Producing El Durazno Copper Gold Silver Mine Leased

TORONTO, ON - Atacama Pacific Gold Corporation entered an agreement with Minera Los Vilos S.A. to lease the El Durazno copper mine which is located 225 kilometers by road north of Santiago near the town of Caimanes, Region IV, Chile. The operation will provide Atacama with a source of cash flow while it continues to advance its 100% owned Cerro Maricunga oxide gold deposit.

The El Durazno operation comprises a small tonnage underground mine with an associated 200 to 250 tonne per day milling facility located eleven kilometers to the north of the mine on the outskirts of Caimanes. Currently, work is commencing on developing four small open pits to supplement the underground mill feed.

The mill facility consists of two primary parallel grinding circuits feeding a series of flotation tanks producing high-grade copper concentrates which are currently being sold to the Empresa Nacional de MinerÆa (ENAMI) facility located at Ventanas, 170 kilometers south of the operation. During the first half of 2015, the operation sold 293 tonnes of concentrate with average grades of 55.5% copper, 46.1 grams per tonne gold ("g/t") and 362.1 g/t silver.

The El Durazno mine encompasses two mineralized sub-vertical skarnified limestone horizons, referred to as veins, typically three to six meters wide with a mineralized fault breccia occurring between the two veins. The width of the mineralization (veins and fault breccia) varies from 15 to 30 meters wide. Relatively higher-grade mineralization occurs within the veins, which are the focus of underground mining. The open pits currently being developed will target the entire mineralized structure. Copper mineralization is dominated by bornite with minor chalcopyrite and rare chalcocite. Gold and silver mineralization occurs with the copper sulphides. Year-to-date payable grades, taking into account mining dilution, milling recoveries and smelter charges, averaged 0.52% copper, 0.43 g/t Au and 3.40 g/t Ag.

The mineralized structure is hosted within a zone of skarnification derived from the contact metamorphism related to a large intermediate intrusive located 100 meters of the east. Within the property boundary, the structure has been traced on surface over a distance of 3,600 meters although mining operations are focused along a 250 to 300-metre portion of the structure.

Currently, the underground operations are accessed by an adit and developed by ramping on seven levels spaced vertically eight meters apart. The deepest developed level is approximately 120 meters below surface and the mineralization remains open to depth. Mining and development operations are by jack-leg with conventional open stoping between levels. The operation employs approximately 70 workers.

The El Durazno mine is not a material property of Atacama and, therefore, Atacama is not required to prepare a report under National Instrument 43-101 - Standards of Disclosure for Mineral Properties to support the technical disclosure in this press release. The El Durazno copper mine is not based on a feasibility study which has demonstrated the economic and technical viability of the operation and, therefore, there is an increased uncertainty and economic and technical risks of failure related to the continued operation. There are no 43-101 compliant mineral resources or reserves and there is no current drilling on the property.