EMED Mining
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.
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Company Statement:
EMED Mining is focused on two key projects in Spain and Slovakia which hold the most potential to add major value.
The Rio Tinto Copper Mine and associated processing infrastructure in Spain continues to be an exceptional opportunity for EMED Mining to produce copper at a relatively low acquisition and start-up cost. The legal structure for the mine ownership has been clarified and EMED Mining now owns 100% of the Rio Tinto Mine.
At the 100%-owned Detva Gold Project in Slovakia, the preliminary economics of the Biely Vrch Scoping Study are very encouraging and the project is being systematically progressed towards development into a 60,000 ounces per annum gold mine. EMED Mining is also actively exploring for gold within the Company's large licence area in central Slovakia.
EMED Mining also owns 20% of AIM-listed KEFI Minerals Plc, which is primarily exploring for gold and copper in Turkey and Saudi Arabia.
Regional Strategy
The Group's region of interest is the Mesozoic to Tertiary age tectonic belt that winds from Europe to the Middle East, extending for over 3,000 kilometres. EMED Mining's strategy is to rapidly evaluate exploration opportunities in several jurisdictions throughout this quality mineral belt with a relatively high rate of project turnover.
EMED Mining is based in Cyprus and has a strong commitment to responsible development of metal production operations in Europe, with an initial focus on copper and gold. EMED Mining was formed by Australian mining-industry specialists and is based in Cyprus, the site of its first project and a location geographically central to the Company’s area of interest.
The team now includes specialists from the Americas, Cyprus, Slovakia and Spain with most of our personnel now based in Spain.
Our regional strategy has not changed since EMED Mining listed on AIM in May 2005 and the key components of this strategy are to:
* focus on demonstrably well-endowed areas and apply modern exploration techniques;
* use relationships in the region to provide a high level of technical, political and other expertise;
* demonstrate a commitment to the region by being headquartered in Cyprus and establishing offices near the geographic centre of each prospect; and
* integrate the practical experience gained in the world’s leading metal-producing countries with local expertise in each country where EMED Mining is active.
This strategy has been successfully implemented to date with the Company now enjoying first-mover advantage in the region. We have established a position of prominence for the industry in Spain, Slovakia and Cyprus.
Our core projects in Spain and Slovakia have such strong potential to add major value to the Company that new projects have not been added to the portfolio since 2007. However, we continue to monitor the Eurasian region for complementary opportunities with a view to selectively expanding the portfolio, if warranted. As new opportunities are identified, we assess the commercial and sovereign risks before investing further time and money.
Current Operations:
EMED Mining has now established a strong position in the following areas within its area of interest:
- Cyprus exploration areas are centred on the Troodos ophiolite complex. The targeted mineralisation style is volcanic-hosted massive sulphide copper deposits under shallow cover rocks, similar to the larger past Cyprus copper mines - three of which exceeded 10 million tonnes of ore running at grades between 1% and 4.5%.
- KEFI Minerals Plc was admitted to AIM in December 2006 and is 19%-owned by EMED Mining. KEFI Minerals owns carefully selected licence areas in Turkey and Saudi Arabia, as well as an extensive proprietary database of regional and specific exploration data providing a pipeline of further projects to evaluate. Visit www.kefi-minerals.com for further information.
- A positive Scoping Study has been completed for developing the Biely Vrch Prospect in Slovakia into a gold mine producing 60,000 ounces per annum, with permitting and further studies being systematically progressed. EMED Mining is also actively exploring other prospects within the Company's large 100%-owned licence areas in the Central Slovakian Volcanic Field.
- EMED Mining continues to progress towards becoming a significant copper producer at the historic Rio Tinto Copper Mine in Spain - an exceptional opportunity to produce copper at a relatively low acquisition and start-up cost.
Cyprus
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 under shallow cover rocks, similar to the larger past Cyprus copper mines - three of which exceeded 10 million tonnes of ore running at grades between 1% and 4.5% copper.
Rising metal prices have materially improved the economics of several known base-metal deposit on EMED Mining's tenements in Cyprus. This prompted an evaluation of the Company's prospects in Cyprus in the context of exploration insights developed by the EMED Mining team. This review identified the Klirou Copper-Zinc Project as a high priority.
Whilst EMED Mining's highest copper-related priority is in Spain, low-cost exploration and evaluation work will continue in Cyprus on various targets and opportunities.
