12 October 2009

EMED Mining Public Limited (“EMED Mining” or “the Company”), the European-based minerals exploration and development company formed by international specialists, is pleased to announce positive results for the Scoping Study assessing the development of the wholly-owned Biel Vrch Gold Mine in Central Slovakia.

The Scoping Study, undertaken by AMC Consultants (UK) Ltd (“AMC”), has indicated that the development of a ten-year 3 million tonnes per annum mining and metal production operation producing approximately 60,000 ounces of gold per year has attractive economics based on the project’s technical parameters, current cost estimates and gold prices.

In particular, further metallurgical testwork undertaken as part of the Scoping Study has confirmed that the ore is not refractory and indicates metal recovery of approximately 81% of the gold. Recovered grade is estimated at 0.6-0.7g/t gold.

Based on the parameters detailed further below and a gold price of US$1,000/ounce, the BV Gold Mine Scoping Study by AMC indicates a base case with:

• Net present value to shareholders (“NPV”) of US$80 million at a 10% discount rate, internal rate of return (“IRR”) of approximately 39%; 
• Initial expenditure of US$45 million with a payback period of 2 years;
• Expenditure in the surrounding region of over US$400 million during the project life with average cash operating cost of US$590/ounce and cumulative cash surplus (undiscounted) of approximately US$194 million, and
• Employment of approximately 200, mainly local, personnel.

The Company has also committed to implement, in partnership with local municipal authorities, the EMED Mining social licence programs including the provision of seed capital to local new enterprises and facilitation of industrial diversification where feasible. One of the major enterprises in the district today is notably a long-standing producing mine, the Rosalia Gold Mine with which EMED Mining also has an exploration alliance.

The version of this announcement which has been uploaded onto the Company website includes some images depicting the Biely Vrch deposit.

The Company is assembling a comprehensive update for shareholders on its exploration programs in Slovakia which to date have cost, in aggregate, less than $5/oz Resource (compliant with the JORC standard). This will also be released this month.

EMED Mining is also pleased to announce that at the National Mining Museum of Slovakia in Banska Stiavnica, Mr Harry Anagnostaras-Adams, Managing Director of EMED Mining and Mr Demetrios Constantinides, Managing Director in Slovakia, were made Honorary Members of the Association of Miners.
Mr Anagnostaras-Adams commented: “We are honoured to be accepting this recognition on behalf of the team and we undertake to continue working hard to protect the trust which the local community and industry have placed in us.

“Our first Project Scoping Study provides strong evidence of the potential value that developing the deposit at Biely Vrch would create for all stakeholders.

“Exploration continues to provide encouragement that further porphyry gold deposits similar to Biely Vrch will be discovered by EMED Mining. And we also plan to test other styles of mineralisation in this once-world-class precious metals province.

“The Biely Vrch Gold Mine project has a short payback period of only two years based on a forecast gold price at today’s price of approximately US$1,000/ounce.

“The next steps are to select and procure the land sites for mine infrastructure, finalise any restrictions in relation to the industrial complex nearby, resolve the rate of government royalty and agree with the authorities the timetable and conditions of permitting. Upon satisfactory progress on these fronts we will commence the reserve drill-out and detailed engineering required for a Definitive Feasibility Study. If all that goes well, the Board will trigger development in 2012."

...this announcement continues. Read the entire announcement "Positive Scoping Study Outcome for the Development of the Biely Vrch Gold Mine (or "BV Gold Mine") (398KB pdf).


Enquiries
EMED Mining                              Fox-Davies Capital          RFC Corporate Finance       Bishopsgate Communications
Harry Anagnostaras-Adams         Jason Bahnsen                     Stuart Laing                              Nick Rome
+357 9945 7843                          +44 (0)207 936 5230           +618 9480 2500                      +44 (0)207 562 3350

For further information on the Company's activities, visit www.emed-mining.com or www.emed.tv