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Altaley MiningCorporation (the “ Company ” or “ Altaley ”) ispleased to provide an update on the status of the Company’soperations and projects, and corporate matters.
CEO Update
On 12 th September 2022 the Company announced the appointment of Mr. MikeStruthers as the new CEO for Altaley. Mr. Struthers is a seasonedprofessional and Chartered Engineer with over 40 years ofinternational mining experience, starting in operations in Africa andAustralia; followed by a technical consulting career in Australia andinternationally, with extensive experience in feasibility studies andcapital projects; seven years with Lundin Mining in capital projectsin Europe and Chile; and latterly in C-suite roles in the UK andCanada. A summary bio is appended.
Upon arrival, and with the full support of theboard of directors, Mr. Struthers undertook a review of the Companyoperations, administration, finance and corporate functions, andorganization. This was recently concluded.
Mr. Struthers stated: “ The CEO Review wasan important introduction to the Company, to gain a full understandingof the status of the operations and projects, administrative andfinancial functions and controls, organizational strengths, andweaknesses, etc. I’m pleased to say that this is now completed.
It is evident to ourshareholders and those watching Altaley that the Company’sperformance in 2022 has not lived up to expectations. This is a resultof many factors, some within the Company’s control, some not. CampoMorado had a difficult 1H22, but performance in 2H22 has beensteadily, albeit slowly, improving. Tahuehueto failed to deliver onexpectations regarding the conclusion of the construction project.
It becameclear during the review that a greater level of discipline wasrequired in certain functions, including budgeting, planning, andforecasting; together with the need to address certain organizationalweaknesses; to transform Altaley into a respected, professional andconsistently performing mining company. A number of improvements havealready been put in place, others will follow in the coming weeks andmonths.
Theobjective of the review was to develop robust, deliverable productionplans for 2023 at both mines. These have now been completed.
The Tahuehueto GoldMine Construction Project is substantially behind schedule and overbudget. There were many factors involved, including delayed funding,but we now have updated and detailed plans and budgets, and arestrengthening the organization, to ensure the project is now deliveredsuccessfully. One of my early decisions was to split the 500tpd and1000tpd projects into two stages. It is important to first deliver the500tpd project successfully, and from that foundation expand to1000tpd. The 500tpd Project is expected to be completed in early Q2,2023, and the Company expects to then move directly to the 1000tpdexpansion. Many elements for the 1000tpd project are already in placewith the first stage, and we already have the second ballmill.
Pre-production at Tahuehueto has been progressing well. Weare currently milling an average of 350tpd and the plant is performingto expectations, producing saleable zinc and lead concentrates, thelatter with on average 50 g/t gold.
On6 th December 2022 the Company announced aRights Offering, and a share consolidation that the Board of Directorsrecommends is necessary to properly restructure the Company’s sharecapital and prepare for future growth. The Rights Offering allowsshareholders to participate in a funding round and will raiseadditional funds to complete the construction of the 500tpd project atTahuehueto. These additional funds will be sufficient to complete thisproject.
Campo Morado had an excellent 2021, but a poor 1H22.Declining performance in 1Q22 was linked to a particular ore zone inthe mine, El Largo, driven by complex mineralogy, unusually high ironcontent, and declining head grades as the zone neared depletion. Thedecision was taken to move production to new areas, with elevatedcopper grades, and by the end of 2Q22 this was well established withperformance progressively improving since. The keys to continuouslyimproving performance at Campo Morado lies in stabilizing the millwith consistent blended ore feed, and putting into place an effectivegeometallurgical program, linking resources, the mine and the millinto a unified planning and production process. We recently concludeda plant review by leading consulting engineers Ausenco, and from thiswe have a detailed path forwards to improve performance. I’m nowoptimistic we’ll see steady improvements through 2023 andbeyond.
Ilook forwards to providing shareholders with further regularupdates.”
CEO Summary Biography
Mr. MikeStruthers is a registered Chartered Engineer with the Institute ofEngineers in the UK and has had a mining career spanning over fourdecades, in Africa, Australia, Europe, Russia, and North and SouthAmerica.
- Operational roles in large base metal mines in Zambia andAustralia
- Former Director and Principal Geotechnical Engineerfor 13 years with an international mining consulting organization,consulting to and leading teams on a range of projects for a widevariety of clients including major miners such as Rio Tinto Group andBHP Billiton, and large number of other mid-tier and juniordevelopment and producing companies.
- Former CEO (3 years) andDirector of Empire Metals Ltd., an AIM-listed exploration and resourcedevelopment company, and current CEO of Candelaria Mining Corp. aTSX.V listed Mexican exploration and development company.
- Seven years as Project Manager and Projects Director withLundin Mining Corporation, responsible for developing and executing arange of strategic medium and long-term brownfield growth initiativesat Lundin Mining’s operations in Portugal and Chile.
- FormerCOO and Technical Director for a Russian minerals development companywith large base and precious metals assets in Siberia.
Mike’s experience includes projectmanagement in feasibility and engineering studies, projectdevelopment, technical reviews, financial evaluations, strategicplanning, mine expansions, construction management, and project duediligence over a wide range of commodities and jurisdictions includingbase-metals, gold, and diamonds, in jurisdictions including Africa,Australia, North America, South America, Europe and Russia. Prior tohis consulting career he held operational and management positions inmining operations in Africa and Australia
About AltaleyMining Corporation
Altaley Mining Corporation is a Canadianbased mining company with two 100% owned Mexican gold, silver, andbase metal mining projects.
Altaley's Tahuehueto miningproject is in north-western Durango State, Mexico, where constructionof an initial 500 tpd operation is well advanced. The second stage,the 1000 tpd project, will follow immediately after commissioning theinitial stage. The operation will generate gold, silver, lead, andzinc in concentrates.
Campo Morado is an operating polymetallicbase metal mine in Guerrero, Mexico, currently producing at an averageof approximately 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) “Mike Struthers”
MikeStruthers
CEO 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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