The principal activity of EMED Mining is to explore for and develop natural resources, with a focus on copper and gold. The Company's region of interest spans from Eastern Europe to Iran which includes many past centres of mining and under-explored potential for many styles of mineralisation such as volcanogenic-hosted massive sulphide copper-gold, epithermal gold and porphyry copper-gold.
EMED Mining making progress at Rio Tinto copper mine in Spain
Copper and gold miner EMED Mining (LON:EMED) has moved closer to achieving its ambitious goal of restarting production from the Rio Tinto copper mine in Spain in 2011 during this quarter, reaching “significant milestones” in the permitting process and securing access to the grid.
The most important developments achieved during the quarter included the submission of all relevant reports for the permission to commence production in 2011 and the receipt of authorization to connect the mine to the national power grid.
EMED highlighted what it called the “clarification of important commercial matters,” which included the settlement of a debt owed to the Department of Social Security by a previous owner of the mine, finalization of independent assessment of the bonding for compliance with environmental regulations and the completion of independent valuations of adjoining landholdings required for operations.
Operating cash flow is expected at US$117 million annually if the copper price meets forecasts of spot and average 10 year prices of US$3/lb or US$6,600/t (tonne). The initial capital required for the start-up of the Rio Tinto mine amounts to US$100 million, in line with previous estimates.
The project’s updated financial model calls for an increase in production to 9 Mtpa (million tonnes per annum) in two years, estimating the ore reserve at 123 Mt at 0.48% copper for 585,000 tonnes contained with contained copper in concentrate averaging 37,000 tonnes per annum.
Drilling programs have been planned along with project engineering to maximise the value, while also stating there was “significant potential” to expand the life of mine and annual production.
Meanwhile, EMED is continuing discussions with potential customers of the PRT product and financiers, while preparing to dual-list on the Toronto Stock Exchange (TSX).
“In Spain, the submission of detailed and independent reports supporting the company's regulatory submissions of mid-2009marks another significant milestone in the permitting process for PRT. The process which we have just been through has improved the project, deepened our local relationships, facilitated community consultation and complied with our timetable,” said managing director of EMED Mining Harry Anagnostaras-Adams.
The company has also noted the rejection by the European Union of a proposed ban on the use of cyanide in the extractive industry, which it said provided it with “renewed confidence” that its strategy and timing “complemented a resurgence of the minerals and metal production sectors in European industry".
EMED also provided an update on its Biely Vrch gold project in Slovakia, where the regulators have recently approved the mineral resource estimate totalling 1.1 Moz (million ounces) of gold, marking the first statutory step in the permitting process.
