Empire Mining suspends Bulqiza Chromite Project

TIRANA, Nov. 7- Canadian-based Empire Mining Corporation says that it has suspended its Albanian operations due to the discovery of material omissions in its renewed exploration licenses. In January 2011, Empire applied for automatic renewal of its Albanian exploration licenses, having fulfilled all legal and technical requirements required by the legislation under which the licenses were granted in 2009. Due to the implementation of new Albanian mining laws, the license renewal was delayed but finally completed on October 30, 2011. While the renewal was pending, Empire was permitted to continue chromite exploration but restricted from conducting mining activities. Under the old law, Empire could sell ore it encountered in exploration activities, however under the new law ore can only be sold once a mining license is granted; it was therefore Empire’s intent to mine and stockpile ore upon renewal of its exploration licenses and to simultaneously apply for mining licenses. While the exploration licenses have now been renewed, it has unfortunately come to Empire’s attention that they contain material omissions with respect to size and coordinates.
In an effort to rectify the matter, Empire has held emergency meetings with high-level members of the Albanian government, including the Albanian Prime Minister’s Advisor, and both the Minister and Deputy Minister of Economy, Trade and Energy. Initial reports from these meetings suggest that the omissions identified in the renewed exploration licenses may simply be due to errors made by the Department of Mines; if true, this issue could possibly be rectified expeditiously. However, based on the well-established precedent of bureaucratic delays consistently encountered by Empire in Albania, management has decided that the only reasonable recourse is to suspend Albanian operations and lay-off Albanian staff until the exploration license issues are rectified, and the subsequent mining licenses are awarded in full.
Last September, Empire Mining Corporation announced full results of the underground drilling program completed at the Thekna Deposit, which forms part of the Bulqiza-Batra Licence at Empire’s wholly owned Bulqiza chromite project in Albania. Four diamond core holes totaling 1,550.7 meters were completed at Thekna to target a reported historical resource and its potential down-dip continuation from existing workings which were accessed from several audits. Empire is pleased to report that three of the four holes successfully intersected the intended target and returned significant chromite mineralization.