Atalaya Mining Regulatory News (ATYM)

27 Mar 2006 07:01

Eastern Mediterranean Res. Pblc LD27 March 2006 AIM: EMED 27 March 2006 EMED ACQUIRES 100% OF TAMARI LLC IN GEORGIA Eastern Mediterranean Resources Public Ltd ("EMED") has significantlystrengthened and increased its gold interests in Georgia by acquiring 100% ofTamari Limited Liability Company ("Tamari"). EMED previously acquired an 80%interest in the Zopkhito and Lukhra prospects owned by Tamari, as announced on18 November 2005. The key asset of Tamari is the Upper Racha licence area which covers an area of1,600 square kilometres and, based upon a desk-top review undertaken by EMED,contains estimated Russian resources totalling 2.4 million ounces. This licencearea covers several gold deposits in addition to the Zopkhito and Lukhraprospects. The overall impact of the Tamari transaction and resources review has been toincrease EMED's resource base in Georgia from 1.6 million ounces (80% beneficialownership of 2 million ounces) to 100% of 2.4 million ounces. The antimonyresource is additional. The acquisition has cost EMED approximately £100,000, including initialdue diligence costs and the licence conditions include commitments to spend afurther £500,000 over two years. Harry Anagnostaras-Adams, EMED's Managing Director, said, "100% ownership of theUpper Racha licence positions EMED as the holder of one of the largestexploration areas in Georgia. This transaction strengthens both the ownershiparrangements and EMED's resource position." Below is a summary of EMED's initial desk-top estimate of resources:Prospect Russian Tonnes Grade Ounces Classification (millions) (g/t gold) (000's)Zopkhito C3,P1,P2 7.3 3.7 871Kodiani P2 2.6 2.2 184Kvadzaheti P2 7.1 3.1 426Kirtisho P2 2.5 3.0 240West Tsana P1 1.8 2.4 135East Tsana P1 4.0 1.9 241Lukhra P1,P2 1.4 7.5 345Total 24.3 3.1 2,442 Further information on the above resources is contained in the Appendix to thisannouncement. In addition to the gold resources above, Zopkhito also containsvaluable antimony resources. EMED's review has reduced the Zopkhito gold resource from that previouslyannounced, primarily due to EMED downgrading P2 Russian resources into thelowest confidence P3 category (which EMED does not include in its publicestimates of resources). This review will, in due course, be superceded by the results of the fieldprogrammes. EnquiriesEastern Mediterranean Resources Nabarro Wells Parkgreen CommunicationsHarry Anagnostaras-Adams David Nabarro Ana Ribeiro+357 9945 7843 +44 (0) 20 7710 7400 +44 (0) 20 7493 3713www.emed-resources.comwww.emed.tv The Russian resources and other geological information, exploration results andpotential were reviewed by Assoc. Professor Venelin Jelev, of EMED-Bulgaria andapproved by Ron Cunneen, Chief Geologist and also an employee of the Company.Both have the relevant qualifications for this work and have consented to theinclusion of the material in the form and context in which it appears. Theirprofessional experience and qualifications are set out in EMED's website. Appendix to EMED Announcement 27 March 2006 Summary of Russian Resources Prospect Class Tonne Grade Au Au g/t kg oz Zopkhito C2 1,994,500 4.2 8,463 272,087 P1 2,907,150 3.0 8,642 277,842 P2 2,358,491 3.5 10,000 321,502 Total 7,260,141 3.7 27,285 871,431 Kodiani P2 2.2 5,710 183,578 2,652,000 Kvadzaheti P2 7,149,600 3.1 13,250 425,990 Kirtisho P2 2,473,510 3.0 7,470 240,162 Total 9,888,310 2.7 26,430 849,730 West Tsana P1 1,764,706 2.4 4,200 135,031 East Tsana P1 4,010,695 1.9 7,500 241,127 Total 5,775,401 2.0 11,700 376,157 Lukra P1 752,640 8.0 6,021 193,576 P2 672,000 7.0 4,704 151,235 Total 1,424,640 7.5 10,725 344,811 Totals C2 1,994,500 4.2 8,463 272,087 P1 9,435,191 2.8 26,363 847,576 P2 12,918,800 3.2 41,134 1,322,467Grand Total Gold 24,348,491 3.1 75,960 2,442,130 Zopkhito Antimony Tonnes % Sb Tonnes Sb B1+C1+C2 216,862 11.6 25,596 C2 O/B 7,673 11.6 523 Grand Total Antimony 224,535 26,120 The gold-equivalent of the antimony at Zopkhito is approximately 177,000 ounces.Alternatively it's recovery as a by-product is the equivalent of adding 0.7grams per tonne ore. EMED's Preliminary View of and Approach to Upper Racha Licence Area FOR MAP OF AREA - SEE LINK BELOW http://www.rns-pdf.londonstockexchange.com/rns/4000a_-2006-3-24.pdf The Upper Racha licence area totals 1,600 square kilometres and is located onthe southern slope of the Greater Caucasus Mountains in Georgia, specifically inthe Oni Administrative District of the Upper Racha region, about 170 km fromKutaisi, second largest city in Georgia. Elevations in the project area range from 2,200m to 2,900m above sea level. Theaverage annual temperature in the region is +5 degrees C and mining can becarried out all year round. The licence spans all the prospects below and roadaccess to the main prospects is reasonable. The Upper Racha region was previously exploited for antimony and arsenic duringthe Soviet Era, but was not systematically explored for gold. Nevertheless theUpper Racha region forms part of the Hercynian deformation belt which extendsfrom Spain in the west to Mongolia in the east. The Hercynian belt is host tothe major gold mining districts in northern Spain, Cental France, Slovakia,Uzbekistan