Shares of Atico Mining (TSXV: ATY; OTCQX: ATCMF) surged by double-digit percentage points on Thursday after the company obtained a 25-year extension for the mining concession at its La Plata project in Ecuador.
This new period of validity for the mining concession is now until 2049. This timeframe, according to the Atico, will allow for the advancement of engineering activities, construction, operation and closure of mining operations, as well as integration of any future exploration success within the concession.
In a news release, the Latin America-focused explorer said this decision by the Ecuador government creates better conditions to continue the investment plans in La Plata. In a favorable scenario where additional time is needed, in 2048, the company can also apply for another 25-year extension.
The 100% owned La Plata project is located approximately 100 km southwest of Quito. It hosts a gold-rich volcanogenic massive sulphide deposit that supported a small-scale mine operation from 1975-81 by Outokumpu Finland.
Historic resources based on drilling by past project owners including Cornerstone Capital were estimated at 913,977 tonnes grading 8.01 g/t gold, 88.3 g/t silver, 5.01% copper, 6.71% zinc, and 0.78% lead in the inferred category.
In addition to La Plata, Atico also has a 90% interest in Colombia’s only producing copper mine in El Roble. It started operations in 1990 and has to date processed approximately 1.8 million tonnes of ore with an average grade of 2.67% copper and an estimated gold grade of 2.63 g/t.
By 12:30 p.m. ET, Atico’s shares rose by 13% for a market capitalization of $15.2 million.
THIS ARTICLE WAS ORIGINALLY POSTED ON MINING.COM