Klirou Copper-Zinc Project
The Klirou Copper-Zinc Project is located approximately 20km southwest of Nicosia, Cyprus.
In late 2007, AMC completed an independent review of the Klirou Copper-Zinc Project. Financial modelling based on the available information and work completed to date continues to indicate that the project is worthy of further work. An integral part of the envisaged project would be to utilise the nearby Mitsero processing plant, owned by EMED Mining's 5% partner Hellenic Mining Company, to treat ore and produce saleable concentrates.
This review highlighted the following key areas for further work before justifying the commencement of a full feasibility study for the Klirou Copper-Zinc Project:
- Expansion of resources through successful exploration.
- Diamond core drilling to verify and upgrade categorisation of known resources, as well as collecting samples for further metallurgical testwork.
- Further assessment of the refurbishment of the nearby Mitsero processing plant, as well as preparation of a metallurgical plan for the resources and a processing strategy.
- Collection and collation of firm cost estimates.
- Potential remains to increase known mineralisation 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 containing geophysical anomalies.
Exploration Strategy in Cyprus
The areas covered by the Group's prospecting permits and applications in Cyprus are considered prospective for the following reasons:
- it is recognised that, although mineralisation occurs throughout both the Upper Pillow Lavas and the Lower Pillow Lavas (being the upper and lower units of what is known as the extrusive sequence of basalt pillow lavas), more than 90 per cent of the copper mined in the Troodos Complex has come from deposits within the Upper Pillow Lavas
- by focusing on areas of shallowly dipping Upper Pillow Lavas, especially where it dips under the sedimentary cover, the Group intends to access opportunities which have been under-explored by past explorers; and
- the ability to use new techniques in reprocessing and modelling of the extensive historic geological and geophysical data in order to identify priority targets.
Simplified geological map of Cyprus showing the Troodos Complex in the southwest, the location of EMED Mining Permits and major historical copper districts.
Kefi Minerals
KEFI Minerals is a gold and copper exploration company with projects in Turkey and the Kingdom of Saudi Arabia.
In Turkey, KEFI Minerals currently has a portfolio of exploration projects at various stages of evaluation.
In the Kingdom of Saudi Arabia, KEFI Minerals has a joint venture with leading Saudi construction and investment group Abdul Rahman Saad Al-Rashid & Sons Company Limited (“ARTAR”). The Gold and Minerals Joint Venture has a number of Exploration Licence Applications pending.
KEFI Minerals commenced trading on AIM (Code 'KEFI') in December 2006. EMED Mining contributed initial assets and retains a 19% shareholding in KEFI Minerals.
Visit www.kefi-minerals.com for further information.
Slovakia
EMED Mining's exploration in Eastern Europe is currently focussed on exploring for gold deposits in Central Slovakia in the Company's 100%-owned Detva and Stiavnica-Hodrusa Licences.
In October 2006, EMED Mining announced the discovery of the Biely Vrch gold deposit within the Detva Licence.
Drilling at Biely Vrch during 2007 and 2008 culminated in an initial JORC-standard Mineral Resource comprised of 17.7 million tonnes at 0.81g/t gold, containing 461,000 ounces in the indicated category and 24.0 million tonnes at 0.77g/t gold, containing 596,000 ounces in the inferred category.
Biely Vrch is being systematically progressed towards development following completion of a Scoping Study which provided strong evidence of the potential value that developing the deposit would create for all stakeholders.
The Biely Vrch deposit has been recognised as a porphyry gold system and this style of deposit typically occurs in clusters. Exploration continues to be progressed on many other porphry gold and copper-gold prospects within the Company's large, 100%-owned licences in Central Slovakia.
Detva Licence Area
The Detva licence area is located about 25 km to the east of the Stiavnica-Hodrusa district. The geology consists of a caldera-graben complex in the centre of a large stratovolcano. Widespread propylitic and localised advanced argillic alteration in the application area indicate substantial hydrothermal activity. This setting is analogous to of the Stiavnica-Hodrusa mineral field and is considered to be a classic geological setting for the formation of large porphyry and epithermal gold orebodies.
