Atalaya Mining Regulatory News (ATYM)

21 Aug 2006 07:01

Eastern Mediterranean Res. Pblc LD21 August 2006 AIM: EMED 21 August 2006 PRE-FEASIBILITY STUDY FOR KLIROU COPPER-ZINC PROJECT Highlights • Commenced Preliminary Feasibility Study at Klirou Copper-Zinc Project • Near-surface resources: • Klirou Inferred Resource 36,993t contained copper-equivalent • Nearby South Mathiatis Inferred Resource 10,638t zinc • Verification drilling will shortly commence as will further exploration drilling focusing on potential higher-grade targets • Local plant, owned by 5% partner, could be refurbished and re-commissioned FOR DIAGRAMS ASSOCIATED WITH THIS ANNOUNCEMENT PLEASE CLICK ON THE FOLLOWINGLINK:- http://www.rns-pdf.londonstockexchange.com/rns/8757h_-2006-8-18.pdf Eastern Mediterranean Resources Public Limited ("EMED" or "the Company")announces that it has triggered a Preliminary Feasibility Study for thedevelopment of the Klirou Copper-Zinc Project in Cyprus. In addition, theKlirou resource estimate has increased to 4.4 million tonnes at 0.84%copper-equivalent (copper plus zinc) and an initial resource of 1.2 milliontonnes at 0.90% zinc has been estimated at the nearby South Mathiatis prospect.Both of these resources comply with the Australian JORC Standard. Harry Anagnostaras-Adams, EMED's Managing Director, said: "Rising metal prices have materially improved the economic potential of ourtenements in Cyprus. The resources announced by EMED today have an in-situ valueof around US$250 million in contained metal at shallow depth along withextensive untested potential. "Our recent 3DIP geophysical survey confirms a large focussed alteration systemat Klirou, which contains several untested conductors and strongly chargeablezones at shallow depth potentially representing substantial additionalhigher-grade mineralisation. The 3DIP survey is a state-of-the-art techniqueapplied by our Canadian geophysical contractors. "Further drilling is planned to commence soon and we are working towardscommencing a Bankable Feasibility Study as soon as possible. We are pursuing thedevelopment of the Klirou District resources in order to potentially provideEMED with significant cash flow to fund its expanding exploration and othergrowth activities. EMED, based in Cyprus, is focused on establishing itself as aleader in the re-emerging metal production industry in Eastern Europe." Mineral Resources Estimated Re-evaluation of drilling data and application of geological constraints to themineralised envelope has increased EMED's confidence in the Mineral Resource atthe Klirou Prospect, as well as increasing the tonnage and grades. The currently estimated JORC-compliant Mineral Resource at Klirou is tabulatedbelow. Klirou Prospect - Resource Estimate Classification Tonnes Copper Contained Copper Zinc Contained Zinc (000's) Grade (tonnes) Grade (tonnes)Inferred Resource 4,404 0.50% 22,020 0.68% 29,947 Note: Cut-off grade = 0.3% copper equivalent, with the copper equivalent gradebeing calculated on the zinc price equal to 50% of the copper price. The above Inferred Resource equates to 4.4 million tonnes at a grade of 0.84%copper-equivalent, containing 36,993 tonnes of copper-equivalent. This compareswith the previously announced (22 May 2006) Inferred Resource of 4.0 milliontonnes at a grade of 0.74% copper-equivalent. These copper-equivalent grades arebased on a zinc price equal to 50% of the copper price (a ratio based on pricesover the past ten years). The contained metal in the Klirou resource has an estimated in-situ value ofaround US$220 million based on current copper and zinc prices of approximatelyUS$6000/tonne and US$3,000/tonne, respectively. Scoping studies indicate that the majority of the resource is mineable via anopen-pit, with some of the remaining resource mineable via underground miningmethods. Figure 1 or diagram of grade distribution within conceptual open pit at Kliroucan be viewed by clicking on the link at the start of this announcement Project economics are enhanced by higher grade mineralisation within theresource, which totals 0.9 million tonnes grading 1.1% copper and 1.7% zinc(1.9% copper equivalent) At the nearby South Mathiatis prospect, zinc mineralisation is located fromsurface to 100 metres depth. Based on extensive drilling by previous explorers,a JORC-compliant Mineral Resource has recently been estimated for thismineralisation and is tabulated below. South Mathiatis Prospect - Resource Estimate Classification Tonnes Zinc Contained Zinc (tonnes) (000's) GradeInferred Resource 1,182 0.90% 10,638 This resource estimate is quoted at a cut-off grade of 0.3% zinc, but lowergrade mineralisation may be economic to mine given its location relatively nearsurface. The contained zinc in the South Mathiatis resource has an estimated in-situvalue of around US$30 million based on current zinc prices of approximatelyUS$3,000/tonne. These resource estimates are based on closely spaced drilling from the1970's and1980's. Drilling to verify the reliability of this historical data should enableEMED to upgrade the resource classification to the