PRECIOUS METALS

Atico boosted by bonanza grades

Shares in Atico Mining jumped more than 25% yesterday as the producer reported “bonanza grades” at the La Plata polymetallic project in Ecuador.

Staff reporter
 Atico Mining is earning into La Plata in Ecuador

Atico Mining is earning into La Plata in Ecuador

Highlights from drilling at the South Block included 2.72m at 45.51g/t gold, 478.86g/t silver, 17.34% copper and 3.71% zinc, within a wider 6.84m at 19.54g/t gold, 223.98g/t silver, 12.19% copper and 3.7% zinc.

Atico said two rigs were active at the project and aiming to grow La Plata's inferred resource comprising 1.9 million tonnes at an average grade of 4.1g/t gold, 49.4g/t silver, 3.3% copper, 4.5% zinc and 0.6% lead.

It said drilling at La Plata and at El Roble in Colombia were both fully funded by its 90%-owned El Roble copper-gold mining operation.

El Roble produced 4.95 million pounds of copper and 2,733 ounces of gold in concentrates in the June quarter, a 57% and 29% increase respectively on a year earlier.

It said last month the increase was due to a full quarter of production, compared with the second quarter last year when the operation was impacted by a miners' strike

Atico gained La Plata through its 2019 all-scrip acquisition of Toachi Mining.

Atico can earn up to 75% of La Plata and has exercised its first option to acquire the initial 60%.

It had $7.2 million in working capital according to a July presentation.

Its shares (TSXV: ATY) touched a one-year high of C56c intraday before closing up 25.58% to 54c, capitalising it at $64.3 million (US$48.5 million).

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