Atalaya Mining Regulatory News (ATYM)

AIM: EMED 16 February 2010

AUTHORITIES COMPLETE PRELIMINARY REVIEWS

FOR PROPOSED START OF PRODUCTION AT RIO TINTO MINE ("PRT")

EMED Mining Public Limited ("EMED Mining" or "the Company"), the AIM quoted mining development and exploration company, is pleased to provide this summary of responses from the authorities of the Junta de Andalucia, which have set out their conclusions from preliminary review of the Company's plans for the restart of the Rio Tinto Mine. This announcement reflects formal communications and informal clarifications thereof.

The relevant authorities are the Provincial Delegations of the Ministries of Innovation, Science and Companies ("Industry") and of Environment ("Environment"), along with the Department of Culture and Heritage ("Culture&Heritage") and the "Water Authority". Their responses are summarised as follows:

·; Culture&Heritage has issued a positive evaluation, subject to the Company conserving or cataloguing, as the case may be, heritage items that depict the mining history at the site;

·; The Water Authority has requested detailed documentation to ensure that the Company's plans for PRT, when it is in operation, properly maintain it as a closed system with managed levels in each dam, controlled filtration ponds, emergency water control systems, corrective measures for run-off waters from waste dumps and treatment of waters contaminated by hydrocarbons in the operations;

·; Environment has accepted the Unified Environmental Authorisation ("AAU") submission which caters for regulatory changes, subject to it being consistent with all reports now in progress; and 

·; Industry has requested supplementary reports which are well progressed and a rectification of one legal document incorrectly executed by a past vendor of the property.

Further explanation of regulatory requirements for documentation is provided below in the section entitled "Further Background as regards PRT". 

On the basis of this feedback and the process in place the Company's target timetable remains as follows:

·; Q1-2 2010: submission of reports and responses to regulatory queries and requests.

·; Q2-Q4 2010:

o public information and consultation;

o further regulatory reviews in Andalucia and in Madrid; and

o administrative approval of mineral rights and permits to allow start-up activities.

·; Q3-Q4 2010: shareholder approval and commencement of start-up activities.

·; 2011: production, exact timing dependant on permit timing and any conditions attached.

Strong support is being demonstrated by the local communities and the labor union responsible for PRT. The Company and its major shareholders have met senior Provincial and State Goverment leaders and reciprocated appropriate assurances of support.

The project team is expanding in line with the activities and workforce training and selection programs are being planned for the significant personnel recruitment that will be required. The collective bargain negotiating process with the labor union has also commenced.

The global shortage of copper underpins a strong long-term outlook for copper prices which have averaged over $3/lb (€2/lb) in both spot and forward markets over the past two years. This compares with PRT's costs of approximately €1/lb including operating, capital and acqusition costs. PRT's product sales agent MRI Trading has started assembling letters of intent from planned customers, who have reacted positively.

Significant potential has been identified to expand project life or annual production or both. Drilling programs have been planned accordingly along with project engineering to maximise economic value-added.

EMED Mining Managing Director, Mr Harry Anagnostaras-Adams, said today at London's Minesite Forum,

"The project is developing momentum and our excellent team is working tirelessly with good interaction with the authorities, communities and the labor union elected by site personnel."

Notes to Editors: About EMED Mining Public Limited

EMED Mining was admitted to trading on AIM in May 2005. The Company is committed to responsible development of metal production in Europe, with an initial focus on copper and gold.

The Group's region of interest are the tectonic belts spanning across Europe and over to the Middle East. The strategy is to evaluate exploration and development opportunities in several jurisdictions throughout this quality mineral belt and to promote sustainable development practices through the implementation of European Union and other international standards. The Company strictly implements its Environmental & Community Policieswhich includes:

·; Integrating environmental management into its 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; and

·; Communicating with community stakeholders in a responsible and transparent manner.

EMED Mining has now established a strong position in the following selected zones:

·; The copper-mining districts of Cyprus and Spain which are probably among the best known in the world for their base metal endowment. The Company's first priority is to start-up copper production in Spain and commence generating profits as from 2011.

·; A cluster of volcanic centres in Slovakia. The Company has discovered a significant gold deposit at Biely Vrch at its Detva Gold Project in Central Slovakia. With its mining consultants AMC Consultants (UK) Ltd, has completed a positive scoping study on its potential development.

·; The historically prolific mineral belts of Turkey and Saudi Arabia via 25%-owned KEFI Minerals Plc. KEFI Minerals is the operator of joint ventures in Turkey with Centerra Gold Inc of Canada and in the Kingdom of Saudi Arabia with local construction and investment group ARTAR. See www.kefi-minerals.com.

Further background as regards PRT

The Company has progressed the Rio Tinto Mine project as follows:

·; Verified Mineral Resources and Ore Reserves in compliance with the JORC Code;

·; Completed base-case plans for operating a 14-year mine plan to extract current Ore Reserves;

·; Acquired 100% of the project (the mine, associated land, mineral rights, plant and associated land);

·; Formulated plans for drilling and engineering studies to expand and improving the project;

·; Settled with the vendor company's principal creditor MRI Group which is now a shareholder of EMED Mining and has been appointed sales and marketing agent for the project;

·; Established support for the Company's plans from the communities and the Government; and

·; Received clearance from the regulatory authorities to submit the full set of detailed reports and applications for permission to start-up production. Detailed reports requested to date address the following items:

·; Culture&Heritage:

o Revegetation plans for waste dumps that preserve certain historic vistas;

o Heritage items affected by extension of the open pit and waste dumps;

o Details of activities affecting items in the Company's catalogue of historical site.  

·; Water:

o The documentation supporting the final Unified Environmental Authorisation ("AAU" or "EIA") needs to extended with more detailed maps and flow sheets for:

§ industrial waters used in the mining process;

§ waters used or discharged from the processing plant;

§ evaporation (tailings) dams and filtration ponds; and

§ run-off rain waters from waste dumps and elsewhere on the site including the introduction of evaporation ponds.

o Detailed analyses and plans required for the protection of the landscape of Rio Tinto around waste dumps and the public domain waters during normal operations and excessive rainfall events.

·; Environment:

o As a result of the legislative changes, the restoration plan and the waste storage plan needs to be expanded now in detail and submitted to Environment and also to Industry; and

o The classification of the tailings deposits needs to be supported by appropriate reports (the classification affects the level of consequential 3rd party insurance and bonding to be provided by the Company).

·; Industry:

o the detailed plans, following integration of all the requirements of the relevant authorities, will be sent to IGME (Geology and Mining Institute in Spain) and to the CEDEX (Spanish centre for studies and experimentation for public works) for reporting purposes. The conclusions of these reports may be sent to the Company for approval and, where necessary, making modifications to the project. At the same time, Industry shall examine the submitted documentation referring to the technical and financial capacity of the applicant.

For further information on the Company's activities, visit www.emed-mining.com or www.emed.tv.