Altaley Mining Reports on Q2 2022 Financials
During the three months ended June 30, 2022, the Company reported total mine operating income of $1,933, total comprehensive loss of $847, and basic loss per share of $0.01.
During Q2-2022, Campo Morado installed its copper recovery flotation circuit and began producing copper concentrate. The timing between installation and commissioning of the recovery circuit resulted in increased production costs, thus lowering mine operating income for the quarter in comparison to Q2-2021. Additionally, depletion of mineral resources has begun to be recognized during 2022 given the reversal of previous impairment charges on the Campo Morado mine in 2021. As a result, mine operating income is being impacted from such depletion during 2022 that was not able to be recognized in 2021.
During the three months ended June 30, 2022, the Company generated revenues in the amount of US$13.9 million from the sale of 8,194 tonnes of zinc concentrate with an average of 44.8% zinc and 406 g/t silver at an average selling price of US$3,452 per tonne of zinc and US$19.90/oz of silver. During June 2022, the Company sold 1,512 tonnes of copper concentrate with an average of 13.7% copper, 590 g/t silver, and 6.2 g/t gold at an average selling price of US$ 9,161 per tonne of copper, US$21.70/oz of silver, and US$1,848/oz of gold. Additionally, 1,012 tonnes of lead concentrate was sold with an average of 15.5% lead, 537 g/t silver and 3.2 g/t gold at an average selling price per tonne of lead of US$2,114, US$19.90/oz silver and US$1,800/oz gold. Net revenues of US$13.9 million were inclusive of treatment charges and penalties in the amount of US$3.51 million and freight and selling costs in the amount of US$1.78 million were reported during the period.
Tahuehueto Mining Project
During the three months ended June 30, 2022, Tahuehueto produced 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 sold 64.3 tonnes generating Q2-2022 revenue from bulk concentrate of US$77K.
At Tahuehueto, the project has experienced an uncharacteristically strong rainy season complicating project access and construction efforts that have negatively affected pre-production revenues anticipated during the pre-production and commissioning phase of the first 500 tonne per day (?tpd?) ball mill.
Although the first ball mill is currently capable of operating at 500 tpd, construction delays have occurred on finalizing the permanent crushing circuit, permanent water pumping station and tailings storage facility. Crushing, with 500 tpd capability, is currently being handled by a provisional crushing facility and the projects backup water pumping system is providing water to the mill. Completion of the permanent crushing circuit is expected by the end of September and permanent water pumping station, although installed, will be connected to power over the coming months with the installation of a power line from the generator farm next to the mill to Tres de Mayo pump station.
Tailings are being stored in a temporary facility until 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 coming months.
Following the commissioning of the definitive surface ore handling system, and as the rainy season winds down, we are expecting the project to achieve consistent production up to 500 tpd.
Installation of the projects 2nd 500 tpd ball mill, a key element in the 1000 tpd project is temporarily postponed, as it requires the permanent tailings facility to be available to receive the increased load of tailings that will be generated. Civil works for the 2nd ball mill will commence as soon as the 500 tpd project is fully commissioned and delivering consistent revenues. A definitive timetable for delivery of the 1000 tpd project will be communicated in subsequent Company announcements.
About Altaley Mining Corporation
Altaley Mining Corporation is a Canadian based mining company with two 100% owned Mexican gold, silver, and base metal mining projects.
Altaley's Tahuehueto mining project is in north-western Durango State, Mexico where construction of an initial 500 tpd operation is well advanced. The second stage, the 1000 topd project, will follow immediately after commissioning the initial stage. The operation will generate gold, silver, lead, and zinc in concentrates.
Campo Morado is an operating polymetallic base metal mine with mining and milling equipment currently producing at an average of 2,400 tonnes per day and is currently estimated to be Mexico?s 6th largest zinc producer.
On Behalf of the Board of Directors
(signed) ?Ralph Shearing?
Ralph Shearing, P. Geol,
CEO, President, and Director
Cautionary Note Regarding Production Decisions and Forward-Looking Statements
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
It should be noted that Altaley declared commercial production at Campo Morado prior to completing a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, readers should be cautioned that Altaley?s production decision has been made without a comprehensive feasibility study of established reserves such that there is greater risk and uncertainty as to future economic results from the Campo Morado mine and a higher technical risk of failure than would be the case if a feasibility study were completed and relied upon to make a production decision. Altaley has completed a preliminary economic assessment (?PEA?) mining study on the Campo Morado mine that provides a conceptual life of mine plan and a preliminary economic analysis based on the previously identified mineral resources (see News Release dated November 8, 2017, and April 4, 2018). ). Furthermore, It should be noted that Altaley intends to commence pre-production and ramp up to full commercial production at Tahuehueto prior to completing a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, readers should be cautioned that Altaley?s pre-production and production decisions will be made without a comprehensive feasibility study of established reserves such that there is greater risk and uncertainty as to future economic results from the Tahuehueto mine and a higher technical risk of failure than would be the case if a feasibility study were completed and relied upon to make such production decisions. Altaley has completed a positive pre-feasibility study (the ?Pre-Feasibility Study?) and updated mineral reserves/resources estimates at its flagship Tahuehueto Mine that provides a conceptual life of mine plan and a preliminary economic analysis based on a 1,000 tonne per day operation (see News Release dated March 7, 2022)
Statements contained in this news release that are not historical facts are "forward-looking information" or "forward-looking statements" (collectively, "Forward-Looking Information") within the meaning of applicable Canadian securities laws. Forward-Looking Information includes but is not limited to conditions or financial performance that are based on assumptions about future economic conditions and courses of action; the timing and costs of future activities on the Company's properties, such as production rates and increases; success of exploration, development and bulk sample processing activities, and timing for processing at its own mineral processing facility on the Tahuehueto project site. In certain cases, Forward-Looking Information can be identified using words and phrases such as "plans," "expects," "scheduled," "estimates," "forecasts," "intends," "anticipates" or variations of such words and phrases. In preparing the Forward-Looking Information in this news release, the Company has applied several material assumptions, including, but not limited to, that the current exploration, development, environmental and other objectives concerning the Campo Morado Mine and the Tahuehueto Project can be achieved; that commencement of pre-production mining and milling operations at Tahuehueto will proceed as planned; the continuity of the price of gold and other metals, 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 different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, the Company does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.Contact Details
30.08.2022 CET/CEST Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.Archive at www.dgap.deLanguage: English Company: Altaley Mining Corp
United States ISIN: CA02138F1071 EQS News ID: 1431577 ? End of News DGAP News Service