Atalaya Mining Regulatory News (ATYM)

22 May 2006 07:01

Eastern Mediterranean Res. Pblc LD22 May 2006 AIM: EMED 22 May 2006 COPPER RESOURCE IDENTIFIED IN CYPRUS Diagrams associated with this announcement can be viewed via the following link: http://www.rns-pdf.londonstockexchange.com/rns/3172d_-2006-5-19.pdf Highlights • Inferred Resource of 4.0 million tonnes at 0.74% copper-equivalent estimated at Klirou. • Identified a 700m by 200m area of low-grade (0.1% to 0.6% copper) mineralisation at North Alestos. • EMED is the first company to test for concealed copper deposits in Cyprus and re-evaluate at current metal prices known mineralisation in this prolific copper belt. Eastern Mediterranean Resources Public Limited ("EMED") announces that a shallowInferred Resource of 4.0 million tonnes at 0.74% copper-equivalent has beenestimated at the Klirou prospect in Cyprus to the Australian JORC Standard. Theresource estimate is based on drilling from the1970's and 1980's and lies withina large alteration system containing several untested geophysical anomaliespotentially representing additional higher-grade mineralisation. In addition, drilling in Cyprus has recently identified a 700m by 200m area oflow-grade (0.1% to 0.6% copper) mineralisation at North Alestos prospect, whichis also within a large alteration system containing several geophysicalanomalies potentially representing higher-grade mineralisation. Harry Anagnostaras-Adams, EMED's Managing Director, said: "Rising metal prices have materially improved the economic appraisal of certainknown mineralisation systems in Cyprus. This has prompted EMED to re-evaluatethe Cyprus prospects acquired in early 2005 in the context of explorationinsights developed over the past twelve months. This re-evaluation hasidentified the Klirou prospect as a high priority because of an initial resourcecontaining more than US$200 million in contained metal at shallow depth alongwith extensive untested potential. Recent drilling at the North Alestos prospect has also provided encouragement todrill deeper in our search for a major new copper deposit. The next step in both cases is to develop a three-dimensional image of thetargeted extensions by ground geophysical surveys. Geophysical contractors havebeen mobilized from Canada for this work to be done in the next two months.Intersections of high-grade mineralisation at the nearby South Pano Koutrafasprospect will also be surveyed. EMED is the first company to test for concealed copper deposits in the provencopper country of Cyprus. Our Cyprus exploration program rates highly on acost-benefit basis due to our specialist team and our proprietary database ofthe entire island, with exploration expenditure of about £400,000 in 2005 and abudget for a similar amount this year." Klirou Prospect - Resource Estimate Utilising historical drillhole data and modern software, EMED has estimated thefollowing resources at the Klirou prospect at different lower cut-off grades. Tonnes Copper Zinc Copper Contained Copper Cut-off (000's) Grade Grade Equivalent Equivalent Grade Grade Tonnes (Copper equivalent) 3,984 0.40% 0.68% 0.74% 29,482 0.3% 2,164 0.56% 0.95% 1.06% 22,941 0.5% Note: Copper equivalent calculated on the zinc price being 50% ofthe copper price. The above Inferred Resource estimates are based on data from 148 drillholes at anominal 30m by 30m spacing, which were drilled during the 1970's and 1980's.This work was done by reliable previous explorers but requires verificationdrilling and other work by EMED to be upgraded in resource and reserveclassification within Australian JORC Standards of reporting. A model of the Klirou mineralisation was created in Surpac with block dimensionsof 10m by 10m by 3m. The resource was estimated using the inverse squaredistance method. The resource extends from the surface to approximately 200metres below surface. It is potentially mineable by open-pit methods. The eastern portion of the Klirou resource contains most of the higher grademineralisation, as shown by the distribution of metal within the resource on acopper-equivalent basis in Figure 1. Figures 1, 2, 3 and 4 can be viewed via the following link:- Significant potential remains to increase this resource by infill drilling andstep-out drilling mainly to the north and west. This deposit is likely to havefaulted extensions and may have repeats along strike within an area ofimpressive geophysical anomalism. Klirou Prospect - Ongoing Work The location of the Klirou deposit within a major zone of low magneticsindicates the prospect area has the potential to host a number of significantore concentrations. Potential remains to increase this resource by infilldrilling and step-out drilling to the north, north west and west. This depositis likely to have faulted extensions and may have repeats along strike within anarea of impressive geophysical anomalism. Planned follow up ground geophysics covering prospective zones to the north,northwest and west of the Klirou Deposit are shown in fig 2. Surface mappingindicates the magnetic lows in these areas are associated with alteration andmineralisation. The magnetic low 1km to the northwest of the Klirou deposit forexample has associated gossans in its southern part, suggesting buriedmineralisation may be concealed beneath younger unmineralised lava flows. North Alestos Prospect - Recent Drilling Results During 2005 at North Alestos, EMED discovered a thick mineralised alterationsystem under shallow cover. Geophysical interpretation of airborne magneticsindicates this alteration to extend over an area of 1km by 3km, elongated north- south. Recent