Atalaya to study possible expansion at Proyecto Riotinto

European mining and development company Atalaya Mining announced on Friday that the board of directors had approved a study to demonstrate the feasibility of increasing the mining and processing capacity beyond the current 9.5Mtpa to a maximum of 15.0Mtpa at Proyecto Riotinto.

The AIM-traded firm said that, if proven feasible, that could translate into an increase in copper production to 50,000 - 55,000 tonnes per annum.

It said the plan was to revisit existing geological modelling and resource and reserve estimates, with a view to maintaining the life of mine in the range of 12-14 years.

Mine planning and the existing mining fleet would be re-assessed, the board confirmed.

The study would also assess the potential for maximising processing capacity, including complementing it with additional crushing and milling equipment.

Flotation and concentrate handling modifications would be evaluated, but were not expected to be significant.

Tailings storage facilities and auxiliary infrastructure would also be re-evaluated.

Atalaya said the detailed assessment would be carried out over the next three months.

Should the company decide to proceed with the increase in mining and processing capacity, the indicative construction period was estimated to be 18 months after the investment has been approved.

“The intention is to develop the new project with a competitive capital intensity, similar to the original 5.0Mtpa refurbishment programme and the 9.5Mtpa expansion,” Atalaya’s board explained in its announcement.

“With regards to operating costs, economies of scale are expected to further improve C1 cash costs as was the case when the targeted 9.5Mtpa rate was implemented and achieved.”

In anticipation of a positive outcome of this study, the company was currently evaluating different sources of financing.

“By commissioning this study, the board has shown great faith in the further potential of Proyecto Riotinto,” said CEO Alberto Lavandeira.

“We look forward to providing a further update in due course.”