Atalaya Mining Regulatory News (ATYM)

9 Jul 2007 07:01

EMED Mining Public Limited09 July 2007 AIM: EMED 9 July 2007 PORPHYRY GOLD SYSTEM IDENTIFIED AT BIELY VRCH EMED Mining Public Limited ("EMED Mining" or "the Company") announces furtherdrilling results from the drilling program at the Biely Vrch Prospect at theCompany's Detva Licence in central Slovakia, as well as the recognition of thedeposit as a classical porphyry gold system. Highlights • Drillhole DVE8 has extended known mineralisation to the west with an intercept of 0.94g/t gold over 258m from surface, including 154m at 1.3g/t gold from surface. • Drillhole DVE9 has extended known mineralisation to the north with an intercept of 41m at 0.7g/t gold from 62m down hole. • Current drilling is aimed at extending mineralisation north and south, as well as testing nearby prospects analogous to Biely Vrch. • Biely Vrch is a classical porphyry gold system which is a deposit type rare globally and exemplified by several multi-million ounce deposits in the Maricunga belt of northern Chile. • Porphyry gold deposits typically occur in clusters and are usually large ( > 100 million tonnes), low-grade (0.7g/t to 1.8g/t gold), bulk-mineable deposits. • Results to date have defined a zone of mineralisation estimated to contain 15 to 23 million tonnes at an average grade of 1.0g/t gold, containing approximately 0.5 to 0.7 million ounces. Further work is required to define a JORC-compliant Mineral Resource. • Several other prospects within the Company's Slovakian Licence have been recognised as having potential to host porphyry gold mineralisation. Assay results have now been received for five (DVE5 to DVE9) of the sixdrillholes completed at Biely Vrch during 2007. This program was designed tofollow-up the Company's first four drillholes at Biely Vrch which allintercepted gold mineralisation over their entire length. Drilling results have confirmed the presence of gold mineralisation underlyingthe first target at Biely Vrch, a 300m by 500m soil geochemical anomaly. Goldmineralisation is contained in a broadly pipe-shaped quartz-veinlet stockworkzone associated with an andesitic porphyry intrusion. Drillhole DVE8 extended known mineralisation (to 250m east-west in total) withan intercept of 154m at 1.3g/t gold from surface. Drillhole DVE9 extended knownmineralisation (to 350m north-south in total) with an intercept of 41m at 0.7g/tgold from 62m down hole. Commenting on the results, Managing Director Harry Anagnostaras-Adams said: "Mineralisation at Biely Vrch continues to be extended and is open in severaldirections. This drilling provides encouragement for the ultimate delineation ofa significant Mineral Resource. "The recognition of Biely Vrch as a porphyry gold system is exciting as thisstyle of deposit typically occurs in clusters. Our geologists are now applyingthe porphyry gold model to our large Slovakian tenements and defining drilltargets on several prospects relatively quickly. "Drilling continues at Biely Vrch and initial drilling of nearby prospects isalso planned." Enquiries:EMED Mining RFC Corporate Finance Fox-Davies Capital Parkgreen CommunicationsHarry Anagnostaras-Adams Stuart Laing Daniel Fox-Davies Clare Irvine+357 9945 7843 +618 9480 2500 +44 20 7936 5220 +44 20 7851 7480www.emed-mining.com www.emed.tv Biely Vrch Deposit Model During May 2007, Dr. Richard Sillitoe, a leading global expert on the geologyand mineralisation of porphyry systems, visited Biely Vrch and other Companyprospects in Slovakia. Dr. Sillitoe advised that: "The Biely Vrch prospect conforms precisely to the porphyry gold model,exemplified by several deposits, including Lobo, Marte and Refugio, in theMaricunga gold belt, high Andes of northern Chile. As such, the prospect is thegold-only end member of the porphyry copper-molybdenum-gold spectrum. Viewedworldwide, porphyry gold deposits are not common and have not been recognisedpreviously in the Carpathians, although at least two prospects are known inTurkey. There, the Kisladag deposit, currently under development, is also ofporphyry type, but assignable to the somewhat different alkaline rock-hostedgold-molybdenum category." The Chilean deposits are hosted in andesitic rocks similar to those at BielyVrch. Some further information on these deposits is provided towards the end ofthis announcement. Porphyry gold deposits differ to the more common porphyry copper-gold deposits,and typically: • are low-grade (0.7g/t to 1.8g/t gold), multi-million ounce deposits; • are large ( > 100 million tonnes), bulk-mineable