By the end of 2008, EMED Mining had completed a diamond drilling programme of 34 holes has been completed on a 100m by 100m grid pattern at the Biely Vrch porphyry gold deposit. Gold mineralisation is contained in a broadly pipe-shaped quartz-veinlet stockwork zone associated with an andesitic porphyry intrusion.
A number of drillholes are mineralised over their entire length from surface. Assay results have so far defined gold mineralisation in a vertical pipe-shaped structure to a depth of 300m below surface.
The Mineral Resource measures approximately 350m north-south and 300m east-west and extends from surface to a depth of 250m. Mineralisation within a vertical pipe-shaped structure continues below this depth. Initial metallurgical testwork of Biely Vrch drill core samples indicates the gold mineralisation is not metallurgically complex and recoveries can be expected to be consistent with analogous porphyry gold projects in other parts of the world.
The key parameters from the Biely Vrch Scoping Study are:
Open-pit, heap-leach gold project with >10 year life;
Overall gold recoveries of 81%; and
~60,000 ounces p.a. at cash cost = US$500 to US$600/ounce.
Behre Dolbear International reviewed the Biely Vrch Scoping Study in their NI 43-101 Technical Report on the Biely Vrch Gold Deposit (1.2MB pdf) dated 17 November 2010.
Porphyry gold deposits differ to the more common porphyry copper-gold deposits, and typically:
- are low-grade (0.7g/t to 1.8g/t gold), multi-million ounce deposits
- are large (>100 million tonnes), bulk-mineable deposits
- are metallurgically simple and gold is recoverable via conventional heap leaching
- occur in clusters of several similar deposits
- contain very minor amounts of copper and molybdenum.
The recognition of Biely Vrch as a porphyry gold deposit has provided valuable insights which assist EMED Mining's plans for exploration of its Slovakian licences.
Stiavnica-Hodrusa Licence Area
The Company's granted licence covers a substantial portion of this world-class mineral district in Slovakia. Underground mines in this district have historically yielded an estimated total of 2.4 million ounces of gold, 120 million ounces of silver, 70,000 tonnes of zinc, 55,000 tonnes of lead and 8,000 tonnes of copper.
This historical production has been sourced from narrow, high-grade epithermal veins. EMED will be the first company to test systematically for large bulk-mineable, near-surface disseminated styles of mineralisation in this prolific district.
EMED Mining has recognised a variety of styles and the potential for porphyry, skarn and stockwork styles of gold mineralisation that have not been investigated by previous explorers. In addition, EMED has recognised areas of potential for high-sulphidation epithermal style of gold mineralisation. This style is commonly only weakly anomalous in gold at surface, but can host extensive high-grade gold deposits at depth.
Several skarn bodies occur in the northwest portion of the licence area. These skarns have been investigated for industrial magnetite, but have not been tested for gold.
Further Information
Details of EMED Mining's projects in Slovakia are available in the Ammended NI 43-101 Technical Report on the Biely Vrch Gold Deposit (1.2MB pdf) dated 17 November 2010.
The drilling rig owned by EMED Mining is now based in Slovakia and further information on the Company's drilling team is available by clicking here.
Information on the company in Slovakian is available at www.emed-slovakia.com.
Spain
In May 2007, EMED Mining was granted an option to acquire the Rio Tinto Copper Mine (also known as Proyecto de Rio Tinto or "PRT"), an RTZ-built copper mine and processing plant in Spain.
The main assets of the Rio Tinto Copper Mine are the mine and plant site adjacent to the town of Rio Tinto - 65 kilometres northwest of Seville in Andalucia, Spain. The mine was placed on care and maintenance in 2000 due to then-prevailing low copper prices of below $US1.00/lb.
EMED Mining has a 100%-owned subsidiary named EMED Tartessus SL that holds the Company's assets in Spain. Information in Spanish on EMED Mining and this subsidiary is available at www.emed-tartessus.com and in the press release "Compania Minera Invierte en la Faja Piritica Iberica".
In October 2008, EMED Tartessus SL acquired 100% ownership of the Rio Tinto Copper Mine.
The Company has undertaken extensive studies on the Rio Tinto Copper Mine. This work has been independently reviewed by AMC Consultants and Behre Dolbear International.
