el roble - copper potential growth - inicio · tsx-v: aty | otc: atcmf | aticomining.com growth...

TSX-V: ATY | OTC: ATCMF | ATICOMINING.COM 1

EL ROBLE - COPPER POTENTIAL GROWTH

TSX-V: ATY | OTC: ATCMF | ATICOMINING.COM

C AU T I O N A RY N OT E S A N D Q P

Certain statements in this presentation constitute forward-looking statements and as such are based on anassumed set of economic conditions and courses of action. These include estimates of future production levels,expectations regarding mine production costs, expected trends in mineral prices and statements that describeAtico Mining Corporation’s future plans, objectives or goals. There is a significant risk that actual results will vary,perhaps materially, from results projected depending on such factors as changes in general economic conditionsand financial markets, changes in prices for silver and other metals, technological and operational hazards inAtico’s mining and mine development activities, risks inherent in mineral exploration, uncertainties inherent in theestimation of mineral reserves, mineral resources, and metal recoveries, the timing and availability of financing,governmental and other approvals, political unrest or instability in countries where Atico is active, labour relationsand other risk factors.

The Company has not based its production decisions and ongoing mine production on mineral reserve estimates,preliminary economic assessments or feasibility studies, and historically such projects have increased uncertaintyand risk of failure. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Dr. Demetrius Pohl, PhD, is the Qualified Person for Atico, as defined by National Instrument 43-101. Dr. Pohl wasalso responsible for ensuring that the information contained in this presentation is an accurate summary of theoriginal reports provided to Atico and has approved the scientific and technical content of this presentation.

NON-GAAP FINANCIAL MEASURES

Cash cost per pound of payable copper produced and cash cost per tonne of processed ore are key performancemeasures that management uses to monitor performance. In addition, cash costs are an industry standard methodof comparing certain costs on a per unit basis; however, these do not have a standardized meaning and may differfrom methods used by other companies with similar descriptions. Management believes that certain investors usethese non-GAAP financial measures to evaluate the Company’s performance. These performance measures haveno meaning under IFRS and, therefore, amounts presented may not be comparable to similar data presented byother mining companies.

2


G R OW T H S T R AT EGY Focused on medium-sized high grade Cu-Au assets in Latin America

Evaluate medium-sized advanced exploration opportunities in Colombia (VMS and central Cu-Au trend), Peru (southern copper belt) and Chile (northern copper belt)

Acquire mid-size private or public small scale producing mines with exploration potential

Focus on sustainable organic growth at current operation

3


Principal Orogens – VMS deposits

By: 2005, Franklin et al.


El Roble Mine’s VMS deposit is the onlyCu – Au producer in Colombia

El Roble Mine is Located in the westerncordillera of Colombia in theDepartment of Choco, near the town ofCarmen de Atrato

• >40M oz Au discovered in Colombia inthe last 10 years; discoveries in the midCauca belt Include: La Colosa (12.4M ozAu, porphyry) and Marmato (7.5 M ozAu, epithermal)

• Limited exploration activities over thepast 10 years on El Roble VMS trend

• Untested Cu-Au rich VMS large system

Major gold – copper deposits

Mining Projects in Colombia

AcandiCu-Au

PorphyrryAnglo American

MurindoCu-Au PorphyryRTZ-Muriel Co.

Buritica2.5 M Oz Au

Continental Gold

QuinchiaAu-Cu Bx Pipe

Seafield Resources Ltda.

La Colosa12.4 M oz

AuAnglogoldDominical

Au-Cu PorphyryContinental Gold

Mocoa306 M/t Cu

B2Gold

Angostura2.4 M oz Au 13.4 M oz Ag

EcoOro

Marmato7.5 M oz Au

Gran Colombia Gold

Gramalote2.4 M oz Au

B2Gold – Anglogold

El Roble MineVMS with 1.1 MT

4.9% Cu & 3.7g/t Au

Up Date to 2012


Ore consists of copper – gold rich VMS lenses that follow the stratigraphiccontact between a thick series of Cretaceous basalt flows and overlyingsedimentary rocks.

