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Atico drills 59.8 m of 5.74% Cu, two g/t Au at El Roble

2015-09-29 10:19 ET - News Release

Mr. Fernando Ganoza reports

ATICO INTERCEPTS 59.8M OF 5.74% CU AND 2.00G/T AU AT EL ROBLE MINE IN COLOMBIA

Atico Mining Corp. has released continuing infill drilling results at the El Roble mine that continue to extend mineralization at Zeus, at strike and approximately perpendicular to the strike direction of the massive sulphide body. In addition, the company reports the results for five diamond drill core holes (ATD-0015 through ATD-0019), which included 59.8 metres of 5.74 per cent copper and two grams per tonne gold.

Fernando E. Ganoza, chief executive officer, commented: "We are extremely pleased with the continued success of our infill drilling at El Roble. Drilling continued to intercept high-grade mineralization at the Zeus-Aquiles-Ares massive sulphide body and extending the mineralization beyond the previously outlined mineralized shell." Mr. Ganoza added: "With the tremendous success of this drill program to date, management has made the decision to use the last reported hole in this news release (ATD-0019) as the cutoff hole for the new resource update planned to be released before the end of this year. Production drilling will continue in the Zeus-Aquiles-Ares mineralization area while the exploration team will shift its focus on the perspective areas along strike and down dip."

                   EL ROBLE DRILLING HIGHLIGHTS

                From       To    Interval       Cu       Au       Ag
Hole              (m)      (m)         (m)      (%)    (g/t)    (g/t)

ATD-0017      175.80   235.60       59.80     5.74     2.00     9.48
Including     211.65   235.60       23.95    11.51     0.65     3.38
ATD-0019      201.30   252.00       50.70     0.51     3.52    10.85
Including     237.60   244.80        7.20     0.87     8.45    23.71

True widths are dependent on uncertainties in the local strike and dip of the mineralization, and are estimated to be between 64 per cent and 75 per cent of the drill intercept.

Infill drilling program

The goal of the current underground drilling program at the El Roble mine is to further define the known mineralized bodies and expand the identified resource. During the fourth quarter of 2014, the company began a drill program to specifically test the Zeus, Aquiles and Ares mineralized bodies. Infill drilling approximately perpendicular to the strike direction of the known massive sulphide bodies (318 degrees average strike, 85 degrees east average dip) and drilling of new prospective areas below the 2,000-metre level is being conducted from the new main level 1,880-metre adit. Subsequent to the five holes of the program (ATD-0010 to ATD-0014) where drilling significantly extended mineralization at Zeus and Aquiles as reported in June, 2015, (see Atico news release dated June 23, 2015) the company is reporting the next batch of five drill holes (ATD-0015 to ATD-0019). Infill hole ATD-0017 intercepted a completely new area of mineralization extending the massive sulphide body along strike to the south and to the west than had been modelled in the National Instrument 43-101 inferred resource estimate wireframes of Zeus, Aquiles and Ares (see Atico technical report dated Aug. 27, 2013).

An image, available on the company's website, clearly shows the strong mineralized infill intervals between the Aquiles and Ares mineralized bodies relative to previous drilling and to the west of the Zeus mineralized body. The mineralization remains open to southwest and down dip.

Exploration drilling program

Following the conclusion of Zeus-Aquiles-Ares infill program, the company is preparing for a new underground drill program designed to test the perspective areas at strike and down dip of the known mineralization. The results to date show that in proximity to the new prospective areas Cu-Au ratios are increasing both to the south and down dip in Zeus and Aquiles, and down dip Goliath and Maximus. Both patterns suggest that additional mineralization may exist down dip of Goliath and Maximus and south, as well as down dip of Zeus and Aquiles. This hypothesis is strengthened by the massive sulphide intercept in ATDHR-13 (see Atico news release dated Nov. 1, 2012) approximately 50 metres down dip of Maximus mineralized body. In addition, these areas are showing favourable geochemical and the structural geology results within the black chert host rock pointing to the possibility of hosting additional mineralization.

