Atacama OPERATIONS
UPDATE
September 22, 2008? Atacama Minerals Corp. (?Atacama?
or the ?Company?) (TSX Venture: AAM) reports an update on its
operations at the Aguas Blancas
iodine/nitrate mine in Chile.
During the second quarter, the Company announced the start of commissioning of
a new agitated leach plant. The new agitated leach plant is expected to greatly
improve operating and cost efficiencies as it replaces the current heap
leaching system. Currently the commissioning process which
consists of testing and optimizing plant components is experiencing some
unanticipated challenges in the crushing and grinding section which may delay
full start up until late in the fourth quarter, 2008 or early in the first
quarter of 2009. The Company is taking all necessary measures to address these
issues. When commissioning is complete, iodine production levels are expected to
increase by more than 50% to approximately 1,500 tonnes per annum, recovery is
anticipated to ramp up to more than 75% from the current 50%-55%, and the
processing time for leaching the ore in the new plant will be significantly
reduced. Additionally, the water requirements for the new plant are expected to
be reduced by an estimated 25%. The Company anticipates these improvements will
result in long-term lower costs of production, reduced working capital
requirements and an extended life of mine.
The Company successfully completed a new power line system connecting
the Aguas Blancas mine with the national power grid. The connection point is
located 28 kilometers
northeast of the Aguas Blancas mine and consists of two new substations and a
69 kilovolt transmission line. The new power line has replaced the current
diesel powered generators and is expected to provide a reliable, lower cost
source of energy for future operations.
As previously announced, the Company has received Board approval for
construction of a new specialty nitrate fertilizer plant at Aguas Blancas. The
new plant will use spent brine emitted from the iodine operations. A positive
feasibility study on development of this resource estimates construction of the
new plant at a cost of US$60 million over a period of 27 months. The new plant
will have the capacity to produce 70,000 tonnes of nitrate fertilizer per year.
On August 19, 2008, the Company completed a private placement financing of
C$50,025,000, a portion of which will be used to partially fund construction of
the nitrate plant. The new fertilizer plant will have the capability to produce
three different specialty nitrate fertilizer products ?
potassium nitrate, sodium nitrate and sodium potassium
nitrate. Permitting is already in place and engineering and procurement have
started.
Development of the Aguas Blancas nitrate resources represents an
important new growth phase for the Company. To further expand Atacama?s reach in the fertilizer sector, the Company has acquired
a large land package in a major new potash region in northeastern Brazil. Application
has been made for exploration permits in the state of Bahia covering 1,444
square kilometers (357,000
acres) of lands located 30 kilometers west of
the port city of Salvador.
The ?Salvador
Potash Project? is located along the Atlantic coast within the highly
prospective southern on-shore portion of the Reconcavo Basin.
Atacama continues to grow towards becoming an important iodine and
fertilizer producer in South America. Internal
growth at the Aguas Blancas Mine, coupled with the new Salvador Potash Project
in Brazil
is expected to result in significant future growth for the Company.
On behalf of the Board,
Edward F. Posey, President and CEO
For further information, please contact:
Sophia Shane, Corporate Development (604) 689-7842
This news release contains forward-looking statements
concerning the Company?s plans for its operations. These
forward-looking statements are subject to a variety of risks and uncertainties
which could cause actual events or results to differ materially from those
reflected in the forward-looking statements, including, without limitation,
risks and uncertainties relating to political risks involving the Company?s
exploration and development of its properties, the inherent uncertainty of cost
estimates and the potential for unexpected costs and expenses, commodity price
fluctuations, the inability or failure to obtain adequate financing on a timely
basis and other risks and uncertainties. Such information contained
herein represents management?s best judgment as of the
date hereof based on information currently available. The Company does not
intend to update this information and disclaims any legal liability to the
contrary.
The TSX Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of this release.