- Production pending from its Tahuehueto project in Mexico
- Revenue-generating and producing metal from its Campo Morado mine
- Experienced management
What Altaley Mining does:
Altaley Mining Corp (Altaley Mining Corporation (TSX-V:ATLY)), previously known as Telson Mining, is already producing metals but is also poised to become the next high-grade gold miner out of Mexico.
The Vancouver, British Columbia-based company’s flagship Tahuehueto gold mining project is a 7,500-hectare property in northwestern Mexico’s Durango State, and construction of the mine is said to be over 80% complete.
Telson has the funding available to finish construction of its 1,000 tonne per day processing facility and related mine infrastructure to initiate production of gold, silver, lead, and zinc in concentrates. Pre-production is targeted near the end of 2021 and the mine is ramping up to full production capacity during Q1, 2022.
According to a 2017 estimate, Tahuehueto has a total Measured and Indicated (M&I) resource of nearly 490,000 ounces of gold at a grade of 2.5 grams per tonne (g/t) and in pre-production toll milling, US$12.4 million was generated in cash sales up to the second quarter of 2019.
A pre-feasibility study completed in the same year, based on a 550 tonnes per day (tpd) operation and a 21-year mine life, put the pre-tax net present value at US$137.8 million with a capital cost of US$37.6 million.
The company is also a producing miner, due to its ownership of the Campo Morado asset, a polymetallic base metal mine in Mexico with mining and milling equipment capable of producing up to 2,500 tpd.
Four months after purchasing Campo Morado, Telson brought the mine back into operation initiating pre-production in October 2017 and declared commercial production in May 2018, operating the mine continuously for 22 months until August 2019 when the project was put on care and maintenance as a result of declining zinc prices and community issues.
With improving conditions, Telson brought the mine out of care and maintenance and reinitiated mining and milling operations in January 2020.
Telson Mining is led by CEO Ralph Shearing, a geologist with more than 32 years of experience managing and directing publicly listed companies.
How it is doing:
The company completed the name change and began trading under the ticker 'ATLY' on June 11, 2021, having announced the move on May 10, alongside a board restructuring, saying the company was moving toward becoming a "mid-tier metal producer" in Mexico.
The miner announced that David Rhodes will become a director and chairman, while Natascha Kiernan, Mark Bailey and Tom Kelly will become independent directors.
The company accepted the voluntary resignation of Yao Sun, Enrique Margalef, and Rory Godinho, all of whom have "diligently served the company", it added.
On May 28, 2021, the company revealed that operational improvements, lower costs at the Campo Morado polymetallic mine as well as increased metal prices, had led to it posting a strong first quarter.
And in October, this year, CEO Ralph Shearing told investors that the miner's "Campo Morado operations are reporting another excellent quarter with estimated revenue of $17.4 million for the third quarter of 2021".
In a Q3 production statement for the mine, which is in Guerrero state, Mexico, Shearing added: "Although head grades of mineralization during Q3 2021 were slightly lower and to improve productivity a planned shut down for the SAG mill liner change out and planned mill maintenance interrupted production over several days, revenues achieved were only 6% lower when compared to Q2 2021."
The firm said total net revenues from Campo Morado in the quarter ending September 30, 2021, eased to C$17.4 million from C$18.5 million in the preceding quarter after the maintenance work disrupted production over several days.
Net revenues from Campo Morado for zinc concentrate in the third quarter fell by 7% to C$4.761 million from C$15.798 million in the previous quarter while the corresponding figures for lead concentrate eased by 1% to C$2.658 million from C$2.682 million, Altaley said
Campo Morado is currently producing at an average of 2,100 tonnes per day and is estimated to be Mexico's sixth-largest zinc producer.
And in November, Altaley revealed it was eyeing the first production through the mill at its polymetallic Tahuehueto mine in Mexico near the end of this year and that it had hired local firm MGA as its underground mining contractor.
Inflection points:
- Commericial production at Tahuehueto targeted for mid 2022
- More Campo Morado operational and financial results
- Potential acquisitions
What the boss says:
Contact the author at giles@proactiveinvestors.com