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Atalaya Mining stock rises on potential discoveries from regional exploration in Spain

Credit: Atalaya Mining

Atalaya Mining (TSX: AYM) shares took off on Friday morning following the latest update on its regional exploration program in southern Spain, which included a potential new massive sulphide discovery and new high-grade zone at the Proyecto Masa Valverde (PMV) project.

Drilling along the Mojarra trend at PMV has resulted in a potential discovery was made via intersection of 18.75 metres of polymetallic massive sulphides from the second hole in a previously undrilled area, grading 0.84% copper, 0.63% zinc, 0.66% lead and 76.24 g/t silver. This intersection included a higher-grade zone of 6.8 metres at 1.22% copper and 101.60 g/t silver.

Step-out drilling in the western area of the Masa Valverde deposit also led to the discovery of a new high-grade zinc zone, including a main mineralized interval of 18 metres at 0.25% copper, 8.30% zinc, 2.49% lead, 60.17 g/t silver and 0.89 g/t gold (4.06% copper-equivalent). This zone remains open laterally.

“The discovery of the Mojarra trend is very promising and demonstrates the value of the systematic exploration approach being implemented by our geological team,” CEO Alberto Lavandeira commented in Thursday’s press release.

Atalaya acquired PMV in 2020, having discovered the small but high-grade polymetallic Majadales deposit, and in April 2022 published a new NI 43-101 resource estimate for the Masa Valverde and Majadales deposits.

Since then, the company has defined new, shallow and potentially economic mineralization at the Campanario trend, and have now made a potentially new discovery at the previously undrilled Mojarra trend.

“All of these achievements, together with the numerous geophysical targets that remain untested, confirm our belief that the ultimate resource potential of PMV is underexplored and far from defined,” Lavandeira said.

At the Campanario trend, resource definition also encountered new zones of shallow polymetallic mineralization, including 7.5 metres at 0.45% copper, 1.09 g/t silver and 6.67 g/t gold from 35 metres, and 9.8 metres at 0.44% copper, 8.16 g/t silver and 0.15 g/t gold from 11 metres.

These drill holes are located west and east of the historical Campanario mine, where previous drilling defined shallow higher-grade zones. Additional drilling around the Campanario mine has confirmed the continuity of the previously defined mineralization.

Drilling is expected to continue at PMV until the end of the year, with priority given to the new discovery at Mojarra trend, the area between the historic Campanario and Cibeles mines, and the Masa Valverde deposit.

PMV is strategically located approximately 28 km from the company’s wholly owned Proyecto Riotinto operation, which consists of an open pit mine and a modern 15 Mtpa processing plant that produces copper concentrates and silver byproducts.

The PMV property hosts several volcanogenic massive sulphide (VMS) type deposits including Masa Valverde, Majadales, the Campanario trend, and now, the Mojarra trend.

Also included in the ongoing regional exploration program are the Proyecto Ossa Morena (POM) and Proyecto Riotinto East (PRE) properties. A four-hole campaign has been completed at the La Hinchona copper-gold prospect, located in the central part of POM, returned several mineralized intervals. Drilling at PRE is expected to begin shortly.

Shares of Atalaya Mining were up 7.3% on the TSX by 12:20 p.m. ET. The company’s market capitalization stands at C$699.4 million ($523m).