Cyprus

Cyprus has been the focus of intensive exploration and mining activity since ancient times, resulting in the discovery and exploitation of numerous deposits located in the Pillow Lavas Series of Troodos Ophiolite.

EMED Mining's 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 1.0% and 4.5% copper.

EMED Mining started exploration work in Cyprus in the beginning of 2005. During the years 2006-2008, the Company carried out exploration focusing on targets selected by the application of GIS methods, and utilising information comprising geological maps at various scales, helicopter-borne magnetic and electromagnetic data, remote sensing (Landsat, ASTER) and drilling.

Resources
In parallel with these activities, resources defined from historical work were progressed to scoping/prefeasibility stage by verification drilling and metallurgical test work. These resources are shown in Table below.

Prospective Areas
The key criteria for defining the best areas to evaluate has been the geological understanding, projection of geological information into covered areas and the use of airborne magnetics. This has been done to define three prospective areas, namely West Nikitari, North Alestos and North Klirou. Success of this methodology is demonstrated by the discovery of the blind North Alestos mineralisation.

Klirou Copper-Zinc Project

The Klirou Copper-Zinc Project is located approximately 20 km southwest of Nicosia.

The first phase of exploration included a geophysical program, performed in 2005, which comprised a calibration survey over the Klirou mineralisation, as well as additional work in the surrounding area. The survey was preceded by an evaluation of the Dighem data. It was followed by a gradient array survey. Drilling of two holes failed to intersect any mineralisation. A third hole was also drilled on an IP anomaly with similarly negative results.

The second phase of exploration started with a 3D IP survey performed in the summer of 2006. Drilling on the marginal parts of chargeability anomalies indicated that the anomalies were due to a halo effect resulting from the exposed disseminated mineralisation.

In a separate exercise, massive cupriferous mineralisation was intersected during sterilisation drilling at the Phtelekha prospect south of the Klirou deposit. Drilling at 100 m centres intersected sporadic mineralisation in several holes, with best intersection of 35m averaging 0.47 % Cu, and highest-grade interval of 4m averaging 1.86 % Cu.

Finally, drillhole EMD11 was sited at the crossing of a north-trending belt of low magnetic and a northeast-trending structure. The hole intersected 100m of sediments prior to entering Upper Pillow Lavas (final depth of 401.6 m). Native copper in the form of coatings and vesicle fillings was noted at several intervals in the hole, probably suggesting the presence of mineralisation in the vicinity.

In late 2007, AMC completed an independent review of the project. Financial modelling based on the available information and work completed continues to indicate that the project is worthy of further work. This review highlighted the following key areas for further work before justifying the commencement of a feasibility study for the Klirou project:

  • Expansion of resources through successful exploration
  • Diamond core drilling to verify and upgrade categorisation of known resources, plus sample collection for metallurgical testwork
  • 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.

South Mathiatis Prospect and Environs

Estimation of the resource suggests the presence of approximately 2.1 million tonnes of ore of average grade 1 % Zn. Local control of the mineralisation is provided by the intersection of north- and northeast-trending structures.

A 3D-IP survey was performed along six lines by SJ Geophysics in 2006, covering the area of known mineralisation and its northern extensions. Two drillholes (Fig. 1) tested a high chargeability anomaly intersecting disseminated pyritic mineralisation with highest Zn value of 0.82 %.

At Agrokipia “B” deposit (Fig. 1) three holes confirmed the relatively high zinc content of the mineralisation, with drillhole EMR43 intersecting 40m averaging 1.25 % Zn and 0.13 % Cu.

Northwest of South Mathiatis, an extensive region of low magnetic intensity defines the North Mitsero prospect. The anomaly was tested by one drillhole to a depth of 376m, where it was terminated in unmineralised lavas.

North Alestos Prospect

The prospect was initially identified on the basis of ground checking of a magnetic analytic signal (MAS) anomaly.

The first phase exploratory works included a TEM survey along a number of east–west-oriented lines, IP survey and drilling holes. Many of them intersected disseminated sulphides with variable grades.

The second phase of exploration comprised a 3D-IP method that defined two parallel zones of high chargeability. Subsequent drilling indicated that the chargeable zones were generally associated with disseminated mineralisation locally reaching economic grades.

The best drilling results at North Alestos prospect were from drillhole EMR 44 with 47m @ 0.43% Cu (with the last metre at 150m depth returning 0.74% Cu) and from drillhole EMR47 with 50m @ 0.54% Zn.

The disseminated mineralisation has not yet been adequately explored. The main target of interest is the well-defined magnetic low in the northeastern extension of the investigated area.

EMED Mining’s Prospecting Permits

Current EMED Mining’s prospecting permits cover 34 km2 of ground. These include the resources of Klirou, South Mathiatis, New Sha, Kokkinoyia and Agrokipia and the following VMS targets: West Nikitari, North Alestos, North Ayia Marina, and North Klirou. To these may be added the search for extensions to the Klirou deposit to the east.

Current Status
Given EMED Mining’s focus on the restart of Proyecto Riotinto, we have negotiated an Earn-in Agreement with a company that has the ability to properly address the exploration and potential development of the Cyprus properties.