EMED Mining (AIM: EMED) said that 2010 promises to be a transformative year for the mine development company as it progresses towards the re-commencement of copper production at the Rio Tinto mine in Spain and gold development at Biely Vrch in Slovakia.
In the three months ended 31st December 2009, EMED made progress in Spain as the Andalucía government confirmed the process for permitting the start-up. The company also received expressions of support from the government, local municipalities and key labour unions.
"In Spain we continue to work with the authorities to enable the restart of production at the Rio Tinto Mine in 2011, the development of which would make a significant contribution to employment and the economy in Andalucía”, EMED Mining MD Harry Anagnostaras Adams commented, "In Slovakia we have commenced preparing and submitting permit applications for development of the Biely Vrch Gold Deposit. We have been welcomed in both Spain and Slovakia and work well within the communities and with regulatory authorities”
Additionally the copper price appeared positive during the quarter, at current prices projected net operating cash flow is estimated to average €67m per year under the current development plan, EMED said.
The company is currently targeting 2011 for production at the Rio Tinto mine in Andalucía. Over the course of the next twelve months EMED have timetabled the regulatory and permitting process. During the current quarter detailed regulatory responses will begin to be submitted. Public consultations, further regulatory reviews and administrative approvals are expected to be completed from the second quarter of the 2010 calendar year onwards. Separately EMED will seek shareholder approval and commence start-up activities at the mine through the third and fourth quarter of 2010.
At the Detva gold project in Slovakia, the company triggered project refinement and development permitting, following the completion of a positive Scoping Study on the 1.1 million ounce Biely Vrch gold resource. EMED has also prioritised exploration targets in central Slovakia for testing in 2010 including high-grade vein-style targets with potential for both underground and open-cut mining.
In December, EMED raised £3.3 million through a placing of 27.7 million shares at 11 pence per share. The proceeds will be used to fund the permitting process for the Rio Tinto copper project, as well as the mine-development planning and the exploration programme in Slovakia.
Disclosure: The author holds no positions in the company