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 been completed with
satisfactory results and concluded:
�
Inferred Resources
expanded to 6.6 million tonnes of 0.7% copper-equivalent, excluding associated
gold (refer technical background below for JORC-compliant resources statement)
for contained metal of 18,500 tonnes copper 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 increase resource-base within easy-trucking distance of the
plant.
�
Geophysical results reveal deeper
targets with potential for +10 million tonne deposits which are planned to be
drill-tested during 2007.
�
Initial environmental baseline
surveys indicate the site continues to be an excellent site for its
long-standing purpose and the environmental legacy to be capable of proper
remediation.
�
Permitting roadmap agreed with
regulators.
�
Preliminary financial model
indicates an encouraging range of net present values, based
on:
o
Copper
price of $US2.00/lb and zinc price of
$US1.00/lb (LME spot prices on 8
February 2007
were $US2.37/lb and $US1.38/lb, respectively);
o
Initial
open-pit model recovering 4.6 million tonnes from total resource of 6.6 million
tonnes;
o
Initial
metallurgical test work indicating good copper recoveries and the need to
improve zinc and gold recoveries;
o
Operating
costs based on preliminary quotations received from relevant suppliers,
and
o
Refurbishment of the Mitsero
processing plant and continued use of existing site for waste.
AMC
Consultants, an international project manager, have been appointed to
oversee:
�
a Feasibility Study to be completed
in 2007, which will include a detailed Environmental Impact Assessment by
appropriate specialists and detailed cost-engineering for the entire operation
including mining, transport, ore processing and shipment.
�
a Final Feasibility Study following
receipt of regulatory permits for the development of the Klirou Copper-Zinc
Project targeting development in 2008. This further work will include sufficient
drilling to upgrade resources into the reserve category along with final optimised engineering, costings, product pricing and
financing.
-Ends-
Enquiries
EMED
Mining |
Nabarro
Wells |
Parkgreen
Communications |
Harry
Anagnostaras-Adams |
Richard
Swindells |
Clare
Irvine |
+357
9945 7843 |
+44
20 7710 7400 |
+44
20 7851 7480 |
www.emed-resources.com |
|
www.emed.tv |
References in this
announcement to exploration results and potential have been approved for release
by Mr Ron
Cunneen, B.Sc. (Honours). Mr Cunneen is Head of Exploration for
EMED Mining and has more than 20 years� relevant
experience in the field of activity concerned. He is a member of The Australian
Institute of Geoscientists (�AIG�) and has
consented to the inclusion of the material in the form and context in which it
appears.
Technical Background
Introduction
EMED Mining�s exploration areas in
Cyprus are centred on the Troodos ophiolite
complex. The targeted mineralisation style is volcanic-hosted massive sulphide
(�VHMS�) copper deposits, similar to the larger past
Cyprus copper mines - three of 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 known deposits
are VHMS style. Its major
mines were Mavrovouni, Skouriotissa and Limni � all of which exceeded 10 million
tonnes of ore containing copper and gold. The largest was Mavrovouni with
reported production of 15 million tonnes of ore containing 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 right of access to private land for exploration purposes. There is a strong tradition and culture of mining in
Cyprus, and mining has been an important
contributor to national wealth until recently. Access is generally very good due
to an extensive network of sealed roads and secondary
tracks.
Despite the mining history of
Cyprus, the Board considers that there is a high
probability that there are undiscovered, copper-rich (>1% copper) massive
sulphide deposits under less than 200 to 300 metres of
cover.
Progress to Date
The highlights of the
Cyprus exploration program for 2006 were the
identification of initial resources for the Klirou Copper-Zinc Project and
further encouraging results at several other nearby locations including the
North Alestos Prospect.
Rising metal
prices have materially improved the economics of certain known mineralisation
systems in Cyprus.
This prompted EMED Mining to re-evaluate the
Cyprus
prospects in the context of exploration insights developed over the past twelve
months. This re-evaluation has identified the set of prospects within the
Klirou Copper-Zinc
Project as a high
priority because of an initial resource containing more than �100 million
(US$200 million) in contained metal at shallow depth along with extensive
untested potential.
The Initial
Potential Development: Klirou Copper-Zinc Project
Utilising
historical and recent drillhole data and modern software, EMED Mining estimated
the following Resources for the Klirou Copper-Zinc
Project:
Klirou Copper-Zinc Project � Resource Estimate
|
Category |
Tonnes (000�s) |
Copper Grade |
Contained Copper (tonnes) |
Zinc Grade |
Contained Zinc (tonnes) |
Klirou |
Inferred |
4,508 |
0.41% |
18,483 |
0.74% |
33,359 |
South
Mathiatis |
Inferred |
2,130 |
N.A |
N.A |
0.95% |
20,232 |
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 to 6.6
million tonnes at 0.7% copper-equivalent.
Alternatively the resources can be
summarised as containing 45,000 tonnes of contained copper-equivalent metal or
containing 90,000 tonnes of contained zinc-equivalent
metal.
The Klirou
resource extends from the surface to approximately 200 metres below surface and
is potentially mineable by open-pit methods. Potential remains to increase these resources by
infill drilling and step-out drilling. Some of the deposits are likely to have
faulted extensions and may have repeats along strike within areas of geophysical
anomalism.
EMED Mining conducted a pre-feasibility
study on the Klirou
Copper-Zinc Project over the second half of 2006. Independent project advisers and environmental
consultants 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 Mitsero processing 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 the proven copper
country of Cyprus.
Our Cyprus
exploration program rates highly on a cost-benefit basis, due to our specialist
team and our exploration database of the entire island.
The key objective of 2007 is to establish
the viability of the Klirou Copper-Zinc Project and progress it towards becoming
the Company�s first mine development in 2008. Positive feedback has been
received to date from regulatory authorities and community leaders about this
exciting project.
A Feasibility Study is to be completed in
2007, which will include a detailed Environmental Impact Assessment by
appropriate specialists and detailed cost-engineering for the entire operation
including mining, transport, ore processing and shipment.
EMED Mining
made significant exploration progress during 2006 and the Company will continue to test the potential for a
large +10 million tonne deposits in
Cyprus.
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 first development in 2008.
The objective
of EMED Mining�s exploration is to discover significant economic VHMS copper
deposits within the Group�s
prospecting permits and applications in
Cyprus and to selectively expand the portfolio
as warranted by opportunities.
Glossary
altered or alteration
|
referring to physical or chemical
change in a rock or mineral subsequent to its
formation |
grade
|
quantity of metal per unit weight
of host rock |
JORC
Code |
Australasian Joint
Ore Reserves Committee Code for
Reporting of Mineral Resources and Ore
Reserves |
pyrite
|
an iron sulphide mineral,
FeS2 |
quartz
|
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 rocks |
VHMS |
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 initial public
offering of its shares. The company is based in
Cyprus
and has a strong commitment to responsible development in the region.
The
Group�s region of interest is the Mesozoic to Tertiary age tectonic belt that
winds over 3,000km from Eastern
Europe
to Iran.
The strategy is to evaluate exploration and development opportunities in several
jurisdictions throughout this quality mineral belt and to promote sustainable
development practices through implementation of EU and other leading-edge
international standards. EMED Mining recently co-hosted with the Green Party of
Cyprus an international conference on Responsible Mining and Environmental
Management. EMED has, from the outset, strictly implemented its Environmental & Community Policy
which includes:
�
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 within its
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.com or WWW.EMED.TV