Atalaya Mining Regulatory News (ATYM)

15 Feb 2007 07:01

EMED Mining Public Limited15 February 2007 AIM: EMED 15 February 2007 POSITIVE PRELIMINARY FEASIBILITY STUDY FOR POTENTIAL DEVELOPMENT IN 2008 EXPANDED RESOURCES AT KLIROU COPPER-ZINC PROJECT Highlights The Preliminary Feasibility Study on the Klirou Copper-Zinc Project has beencompleted with satisfactory results and concluded: • Inferred Resources expanded to 6.6 million tonnes of 0.7%copper-equivalent, excluding associated gold (refer technical background belowfor JORC-compliant resources statement) for contained metal of 18,500 tonnescopper and 53,600 tonnes zinc with market value of £140 million (US$270 million)at current spot market values and excluding by-product gold credits. • Drilling results indicate potential in five locations to increaseresource-base within easy-trucking distance of the plant. • Geophysical results reveal deeper targets with potential for +10 milliontonne deposits which are planned to be drill-tested during 2007. • Initial environmental baseline surveys indicate the site continues to bean excellent site for its long-standing purpose and the environmental legacy tobe capable of proper remediation. • Permitting roadmap agreed with regulators. • Preliminary financial model indicates an encouraging range of net presentvalues, based on: o Copper price of $US2.00/lb and zinc price of $US1.00/lb (LME spotprices on 8 February 2007 were $US2.37/lb and $US1.38/lb, respectively); o Initial open-pit model recovering 4.6 million tonnes from totalresource of 6.6 million tonnes; o Initial metallurgical test work indicating good copper recoveries andthe need to improve zinc and gold recoveries; o Operating costs based on preliminary quotations received from relevantsuppliers, and o Refurbishment of the Mitsero processing plant and continued use ofexisting site for waste. AMC Consultants, an international project manager, have been appointed tooversee: • a Feasibility Study to be completed in 2007, which will include adetailed Environmental Impact Assessment by appropriate specialists and detailedcost-engineering for the entire operation including mining, transport, oreprocessing and shipment. • a Final Feasibility Study following receipt of regulatory permits for thedevelopment of the Klirou Copper-Zinc Project targeting development in 2008.This further work will include sufficient drilling to upgrade resources into thereserve category along with final optimised engineering, costings, productpricing and financing. -Ends- Enquiries EMED Mining Nabarro Wells Parkgreen CommunicationsHarry Anagnostaras-Adams Richard Swindells Clare Irvine+357 9945 7843 +44 20 7710 7400 +44 20 7851 7480www.emed-resources.com www.emed.tv------------------------ ------------- 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. Technical Background Introduction EMED Mining's exploration areas in Cyprus are centred on the Troodos ophiolitecomplex. The targeted mineralisation style is volcanic-hosted massive sulphide("VHMS") copper deposits, similar to the larger past Cyprus copper mines - threeof which exceeded 10 million tonnes of ore running at grades between 1% and 4%copper. Cyprus has been a centre for copper mining since ancient times and all knowndeposits are VHMS style. Its major mines were Mavrovouni, Skouriotissa and Limni- all of which exceeded 10 million tonnes of ore containing copper and gold. Thelargest was Mavrovouni with reported production of 15 million tonnes of orecontaining 4% copper and unreported gold grades. Cyprus, which is a member of the European Union and of the British Commonwealth,has a reliable and robust mining law that provides security of tenure and rightof access to private land for exploration purposes. There is a strong traditionand culture of mining in Cyprus, and mining has been an important contributor tonational wealth until recently. Access is generally very good due to anextensive network of sealed roads and secondary tracks. Despite the mining history of Cyprus, the Board considers that there is a highprobability that there are undiscovered, copper-rich (>1% copper) massivesulphide deposits under less than 200 to 300 metres of cover. Progress to Date The highlights of the Cyprus exploration program for 2006 were theidentification of initial resources for the Klirou Copper-Zinc Project andfurther encouraging results at several other nearby locations including theNorth Alestos Prospect. Rising metal prices have materially improved the economics of certain knownmineralisation systems in Cyprus. This prompted EMED Mining to re-evaluate theCyprus prospects in the context of exploration insights developed over the pasttwelve months. This re-evaluation has identified the set of prospects within theKlirou Copper-Zinc Project as a high priority because of an initial resourcecontaining more than £100 million (US$200 million) in contained metal at shallowdepth along with extensive untested potential. The Initial Potential Development: Klirou Copper-Zinc Project Utilising historical and recent drillhole data and modern software, EMED Miningestimated the following Resources for the Klirou Copper-Zinc Project: Klirou Copper-Zinc Project - Resource Estimate Category Tonnes Copper Contained Copper Zinc Contained Zinc (tonnes) (tonnes) (000's) Grade GradeKlirou Inferred 4,508 0.41% 18,483 0.74% 33,359South Inferred 2,130 N.A N.A 0.95% 20,232Mathiatis Notes: •Both deposits have been drilled to 40 metre-spacing but the resource classification remains "inferred" due to the need for more validation in order to more accurately estimate grade. •Cut-off grade: (1) Klirou = 0.3% copper equivalent, with the copper equivalent grade being calculated on the zinc price equal to 50% of the copper price. (2) Sth Mathiatis = 0.3% zinc. •Gold has been demonstrated to be present and partly recoverable but resource estimates are not yet JORC-compliant. At a zinc price equal to 50% of the copper price, the above resources equate to6.6 million tonnes at 0.7% copper-equivalent. Alternatively the resources can besummarised as containing 45,000 tonnes of contained copper-equivalent metal orcontaining 90,000 tonnes of contained zinc-equivalent metal. The Klirou resource extends from the surface to approximately 200 metres belowsurface and is potentially mineable by open-pit methods. Potential remains toincrease these resources by infill drilling and step-out drilling. Some of thedeposits are likely to have faulted extensions and may have repeats along strikewithin areas of geophysical anomalism. EMED Mining conducted a pre-feasibility study on the Klirou Copper-Zinc Projectover the second half of 2006. Independent project advisers and environmentalconsultants were appointed to project team which also includes engineers from 5%partner Hellenic Mining Company ("HMC"). EMED Mining has reached agreement in principle to utilise the nearby Mitseroprocessing plant owned by HMC to treat ore and produce saleable concentrates. Cyprus Outlook for 2007 EMED Mining is the first company to test for concealed copper deposits in theproven copper country of Cyprus. Our Cyprus exploration program rates highly ona cost-benefit basis, due to our specialist team and our exploration database ofthe entire island. The key objective of 2007 is to establish the viability of the KlirouCopper-Zinc Project and progress it towards becoming the Company's first minedevelopment in 2008. Positive feedback has been received to date from regulatoryauthorities and community leaders about this exciting project. A Feasibility Study is to be completed in 2007, which will include a detailedEnvironmental Impact Assessment by appropriate specialists and detailedcost-engineering for the entire operation including mining, transport, oreprocessing and shipment. EMED Mining made significant exploration progress during 2006 and the Companywill continue to test the potential for a large +10 million tonne deposits inCyprus. Exploration during 2007 is anticipated to include: • Further drilling to extend resources for the planned development; • Follow-up drilling at other prioritised targets including North Alestos; • Further geophysics and detailed geological mapping; and • Achieve sufficient progress in Cyprus to trigger the Company's firstdevelopment in 2008. The objective of EMED Mining's exploration is to discover significant economicVHMS copper deposits within the Group's prospecting permits and applications inCyprus and to selectively expand the portfolio as warranted by opportunities. Glossaryaltered or referring to physical or chemical change in a rock or mineralalteration subsequent to its formationgrade quantity of metal per unit weight of host rockJORC Code Australasian Joint Ore Reserves Committee Code for Reporting of Mineral Resources and Ore Reservespyrite an iron sulphide mineral, FeS2quartz mineral species composed of crystalline silica (SiO2)volcanic rocks formed from the solidification of lava extruded on or erupted at the Earth's surface. Also includes pyroclastic rocksVHMS volcanic-hosted massive sulphide -Ends- Notes to Editors: About EMED Mining Public Limited EMED Mining was admitted to trading on AIM in May 2005 following an initialpublic offering of its shares. The company is based in Cyprus and has a strongcommitment to responsible development in the 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 evaluateexploration and development opportunities in several jurisdictions throughoutthis quality mineral belt and to promote sustainable development practicesthrough implementation of EU and other leading-edge international standards.EMED Mining recently co-hosted with the Green Party of Cyprus an internationalconference on Responsible Mining and Environmental Management. EMED has, fromthe outset, 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 EU laws and regulations. • Communicating with community stakeholders in a responsible and transparent manner. EMED Mining has now established a strong position in the following zones withinits area of interest: • Cyprus/Middle East exploration is centred on the Troodos ophiolite complex. The targeted mineralisation style is volcanic-hosted massive sulphide copper 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%. EMED Mining completed a preliminary feasibility study on mining copper-zinc resources in the Klirou District with encouraging results in early 2007. Seven target areas are being explored for additional mineable deposits. • Slovakia/Europe 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 has now become 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 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 the Ipari Prospect. • Turkey/Bulgaria exploration areas were vended into 39%-owned KEFI Minerals Plc which was admitted to AIM in December 2006. KEFI Minerals owns two clusters of tenements in Turkey and the Lehovo tenement in Bulgaria, as well as an extensive database of regional exploration data providing a pipeline of further projects. 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. For further information on the Company's activities, visit www.emed-mining.comor www.emed.tv This information is provided by RNS The company news service from the London Stock Exchange