The VMS mineralization at El Roble is hosted in a package of siliceous,carbonaceous and pyritic shales, black cherts, and minor dolomitic,graded, micritic limestones, that is up to 100m thick but averages 30m,and is known locally ‘black chert’.

The ‘black chert’ overlies a thick sequence of tholeiitic basalts withhyaclastite, and volcanic breccias. Above the ’black chert’ is a sequencelocally known as the ‘grey chert’, consisting of thin-bedded siliceous,felsic tuff interbedded with pelagic sediments. This unit varies from 30-100m thick.

The contact of the ‘black chert’ with the underlying mafic volcanics can betraced across the El Roble Project area for 10km. This lithologic packageis considered to be part of the Late Cretaceous Barroso Formation whichis in tectonic contact with a thick sequence of juvenile sandstones,mudstones and minor conglomerates of the Penderisco Formation. Bothformations are part of the Cañasgordas Group which can be traced forover 800 kilometres along the western cordillera of Colombia.

Andesite and latite dikes up to 10m thick, with an age of 18 m.y. (U-Pb,Ar/Ar) intrude both the massive sulfides and the host rocks. Sparsechalcopyrite and pyrrhotite in the dikes may be the result ofremobilization of VMS mineralization.

Age and metallogenic setting of mineralization at El Roble trend is not wellconstraine.

> 100Km underexplored VMS trend

Regional geology

Underexplored VMS Cu – Au Trend

El Roble MineVMS

Alacran - VMS

Anza- VMS

El Dovio- VMS


VMS deposits typically occur in clusters

VMS Geological Model

• VMS deposit • VMS deposits typically occur in clusters

• Schematic of a massive sulphide deposit zonation typical of chalcopyrite - pyrite ± pyrrhotitein the lower part

• Volcanogenic massive sulphide (VMS) deposits are a well-defined deposit type.

• Franklin et al. (2005) cite 804 known examples around theworld. By 2009, the number had grown to 1090 (Mosier et al.,2009).

• VMS deposits are defined by Franklin et al. (2005) as“stratabound accumulations of sulphide minerals thatprecipitated at or near the sea floor in spatial, temporal andgenetic association with contemporaneous volcanism.”

• Given the large number of mafic-type VMS deposits around theworld, one can predict the size and grade of future discoveriesbased on the grade and tonnage distribution of knowndeposits.

• VMS deposits, including mafic-type VMS deposits, typicallyoccur in clusters. A cluster of mafic-type VMS deposits can, inaggregate, be considerably larger. The aggregate size depends,logically, on the number and characteristics of the individualVMS deposits that make up the cluster.

• The largest VMS deposits in South America are the TamboGrande deposits (Winter et al., 2010) of northern Peru(including Tambo Grande One: 109 Mt of 1.6% Cu, 1.0% Zn, 0.5g/t Au, 22 g/t Ag; Tambo Grande Two: 82 Mt of 1.0 % Cu, 1.4 %Zn, and 0.8 g/t Au, 25 g/t Ag; Tambo Grande Three; and B5).There are also several clusters of VMS deposits in the westernCordillera of central Peru (Moro, Cerro Blanco, Maria Teresa,Aurora Augusta, Santa Cruz de Cocachara, Palma, Balducho,and Cerro Lindo deposits).

Massive sulphide


8

Location map

El Roble Cu - Au Mine, Colombia

El Roble mine is the only Cu-Au VMS deposit in production in Colombia

3.5 hours away from the city of Medellin via paved 145 kilometer highway

Power grid, abundant water and mine facilities on site


R EG I O N A L G EO LO GY

Stratigraphic Column

Regional Geological Map


S t r u c t u ra l S e t t i n gI d e a l M o d e l

10

Ideal Model in Andean Coordillera

All of the above rock units were affected by folding, faulting andthrust tectonics during Late Cretaceous to Tertiary accretion tocontinental South America. Accretionary tectonics resulted inboth low-angle and high-angle faulting of the stratigraphy anddismembered the deposit into discrete ore lenses. At the ElRoble mine the VMS host lithology appears to be overturned,dips steeply to the east and appears to be in thrust contact withthe structurally underlying sediments of the PenderiscoFormation


