The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from CNW Group

EMED Mining quarterly operational update

Monday, July 16, 2012

EMED Mining quarterly operational update02:00 EDT Monday, July 16, 2012EMED Mining is listed on AIM (Code: EMED) and the TSX (Code: EMD)NICOSIA, Cyprus, July 16, 2012 /CNW Telbec/ - EMED Mining Public Limited (AIM: EMED) (TSX: EMD) ("EMED Mining" or "the Company"), the Europe-based minerals development and exploration company, announces today the following operational update for the three-month period ended 30 June 2012. The full Quarterly Report, including consolidated Financial Statements and the Management Discussion and Analysis, will be issued on or about 13 August 2012.Harry Anagnostaras Adams, Managing Director of EMED Mining, commented:"We are progressing strongly on key fronts: permitting, project planning, financing, land access."Key PointsThe start of production commissioning at the Rio Tinto Copper Mine remains targeted for end-2013, based on progress during the quarter.Andalucian Government regulatory procedures continue on track with the key approvals of the project restart being processed during the current quarter:Environmental plans, following public comment which closes this weekProject plans, following review by the national technical agencies which are well advancedAdministrative Standing, following clearance of due diligence of legal matters in 2011 and of financial and technical capacities, which have now been triggered formallyNegotiations have been successfully completed with the owners of nearly all adjacent lands required for the project waste deposition. Less than 4% of land required for the project remains to be acquired and current efforts are focused on achieving this by commercial agreement.The project and construction management team has been mobilised to site and expects to have a definitive project execution plan ready in Q4-12 for finalising procurement and financing agreements. Capital expenditure and scheduling estimates remain subject to the conditions of final project permitting, particularly environmental management and restoration plans. More consideration is also being given to the potential to expand mine life and production rate after initial production levels have been achieved.Product marketing arrangements have been agreed with cornerstone customers who are also participating in the project financing, namely Goldman Sachs International and Xiangguang International.Project financing arrangements have advanced to detailed documentation which reflect that all funding to date has been by way of shareholders' contributions of equity capital and most remaining funding needs for the project restart are expected to be satisfied by the proceeds of product presales.Project planning has identified a number of opportunities to expand production beyond the base case of 37,000 tonnes per annum copper-in-concentrate sales (9 million tonnes per annum ore throughput) and the relevant studies will be initiated on the following aspects after the project restart has been triggered:To increase ore reserves from currently reported 123 million tonnes to a target of circa 200 million tonnes by seeking to convert more of the existing resources to reserves and through further reserve discovery work. This process will encompass:Re-optimising cut-off-grade in light of copper prices higher than the assumed $2/lbIn-fill drilling aimed at enabling additional resources to be converted into reservesStep out drilling adjacent to the pit to delineate additional resources and reservesReview of the tailings deposition method to optimise holding capacity of the land footprintTo increase ore processing capacity beyond the base case of 9 million tonnes per annumThe Company has formed a Joint Venture to examine the potential for reprocessing tailings at Rio Tinto.In Slovakia, the Detva Gold Project focuses on community consultation as part of the processing of its application for the regulatory approval of its Mining Lease Area. Qualified Persons for Reporting of Resources and ReservesInformation in this report as regards the Rio Tinto Mine that relates to Mineral Resource estimates is based on information compiled by Mr. Pat Stephenson, BSc (Geology) and Mr. Ron Cunneen, BSc (Geology), with Mr. Stephenson taking responsibility for the Mineral Resource estimates and Mr. Cunneen taking responsibility for the data on which the estimates are based.Mr. Stephenson is Regional Manager, Vancouver and Principal Geologist with AMC Mining Consultants (Canada) Ltd and a full-time employee of that company. He is a Fellow of The Australasian Institute of Mining and Metallurgy.Mr. Cunneen is Head of Exploration for EMED Mining and a full-time employee of that company. He is a Member of The Australian Institute of Geoscientists.Information in this report as regards the Rio Tinto Mine that relates to Ore Reserve estimates is based on information compiled by Mr. Andy Robb, BSc (Mining Engineering). Mr. Robb is Principal Mining Consultant with AMC Consultants and a full-time employee of that company. He is a Member of the Australasian Institute of Mining and Metallurgy.Mr. Stephenson, Mr. Cunneen and Mr. Robb have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activities which they are undertaking to qualify as "Competent Persons" as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" ("JORC Code") and "Qualified Persons" as defined in the "National Instrument 43-101 of the Canadian Securities Administrators" ("NI 43-101") and "CIM Definition Standards For Mineral Resources and Mineral Reserves" of December 2005 as prepared by the CIM Standing Committee on Reserve Definitions of the Canadian Institute of Mining.Mr. Stephenson, Mr. Cunneen and Mr. Robb consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.Information in this report regarding the Rio Tinto Mine that relates to San Dionisio mineralisation is based on information compiled by the on-site geological team and overseen by Mr. Cunneen.References in this report as regards the Mineral Resources or exploration results and potential in Slovakia, Cyprus or elsewhere have been approved for release by Mr. Ron Cunneen.  Corporate Directory DirectorsNon-Executive Chairman - Ronnie BeevorManaging Director - Harry Anagnostaras-AdamsFinance Director - John LeachNon-Executive Directors - Jasper Bertisen, Roger Davey, Robert Francis, Ashwath Mehra, Jose Sierra LopezNominated AdviserRFC Corporate Finance - Stuart Laing (+61 8 9480 2500)BrokersFox-Davies Capital Limited - Simon Leathers (+44 203 463 5022)Fairfax I.S. PLC - Ewan Leggat/Katy Birkin (+44 207 598 5368)Canaccord Genuity - Craig Warren (+1 416 869 7316)Public RelationsBishopsgate Communications - Nick Rome (+44 207 562 3366)Share RegistrarComputershare Investor ServicesIssued Capital30 June 2012 Pro Forma After Land Acquisition 972 million shares on issue76 million options and warrants on issue     1,048 million shares on issue on a fully diluted basis1,053 million shares on issue76 million options and warrants on issue1,129 million shares on issue on a fully diluted basis Significant Shareholders(fully diluted) Management and Board (excl. companies they represent)Resource Capital Funds (USA and Australia)Xiangguang International Holdings (China)RBC Asset Management (Canada)RMB Australia Holdings Limited (Australia and elsewhere)Astor Holdings AG (formerly MRI Group) (Switzerland)Standard Life (United Kingdom) Rumbo 5 Cero30 June 2012 7%16%10%9%6%3%3%nilProForma After Land Acquisition6%15%12%9%6%3%3%4%   For further information: Investors/Media: Harry Anagnostaras-Adams +357 9945 7843. In North America : Andreas Curkovic +1 416-577-9927General: Email: info@emed-mining.com Renmark Financial Communications Inc.  Peter Mahzari: pmahzari@renmarkfinancial.com Laurence A. Lachance: llachance@renmarkfinancial.comMedia - Guy Hurd: ghurd@renmarkfinancial.com Tel.: (514) 939-3989 or (416) 644-2020 www.renmarkfinancial.com