deposits; • are metallurgically simple and gold is recoverable via conventional heap leaching; • occur in clusters of several similar deposits; and • contain very minor amounts of copper and molybdenum. Regional Exploration Near Biely Vrch The recognition of Biely Vrch as a porphyry gold deposit has provided valuableinsights which assist EMED Mining's plans for exploration of its Slovakianlicences. Several prospects have already been recognised as having potential tohost porphyry gold mineralisation. At the Kralova Prospect, the Company is planning initial drilling of an untestedgeochemical anomaly analogous to the soil geochemical anomaly which led topositioning the Biely Vrch discovery drillhole. The size of the soil anomaly atKralova is 400m by 500m within the > 100 ppb gold contour. At the Banisko Prospect, quartz veinlets in altered andesitic rocks indicate thepotential proximity of a porphyry gold centre. Drill targets will be defined viageological mapping and geochemical surveys of these prospects. A regional stream geochemical survey and follow-up geological mapping isexpected to define further areas within the Company licences that areprospective for gold porphyry deposits. Interpretation of Biely Vrch Drilling Results At Biely Vrch, it is interpreted that hydrothermal fluids introduced gold intoan andesitic porphyry intrusion in a quartz-veinlet stockwork as part of apotassic alteration assemblage. This was subsequently overprinted by argillic(clay + pyrite) alteration. This later phase of alteration does not carrysignificant gold and its pyrite is most likely the cause of the strong IPanomaly to the west of the gold mineralisation at Biely Vrch. Based on the limited drilling to date and the porphyry gold deposit model, thedimensions of a vertical pipe-shaped structure of currently known goldmineralisation within the stockwork zone at Biely Vrch are approximately: • 250m east-west (DVE1, DVE4 and DVE5 and DVE8); • 100m north-south (DVE1 to DVE3); and • 460m vertical (DVE5). The estimated average grade of this mineralised zone is approximately 1.0g/tgold based on the intercepts from four drillholes within this block (DVE1, DVE3,DVE4 and DVE5). Average grades in each of the four holes range from 0.5 g/t goldin DVE3 to 1.3 g/t gold in DVE1. Based on these parameters, the Company estimates that this zone ofmineralisation is roughly estimated to contain 15 to 23 million tonnes at anaverage grade of 1.0g/t gold, containing approximately 0.5 to 0.7 millionounces. Potential to extend this mineralised zone to the north and south is yetto be tested. This estimate is conceptual in nature and it remains uncertain iffurther exploration will result in the determination of a Mineral Resource asdefined in the JORC Code. The extent of known mineralisation provides substantial encouragement for theultimate delineation of a significant Mineral Resource at Biely Vrch in adeposit style that would be amenable to bulk tonnage mining methods. Over the remainder of 2007, EMED Mining plans to undertake the work required toestimate an initial JORC-Compliant Mineral Resource at the Biely Vrch Prospect.This work would include further drilling to confirm the continuity of themineralisation throughout the targeted zone. Click on the link below to view a diagram titled "Biely Vrch Section 8950 North": http://emed-mining.com/site/dmdocuments/MMPL30_July07.pdf See PDF for image. Good potential remains to define extensions to the mineralisation and prioritydrilling targets include: • the southern portion of the soil anomaly where an anomalous area measuring 300m by 300m contains only one drillhole (DVE2); and • further to the north where DVE9 has shown, by visual observation, that the mineralisation has been down faulted and covered by unmineralised post-alteration volcanic flows. In response to these positive early-stage results, the Company has: • increased the drilling budget for 2007 from 5,000 metres to 7,000 metres; and • purchased a drill rig to improve operational efficiencies. Biely Vrch Prospect Drilling: Technical Summary Six drillholes have been completed during 2007 for a total of 2,580m and assayresults have been received for DVE5 to DVE9. All drillholes have a declinationof 50degrees to 70degrees. Drilling results have confirmed that gold mineralisation underlies the targeted300m by 500m soil geochemical anomaly. Gold mineralisation is associated with apotassic alteration assemblage and contained in a quartz-veinlet stockwork. Click on the link below to view a diagram titled "Biely Vrch Prospect (DetvaLicence, Slovakia)" which summarises drill hole locations and results: http://emed-mining.com/site/dmdocuments/MMPL29_July07.pdf See PDF for image. Drillhole DVE8 intercepted 154m at 1.3g/t gold from surface, which extendedknown mineralisation along this east-west section to 250m. Drillhole DVE9 intercepted 41m at 0.7g/t gold from 62m downhole and extendedknown mineralisation a total north-south distance of 350m. Both DVE8 and DVE9were sited towards the northern end of the soil geochemical anomaly. Drillholes DVE6, DVE7 and DVE10 were sited to test an IP geophysical anomaly tothe west of the soil geochemical anomaly. DVE6 and DVE7 both intercepted onlyweakly anomalous gold near surface and sufficient pyrite at depth to explain theIP anomaly. Assays are awaited from DVE10, but are not anticipated to besignificant. Interpretation of the rock types intercepted in these drillholescombined with the application of the porphyry gold deposit model, has downgradedthe prospectivity of the area to the west of the soil geochemical anomaly. Table - Significant Drilling Intercepts at Biely VrchHole Number Declination Total From To Downhole Grade Depth (m) (m) Intercept (g/t gold) (m) (m)DVE1 60degrees East 108 0 108 108 1.3including 86 108 22 1.9DVE2 60degrees East 103 0 103 103 0.2DVE3 60degrees East 220 0 220 220 0.5DVE4 60degrees West 252 0 252 252 1.2including 155 252 97 1.8DVE5 55degrees West 559 228 559 331 1.1DVE8 70degrees West 258 0 154 154 1.3DVE9 70degrees West 350 62 103 41 0.7 Competent Person References in this announcement to exploration results and potential have beenapproved for release by Mr Ron Cunneen, B.Sc. (Honours). Mr Cunneen is Head ofExploration for EMED Mining and has more than 20 years' relevant experience inthe field of activity concerned. He is a member of The Australian Institute ofGeoscientists ("AIG") and has consented to the inclusion of the material in theform and context in which it appears. Sampling and Assaying Procedures All drilling on the Biely Vrch Prospect has been done with PQ, HQ and NQ sizecore samples. Core recovery has averaged 95% throughout the mineralised zone.All core has been logged and separated into 1.0m lengths. PQ size core has beenquartered, while HQ and NQ sized core have then been cut in half by a diamondsaw. The split core has then been sent for assay. Sample preparation has been done by ALS - Chemex in Romania and assayed for goldby 30gm fire assay (method Au-AA25). Both standards and blanks have been used inthe sample batches sent by EMED to ALS - Chemex in line with EMED companyquality control procedures. Laboratory sample preparation, assaying procedures and chain of custody areappropriately controlled. The Company maintains an archive of half-core samplesand a photographic record of all cores for future reference. Glossary of technical terms Andesite Igneous rock with 52% to 66% silica Argillic Alteration Argillic alteration is that which introduces any one of a wide variety of clay minerals, including kaolinite, smectite and illite Breccia/Brecciated A clastic rock composed of particles more than 2 millimetres in diameter and marked by the angularity of its component grains and rock fragments Exploration Target An estimate of grade and tonnage for an identified mineralised zone that is conceptual in nature with insufficient drilling and other exploration work making it uncertain as to whether a determination of a Mineral Resource as defined in the JORC Code will eventually be possible JORC Code The "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2004)" prepared by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia Mineral Resource The estimated quantity and grade of mineralisation that is of potential merit. A resource estimate does not require specific mining, metallurgical, environmental, price or cost data, but the nature and continuity of mineralisation must be understood to a specific degree of knowledge Pyrite The most widespread iron sulphide mineral Silicification The process whereby silica is introduced into a non siliceous rock either by the filling of pore spaces or by replacement of existing minerals Stockwork A network of veinlets, usually quartz Further Details on Some Notable Porphyry Gold Deposits The current Mineral Resources of the major porphyry gold deposits in theMaricunga gold belt in Chile and the Kisladag deposit in Turkey are summarisedin the table below. Country Deposit Owner Mt Grade Moz Chile Lobo / Marte Teck / Anglo 107 1.7 5.9 Chile Refugio Kinross 350 0.72 8.1 Chile Volcan Andina 108 1.00 3.4 Turkey