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(Sharecast News) - Atalaya Mining reported further high-grade copper intercepts from its ongoing drilling programme at the Masa Valverde deposit in southern Spain on Thursday, reinforcing its plan to prioritise the zone for initial mine development.
The London-listed firm said the results included 25 metres at 2.93% copper in hole MJ65 and 26 metres at 2.78% copper in MJ79, including 10 metres at 4.39% copper.
It said the drilling, which was being conducted with two rigs, was focused on infill and extensional targets within stockwork-style mineralisation.
That material was expected to be processed at Atalaya's existing 15 Mtpa Riotinto plant, offering a capital-efficient path to first production from the satellite asset.
Ramp access to the deposit was expected to begin once the purchase of surface rights was finalised, and subject to board approval.
"We are pleased to announce these exciting drilling results at Masa Valverde," said CEO Alberto Lavandeira.
"The high-grade copper zones that have been identified have the potential to be mined selectively and deliver high-grade material to our Riotinto processing plant."
Lavandeira added that further infill drilling would continue throughout 2025, alongside metallurgical test work and updated modelling of the deposit.
While the initial development would focus on copper, Atalaya said it was also assessing zinc- and gold-rich zones that could support future expansion.
Located within the Iberian Pyrite Belt, the Proyecto Masa Valverde (PMV) licence lies 28 kilometres from Riotinto.
The Masa Valverde and Majadales deposits fall within the Valverde Exploitation Concession, for which Atalaya had already secured environmental, exploitation, restoration, and water permits.
Atalaya reiterated that underground mining at PMV would be carried out by contractors, consistent with other operations in the region such as Sandfire's MATSA mines.
It said it was aiming to turn its Riotinto plant into a centralised processing hub for its regional assets, extending mine life and increasing throughput at lower capital intensity.
The company expected to complete the current phase of infill drilling by year-end, with an updated mineral resource estimate to follow.
Test work would also examine zinc and gold recovery, including the potential use of the E-LIX system for processing polymetallic ores.
At 1152 BST, shares in Atalaya Mining Copper were flat at 463p.
Reporting by Josh White for Sharecast.com.