drilling has identified a 700m by 200m area of low-grade (0.1%to 0.6% copper) mineralisation covering the southern third of this alterationzone (Figure 3). This mineralisation is interpreted to be footwallmineralisation to higher grade mineralisation to the east or down plunge to thenorth. To date in 2006, EMED has completed five percussion drillholes (EMR 13 to 17)for a total of 805 metres. In addition, the Cyprus Geological survey has drilledtwo diamond drillholes (MR1&2/2006) for a total of 209 metres. Drillholes EMR14, EMR 15, EMR 17 and MR2/2006 intersected extensive but patchydevelopment of strongly chloritic to propylitic, epidotised clay-pyrite alteredand copper-zinc mineralised upper pillow lavas. The other holes intersected veryweak alteration and only localised pyritic zones typically along structures. Drilling appears to have effectively tested the southern and western margins ofthe mineralised footwall alteration zone and defined a 700m long by 250m widezone that plunges to the north. The zone appears to be constrained to the eastby a fault in EMR16, however mineralisation may continue further to the east atdepth across the interpreted northwest trending fault. EMR14 provided the best intersection with 25m at 0.22% copper from 22m,including 4m at 0.44% from 37m. EMR15 returned a best intercept of 3m at 0.33%copper from 49m. These assay results indicate that potential remains for the prospect to host amassive sulphide deposit overlying the footwall zone to the east or down-plungeto the north. The prospective Upper Pillow Lavas deep gently to the north undersedimentary cover rocks. North Alestos Prospect - Ongoing Work EMED has drill tested less than 25% of the identified prospective ground at thisprospect. Interpretation of geophysical surveys undertaken during 2005 has defined aprominent series of deep TEM conductors over 500 metres long, located up to 1.5km further north from the footwall mineralised intersections (Figure 4). Theseconductors may indicate massive sulphide mineralisation associated with theidentified footwall mineralised system and are therefore prime targets. Currently in this northern area approximately 1km to the north of EMR 15, adrill rig is casing EMR7 to a depth of 120m as this drillhole failed topenetrate the sedimentary cover rocks when initially drilled during 2005. Theaim is to test the prospective Upper Pillow Lavas to a depth of approximately300m in the vicinity of the interpreted conductive zone. Geophysical surveys (TEM and IP) are then planned to commence in order tofurther evaluate the two geophysical target areas within the North Alestosalteration zone prior to continuation of drill testing (Figure 4). These areasare: 1. The extensions of the mineralisation to the east and north of the low grade copper mineralisation in the southern part of the prospect defined in the recently completed drilling program; and 2. Follow up of the northern zone of deep TEM conductors in the North Alestos area defined by previous ground surveys. South Pano Koutrafas Prospect The South Pano Koutrafas prospect contains massive and disseminated copper-zincmineralisation drill-intersected by previous explorers. Geophysical surveys areplanned to extend coverage around this mineralisation in order to select thebest drill targets with the aim of extending this known mineralised system up toa potentially economic size. -Ends- Enquiries Eastern Mediterranean Resources Nabarro Wells Parkgreen CommunicationsHarry Anagnostaras-Adams David Nabarro Justine Howarth / Ana Ribeiro+357 9945 7843 +44 (0) 20 7710 7400 +44 (0) 20 7493 3713www.emed-resources.com www.emed.tv References in this announcement to resources, exploration results and potentialhave been approved for release by Mr Ron Cunneen, an employee of the Company,who has more than 5 years relevant experience in the field of activity concernedand has consented to the inclusion of the material in the form and context inwhich it appears. Notes to editors About Eastern Mediterranean Resources Public Limited EMED listed on AIM in May 2005 following an initial public offering of itsshares. The Company is headquartered in Cyprus and has a strong commitment tothe region. The Group's region of interest is the Mesozoic to Tertiary age tectonic beltthat winds from Eastern Europe to Iran. This belt extends for over 3,000km. Thestrategy is to rapidly evaluate exploration opportunities in severaljurisdictions throughout a quality mineral belt with a high rate of projectturnover. EMED has now established a strong position in the following three areas withinits area of interest: • Cyprus/Middle East exploration is centred on the Troodos ophiolitecomplex. The targeted mineralisation style is volcanic-hosted massive sulphidecopper deposits under shallow cover, similar to the larger Cyprus copper mines -three of which exceeded 10 million tonnes of ore, at grades between 1% and 4.5%. • Eastern Europe exploration areas are centred on a cluster of volcaniccentres in Slovakia and Hungary. Low-detection geochemical methods are beingapplied to these areas for the first time. The targeted mineralisation stylesare high-grade epithermal gold, or bulk-mineable epithermal gold and porphyrycopper-gold. • Caucasus exploration areas and options over additional prospectsforming a cluster of gold prospects in and around Georgia. Main prospect isZophkito with resources (Russian classification) of 2.4 million ounces of gold. For further information on the Company's activities, visitwww.emed-resources.com or www.emed.tv This information is provided by RNS The company news service from the London Stock Exchange