Shares of Atico Mining (TSXV: ATY; US-OTC: ATCMF) surged by 13% on Thursday after the company obtained a 25-year extension of the mining concession from the Ecuador government at its La Plata gold-silver-copper project in Ecuador.
The new period of validity for the mining concession now runs until 2049. This timeframe, according to 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 the decision by the government creates better conditions to continue investment plans at La Plata. In a favourable 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 until 1981 by Outokumpu Finland.
Historic resources based on drilling by past owners including Cornerstone Capital were estimated at 913,977 tonnes grading 8.01 grams gold per tonne, 88.3 grams 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 grams.
Atico shares traded at 13¢ apiece in the early afternoon on Thursday, valuing the company at $15.7 million. Its shares traded in a 52-week range of 9¢ and 32¢.
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