and Kazakhstan. Gold mineralsation is typically associated withanticlinal folds, late strike-slip faulting, felsic to mafic intrusions andantimony or arsenic mineralsation which formed in a strike slip extensionaltectonic phase immediately following the Hercynian deformation. The metallogenic signature and tectonic setting of the Greater CaucasusMountains is prospective for large gold deposits. In addition to the prospectsmentioned herein, EMED intends to target the favourable structural zones in theCaucasus, such as large fold closures, areas that have undergone strike slipfaulting and evidence of late intrusive bodies with stream sediment geochemisrtyand remote sensing techniques. Overview of Individual Prospects FOR MAP AND GEOLOGY OF INDIVIDUAL PROSPECTS IN NORTHERN GEORGIA - SEE LINK BELOW http://www.rns-pdf.londonstockexchange.com/rns/4000a_-2006-3-24.pdf Zopkhito Prospect: Zopkhito is located in the eastern part of the Mestia-RachaDistrict of the Great Caucasus Thrust Belt, characterised by a thick sedimentarysequence of Lower Jurassic age overlying granite of Palaeozoic age. TheMestia-Racha District comprises primarily sandstones and shales in an east-westtrending belt approximately 40 km by 8 km. The sediments have been intruded by aseries of diabase, dacite and albite dykes which are spatially related tomineralisation throughout the belt. The early indications are that the Zopkhito prospect has the potential to host alarge bulk tonnage gold deposit. Swarms of quartz-antimony veins occur at agrand scale. The best known and most studied prospect in the Zopkhito area isthe Khirkhi prospect where veins outcrop over a 5km by 2km area and wereexplored in 27km of underground workings. Previous mining concentrated on narrow 0.5m-1.0m wide quartz-antimony veins.Recent but limited exploration work by a major copper mining company (PhelpsDodge) indicates that the gold mineralisation extends into the alteration zonessurrounding the central antimony veins. Sample results indicate numerousopen-ended channel sample intervals of up to 8m at 4 to 6g/t of gold. EMED willre-map the 60 known antimony veins and associated alteration zones andsystematically sample for gold. Gold is associated with the antimony within thenarrow veins and within the alteration zones for some metres peripheral to theseveins. The veins contain antimonite, arsenopyrite, pyrite, pyrrhotite,sphalerite, galena, scheelite, cinnabar and native gold Lukhra Prospect: The Lukhra prospect was first explored in 1942 as a tungstendeposit in 19 quartz veins. The focus on gold at Lukhra commenced in 1998 andthree zones of gold mineralisation were reported associated with quartz veinswithin a diorite intrusive. Previous channel sampling of surface outcrops at Lukhra have returned goldintersections of up to 6m at 7.5 g/t gold in quartz veins. Geological maps showmultiple veins that extend for 200m length and remain open along strike. Theprospect has only been explored at a reconnaissance level and has never beforebeen drilled. Tsana Prospect: Mineralisation at Tsana is interpreted as skarn/replacementmineralisation associated with a granodiorite intrusive. An underground arsenicmine operated from 1939 to 1990 at Tsana, following 25 narrow quartz veins, theaverage grade of which has been reported as 15% arsenic and 1.3 g/t gold. Recentsampling indicates that the gold mineralisation extends in a halo around theseviens. The Tsana prospect also has potential to host a large bulk tonnage golddeposit. Kodiani, Kvadzaheti and Kirtisho Prospects: These prospects are of a similarstyle to Zopkhito and were also discovered and explored for antimony during theSoviet era. They have since remained dormant despite stratabound goldmineralisation being reported within black slates and sandstone units ofJurassic age. EMED will focus on the potential for a large low-grade golddeposit near surface. Notes to Editor: Background on Georgia Georgia is rapidly emerging from a traumatic period following the collapse ofthe Soviet Union. Of particular importance to EMED is the overhaul during thepast two years of the legal and regulatory systems following the Governmentelections three years ago and the injection of support from variousinternational agencies. In this recent past, several major internationalcompanies, mainly from the USA, have entered Georgia but this has yet to occurin the mining sector. Georgia has a long history in mining and continues mining copper, gold and othermetals on a relatively small scale. Resources in Georgia are mainly manganese,copper, zinc and gold but relatively little exploration has been conducted inthe past 15 years. No mine development has occurred since the nation'sindependence. The mining industry accounted for 10% of the GDP in the Sovietperiod, but mining now comprises only about 2% of the country's GDP. Employmentin mining has decreased to one-fifth of the employment in 1985 because themining industry is in a relatively "suspended" condition. Georgia has a mining code and regulations based on recent World Bank advice.However, some articles in the mining code remain from the Soviet era policy. This information is provided by RNS The company news service from the London Stock Exchange