Resource World Magazine

44 www.resourceworld.com F E B R U A R Y / M A R C H 2 0 1 4 A tico Mining Corp. [ATY-TSXV], with offices in Vancouver and Medellín, operates the only cop- per-gold mine now producing in Colombia through its local arm MINER (Minera El Roble). Since the last Resource World update article in early 2013, Atico Mining has achieved their goal of taking control of the El Roble Mine, earning 90% ownership through various agreements, with most of the stock held privately or institutionally. The family-based company practices a business strategy of developing close-to- production or small to mid-scale producing mines that have demonstrated potential for upscale growth, following the model of their previous successes with Fortuna Silver Mines [FVI-TSX]. Recently, Colombia has emerged as a safer mining jurisdiction than previously perceived. The instability of artisanal min - ing and other unregulated activities has all but been eliminated from the area of the El Roble Mine. In about 22 years of mining, El Roble has produced some 1.5 Mt of ore (from 1990 to 2012 averaging 2.46% copper; and since 2004, 2.38 g/t gold, according to August 2013 NI 43-101 Technical Report). Although historical resources have been almost mined out, Atico expects to produce about the same amount in the next decade, given its latest NI 43-101 compliant inferred resources estimate of 1.581 Mt grading 4.45% Cu, 3.17 g/t Au, and 11.3 g/t Ag with a cut-off grade of 0.72% Cu Eq. The El Roble VMS (volcanogenic mas - sive sulfide) deposit, located in the central Paleogene mining belt of Colombia along a prospective contact between mafic vol- canics and deep water sedimentary rocks, was discovered by Kennecott. It was devel- oped by a Japanese company (Nittetsu) with ambitious vision, designing and build- ing for a future of increased capacity. For several years, Mineral El Roble, a local pri- vate company with ties to the nearby city of Medellín, continued to produce copper and gold without further improvements, relying on the large size of the main massive sulfide zone and good grades. Atico has benefited from the initial foresight of its predecessors as pre-existing "overbuilt" infrastructure and processing equipment have facilitated expansion. In 2013, Atico carried out underground and surface drilling programs totaling 5,000 m and 9,000 m respectively, to fur - ther define the extent of massive sulfide ore bodies at depth at El Roble, as well as in several promising target areas along the prospective contact trend. Highlights from the 2012–2013 season include drill results in lower levels of El Roble such as from hole ATDHR-04 at Maximus Zone of 41.0 m of 6.49% Cu, 17.57 g/t Au, and 13.26 g/t Ag, including 10.0 m of 18.40% Cu, 8.63 g/t Au, and 19.29 g/t Ag; and 2.0 m of 3.92% Cu, 250.0 g/t Au, and 21.2 g/t Ag, affirming the deposit's high grades. With results still to be completely analyzed, an extended mine life of up to nine more years is predicted. In a conference call interview with CEO Fernando Ganoza and Igor Dutina (Investor Relations), Atico's plans to transform the El Roble Mine "from a small operation in private hands to a thoroughly modern mine with up-to-date standards and environ - mental responsibility." Ganoza said, "We are investing to optimize the mill and the mine" as well as training of suppliers and trades people in the local town of El Carmen de Atrato, "aiming toward a steady-state production level and flawless delivery." To this end, productivity is expected to be increased from 300 tpd to a steady 650 tpd by the fourth quarter 2014. The El Roble land package covers a large under-explored area of 6,779 ha, straddling a prospective geological contact between andesitic and basaltic volcanics and a Paleogene sedimentary series, including black chert (exhalative horizon enriched with Cu, Au, and Ag) and grey chert (marker horizon of silicified felsic ash tuff). The volcanogenic massive sulfides (mainly pyrite and chalcopyrite with lesser pyrrho - tite and sphalerite with traces of interstitial electrum), are concentrated in clusters along a strike length of some 10 km, with El Roble in the middle. The nearby Archie Zone is currently being explored for massive sul - fides, with the more southerly Santa Anita target next in line for the drill rig. About a dozen potential ore zones identified by geo- chemical anomalies are marked on a map of the trend. In addition to continuing with upscaling production at El Roble, Atico is searching to expand its properties with potential min - ing growth by looking not only for more copper-gold mines in Colombia, but also for similar types of projects elsewhere in the Cordillera of Latin and South America. n Atico Mining takes over El Roble copper-gold mine, Colombia By Jennifer S. Getsinger, PhD, PGeo "Atico's plans to transform the El Roble Mine from a small operation in private hands to a thoroughly modern mine with up-to-date standards and environmental responsibility."

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