Drill Tracker Weekly: Atico Intersects High-grade Copper at El Roble Mine

Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.

Atico Mining (TSXV:ATY)

Price: $0.51

Market cap: $49 million

Working capital: $4.7 million

Project: El Roble

Country: Colombia

Ownership: 90 percent

Resources: 1.58 MT @ 4.45% Cu, 3.17 g/t Au (inferred)

Project status: Mine exploration

• Atico Mining announced infill drilling results from the recent Zeus massive sulphide discovery on its 90% owned El Roble Volcanogenic Massive Sulphide (VMS) deposit in Colombia. The mineralization is outside of the resource shell as defined in the June 2013 inferred resource.

• Highlights from the current infill drilling include 70.10 metres grading 6.26% Cu, 1.85 g/t Au and 7.93 g/t Ag and 109.15 metres of 2.11% Cu, 3.79 g/t Au and 21.99 g/t Ag. The Company estimates that the true width of the intervals is approximately 76 to 83% of the reported drill intervals.

• The Company is currently developing a new adit on the 1800 level, 200 metres below the existing operation, to access the new high grade mineralization. Since exercising their option, the Company has initiated a program to expand the throughput capacity from 400 to 650 tonnes per day and expanding the tailings facility to international standards.

• On June 26, 2013, the Company announced an inferred mineral resource beneath the existing El Roble Mine workings of 1.58 million tonnes grading 4.45% Cu, 3.17 g/t Au and 11.30 g/t Ag using a 0.72% Cu equivalent cut-off grade. Historical mining produced 1.5 million tonnes grading 2.5% Cu and 2.5 g/t Au over a period of 22 years. Although the 43-101 does not report resources at different metal prices, and the metal prices used in the resource would be considered high in today’s market, the contained metal does not appear to be overly sensitive to cut-off grades. The report indicates that when the CuEq cut-off is increased to 2.0 Cu Eq, the contained metal drops less than 10%.

Development history and key intervals: Past production of 1.3 million tonnes at 2.5% Cu and 2.5 g/t Au over 22 years

Current holes: 70.1 metres @ 2.26% Cu, 1.85 g/t Au, 7.93 g/t Ag; 109.1 metres @ 2.11% Cu, 3.79 g/t Au, 21.99 g/t Ag

Risks Analysis

Data contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note – a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity – it is an information reference source to help quantify the meaning and relevance of early stage exploration results. 

Relevant Disclosures Applicable to: Drill Tracker Weekly 

1. The research analyst or a member of the research analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release the author, Wayne Hewgill, owns shares in the following companies: Fission Uranium Corp. (TSX.FCU), Roxgold Inc (TSX:ROG). 

Analyst Certification

I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.