hidden, undiscoveredultimate potential of this district-scale project allowing mineexpansion and extension to the current life of mine.” Listen to Ralph’s interview withProactive Investors as he describes the milestone event atTahuehueto .
Tahuehueto’sprocessing facility is operational allowing for milling up to 500 tpdwith flotation cells, concentrate thickeners and concentrate filterssuccessfully tested and operational.
During the commissioning phase of the first ballmill, a bulk concentrate will be produced and as soon as possiblethereafter, the Company will process a separate precious metal richlead concentrate and a zinc concentrate. Copper concentrate productionis planned to be initiated late 2022.
Electrical power generation is being supplied byAggreko International Power Projects Limited who have installed powergeneration equipment capable of supplying power to the mining unit for1,000 tpd sustained production. The water pumping system and pipelineis operational to supply processing water to the mine at its fullplanned capacity of 1,000 tpd.
The Company has stockpiled over 29,000 tonnes ofore to be used in the commissioning process and pre-production phasesof the 1 st ball mill. As soon as the process plantcompletes its start-up commissioning phase and has been optimized formaximum recoveries and throughput, higher grade run of mine ore willbegin to be processed to maximize revenues during the pre-productionphases of the mine.
Altaley’s underground mining contractor has developed accessto four stopes, two on the El Creston structure and two on the Perdidostructure, providing multiple working faces more than fully capable tosupply adequate mill feed for the mine’s start-up 500 tpd phase. Underground development is continuing and will soon provide access to2 additional stopes on Perdido and four additional stopes on ElCreston at lower elevations and thereby will have completed access atleast 10 mining stopes capable of supplying mill feed to the 1,000 tpdoperation upon completion of construction as described below.
Remaining constructionto advance the mine to its planned full production capacity of 1,000tpd is as follows:
2 nd Ball Millinstallation
Installation of the second 500 tpd ball mill to increasemilling capacity to 1000 tpd is planned to be completed in Q3, 2022.Necessary equipment has been acquired, the majority of which is storedon site or in the Company’s Durango warehouse.
CrushingCircuit
Initial crushing is being handled with a temporary crusher,fully capable of continually feeding the 500 tpd ball mill, while theCompany completes construction of the mine’s permanent crushingcircuit, which will contain a primary jaw crusher and secondary conecrusher with associated vibrating screens and storage hoppers. Allcrushing equipment is on site or in the Company’s Durango warehouseready for installation. The permanent crushing circuit isapproximately 50% complete and expected to be completed during June2022.
TailingsThickener and Dewatering
The tailingsthickener is functional and tailings filter presses for dewatering arescheduled for installation over the next several weeks to beoperational during June 2022. Temporary tailings storage is availableto accept pre-production tailings until the formal dry stack tailingsstorage facility is ready to accept dewatered tailings, which isexpected by the end of August 2022.
About Altaley MiningCorporation
Altaley Mining Corporation is a Canadian basedmining company with two 100% owned Mexican gold, silver, and basemetal mining projects.
Altaley's Tahuehueto mining projectis in north-western Durango State, Mexico where construction has beenadvanced to near completion on its 1,000 tonne per day processingfacility and related mine infrastructure to initiate production ofgold, silver, lead, and zinc in concentrates at Tahuehueto. TheCompany is targeting initial pre-production in May 2022 and ramping upto full production capacity during Q3-Q4 2022.
Campo Morado isan operating polymetallic base metal mine with mining and millingequipment currently producing at an average of 2,200 tonnes per dayand is currently estimated to be Mexico’s 6th largest zincproducer.
Visit: www.altaleymining.com
On Behalf of theBoard of Directors
(signed) “Ralph Shearing”Ralph Shearing,P. Geol,
CEO, President and Director
Cautionary NoteRegarding Production Decisions and Forward-LookingStatements
Neither TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.
It should be noted that Altaley declaredcommercial production at Campo Morado prior to completing afeasibility study of mineral reserves demonstrating economic andtechnical viability. Accordingly, readers should be cautioned thatAltaley’s production decision has been made without a comprehensivefeasibility study of established reserves such that there is greaterrisk and uncertainty as to future economic results from the CampoMorado mine and a higher technical risk of failure than would be thecase if a feasibility study were completed and relied upon to make aproduction decision. Altaley has completed a preliminary economicassessment (“PEA”) mining study on the Campo Morado mine thatprovides a conceptual life of mine plan and a preliminary economicanalysis based on the previously identified mineral resources (seeNews Release dated November 8, 2017, and April 4, 2018). ).Furthermore, It should be noted that Altaley intends to commencepre-production and ramp up to full commercial production at Tahuehuetoprior to completing a feasibility study of mineral reservesdemonstrating economic and technical viability. Accordingly, readersshould be cautioned that Altaley’s pre-production and productiondecisions will be made without a comprehensive feasibility study ofestablished reserves such that there is greater risk and uncertaintyas to future economic results from the Tahuehueto mine and a highertechnical risk of failure than would be the case if a feasibilitystudy were completed and relied upon to make such productiondecisions. Altaley has completed a positive pre-feasibility study (the“Pre-Feasibility Study”) and updated mineral reserves/resourcesestimates at its flagship Tahuehueto Mine that provides a conceptuallife of mine plan and a preliminary economic analysis based on a 1,000tonne per day operation (see News Release dated March 7, 2022)
Statements contained in this news release that are nothistorical facts are "forward-looking information" or"forward-looking statements" (collectively,"Forward-Looking Information") within the meaning ofapplicable Canadian securities laws. Forward-Looking Informationincludes but is not limited to conditions or financial performancethat are based on assumptions about future economic conditions andcourses of action; the timing and costs of future activities on theCompany's properties, such as production rates and increases;success of exploration, development and bulk sample processingactivities, and timing for processing at its own mineral processingfacility on the Tahuehueto project site. In certain cases,Forward-Looking Information can be identified using words and phrasessuch as "plans," "expects," "scheduled,""estimates," "forecasts," "intends,""anticipates" or variations of such words and phrases. Inpreparing the Forward-Looking Information in this news release, theCompany has applied several material assumptions, including, but notlimited to, that the current exploration, development, environmentaland other objectives concerning the Campo Morado Mine and theTahuehueto Project can be achieved; that commencement ofpre-production mining and milling operations at Tahuehueto willproceed as planned; the continuity of the price of gold and othermetals, economic and political conditions, and operations.Forward-Looking Information involves known and unknown risks,uncertainties and other factors which may cause the actual results,performance, or achievements of the Company to be materially differentfrom any future results, performance or achievements expressed orimplied by the Forward-Looking Information. There can be no assurancethat Forward-Looking Information will prove to be accurate, as actualresults and future events could differ materially from thoseanticipated in such statements. Accordingly, readers should not placeundue reliance on Forward-Looking Information. Except as required bylaw, the Company does not assume any obligation to release publiclyany revisions to Forward-Looking Information contained in this newsrelease to reflect events or circumstances after the date hereof or toreflect the occurrence of unanticipated events.
ContactDetails
Glen Sandwell
+1 604-684-8071
CompanyWebsite
https://www.altaleymining.com/
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