Atico Mining, a Latin America-focused mining exploration company, has sparked investor enthusiasm with an announcement of a favorable long-term extension for its La Plata mining concession in Ecuador. The company revealed that the Ecuadorian government’s decision to extend the concession creates a conducive environment for Atico to advance its investment plans in La Plata. Notably, in a forward-looking scenario, the company also has the option to apply for an additional 25-year extension in 2048, further solidifying its position in the region.

The La Plata project, wholly owned by Atico, is situated approximately 100 km southwest of Quito and hosts a gold-rich volcanogenic massive sulphide deposit. This deposit previously supported a small-scale mining operation conducted by Outokumpu Finland from 1975 to 1981. Notably, historic resources based on drilling by previous project owners, including Cornerstone Capital, indicated significant potential with estimated inferred category reserves of 913,977 tonnes grading 8.01 g/t gold, 88.3 g/t silver, 5.01% copper, 6.71% zinc, and 0.78% lead.

Aside from the La Plata project, Atico Mining holds a 90% interest in Colombia’s sole producing copper mine, El Roble. With operations commencing in 1990, the mine has to date processed approximately 1.8 million tonnes of ore, boasting an average copper grade of 2.67% and an estimated gold grade of 2.63 g/t, signifying a valuable asset within the company’s diversified portfolio.

The market has heralded the news with fervor, as evidenced by Atico Mining’s shares rising by an impressive 13%, reflecting a market capitalization of C$15.2 million ($11.4 million) by 12:30 p.m. ET. The extension of the La Plata mining concession has evidently bolstered investor confidence in the company’s long-term prospects and strategic positioning in the Latin American mining landscape.