Altaley Mining Identifies Viable Production Plans for 2023
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Altaley Mining Identifies Viable Production Plans for 2023

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Karin Dilge By Karin Dilge | Journalist and Industry Analyst - Tue, 12/20/2022 - 11:23

The Canadian company Altaley Mining reported that it identified solid and deliverable production plans for 2023 for both of its Mexican assets, Campo Morado and Tahuehueto. The corporation’s new CEO, Mike Struthers, reviewed the mining projects and backed the plans. 

Although the construction of the Tahuehueto gold mine is delayed and over the budget, Struthers pointed out that the company has detailed plans to guarantee its success. “One of my first decisions was to divide the projects of 500 and 1,000t/d into two phases. It is important to first carry out the project of 500t/d and from there expand it to 1,000t/d,” he added.

Furthermore, he announced that the preproduction stage of Tahuehueto is advancing at a good rhythm. Currently, the company’s mill is achieving production of up to 350t/d and the plant is meeting expectations by producing marketable concentrates of zinc and lead. 

Altaley also highlighted that rights offering and the consolidation of new stocks announced in December will help to restructure the social capital of the company and prepare it for future growth. The rights offering will raise additional funds to complete the construction of the additional project of 500t/d at Tahuehueto.

Struthers furthermore said that the Campo Morado mine saw an excellent 2021 but a poor 1H22. In a press release, the company announced that during 1Q22, it produced 9,657 tons of zinc concentrate at the Campo Morado mine, whereas it sold 9,781 tons of zinc concentrate, generating a revenue of US$12.34 million. In addition, 2,379 tons of lead concentrate were produced and 2,626 tons were sold, leading to a yield of US$1.84 million.

The company highlighted that despite the gains, its 1Q22 production and financial results were significantly lower than those of 2021’s quarters. Altaley explained that the lower results occurred because the company lost 11 production days due to mechanical problems with its SAG mill’s reduction gearbox. The subsequent increase in maintenance costs also caused problems.

The Tahuehueto project is located in the northeast of Durango and is set to be one of the Top three high-grade gold mines in production in Mexico, while Campo Morado is a poly-metallic mine of base metals in Guerrero, currently producing an average of around 2,500t/d. The mine is estimated to be the sixth-largest zinc producer in Mexico.

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