Kisladag Eldorado 235 1.04 7.9 Source: Websites of the relevant owners. Also of note due to their proximity are the Colnic and Rovina porphyrycopper-gold deposits owned by Carpathian Gold Inc., located approximately 400 kmsoutheast of Biely Vrch in Romania. The Mineral Resources for these deposits arereported to total 228 million tonnes at 0.42g/t gold and 0.20% copper,containing 3.1 million ounces of gold and 0.5 million tonnes of copper. This information on other porphyry deposits is provided for contextual purposesonly and should not be taken as implying that the Company will identify adeposit of similar proportions. Notes to Editors: About EMED Mining Public Limited EMED Mining was admitted to trading on AIM in May 2005 following a placing ofits shares. In the two years since then the share price has increased from 8p tothe current 16p and market capitalisation has increased from approximately £4million to approximately £20 million. The Company is based in Cyprus and has astrong commitment to responsible development of metal production operations inEurope, with an initial focus on copper and gold. The Company has moved rapidly reflecting the experience of its specialist teamand the clarity of its strategy. The Group's region of interest are the tectonic belts spanning across Europe andover to Iran. The strategy is to evaluate exploration and developmentopportunities in several jurisdictions throughout this quality mineral belt andto promote sustainable development practices through implementation of EuropeanUnion and other leading-edge international standards. EMED Mining recentlyco-hosted with the Green Party of Cyprus an international conference onResponsible Mining and Environmental Management. The Company has, from theoutset, strictly implemented its Environmental & Community Policy whichincludes: • Integrating environmental management into our business, planning and reporting processes. • Promoting a strong environmental ethic throughout the company and the community. • Complying with, as a minimum, all applicable local and European Union laws and regulations. • Communicating with community stakeholders in a responsible and transparent manner. EMED Mining has now established a strong position in the following selectedzones: • Spain/Cyprus The mines at Rio Tinto are probably amongst the best known in the world. They are, with the possible exception of those in Cyprus, the oldest capable of still being worked. It is now EMED Mining's goal to restart production in both of these well-endowed mining districts. Both Spain and Cyprus are progressive members of the European Union and EMED Mining has been made to feel welcome in both host countries. The styles of mineral deposits and of production techniques are similar. • Slovakia/Romania exploration areas are centred on a cluster of volcanic centres in Slovakia and Romania. Low-detection geochemical methods are being applied to these areas for the first time together with open pit bulk mining concepts. The targeted mineralisation styles are high-grade epithermal gold, or bulk-mineable epithermal gold and porphyry copper-gold. The company has announced a gold discovery at Biely Vrch in Slovakia which is a major priority for 2007. • Georgia/Central Asia exploration areas form a cluster of gold prospects centred in Georgia. EMED Mining's main prospects are within the Upper Racha Licence, the country's largest minerals licence with many untested prospects. The Company has confirmed Russian Resources of 1.0 million ounces gold at the Zopkhito Prospect and discovered high grade mineralisation at surface at other prospects. (please see full details in Annual Report 2006 announcement from 19 February 2007). • Turkey/Bulgaria exploration areas were vended into 34%-owned KEFI Minerals Plc which was admitted to AIM in December 2006. KEFI Minerals owns carefully selected licence areas in Turkey, as well as an extensive proprietary database of regional and specific exploration data providing a pipeline of further projects to evaluate. The KEFI Minerals team has mobilized into the field to explore the company's tenements and to expand the portfolio of licenses as opportunities warrant. See www.kefi-minerals.com. For further information on the Company's activities, visit www.emed-mining.comor www.emed.tv. Paste the following link into your web browser to download the PDF document related to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/8623z_-2007-7-8.pdf -Ends- This information is provided by RNS The company news service from the London Stock Exchange