E L R O B L E M I N E D I S T R I C T E X P L O R AT I O N U P S I D E

Atico identified and mapped a 10 km stratigraphic contact between basalt flows and pelagic sediments that control mineralization

Geochemical program(1) and geophysical surveys(2) have outlined multiple VMS targets over the 10 km favorable contact

Only 2 of 15 district geochemical targets have been previously drilled; Archie and Santa Anita

Atico plans to drill at least 2 targets in 2016

Potential for more targets to be discovered during district exploration of the heavily vegetated terrain

Potential to discover additional VMS bodies

(1) Geochemical program corresponds to rock chip and soil sampling(2) Geophysical surveys conducted include IP, VTEM, magnetic survey,

gravity and down-hole EM Geological map of favorable contact within El Roble claims

11


B r o nw f i e l d E x p l o ra t i o n – C o n c e p t u a l M o d e l


B r o nw f i e l d E x p l o ra t i o n – S a nta A n i ta

Ag KNa

DDHAlto Mod. Bajo

SuelosAlto Mod. Bajo

RocasDDH - MINER


B r o nw f i e l d E x p l o ra t i o n– Pa t h f i n d e r E l e m e nt s

Ba Na AlK

San Lorenzo

Santa Anita


B r o nw f i e l d E x p l o ra t i o n– C C P I v e c to r


B r o nw f i e l d E x p l o ra t i o n– A l - N a


Geophysics Target

Ground Magnetic Targets Ground Magnetic Targets – Geology

Carmen de Atrato

El Roble Mine

M a g n e t i c S u r ve y Re s u l t s

All geochemical anomalies confirmed

Most magnetic anomalies align well along the 10 kilometer favorable contact

42 new Gmag targets detected which have not been considered in past exploration programs

Carmen de Atrato

El Roble Mine


B B’

B B’

Gmag & Geoq. Au

E x p l o ra c i ó n B r o nw f i e l d – S a n L o r e n zo

• Geología Favorable (Black Chert )• Geoquímica Au, Ag, Zn ‘ Anomalía Metales Base.• Gmag – Favorable.• VTEM – Resistividad.


E L R O B L E M I N E V I C I N I T Y E X P L O R AT I O N P R O G R A M

High grade mineralization continues at depth

Intercept (m)

Body Hole ID From To Interval (m) Cu (%) Au (g/t) Ag (g/t)

