Atalaya Mining's improved resource estimate supports planned mine expansion

Copper ores company Atalaya Mining on Monday announced that an updated resources and reserves estimate for Proyecto Riotinto in south western Spain showed a 29% increase in mineral reserves.

The AIM-traded company said its latest figures show that total proven and probable mineral reserves at the Cerro Colorado open pit mine at the site are estimated at 197m tonnes grading 0.42% Copper.

Alberto Lavandeira, chief executive of Atalaya Mining, said: "The study results strongly support the company's decision to increase the mine process plant throughput from 9.5Mtpa to 15 Mtpa by 2020 with a LOM of 13.8 years. The company anticipates that the new mining plan will report a lower operating cost whilst simultaneously reducing the strip ratio to 1.43:1."

The ramp-up in production is taking place after an 18-month period of refurbishment and will be followed by commissioning.

"We are confident that we can continue to expand the resources and reserves both through continued targeted drilling campaigns and underground upside whilst ramping up production, thereby maximising the exciting opportunity that Proyecto Riotinto represents for the business," said Lavandeira.

The property is located at the eastern end of the Iberian pyrite belt which contains eight major mining areas, each thought to contain more than 100m tonnes of ore, with the Riotinto Copper Project being the largest of these.

As of 1634 BST, Atalaya Mining’s shares were up 3.14% at 257.34p.