As detailed in the Behre Dolbear NI-43-101 Technical Report dated 17 November 2010, key anticipated production parameters for the Rio Tinto Copper Mine are:
- Production of approximately 37,000 tonnes of copper-in-concentrate based on processing 9.0 million tonnes of ore per annum
- An average waste-to-ore ratio for the life of mine of approximately 1.1 to 1.0
- Total costs of approximately US$1.57/lb including all operating, capital and acquisition costs
- Employment of approximately 400 to 450 employees and contractors at full production
- Potential to extend the 14 year mine life through conversion of more resources to reserves.
EMED Mining will continue refining operating plans and verifying cost and other analyses in consultation with its independent consultants. This may result in changes to the above figures.
Mineral Resources and Ore Reserves for the Rio Tinto Copper Mine
Measured and Indicated Mineral Resources total 203.1 million tonnes at 0.46% copper (0.93 million tonnes of contained copper), at a cut-off grade of 0.20% copper.
Proved and Probable Ore Reserves total 123.0 million tonnes at 0.49% copper (0.61 million tonnes of contained copper), at a cut-off grade of 0.20% copper.
Further information on the Mineral Resources and Ore Reserves for the Rio Tinto Copper Mine is available in the NI 43-101 Technical Report on Reopening the Rio Tinto Copper Mine (2.1MB pdf) dated 17 November 2010.
Restart of the Rio Tinto Copper Mine
The restart of mining operations at the Rio Tinto Copper Mine can only proceed following receipt of various regulatory approvals and the Company raising the necessary funds.
EMED Mining is continuing to progress the permitting process and to resolve the remaining negotiations with private landholders and government agencies.
The principal regulatory approvals required are:
- Approval by the Junta de Andalucia of the transfer of mineral rights to EMED Tartessus; and
- Approval of the restart, operating and rehabilitation plans all of which are based on long-standing and previously approved practices at Rio Tinto Mine that are being updated as appropriate.
- The estimated average annual operating cash flows at a copper price of US$3.00/lb are forecast to be greater than the capital expenditure required to restart the operation.
Further Information
Further information on the Rio Tinto Copper Mine is available in the NI 43-101 Technical Report on Reopening the Rio Tinto Copper Mine (2.1MB pdf) dated 17 November 2010.
Management
Ronnie Beevor, B.A. (Honours) - Non-Executive Chairman
British and Australian Citizen based in Australia. He is also Chairman of the Audit Committee of the Board of Directors.
Mr Beevor is an investment banker and was Head of Investment Banking at NM Rothschild & Sons (Australia) Ltd. He has had an extensive involvement with the natural resources industry, both in Australia and internationally. He is currently a Senior Advisor to Gryphon Partners.
He also serves as a director of Bannerman Resources Limited, New World Energy Limited, QMAG Limited, Rey Resources Limited, Talison Lithium Limited and Unity Mining Limited. Mr Beevor has an Honours Degree in Philosophy, Politics and Economics from Oxford University and qualified as a chartered accountant in London in 1972.
Aristidis (Harry) Anagnostaras-Adams, B. Commerce , MBA - Managing Director
Australian Citizen based in Cyprus.
Mr Anagnostaras-Adams was born in Egypt as a Greek Citizen and adopted Australian citizenship where he was raised and became known as Harry Adams. He has served as Deputy Chairman of the Australian Gold Council, is a Fellow of the Australian Institute of Management and of the Australian Institute of Company Directors. He recently moved to Europe to lead EMED. His experience in the past 25 years has been as Managing Director of Gympie Gold Ltd, Executive Director of investment company Pilatus Capital Ltd, General Manager of resources investment group Clayton Robard Ltd Group and Senior Investment Manager of Citicorp Capital Investors Australia Ltd. Harry is also the Chairman of KEFI Minerals Plc.
Mr Anagnostaras-Adams has a Bachelor of Commerce (in Systems and Finance) from the University of New South Wales. He qualified as a Chartered Accountant while working with Price Waterhouse Coopers and has a Master of Business Administration from the Australian Graduate School of Management.
John Leach, B.A. (Economics), MBA - Finance Director
Canadian and Australian citizen based in Nicosia, Cyprus, with over 25 years' experience in senior executive positions in the mining industry internationally. John Leach is also Finance Director of KEFI Minerals Plc.
Mr Leach holds a Bachelor of Arts (Economics) and a Masters in business administration and is a member of the Institute of Chartered Accountants (Australia), the Canadian Institute of Chartered Accountants and is a Fellow of the Australian Institute of Directors.
