Atalaya Mining Regulatory News (ATYM)

21 Nov 2005 07:01

Eastern Mediterranean Res. Pblc LD21 November 2005 AIM: EMED 21 November 2005 INITIAL CYPRUS DRILLING INTERCEPTS SIGNIFICANT ALTERATION AND SULPHIDES Eastern Mediterranean Resources Public Limited ("EMED") announces that the firstthree holes drilled at the North Alestos prospect in Cyprus have all interceptedstrongly altered pillow lavas containing disseminated sulphides over thickintervals. These initial intercepts display an alteration system which istypical of those expected at the periphery of a Cyprus-style copper deposit andconfirm that the exploration approach taken by EMED is appropriate. The North Alestos prospect contains a magnetic low approximately 1 kilometrewide by 4 kilometres long, which is of similar extent to that of the magneticlow surrounding the Cyprus Mavrovouni deposit which yielded 16 million tonnes ofore. The intercepted alteration consists of extensive chloritisation withdisseminated pyrite, epidote and occasional chalcopyrite - the style ofalteration expected in the periphery of a Cyprus-style copper deposit. The first drill intercept, drillhole EM5, intersected chlorite-altered upperpillow lavas ("UPL") with disseminated pyrite from 160m to 221m deep. Then EM4intersected strongly chlorite-altered and pyritic UPL with occasional copper andzinc mineralisation in the form of disseminated chalcopyrite and sphalerite from42m to 170m. EM6 intersected chlorite and silica alteration with disseminatedpyrite, chalcopyrite and traces of sphalerite from 49 to 186m. The intensity ofalteration and copper mineralisation is greater than in the previous two, holes5 and 4. From visual inspection the mineralisation appears to be sub-economicand we await assay results. Ground geophysics defined two anomalous zones within this magnetic low at NorthAlestos. The northern anomaly exhibits strong EM conductivity at depth. Thesouthern zone displays a strong IP response over an extensive area. Hole EM5 wasdrilled between these two geophysical anomalies on geological grounds and toobtain information for future geophysical modelling. Holes EM4 and EM6 testedthe western and eastern parts part of the IP anomaly respectively, and a furtherdrill hole is planned this quarter, into the EM anomaly to the north. The strong alteration zone at North Alestos is now known to extend over an areaof more than one square kilometre and is expected to extend further under cover.The scale of the alteration system is hypothetically large enough to hostseveral copper deposits of the scale being targeted by EMED in Cyprus, depositsof more than 10 million tonnes at economic grades. The presence of copper mineralisation within such a large alteration system hastriggered internal planning of systematic drilling of the North Alestosprospect, potentially early in 2006. The current drilling program is planned to include one more drillhole at NorthAlestos, followed by scout-drilling of anomalies at the South Pano Koutrafas andWest Kato Moni prospects. Harry Anagnostaras-Adams, EMED's Managing Director, commented "These interceptsat North Alestos provide strong encouragement that EMED's exploration approachis appropriate for discovering major copper deposits which were hidden from pastminers, under cover rocks. Our team has made rapid progress in the Cyprusexploration program outlined in the Company's AIM Admission Document and I ampleased the program will be completed on budget during the December quarter asplanned. It is exciting that these initial drillholes indicate we are in theright neighbourhood for the high-grade copper deposits we are seeking". Cyprus Exploration Strategy: Cyprus has been a centre for copper mining sinceancient times. All known deposits are VHMS (volcanic-hosted massive sulphide)style located in the Pillow Lava Series of the Troodos Ophiolite. In moderntimes, 42 deposits have been delineated and/or mined for copper and pyrite,producing in total 1.2 million tonnes of copper metal. Mining activity peaked inthe two decades after the Second World War and declined in the 1970's due to theexhaustion of known deposits, a low copper price and the consequences of theTurkish invasion. EMED has identified an exploration opportunity for the discovery of furthersignificant copper deposits within its tenements on the island of Cyprus for thefollowing reasons: • The recognition that the bulk of the copper mined and all of the larger deposits occur within the shallowly dipping Upper Pillow Lavas (UPL); • There are significant unexplored areas of UPL under shallow sedimentary cover; • Large copper deposits can be hidden within the UPL, close to surface; and • An excellent basis to target such blind deposits is provided by EMED's extensive geological data set combined with new geophysical techniques. Cyprus Exploration Progress During 2005: EMED initially selected 20 prospectareas for follow up, each about one square kilometre in area. These prospectswere then studied in detail using regional and detailed geological mapping,structural interpretation, review of historical drillhole and IP data, airbornegeophysics (Magnetics and EM) and remote sensing (LANDSAT and ASTER). Of particular importance in the prospect selection has been there-interpretation of the airborne geophysics using Magnetics and EM imageprocessing not previously employed on Cyprus. Many of the copper deposits inCyprus are surrounded by either a broad zone of low magnetic intensity or an EMresistivity high. In both cases, these geophysical anomalies are caused by thealteration surrounding the orebodies and thus provide an excellent explorationvector. This work enabled EMED to prioritise five prospects for ground geophysicalinvestigations (IP and EM surveys). Interpretation of this ground geophysicsdata resulted in the following first-pass drilling targets planned for thecurrent program: • At North Alestos, strong EM and IP anomalies as discussed above; • At Klirou, airborne EM anomalies and ground IP anomalies were identified in two separate areas north and east of known mineralisation. Drill testing of these anomalies failed to determine their cause and remodelling of the geophysical data is underway; • At South Pano Koutrafas, a resistivity high surrounds a conductive zone some 600m by 1000m in area. In the north eastern corner of this anomaly drilling by the Geological Survey of Cyprus (GSD) in the 1960s located stockwork mineralisation. Ground IP surveys by EMED have located a strong anomaly adjacent to the GSD area and a second anomaly further south. Modelling of the IP suggests that the GSD tested the periphery of the system, not the core. Three holes are planned to test these anomalies; and • At West Kato Moni, a magnetic low is partly coincident with outcropping alteration and an EM resistive zone. One IP line across the resistive zone is anomalous and will be tested with one drill hole. EnquiriesEastern Mediterranean Resources Nabarro Wells Parkgreen CommunicationsHarry Anagnostaras-Adams Nigel Atkinson / Justine Howarth / David Nabarro Ana Ribeiro+357 9945 7843 +44 (0) 7710 7400 +44 (0)20 7493 3713www.emed-resources.com www.emed.tv References in this announcement to exploration results and potential have beenapproved for release by Mr Ron Cunneen, an employee of the Company, who has morethan 5 years relevant experience in the field of activity concerned and hasconsented to the inclusion of the material in the form and context in which itappears. This information is provided by RNS The company news service from the London Stock Exchange