EQS-News

Altaley Mining CEO Update - Seite 2

The objective of the review was to develop robust, deliverable production plans for 2023 at both mines. These have now been completed.

The Tahuehueto Gold Mine Construction Project is substantially behind schedule and over budget. There were many factors involved, including delayed funding, but we now have updated and detailed plans and budgets, and are strengthening the organization, to ensure the project is now delivered successfully. One of my early decisions was to split the 500tpd and 1000tpd projects into two stages. It is important to first deliver the 500tpd project successfully, and from that foundation expand to 1000tpd. The 500tpd Project is expected to be completed in early Q2, 2023, and the Company expects to then move directly to the 1000tpd expansion. Many elements for the 1000tpd project are already in place with the first stage, and we already have the second ball mill.

Pre-production at Tahuehueto has been progressing well. We are currently milling an average of 350tpd and the plant is performing to expectations, producing saleable zinc and lead concentrates, the latter with on average 50 g/t gold.

On 6^th December 2022 the Company announced a Rights Offering, and a share consolidation that the Board of Directors recommends is necessary to properly restructure the Company’s share capital and prepare for future growth. The Rights Offering allows shareholders to participate in a funding round and will raise additional funds to complete the construction of the 500tpd project at Tahuehueto. These additional funds will be sufficient to complete this project.

Campo Morado had an excellent 2021, but a poor 1H22. Declining performance in 1Q22 was linked to a particular ore zone in the mine, El Largo, driven by complex mineralogy, unusually high iron content, and declining head grades as the zone neared depletion. The decision was taken to move production to new areas, with elevated copper grades, and by the end of 2Q22 this was well established with performance progressively improving since. The keys to continuously improving performance at Campo Morado lies in stabilizing the mill with consistent blended ore feed, and putting into place an effective geometallurgical program, linking resources, the mine and the mill into a unified planning and production process. We recently concluded a plant review by leading consulting engineers Ausenco, and from this we have a detailed path forwards to improve performance. I’m now optimistic we’ll see steady improvements through 2023 and beyond.