Slovakia

EMED Mining's activities in Slovakia is concentrated on a cluster of volcanic features in the central part of the country, where the Company is exploring for gold and associated minerals in its 100%-owned Detva, Banska Stiavnica-Hodrusa-Hamre and Velke Pole licences. Each is examined below.

Detva Licence Area

Technical-Economic Facts

The Detva licence area is located 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 area indicates substantial hydrothermal activity. This setting is considered to be a classic geological environment for the formation of large porphyry gold orebodies.

In October 2006, EMED Mining announced the discovery of the Biely Vrch porphyry gold deposit within the Detva licence. During 2008 the Company completed a diamond drilling program of 34 holes on a 100m by 100m grid pattern at Biely Vrch (Fig.1). Gold mineralisation was found to occur within a broad pipe-shaped quartz-veinlet stockwork zone associated with an andesitic porphyry intrusion. A number of drill cores were found to be mineralised over their entire length from surface to a depth of 300m.

The Biely Vrch drill program culminated in an initial JORC-standard preliminary Mineral Resource estimate prepared by Australian Mining Consultants (AMC) in 2009. Oxide and primary sulphide ore types were combined for a Mineral Resource estimate comprised of:

  • Indicated: 17.7 million tonnes at 0.81g/t gold, containing 461,000 ounces
  • Inferred: 24.0 million tonnes at 0.77g/t gold, containing 596,000 ounces

The Mineral Resource area measures approximately 350m north-south and 300m east-west and extends from surface to a depth of 250m. Mineralisation within the vertical pipe-shaped structure continues below this depth.

Using this preliminary mineral resource estimate, AMC prepared a preliminary economic assessment (scoping study) in 2010 that provided strong evidence of the potential value that developing the Biely Vrch deposit would create.

The scoping study indicated a positive base case economic profile for the development of an open-pit, heap-leach project. The key parameters are:

  • Open-pit, heap-leach gold project
  • Capital construction costs of $64 million
  • Cash cost of production $529 per ounce
  • Overall gold recoveries of 81%
  • Production of 60,000 ounces of gold per year
  • Mine life of more than 10 years

Behre Dolbear International reviewed the AMC Biely Vrch Mineral Resource estimate and scoping study in their NI 43-101 Technical Report on the Biely Vrch Gold Deposit (1.2MB pdf) dated 17 November 2010.

In 2011 two deep drill holes were executed at the Biely Vrch gold deposit. Both confirmed continuation of gold mineralisation in depth. Specifically DVE-51 and DVE-52 returned encouraging 761m and 783m at 0.62g/t and 0.84g/t, respectively, from surface, which is three times the depth of above reported resources.

In addition to Biely Vrch discovery, the Company has tested other gold porphyry targets since refining the relevant geological models and tools in 2007 within Detva and Company’s other licences. Eleven of those targets were tested, including drilling at five targets (Kralova, Slatinske Lazy, Zlatno and Sementlov). However, all of them were clearly of sub-economic grade. Other targets, such as Pila, Banisko, Skalka, Kalinka, Stozok and Podpolom, were rejected before drilling.

Permitting

Biely Vrch gold deposit was given "exclusive deposit" status, which gives priority to the land being used for mining activities in September 2010, whilst a Protective Deposit Status was granted at the same year. In addition, EMED Slovakia, a 100%-owned subsidiary, was awarded a Corporate Authorisation for mining activities. 

The District Mining Bureau (“DMB”) has designated a Mining Lease Area over Biely Vrch Gold Deposit in November 2012.  The designation of a mining lease area over future open pit is a significant milestone on the permitting road map, although it is not a mining/operational permit.  Following appeals by activists, the Central Mining Bureau (“CMB”) cancelled DMB’s decision and the case was returned to the DMB for re-decision in May 2013.  As a result the permitting process has been suspended till the end 2016 by decision of the DMB in December 2013. 

In September 2014 the Slovak Parliament adopted an amendment to the Mining Act by which cyanide leaching technology for gold processing in mining industry was totally banned. 

Current Status

Given EMED Mining’s focus on the restart of Proyecto Riotinto, which is progressing rapidly towards production, the Company decided to trade Biely Vrch Gold Resource to an investor, who could apply manpower and budget for its permitting and development. Currently, EMED is in communication with local and foreign investors, who demonstrated interest in this asset.

Banska Stiavnica-Hodrusa-Hamre and Velke Pole Licence Areas
Further Information