Atico Mining Corporation (the “Company” or “Atico”) is pleased to announce that it has signed, with the Government of Ecuador, an investment agreement (“the Agreement”) for its 100% owned La Plata mining project located in Ecuador (the “La Plata project”).
During the Prospectors and Developers Association of Canada Convention in Toronto, Canada (PDAC), and in alignment with his strategic initiative to foster the creation of high-quality employment opportunities for the youth and to entice responsible mining investments within Ecuador. The President of Ecuador, Mr. Daniel Noboa, alongside Mrs. Andrea Arrobo, Minister of Energy and Mines, Sonsoles Garcia, Minister of Production, External Commerce, Investments, and Fisheries, and Minister of Foreign Affairs Gabriela Sommerfeld, engaged in a pivotal meeting with a consortium of institutional funds, investors, and eminent mining corporations. In the context of this event, the Ecuadorian administration, through the agency of Minister Sonsoles Garcia, formalized this agreement with Atico Mining Corporation.
This agreement, representing a commitment exceeding USD $157 million, signifies the confluence of interests between the Ecuadorian State and Atico Mining Corporation in pioneering new ventures within the mining sector. Specifically, this agreement encompasses most previous and future exploration, development, construction and initial sustaining investment phases of the La Plata mining project. The document further delineates the Ecuadorian State's commitment to assist and expedite the progress of the La Plata mining project. This includes the facilitation in securing all requisite approvals, licenses, and permits, ensuring adherence to both Ecuadorian legal frameworks and international standards. This agreement lays the foundational groundwork for the execution of a formal Investment Protection Agreement (IPA) in the forthcoming period, marking a significant milestone in the partnership between the Ecuadorian State and Atico Mining Corporation.
“Today marks a milestone in Ecuador's mining industry, underscored by the distinguished presence of President Noboa at the PDAC. This attendance unequivocally signals the paramount importance that the current administration places on responsible mining investment as a cornerstone of its economic revitalization strategy, a commitment further exemplified by the tangible measures enacted by the Ecuadorian authorities. Ecuador is steadfast in its ambition to emerge as a key player in the global transition to clean energy, endeavoring to establish itself as a premier source of copper by fostering investments in responsible mining initiatives,” commented Alain Bureau, President of Atico Mining Corporation.
Atico Mining’s success and culture stem from investing in sustainable development in communities where it operates through responsible mining with a meticulous emphasis on protecting the surrounding environment.
La Plata Project
Gold-bearing sulfide mineralization at La Plata occurs as compositional banding composed of chalcopyrite, sphalerite and pyrite laminae with barite occurring as clasts and also as layers. The mineralized lenses have also been dislocated by a few faults and dolerite dikes cutting the body.
The La Plata project is amongst the highest-grade gold-copper VMS deposits in which base and precious metal mineralization is interpreted to have formed as part of multiple volcanic episodes that created a stacked volcanic-exhalite hydrothermal sequence considered favorable for hosting additional VMS lenses. The recent drilling results in the southern portion of the deposit have encountered deeper mineralization and an extension of mineralization to the north has been discovered by recent trenching results.
The La Plata independent Preliminary Economic Assessment (“PEA”) dated March 30th 2019, was prepared pursuant to National Instrument 43-101 (“NI 43-101”) and reports the La Plata inferred resources at 1.9 million tons at an average grade of 4.1 g/t Au, 49.4g/t silver, 3.3% Cu, 4.5% Zn, 0.6% Pb as available on SEDAR.
The La Plata project consists of two concessions covering a total area of 2,300 hectares along its 9-kilometer length, which contains known mineralization in two VMS lenses and nine priority exploration targets.