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Altaley Mining posts preliminary 4Q revenue of C$19.9M from Campo Morado in Mexico

Published: 09:16 25 Jan 2022 EST

Altaley
Altaley also owns the Tahuehueto project in Durango, Mexico, where construction is 95% complete on its 1,000-tonne per day processing facility

Altaley Mining Corporation (TSX-V:ATLY) has told shareholders that it posted another “excellent quarter” as it reported preliminary fourth-quarter production results and cost estimates from its flagship Campo Morado asset, an operating polymetallic base metal mine in Guerrero state, Mexico.

For the period ended December 31, 2021, the Vancouver, British Columbia-based mining company reported estimated net revenue of C$19.9 million, compared to C$8,871 in the fourth quarter of 2020.

Altaley also owns the Tahuehueto project in Durango, Mexico, where construction is 95% complete on its 1,000-tonne per day processing facility. Altaley is targeting initial pre-production in February 2022 and ramping up to full production capacity later in the year.

READ: Altaley Mining says Tahuehueto construction 'very near' completion; hails improved performance at Campo Morado

"Altaley's Campo Morado Mine operations are reporting another excellent quarter with estimated net revenue for 4Q 2021 of $19.9 million. Although head grades of mineralization during the 4Q were marginally lower, our zinc concentrate production increased by 14% and zinc recoveries were up by 8% resulting in 4Q net revenues increasing by 15%, compared to 3Q 2021,” Altaley Mining CEO Ralph Shearing said in a statement.

“Costs this quarter have increased largely because of concentrate treatment and refining charges that have more than doubled when compared to the 3Q. However, approximate yearly average costs for the year ending 2021 are estimated at cash costs of US$0.64 per pound (lb) Zinc (Zn) and all in sustaining cost (AISC) at US$0.87/lb Zn, net of by-product metals," he added.

The ore milled by the company during the quarter totaled 183,100 tonnes, compared to 168,500 tonnes in 3Q 2021. Meanwhile, Altaley’s zinc concentrate production during the 4Q totaled 12,200 tonnes, an increase of 14% from 10,800 tonnes of zinc concentrate production during 3Q 2021.

Indeed, production in the 4Q was the highest achieved at Campo Morado since the company acquired the mine in June 2017.

The company said the 4Q, year-to-date 2021 net revenues, cash costs and AISC were preliminary, and based on initial assays at the time of concentrate deliveries.

Altaley’s Morado is an operating polymetallic base metal mine with mining and milling equipment currently producing at an average of 2,100 tonnes per day and it is currently Mexico's sixth largest zinc producer, according to the company.

Contact the author Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

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