Atalaya Mining Regulatory News (ATYM)

14 Jan 2010 07:00



AIM: EMED 14 January 2010

Update of Site Activities at Rio Tinto Mine

EMED Mining Public Limited ("EMED Mining" or "the Company") is pleased to provide this update for good order of activities at Rio Tinto Mine ("Proyecto Rio Tinto" or "PRT") which have received some community comment and media coverage in Spain.

Industrial Park

The Junta de Andalucía ("the Government") has announced the location of an industrial park planned for the district near PRT (the "mining district" or "Cuenca Minera"). It will entail a €20 million investment by the Government on a 35 hectares site selected for its proximity to planned transport infrastructure. The Company's plans complement this initiative: the park will host local service providers whilst PRT's estimated annual operational expenditures after the proposed restart of operations will be circa €100 million and will foster their enterprise development in the long term. 

Workforce Recruitment Processes being Established

An aspect of project planning to achieve production in 2011 is the preparations for recruitment of over 300 personnel. Accordingly the Company will shortly appoint a Personnel Manager who will report to the General Manager Legal Affairs and Human Relations and be integrally involved in planning the organisational recruitment, training and induction programs of suitable applicants. In addition, the Company and the unions have agreed to formally open negotiations for the workplace agreement to be introduced to PRT to ensure organisation structure and work practices are updated and internationally competitive.  

Due Diligence Experts Appointed for Regulatory Certification of Operating Plans 

A number of additional independent technical experts have started working with the Company's team at PRT and include APPLUS for occupational health and safety, EYGEMA for environmental management and restoration plans, EPTISA for the tailings dam integrity and capacity and CGS for certifying the waste dump plans. The commencement of certain tasks was delayed due to two local landholders restricting land access but this was rectified by Government intervention. There has recently been exceptionally heavy rainfall at Rio Tinto and the Company has also ensured the appropriateness of site rainwater-management policies, procedures and practices. 

EMED Mining Managing Director, Mr Harry Anagnostaras-Adams said,

"There is heightened media, community and shareholder interest in activities at PRT as momentum builds for proposed production next year and we are pleased to continue to provide regular updates of progress."

Enquiries

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 a 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 Policies which 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:

Copper in Spain: The copper-mining district of Spain is probably among the best known in the world for its metal endowment. The Company's first priority is to start-up production of its wholly-owned Rio Tinto Mine which is the largest metal deposit in Spain. The mining industry is returning to prominence in Spain's Iberian Pyrie Belt and recent initiatives include start-ups in 2009 of major base metal mines at Inmet Mining's Las Cruces Project and Iberian Resources's Aguas Tenidas Mine. Lundin also operates its recent start-up Aguablanca and Antafagusta started exploration activities in 2009. 

The Rio Tinto Mine site contains a fully installed and maintained operational complex - an open pit mine, copper-concentrator and waste disposal facilities. The site has been on care and maintenance since 2000 when operations were suspended due to low copper prices.

Gold in Slovakia: Exploration areas in Slovakia are centred on a cluster of volcanic centres. Low-detection geochemical methods are being applied to these areas for the first time together with bulk mining concepts for both open cut and underground projects. The Company has announced a significant gold discovery at Biely Vrch and has completed a positive scoping study on its potential development at surface and for its exploration at depth.

EMED Mining has other notable earlier-stage activities focused on copper and gold, as follows:

Exploration licences in the copper-mining districts of Cyprus; 

A large mining lease in Georgia, Caucasus; and

A 26% shareholding in KEFI Minerals Plc which operates exploration joint ventures in Turkey and the Kingdom of Saudi Arabia.

Background as regards PRT: the Company has progressed the Rio Tinto Mine project as follows:

Completed geological investigations and 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 ore reserves and to invest in drilling and other activities with a view to expanding and improving the project;

Acquired 100% of the project (the mine, its associated land and the associated mineral rights along with the plant and its associated land) from vendor company Mantesur Andavalor via (now) wholly-owned subsidiary EMED Tartessus SL;

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;

Terminated all involvement in the project by previous controllers of the vendor company and commenced legal proceedings for their non-performance and enjoined the Company in their prosecution for criminal offences; 

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

Determined approach with the various authorities to assimilate regulatory changes and keep to timetable. Received clearance from the regulatory authorities to submit the full set of detailed reports and applications for permission to start-up.

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