21 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 an update on its gold exploration program in Slovakia for 2009 and to also provide background information about this program within the strategy implemented since the Company’s formation and first visit to Slovakia four years ago.

In late 2008 the European Union (“EU”) published a Communication “The raw materials initiative - meeting our critical needs for growth and jobs in Europe” which highlighted, among other things, the need for Europe to develop its internal sources for raw materials. Parts of Europe have significant minerals endowment and metals industry specialists are being welcomed in selected areas.

In 2008 Slovakia passed legislation specifically permitting gold extraction with conventional cyanidation techniques subject to compliance with EU and other applicable standards. Slovakia is a progressive new member of the EU, was a major source of precious metals in the past but has not yet had the benefit of modern minerals exploration and the application of the principles of modern sustainable development practices as applicable in the minerals sector.

The areas held by EMED Mining historically yielded over 120 million ounces of silver and 3 million ounces of gold. The Company has been active in Slovakia for four years and has demonstrated that its licence holdings host significant gold mineralisation. EMED Mining has recently  completed a positive scoping study for the development of its first Slovakian gold discovery at Biely Vrch.

Highlights of EMED Mining’s Program in Slovakia

Overview of EMED Mining’s strategy and activities:

• EMED Mining was formed by experienced exploration and development managers and investors based on its assessment that selected parts of Europe would become supportive of the development of a modern metal production industry. The minerals endowment in Europe was well demonstrated and the major challenge was geopolitical;
• EMED Mining selected a few projects to focus on from a large number evaluated and prioritised a part of Slovakia where it owns 100% of its exploration licences via subsidiaries;
• The Company’s licence holdings are regularly refined and this continued during 2009. The licences currently cover in aggregate 1,009km2 - the largest such holding in Slovakia;
• The team is based in Banska Stiavnica located in the centre of our exploration holdings and comprises mostly Slovak personnel, supported by other specialists based mainly in Spain;
• Including the Biely Vrch Deposit discovered in 2006, the Company has tested seventeen gold porphyry targets since refining the relevant geological models and tools in 2007. Ten of those targets were tested during 2009 including drilling at four targets; and
• Total expenditure over the four years in Slovakia is €5.2 million, primarily at Biely Vrch. The 2009 budget for all activities is €1 million, less than half the 2008 level. This will be revised in due course as the project warrants and as capital markets continue to recover from the global financial crisis. Priorities in Slovakia for Q4-2009 are to commence the land-selection and permitting process at Biely Vrch and to complete the 2009 exploration program.

Biely Vrch Project:

• In 2008 the Company drilled-out a 1.1 million ounce gold resource (compliant with JORC Standard) at the Biely Vrch Deposit – see announcement 23 February 2009;
• In 2009 the Company and its consultant AMC Consultants, a global leader in mining project assessment and advice, completed a scoping study on the potential development of the Biely Vrch Deposit, showing a Base Case undiscounted Net Cash Surplus of €130 million (US$194 million or £117 million) or a Net Present Value (“NPV”) of €54 million (US$80 million or £49 million) - see announcement of 12 October 2009. This is based on the recovery of approximately 600,000 ounces of gold by open-cut mining methods from the top of the Biely Vrch mineralised system over a 10 year period, assuming a gold price of US$1,000/ounce and currently estimated costs;
• The aggregate discovery cost to date of the Biely Vrch Deposit is in the order of US$5 per ounce resource as against the indicative NPV (of the open cut mine designed to date) in the order of US$80 per ounce resource; and
• For accounts purposes all expenditure in Slovakia has been written off pending a development commitment which will follow the granting of relevant regulatory permitting expected in due course.

Biely Vrch Deeps:

• Drilling results indicate a higher-grade core to the Biely Vrch mineralisation system, with increasing grade at depth and also that mineralisation is open at depth. The Company has to date only completed limited drill-testing of mineralisation below the resources defined at Biely Vrch (“Biely Vrch Deeps”). Biely Vrch Deeps is considered to have multi-million ounce potential and of particular interest is the possibility that the higher-grade core increases in grade sufficiently to render it economic for bulk mining by underground methods.

Prospecting gold porphyries other than Biely Vrch:

• All four gold porphyries drill-tested in 2009 are extensively gold-mineralised, but two are clearly of sub-economic grade. Drilling continues at the other two which are interpreted as similar to but potentially larger mineralised systems than Biely Vrch. The drilling results are encouraging but inconclusive. Drilling will continue as weather permits.

Prospecting other mineralisation styles:

• Other mineralisation styles on EMED Mining’s licence holdings have begun to be assessed by the Company, partly in collaboration with the owners of a high-grade underground gold mine operating on a mining lease surrounded by our exploration licences.

Harry Anagnostaras-Adams, Managing Director of EMED Mining, commented:
“Our major achievements in Slovakia are the completion of a positive scoping study at our Biely Vrch porphyry gold discovery and the establishment of an efficient system for quickly and cheaply testing the many other porphyry gold systems on our ground. Our team is quite well practiced at this task and we consider the odds are in the Company’s favour for making this a multi-mine district.
”Biely Vrch Deeps has multi-million ounce potential and we have other gold styles to test which we think have similar potential. 
“We are well supported by local communities and feel very welcomed in our endeavours.”

... the announcement continues. View the entire announcement "Update on Gold Exploration in Slovakia" (2.05MB 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

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