                       INFILL DRILL PROGRAM ASSAY RESULTS                  
                                           
                                         Intercept(i)                       
                               Total                                            
           Azimuth       Dip  length    From      To  Interval     Cu     Au     Ag
Hole ID   (degrees) (degrees)     (m)     (m)     (m)       (m)    (%)  (g/t)  (g/t)

ATD-0015                                                                        
                37       -41   274.4  173.85  179.95      6.10   3.83   3.80  23.08
                                      205.05  208.80      3.75   0.49   8.61  52.90
                                      220.20  243.60     23.40   1.09   1.65  12.67
                                      251.85  259.00      7.15   1.66   1.11   3.43
                                      265.30  266.95      1.65   1.89   2.84  14.90
                                      270.20  274.40      4.20   0.45   0.49   6.49
ATD-0016        41       -36   295.5  165.80  179.85     14.05   7.39   1.94   3.11
                                      185.00  195.10     10.10   3.15   0.51   1.14
                                      209.20  214.90      5.70   0.92   0.58   1.42
                                      220.65  224.40      3.75   2.69   0.22   1.67
                                      235.90  243.55      7.65   3.68   0.60   4.66
ATD-0017        44       -43   289.7  175.80  235.60     59.80   5.74   2.00   9.48
Including                             178.40  181.30      2.90   4.62  10.20  33.27
                                      203.30  210.85      7.55   5.55   0.72   5.68
                                      211.65  235.60     23.95  11.51   0.65   3.38
ATD-0018                                      Failed due to a technical malfunction   
ATD-0019         9       -30  283.35  201.30  252.00     50.70   0.51   3.52  10.85
Including                             237.60  244.80      7.20   0.87   8.45  23.71
                                                                            
(i) True widths are dependent on uncertainties in the local strike and dip of
the mineralization, and are estimated to be between 64 per cent and 76 per cent
of the drill intercept.                                                                  
(ii) Between the reported intervals for holes 15 and 16, there is disseminated
mineralization.                                                                                                                                       

El Roble mine

The El Roble mine is a high-grade underground copper and gold mine with nominal processing plant capacity of 650 tonnes per day, located in the Department of Choco in Colombia. Its commercial product is a copper-gold concentrate.

Since obtaining control of the mine on Nov. 22, 2013, Atico has upgraded the operation from a nominal capacity of 400 tonnes per day. The mine has a continuous operating history of 22 years, with recorded production of 1.5 million tonnes of ore at an average head grade of 2.6 per cent copper and an estimated gold grade of 2.5 grams per tonne. Copper and gold mineralization at the El Roble property occurs in volcanogenic massive sulfide (VMS) lenses.

Since entering into the option agreement in January, 2011, to acquire 90 per cent of El Roble, Atico has aggressively explored the mine and surrounding claims. The company has completed 11,740 metres of diamond drilling and identified numerous prospective targets for VMS deposits on the 6,679-hectare property. This exploration led to the discovery of high-grade copper and gold mineralization below the 2,000-metre level, the lowest production level of the El Roble mine. Atico has developed a new adit access from the 1,880-metre elevation to develop these new resources.

Inferred mineral resource of 1.58 million tonnes grading 4.45 per cent copper and 3.17 grams per tonne gold, at a cut-off grade of 0.72 per cent copper equivalent (see Atico technical report dated Aug. 27, 2013). Mineralization is open at depth and along strike, and the company plans to further test the limits of the resource.

On the larger land package, the company has identified a prospective stratigraphic contact between volcanic rocks and black and grey cherts that has been traced by Atico geologists for 10 kilometres. This contact has been determined to be an important control on VMS mineralization on which Atico has identified 15 prospective target areas for VMS-type mineralization occurrence, which is the focus of the surface drill program at El Roble.

Quality assurance and quality control

Following detailed geological and geotechnical logging, drill core samples are split on-site with a diamond saw by Atico personnel. The seven to 10 kilograms per metre of sample are submitted to the ALS Chemex laboratory in Medellin where they are dried, crushed and pulverized. After preparation, the samples are sent to ALS Chemex in Lima and assayed. The remaining half-core sample is retained on-site for verification and reference purposes. All gold assays were obtained by standard 50-gram fire assay with AA finish. All copper and silver assays reported were obtained by aqua-regia sample dissolution of the sample followed by ICP analysis. The QA-QC program includes the blind insertion of certified reference standards as well as assay blanks and duplicates at a frequency of approximately one per 15 samples.

Qualified control

Dr. Demetrius Pohl, PhD, AIPG certified geologist, a qualified person under National Instrument 43-101 standards and independent of the company, is responsible for ensuring that the information contained in this news release is an accurate summary of the original reports and data provided to or developed by Atico Mining Corp. Dr. Pohl has approved the scientific and technical content of this news release.

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