Dr Ross Bhappu, B.Sc., M.Sc., Ph.D. - Non-Executive Director
Dr Bhappu is a Partner of Resource Capital Funds (“RCF”) and has over 20 years’ experience in the mining industry working for both senior and junior mining companies.
Prior to joining RCF in early 2001, he was chief executive officer of a start-up copper mining company, GTN Copper Corporation. Prior to joining GTN, Dr Bhappu was Director of Business Development for Newmont Mining Corporation. Before joining Newmont, he served in both technical and financial roles for Cyprus Minerals Company. He serves on the board of RCF’s portfolio companies Traxys SA and Molycorp Minerals LLC. Dr Bhappu holds a Ph.D. in Mineral Economics from the Colorado School of Mines and B.S. and M.S. degrees in Metallurgical Engineering from the University of Arizona.
Mr Roger Davey , M.Sc, C.Eng., Eur. Ing. Non-Executive Director
Mr Davey has over thirty five years experience in the mining industry. He is fluent in Spanish and his experience includes thirteen years as the Senior Mining Engineer at N M Rothschild (London), following operating and mine development experience with Minorco (AngloGold) in Argentina, Greenwich Resources in London, Blue Circle Industries in Chile and Gold Fields in South Africa.
Mr Davey is currently a director of Alexander Mining, Orosur Mining and Goldquest Mining.
Mr Ashwath Mehra, B.Sc. - Non-Executive Director
Mr Ashwath Mehra is the Chief Executive Officer of the MRI Group, which consists of Marc Rich + Co. Investment A.G. and its various subsidiaries. The MRI Group is a commodities trading group with annual turnover of over US$3 billion.
Mr Mehra has worked in the minerals industry for 22 years, starting his career with Philipp Brothers after which he spent 10 years with Glencore, where he was a senior partner and ran the Nickel and Cobalt Divisions. He has substantial experience in mineral projects and project finance.
Major Shareholders
As at 21 June 2011, EMED Mining had:
- 708.4 million shares on issue and does not hold any shares in treasury;
- 145.5 million shares to be potentially issued under $8.5 million Convertible Loan facility provided by Resource Capital Funds and RMB Australia. This reflects the assumptions that the full amount is converted at the fixed conversion price of 4.13p into 145.5 million shares; and
- 81.8 million options and warrants on issue, with various exercise prices ranging from 4.1p to 22p and expiry dates ranging from 27 July 2011 to 3 May 2015.
- A total of 935.6 million shares fully-diluted in accordance with the foregoing assumptions.
Other than under corporate law, there are no restrictions on the transfer of any securities.
As at 21 June 2011, the significant shareholders in the Company are:
- Resource Capital Funds 7% (fully-diluted 18%)
- RBC Asset Management 15% (fully-diluted 11%)
- RMB Holdings 5% (fully-diluted 7%)
- MRI Group 4% (fully-diluted 4%)
- OZ Minerals 4% (fully-diluted 3%)
- Standard Life 4% (fully-diluted 3%)
- Management and Board of Directors 4% (fully-diluted 10%)
The percentage shareholding shown above for management and the Board of Directors represents the percentage of shares not in public hands.
Updated from company website 25.10.11
Contact Information
Registered Office:
1, Lambousa Street, Nicosia 1095, Cyprus.
Cyprus Office:
3, Ayiou Demetriou Street, Acropolis 2012, Nicosia, Cyprus
Telephone: +357 2244 2705 Fax: +357 2242 1956
Slovakia Office:
Andreja Kmeta 8, Banska Stiavnica 969 01 , Slovakia
Telephone: 421 45 679 0775
Spain Office:
La Dehesa s/n, Minas de Riotinto, 21660 Huelva, Spain
Telephone: +34 959 59 28 50
If you have a general query regarding EMED Mining, send an email to info@emed-mining.com
If you wish to be advised by email of news regarding EMED Mining, simply send an email to list@emed-mining.com with 'Subscribe to Email List' in the subject line.
Corporate Information
Computershare Investor Services - Share Registrar, Depositary and Transfer Agent
RFC Corporate Finance - Nominated Adviser for EMED Mining
Fox-Davies Capital - Joint Broker for EMED Mining
Fairfax - Joint Broker for EMED Mining
Bishopsgate Communications - Public Relations adviser
