ATLYF - Altaley Mining Reports on Q2 2022 Financials
(NewsDirect)
Altaley MiningCorporation (TSXV: ATLY) (OTCQX: ATLYF) (FSE: TSGA) (the" Company " or " Altaley ") is pleased toannounce the release of its Q2 2022 financial results.
Q2 2022 Financials
Campo Morado Mine
Duringthe three months ended June 30, 2022, Campo Morado produced 8,603tonnes of zinc concentrate grading an average of 45% zinc, 1.73 g/tgold, 404 g/t silver and sold 8,194 tonnes generating Q2-2022 revenuefrom zinc concentrate of US$9.02 million. In May 2022, the mine beganproducing copper concentrate, of which 1,870 tonnes was producedduring Q2-2022 grading an average of 14% copper, 6.3 g/t gold, 650 g/tsilver and approximately 1,516 tonnes were sold generating Q2-2022revenue from copper concentrate of US$ 2.1 million. Additionally, 951tonnes of lead concentrate was produced grading an average of 16%lead, 3.58% copper, 4.71 g/t gold, 654 g/t silver and 2,626 tonneswere sold, generating Q2-2022 revenue from lead concentrate of US$0.34million.
DuringQ2-2022, approximately 189,194 tonnes of mineralized material wereprocessed through the processing plant at a C1 cash cost per lbs ofUS$1.13 with average grades of 3.01% zinc, 0.51% copper, 0.74% lead,0.88 g/t gold, and 84 g/t silver achieving recoveries of 68.4% inzinc, 27.5% in copper, 10.8% in lead, 8.1% in gold, and 18.1% insilver.
RalphShearing states, " Q2 2022 second quarter financial resultsreflect a challenging quarter for the Company. Campo Morado operationssaw a decrease in profitability over H1 2022 compared to H2 2021 as aresult of the El Largo zone nearing depletion delivering lower gradeore to the mill which negatively affected both recoveries andconcentrate grades. In addition, the mine installed a copper recoveryflotation circuit to begin producing copper concentrate, foregoinglead concentrate production to take advantage of the significantlyhigher price of copper over lead. These factors along with downtimedue to equipment failure and regular maintenance plus someinflationary cost increases resulted in decreased Campo Morado profitduring the first half of 2022. Management however, is confident thatthese difficulties are behind us with Campo Morado back on trackmining higher grade ore from the G9/Southwest allowing the project toachieve significantly better recoveries and concentrate grades duringAugust, resulting in increased concentrate grades and increasedproduction tonnages.
The following table and subsequent discussion provide asummary of the operating performance of the Company for the threemonths ended March 31, 2022, and June 30, 2022.
During the threemonths ended June 30, 2022, the Company reported total mine operatingincome of $1,933, total comprehensive loss of $847, and basic loss pershare of $0.01.
During Q2-2022, Campo Morado installed its copper recoveryflotation circuit and began producing copper concentrate. The timingbetween installation and commissioning of the recovery circuitresulted in increased production costs, thus lowering mine operatingincome for the quarter in comparison to Q2-2021. Additionally,depletion of mineral resources has begun to be recognized during 2022given the reversal of previous impairment charges on the Campo Moradomine in 2021. As a result, mine operating income is being impactedfrom such depletion during 2022 that was not able to be recognized in2021.
During the three months endedJune 30, 2022, the Company generated revenues in the amount of US$13.9million from the sale of 8,194 tonnes of zinc concentrate with anaverage of 44.8% zinc and 406 g/t silver at an average selling priceof US$3,452 per tonne of zinc and US$19.90/oz of silver. During June2022, the Company sold 1,512 tonnes of copper concentrate with anaverage of 13.7% copper, 590 g/t silver, and 6.2 g/t gold at anaverage selling price of US$ 9,161 per tonne of copper, US$21.70/oz ofsilver, and US$1,848/oz of gold. Additionally, 1,012 tonnes of leadconcentrate was sold with an average of 15.5% lead, 537 g/t silver and3.2 g/t gold at an average selling price per tonne of lead ofUS$2,114, US$19.90/oz silver and US$1,800/oz gold. Net revenues ofUS$13.9 million were inclusive of treatment charges and penalties inthe amount of US$3.51 million and freight and selling costs in theamount of US$1.78 million were reported during the period.
TahuehuetoMining Project
During the three months ended June 30, 2022, Tahuehuetoproduced 256 tonnes of bulk concentrate grading an average of 72%zinc, 71% copper, 74% lead, 1.73 g/t gold, 404 g/t silver and sold64.3 tonnes generating Q2-2022 revenue from bulk concentrate ofUS$77K.
AtTahuehueto, the project has experienced an uncharacteristically strongrainy season complicating project access and construction efforts thathave negatively affected pre-production revenues anticipated duringthe pre-production and commissioning phase of the first 500 tonne perday (“tpd”) ball mill.
Although the first ball mill is currently capable of operatingat 500 tpd, construction delays have occurred on finalizing thepermanent crushing circuit, permanent water pumping station andtailings storage facility. Crushing, with 500 tpd capability, iscurrently being handled by a provisional crushing facility and theprojects backup water pumping system is providing water to the mill.Completion of the permanent crushing circuit is expected by the end ofSeptember and permanent water pumping station, although installed,will be connected to power over the coming months with theinstallation of a power line from the generator farm next to the millto Tres de Mayo pump station.
Tailings are being stored in a temporary facilityuntil the permanent dry stack tailings facility is fully constructed.Work here has been temporarily suspended owing to the heavy rainfall,after which work will be reinitiated to complete over the comingmonths.
Following the commissioning of the definitive surface ore handlingsystem, and as the rainy season winds down, we are expecting theproject to achieve consistent production up to 500 tpd .
Installation ofthe projects 2 nd 500 tpd ball mill, a key element in the1000 tpd project is temporarily postponed, as it requires thepermanent tailings facility to be available to receive the increasedload of tailings that will be generated. Civil works for the2 nd ball mill will commence as soon as the 500 tpd projectis fully commissioned and delivering consistent revenues. A definitivetimetable for delivery of the 1000 tpd project will be communicated insubsequent Company announcements.
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 of aninitial 500 tpd operation is well advanced. The second stage, the 1000topd project, will follow immediately after commissioning the initialstage. The operation will generate gold, silver, lead, and zinc inconcentrates.
Campo Morado is an operating polymetallic basemetal mine with mining and milling equipment currently producing at anaverage of 2,400 tonnes per day and is currently estimated to beMexico’s 6th largest zinc producer.
Visit:www.altaleymining.com
On Behalf of the Board ofDirectors
(signed) “Ralph Shearing”
RalphShearing, P. Geol,
CEO, President, andDirector
Cautionary Note Regarding Production Decisionsand Forward-Looking Statements
Neither TSX Venture Exchangenor its Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release.
It should be noted thatAltaley declared commercial production at Campo Morado prior tocompleting a feasibility study of mineral reserves demonstratingeconomic and technical viability. Accordingly, readers should becautioned that Altaley’s production decision has been made without acomprehensive feasibility study of established reserves such thatthere is greater risk and uncertainty as to future economic resultsfrom the Campo Morado mine and a higher technical risk of failure thanwould be the case if a feasibility study were completed and reliedupon to make a production decision. Altaley has completed apreliminary economic assessment (“PEA”) mining study on the CampoMorado mine that provides a conceptual life of mine plan and apreliminary economic analysis based on the previously identifiedmineral resources (see News Release dated November 8, 2017, and April4, 2018). ). Furthermore, It should be noted that Altaley intends tocommence pre-production and ramp up to full commercial production atTahuehueto prior 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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