ATLY:CC - Altaley Mining Updates Tahuehueto Mine Pre-production Mill Commissioning and Advises of Change of Control Person
(NewsDirect)
Altaley MiningCorporation (TSXV: ATLY) (OTCQX: ATLYF) (FSE: TSGA) (the" Company " or " Altaley ") is pleased toupdate shareholders on the commissioning, pre-production, andconstruction progress at its Tahuehueto Gold Mine.
The operations team havebeen diligently resolving various start-up issues related to the watersupply pipeline and mill commissioning and, over the past week havesuccessfully achieved ongoing pre-production with the 1 st 500 tpd ball mill. Recently, processing has been stabilized with themill achieving ore throughput up to 350 tpd and averagingapproximately 195 tpd over the past 5 days.
Mill throughput isestimated to remain at current levels over the next two weeks withcrushing being handled with a provisional cone crusher while thepermanent crushing circuit installation is being finalized andanticipated to be operational within the next two weeks and thereafterthe ball mill throughput will be ramped up to capacity.
To date approximately260 tonnes of bulk concentrated has been produced at Tahuehueto. Twoshipments of approximately 30 tonnes each have been shipped toTrafigura for sale. These initial batches of concentrate were producedfrom low-grade ore on purpose as original feed testing at the ballmill start-up. Revenue received from the 1 st shipment wasapproximately US$42,000 paid for gold, silver, and lead. The seconddelivery payment is pending. Another 70 tons of concentrate is in theprocess of being shipped from Tahuehueto to Tepehuanes subsequently tobe trucked and sold to Trafigura in the coming days. The Tahuehuetooperations team estimate that there are approximately another 150tonnes of concentrate available, drying on the mill patio and withinthe thickeners available to be filtered for drying on the patios.
The tailingsstorage facility is in the final stages of construction and expectedto be ready to receive dry stack tailings within 45 days. Tailingscurrently being generated are being filtered and stored as additionalbackfill underground.
The Tahuehueto Laboratory is essentially ready to beoperational and technicians are calibrating ICP and ancillaryequipment expected to be fully operational over the next fewdays.
Installationof the second 500 tpd ball mill is scheduled over the next severalmonths and the Company anticipates the project will be able tocommission this mill during Q4 2022 and ramp up production towards themine’s designed capacity of 1,000 tpd near the end of 2022.
“Although thecommissioning phase of Tahuehueto’s first ball mill has taken longerthan anticipated, management is optimistic that most of the start-upissues are behind us and that the project will be able to maintainsteady state production with the initial ball mill and thereby beginto increase Tahuehueto’s concentrate sales and revenue over thecoming months.” states Ralph Shearing, CEO & President
ControllingShareholder Intent to Sell
TheCompany has been advised that Mr. Roberto Guzman Garcia has filed aForm 45-102F1, Notice of Intention to Distribute Securities underSection 2.8 of NI 45-102 Resale of Securities. Mr. Guzman hasinformed the Company that he intends to sell up to 50 million shares,a majority of his 68,160,172 controlling share position of Altaley aspart of a restructuring of his Mexican real estate business. The saleswill be made in a series of private transactions or throughpre-arranged crosses through the facilities of the TSX VentureExchange. The purchasers are acquiring the shares as a long-terminvestment recognizing the underlying intrinsic value of Altaley’smining assets. It is not anticipated that any of the purchasers willbecome 10% or greater shareholders of the Company. Mr. Guzman willretain direct or indirect ownership of approximately 18.16 millionAltaley shares as a director and significant shareholder of theCompany
About Altaley Mining Corporation
AltaleyMining Corporation is a Canadian based mining company with two 100%owned Mexican gold, silver, and base metal miningprojects.
Altaley's Tahuehueto mining project is innorth-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 concentrates at Tahuehueto. The Companybegan initial pre-production and mill commissioning in May 2022 andwill be ramping up to full production capacity during Q3-Q42022.
Campo Morado is an operating polymetallic base metal minewith mining and milling equipment currently producing at an average of2,200 tonnes per day and is currently estimated to be Mexico’s 6thlargest zinc producer.
Visit: www.altaleymining.com
OnBehalf of the Board of Directors
(signed) “RalphShearing”Ralph Shearing, P. Geol,
CEO, President andDirector
Cautionary Note Regarding Production Decisions andForward-Looking Statements
Neither TSX Venture Exchange norits 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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