Measured or Indicatedcategory. Further upgrade to Reserve classification will also rely on results ofengineering and economic studies. Geophysical Survey Completed An extensive 3-dimensional induced polarisation (3DIP) survey comprising 56line-kilometres was completed in July. The survey was undertaken over extensivesulphide alteration zones in the Klirou, South Mathiatis and North Alestosareas. The IP response from known mineralisation in the survey area confirmedthe effectiveness of this geophysical technique and improved visualisation ofalteration systems under local conditions. Preliminary interpretation of the data indicates several excellent, untesteddiscrete conductive zones within extensive high chargeability targets in allprospects, but particularly in the major (1.8km x 0.75km) Klirou mineralisedsystem at depths down to 150 metres. Testing below that depth will follow in duecourse. Several interesting anomalies are also apparent at North Alestos andSouth Mathiatis, however these are of lower priority for drilling than theKlirou targets. Detailed interpretation of the 3DIP data in relation to geologyhas identified high priority targets scheduled to be drilled this year. Planned Drilling A drilling program is planned to commence shortly with the primary aims of: - Confirming, upgrading and extending the resources at Klirou and South Mathiatis; and - Discovering high-grade massive sulphide deposits within untested geophysical anomalies. Figure 2 - diagram of Planned drillholes at Klirou over interpretation of 3D IPsurvey can be viewed by clicking on the link at the start of this announcement Figure 3 - diagram of South Mathiatis Prospect looking south can be viewed byclicking on the link at the start of this announcement. This Shows drilledresource area to south, on the western flank of a major chargeability zone, aswell as untested chargeable zones with related conductors to the north.Additional resource potential exists within the northern zones as well as themain hydrothermal system to the south, Preliminary Feasibility Study EMED's tenements in the Klirou District are within an established mining andquarrying district. A disused base-metals processing plant and associatedtailings facility is owned by our 5% partner Hellenic Mining Company Limited,with whom EMED has an excellent working relationship. This nearby facility hasthe potential to be refurbished and re-commissioned at a relatively low cost andshort time. This has the potentially to significantly reduce the capital costsfor development and also permitting requirements for concentrate production atthis site. EMED's Klirou District Preliminary Feasibility Study includes the followingelements: - Estimating initial ore reserves and test further potential for high grade at depth - Reviewing environmental aspects including commencing initial EIA documentation - Consultation with landholders, community leaders and other local stakeholders - Consultation with the regulatory authorities which oversee development. - Evaluating the disused processing plant and required refurbishment cost - Evaluating mining options; - Enabling key contracts to be negotiated; - Estimating operating and capital costs; and - Triggering a full feasibility study in 2007 to enable commencement of mining in 2008. -Ends- Enquiries Eastern Mediterranean Resources Nabarro Wells Parkgreen CommunicationsHarry Anagnostaras-Adams Richard Swindells 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, B.Sc. (Honours). Mr Cunneen isHead of Exploration for Eastern Mediterranean Resources and has more than 20years relevant experience in the field of activity concerned. He is a member ofThe Australian Institute of Geoscientists ("AIG") and has consented to theinclusion of the material in the form and context in which it appears. Further details on the methodology and data relating to the Klirou MineralResource estimate is available on www.emed-resources.com 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 over 3,000km from Eastern Europe to Iran. The strategy is to rapidlyevaluate exploration opportunities in several jurisdictions throughout thisquality mineral belt with a high rate of project turnover. 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. Low-detection geochemical methods are being applied tothese areas for the first time together with open pit bulk mining concepts. Thetargeted mineralisation styles are high-grade epithermal gold, or bulk-mineableepithermal gold and porphyry copper-gold. A field program is in progress and aprogress report will issue within the next few weeks, as assays and otherresults are assembled and interpreted. • Caucasus exploration areas and options over additional prospects, forma cluster of gold prospects centred in Georgia. EMED's main prospects are withinthe Upper Racha Licence with reserves and resources (Russian classification) of2.4 million ounces of gold. A field program is in progress and a progress reportwill issue within the next few weeks, as assays and other results are assembledand interpreted. 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