Euromax finds high-grade gold zone at Trun
2006-08-22 09:43 ET - News Release
Mr. John Menzies reports
EUROMAX DISCOVERS HIGH GRADE GOLD ZONE AT NADEJDA, BULGARIA
Euromax Resources Ltd. has confirmed the discovery of a high-grade gold zone, Nadejda, on the Trun exploration licence in western Bulgaria. This gold zone, with notable coarse visible gold in outcrop and grades of up to 440 grams per tonne gold in channel samples, was not discovered by historic Roman or Thracian miners nor by more recent investigations by state geologists.
The Trun exploration licence is subject to a joint venture agreement with Teck Cominco Ltd. Under the terms of the joint venture agreement, Euromax is completing an initial program of not less than $280,000. Teck Cominco can then elect to earn a 55-per-cent interest in the Trun property by spending $3-million over four years. If Teck Cominco elects to pick up the option with respect to the Trun property, it shall exercise sufficient warrants, from a financing completed in March, 2006, to provide Euromax with additional minimum proceeds of $1-million. Upon Teck Cominco earning its 55-per-cent interest, it shall have an option to increase its interest to 70 per cent by spending an additional $10-million. If Teck Cominco earns a 70-per-cent interest in the Trun property its total investment will be approximately $14.7-million.
A large program of geochemistry and reconnaissance mapping in 2004 defined significant gold anomalies which have been systematically evaluated during 2005-2006. The high-grade Nadejda zone was discovered after reconnaissance prospecting of a soil geochem anomaly returned 14 metres of nine g/t gold in a chip sample.
The mineralization is classed as intrusion-related gold (IRG) style, a recently defined deposit class which includes a number of recently discovered mines in Alaska. A large, 12-square-kilometre, intrusive complex has been mapped with extensive alteration and widespread gold in soil anomalies. The higher grades occur within a zone of intense silicification and narrow-vein stockwork close to a dacite porphyry dike hosted in a 2.5-kilometre-by-1.5-kilometre equigranular granodiorite body which cores the intrusive complex. The gold has a high fineness, occurs as coarse clusters up to five millimetres in size and is associated with quartz with a very low sulphide content, generally less than 0.5 per cent.
The area is relatively rugged and outcrop is sparse. The mineralized zone has now been traced discontinuously over a strike length of 1,500 metres a width of up to 70 metres and a vertical elevation range of 300 metres. Channel sampling in newly excavated trenches has been completed over 300 metres of strike, with the better results, at a one-gram-per-tonne cut-off grade, including:
eight metres at 22.8 g/t gold including 1.5 metres at 106 g/t gold;
20 metres at 10.5 g/t gold including three metres at 59 g/t gold; and
eight metres at 12.9 g/t gold, including one metre at 22.2 g/t gold and one metre at 64.2 g/t gold.
Rock chip samples along strike from the above channel samples include 12 metres at 17 g/t gold and 10 metres at two g/t gold. Work continues with mapping and trenching in addition to a large geochemical program which is close to completion with more than 7,700 samples planned.
Georgie Vakarelski, a senior Bulgarian project geologist, said, "In my 30 years as a professional geologist in the Balkans I have never seen such a large amount of visible gold and it amazes me that neither the Thracians nor the Romans discovered this."
"This is what modern exploration technology brings to Bulagria, new unexpected discoveries, potentially creating wealth for all Bulgarians. We bring new deposit models and techniques and the best environment practices," commented John Menzies, chief executive officer and chairman of Euromax.
Trench assaying was done at the Eurotest AD laboratory in Sofia, Bulgaria, an ISO9001 accredited facility. Higher grade zones were selectively resampled and submitted to ALS Chemex in Canada. Considering the coarse gold and expected high sample variance associated with resampling and coarse gold the results confirm the Eurotest results.
Mr. Menzies, a qualified person as defined by National Instrument 43-101, supervised the preparation of the information in this release.
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