Goliath ATDHR-01 109.2 151.0 41.7 6.54 1.82 7.43

Including 109.2 111.0 1.7 9.00 4.81 22.2

121.0 123.0 2.0 6.87 10.27 11.4

125.0 141.0 16.0 7.13 1.00 3.87

143.0 145.0 2.0 14.85 0.91 15.15

ATDHR-12 113.9 132.1 18.15 10.30 2.10 6.59

Including 113.9 118.0 4.10 11.06 6.46 17.57

120.0 122.0 2.00 15.91 0.78 3.23

122.0 126.0 4.00 17.45 1.06 3.94

ATDHR-20 128.0 148.4 20.40 5.25 1.28 6.16

Maximus ATDHR-04 61.0 102.0 41.0 6.49 17.57 13.26

Including 75.0 85.0 10.0 3.00 3.59 12.77

85.0 95.0 10.0 18.40 8.63 19.29

95.0 97.0 2.0 3.92 250.0 21.2

97.0 102.0 5.0 6.05 7.21 13.20

ATDHR-05 70.0 79.0 9.0 2.50 2.31 16.17

Including 75.5 77.0 1.5 3.81 9.41 145.5

77.0 78.0 1.0 10.82 1.60 0.00

ATDHR-17 71.8 160.5 88.70 5.41 2.48 10.83

Including 71.8 75.2 3.40 11.50 7.22 13.77

100.3 104.1 3.80 7.17 3.89 18.20

141.1 149.5 8.45 12.96 1.09 12.70

Zeus ATDHR-26 144.0 263.7 119.7 6.89 6.26 16.50

Including 145.8 156.3 10.43 11.68 14.14 33.83

ATD-0003 158.8 245.20 86.4 5.04 3.71 8.69

ATD-0004 155.7 225.75 70.1 6.26 1.85 7.93

Including 186.4 225.75 39.53 7.50 1.31 5.67

ATDHR-28 242.8 292.0 49.20 4.11 2.32 6.36

Including 257.4 266.5 9.12 6.69 1.71 7.07

2012-15 Exploration Highlights

20


E l Ro b l e M i n eMine overview

Administrativeoffices

Mill

Core shack

Tailings dam in remediation

El Roble Mine, Colombia

New 1880 adit

21


The historic mine operated since 1990’s. An operation with a room and pillar method and concluded recovering the remaining ore through sublevel caving.

Operated with jackleg for drilling, scoop for ore load and mine wagon for ore haulage.

H I S TO R I C M I N ELV L . 2 0 0 0 a n d 2 1 0 0


E L R O B L E M I N E , C O LO M B I AMajor scale-up components completed to achieve 800tpd

New tailings facilityEntrance to new level 1880 adit

First and second phase of the new tailings facility completed

Facility built to international standards

Third phase construction will commence as required by operational needs

Five by five, 830 meter adit

Direct access to the newly discovered resources

Improved underground drill access

Capacity beyond 800tpd

800 tpd processing facility

Upgrades to the crushing and milling circuit including a new cone crusher and stronger ball mill motors

Additional flotation cells

Upgrades to the thickener and vacuum drum filter

New on site lab

ADIT TAILINGS FACILITY PROCESSING FACILITY

23


E L R O B L E M I N E , C O LO M B I A In production for over 22 years

Location Carmen de Atrato, Colombia

Ownership 90%

Type of deposit Mafic-type Volcanic Massive Sulphide

Commodities Cu, Au, Ag

Processing Standard grinding, milling and flotation circuit

Operation 800 tpd underground mine

End Product Cu (+Au,Ag) Concentrate

M&I Resource 1.87Mt at 3.46% Copper, 2.27g/t Gold

800 tpd processing facility

*

*

* During the option term and up to November 22nd 2013, the Company was not responsible for mining or for resource development and gained no income from the mining operations

** The Company is basing 2017 guidance on year ended December 31, 2016 financial and production results. Please refer to Cautionary Note on Forward Looking Statements at the beginning of this document.

24

**

**

1,412

9,07912,044

18,724

543%

33%

55%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2013 2014 2015 2016 2017

(00

0s)

lbs

Copper Production

2,297

9,53810,994 11,159315%

15%

2%

0

2,000

4,000

6,000

8,000

10,000

12,000

2013 2014 2015 2016 2017

oz

Gold Production


E L R O B L E E X P L O R AT I O N U P S I D E

El Roble Mine Area and Archie Target


E L R O B L E M I N E D I S T R I C T E X P L O R AT I O N U P S I D E

Atico identified and mapped a 10 km stratigraphic contact between basalt flows and pelagic sediments that control mineralization

Geochemical program(1) and geophysical surveys(2) have outlined multiple VMS targets over the 10 km favorable contact

Only 2 of 15 district geochemical targets have been previously drilled; Archie and Santa Anita

Atico plans to drill at least 2 targets in 2016

Potential for more targets to be discovered during district exploration of the heavily vegetated terrain

Potential to discover additional VMS bodies

(1) Geochemical program corresponds to rock chip and soil sampling(2) Geophysical surveys conducted include IP, VTEM, magnetic survey,

gravity and down-hole EM Geological map of favorable contact within El Roble claims

26

CORPORATE OFFICESuite 501 – 543 Granville St.Vancouver BC V6C 1X8T: +1.604.633.9022

C O N TA C T I N F O R M AT I O N

27

CORPORATE DEVELOPMENTIgor [email protected]


el roble - copper potential growth - inicio · tsx-v: aty | otc: atcmf | aticomining.com growth...

Documents