NICOSIA, Cyprus, Sept. 19, 2012 /CNW Telbec/ - EMED Mining (AIM: EMED) (TSX: EMD), the Europe-based minerals development and exploration company, is pleased to report further progress of its exploration for underground mine potential within its Detva Gold Project, at its Banska Stiavnica licence in Slovakia.
- An encouraging drill intercept was 5 metres at 5 g/t gold-equivalent on a mineralised structure in the central part of an epithermal volcanic silver-gold field, with historical production exceeding 2.4Moz of gold and 120Moz of silver. Work during 2012 has focused on the digitisation of old workings and initial scout drilling at its Quartzlager Prospect within the licence.
- During the past week EMED Slovakia has participated in meetings in Banska Stiavnica, with representatives of the Government of Slovakia including various members of the Cabinet of Ministers and senior officers of Government Departments all of whom were focusing on the heritage and future for mining in Slovakia.
The Company is also pleased to announce that it continues to progress its application for a Mining Lease Area ("MLA") at the Biely Vrch Gold Deposit following the closure of the public commentary period for its recent independent reports on the project. EMED Mining is confident that the comments and objections received will be adequately addressed in the planned environmental and development feasibility studies.
Harry Anagnostaras-Adams, Managing Director and CEO, said: "We continue progressing our planning and consultations for the potential development of the Biely Vrch Deposit within the Detva Gold Project, always in full compliance with regulations and with appropriate sensitivity to community concerns.
"Also within the Detva Gold Project, we have found some early-stage encouragement at our Quartzlager Prospect within our Banska Stiavnica licence. It's a silver-gold epithermal system within one of the world's longest standing silver-gold fields and it could perhaps be pervasive. Before follow-up drilling is carried out, we will complete digitisation of this field which has historically produced over 120 million ounces of silver and 2.4 million ounces of gold. We also feel it appropriate to await further progress at permitting of Biely Vrch's potential development."
Dr Demetrios Constantinides, Deputy Chairman of EMED Slovakia and of the EUROMINES Communication Committee for the European mining industry, said: "EMED Mining is well-positioned to develop EMED Slovakia into a leading European gold producer during what is emerging as a propitious time for the gold industry internationally. Gold plays an important role internationally and the gold price is at all-time highs."
Banska Stiavnica exploration project
The Banska Stiavnica precious metals field is located some 35 km SW of EMED's Biely Vrch project in Central Slovakia. Historically this field has been mined for silver and gold from numerous north east trending epithermal veins extending over an area of 10km by 5 km. Estimated historical production (from the early Middle Ages to the present) is 2.4 million ounces of gold and 120 million ounces of silver.
Whilst past production in the field focused on narrow epithermal veins, EMED Mining is focused on identifying opportunities for larger scale operations. Three scout holes were drilled at the Quartzlager Prospect where EMED had identified the potential for an unmined vein up dip from known historical workings. One hole (QVE-3) intercepted 5 metres at 5 g/t gold equivalent (5 metres at 2.04 g/t Au and 160 g/t Ag) within historical workings. This result gives an indication of historical mining widths and grades. These grades are typical of the field's epithermal veins which are mostly silver rich with a silver to gold ratio ranging from 10:1 to 100:1, whilst some gold-rich structures have a ratio of 1:1. Whilst the results are preliminary, the strength and continuity of such structures is encouraging.
The drilling of the 3 holes to date has delineated a flat dipping unmined portion of an epithermal vein that extends over 100m up dip of historical workings. Strike extent is yet to be determined.
Within the Company's exploration licence at Banska Stiavnica there is excised a mining lease which hosts Central Europe's only producing gold mine, owned and operated by a third party with whom EMED Mining has an exploration alliance with full sharing of technical information for mutual benefit. This privately-owned underground mine produces a precious metal rich concentrate which is processed in modern facilities in Europe.
The results of the three scout drill holes are summarised below:
|Length|| Significant Intersection
|WGS 84||WGS 84||(m)||Deg.||(m)||(m)||(m)||(m)||(g/t)||(g/t)|| (g/t)
Gold equivalent based on gold price of $1600/oz and silver price of $30/oz.
