Altaley Mining Corporation (TSX-V:ATLY) revealed that it is eyeing the first production through the mill at its polymetallic Tahuehueto mine in Mexico near the end of this year and that it has hired local firm MGA as its underground mining contractor.
Durango city-based MGA has over 20 years of experience and its clients include various prominent companies such as Newmont Corp (Goldcorp), Pan-American Silver, Endeavour Silver, Fresnillo, First Majestic, and others.
"Engaging MGA as Tahuehueto's underground mining contractor is another milestone and brings our company closer to start production at Tahuehueto," said Ralph Shearing, CEO of Altaley, adding that the contractor will ensure that mill feed tonnages will be available to sustain continuous milling operations.
READ: Altaley Mining CEO says Campo Morado operations saw "another excellent quarter" in spite of disruptions due to maintenance work
"Altaley is pleased to have secured MGA as Tahuehueto's underground mining contractor and is counting down the weeks remaining to reach production near the end of this year," said Shearing.
MGA is now mobilizing its equipment to the gold project to continue underground drift and stope development. Previous underground development during 2018 and 2019 completed between 70% to 80% of the required development for the initial one to two years of mine production.
MGA will continue as the project's primary underground mining contractor in the initial years of production.
"First production through the mill, which is at an advanced stage of construction, is anticipated near the end of 2021 when the first ball mill is to be commissioned and in Q1 2022 the second ball mill will be installed and brought online to thereafter, ramp up production to the mine's anticipated 1,000 tonne per day capacity," added the firm.
The Tahuehueto mining project sits in north-western Durango State and is set to produce gold, silver, lead, and zinc in concentrates at the project.
Altaley's other wholly-owned asset is the Campo Morado mine in Mexico, which is currently producing at an average of 2,100 tonnes per day and is currently estimated to be Mexico's sixth-largest zinc producer.
Contact the author at giles@proactiveinvestors.com