Sample preparation has been done by ALS - Chemex in Romania and assayed for gold by fire assay (method Au-AA25 for gold and ME-ICP61 for multi elements including Ag). Both standards and blanks have been used in the sample batches sent by EMED Mining to ALS - Chemex in line with EMED Mining company quality control procedures.
In order to secure the land above the mineral deposits, the Company executed an agreement with state-owned organisation Rudne Bane Banska Bystrica, which will result in the transfer to EMED Mining of the area surface rights covered by the MLA for nominal consideration. However further field work will await progress with permitting of development at the Biely Vrch Gold Deposit and, in the meantime, the computer modelling of the field will continue.
Detva Gold Project
EMED Mining most significant results to date in Slovakia were its discovery in 2006 of the Biely Vrch Deposit within the Detva Gold Project. Steps taken to date include the following:
- 1,500m of diamond drilling to 750 metres depth demonstrate the likelihood of continuous mineralisation averaging 0.8 g/t Au;
- Infill drilling of the top 300 metres, with 34 holes typically 100 metres apart, led to the reporting of initial Indicated Resources of 461,000 oz at 0.81 g/t Au and Inferred Resources of 596,000 oz at 0.77 g/t Au;
- A positive scoping study prepared by AMC Consultants in 2009 indicates potentially feasible technical and economic development parameters, based on a ten-year 3Mtpa mining operation producing annually approximately 60koz Au;
- The regulatory authorities have declared the Biely Vrch Deposit a "Protective Status", classifying it as a mineral deposit of national interest so that other uses are prevented;
- In order to warrant the preparation of a Preliminary Feasibility Study and Preliminary Environmental Impact Assessment, the Company duly submitted its application for the approval by the regulatory authorities of an MLA;
- The requirements for the approval of the MLA are considered to have been fulfilled in 2011;
- In 2012, EMED Mining entered into an agreement whereby a neighbouring industrial factory agreed to relocate to new premises and its facilities to be used for the needs of the mine, if development proceeded;
- In 2012, a local action group elevated community concerns about environmental impacts and the security of employment at industrial enterprises near the deposit. The Company agreed to a temporary postponement of its application for the MLA, commissioned and published two independent reports, a Preliminary Social Impact Study and a Preliminary Economic/Technical Study;
- During the 1 month consultation period EMED Slovakia met with local citizens and companies from the nearby industrial park who wished to discuss their concerns about the potential for mine development;
- The few relevant comments and objections received raised no new material issues and have assisted the Company to ensure all relevant matters are taken into account in the planned project research and planning activities after it has progressed its application for an MLA as required under the regulations;
|EMED Mining||Harry Anagnostaras- Adams||+357 9945 7843|
|RFC Ambrian||Stuart Laing||+61 8 9480 2500|
|Fox-Davies Capital||Simon Leathers||+44 203 463 5022|
|Fairfax I.S. PLC||Ewan Leggat/Katy Birkin||+44 207 598 5368|
|Bishopsgate Communications||Nick Rome||+44 207 562 3350|
|Proconsul Capital||Andreas Curkovic||+1 416 577 9927|
Qualified Persons for Mineral Resources and Reserves
EMED Mining's Mineral Resources and Reserves have been estimated and reported in accordance with the standards of Canadian National Instrument 43-101("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum. Mineral Resources are reported inclusive of Mineral Reserves.
The Qualified Persons who supervised the preparation of Mineral Resources for the Biely Vrch Gold Deposit are detailed in the NI 43-101 Technical Report titled "Amended and Restated NI43-101 Technical Report on the Biely Vrch Gold Deposit, Detva Licence Area in Slovakia", dated 17 November 2010.
The disclosure in this announcement has been compiled and approved by Mr. Ron Cunneen, BSc (Geology), Member of The Australian Institute of Geoscientists, who is employed by EMED Mining as Head of Exploration. Mr. Cunneen has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which is being undertaken to be a Qualified Person pursuant to NI 43-101.
SOURCE: EMED MINING PUBLIC LIMITED
For further information:
Renmark Financial Communications Inc.
Peter Mahzari: [email protected]
Laurence A. Lachance: [email protected]
Media - Guy Hurd: [email protected]
Tel.: (514) 939-3989 or (416) 644-2020