Eurasian Minerals announces an exchange of properties on Turkish holdings
16 November 2006
Vancouver based Canadian company Eurasian Minerals Inc. (EMX), and its wholly owned Turkish subsidiary Eurasia Madencilik Ltd. Sti, has announced an exchange of properties with Dedeman Madencilik San. ve Tic. A.S.
The agreement includes transfer of EMX’s Balya and Sofular lead-zinc properties to Dedeman in exchange for the Alanköy high sulfidation gold-copper property.
Dedeman is a leading Turkish mining company, with nine active mines that produce lead, zinc, silver, and over four percent of the world’s chrome ore.
The property exchange with Dedeman positions EMX with a potential royalty stream from production at Balya, while enhancing EMX’s discovery opportunities in Turkey with the Alankoy property.
EMX’s Balya and Sofular base metals properties occur in western Turkey’s Anatolia mineral province.
The Balya exploration license controls an important sector of the historic Balya mining district. The district produced lead, zinc, silver and copper from skarn, vein, and replacement deposits between 1880 and 1938. The property was drilled by the Turkish government during the late 1970s with eight core holes totaling 1,934 m. Four of the holes intersected lead-zinc skarn mineralization, with historic, non 43- 101 compliant lead-zinc resources reported for the property’s Hastanetepe zone. These drill results, coupled with the districts past production, suggest that there is both upside exploitation and exploration potential at Balya. The Sofular property hosts a structurally controlled lead-zinc (copper) vein with an average thickness of 0.8 m and rockchip grab samples assaying over 3% lead and 10% zinc. There is evidence of historic, but limited, exploration from an adit driven on the vein and a small dump comprised of visibly mineralized material. As well, lead-zinc stream sediment anomalies occur elsewhere on the property.
Dedeman’s Alanköy license, also located in the Anatolia mineral province, is a high sulfidation, epithermal gold-copper property east of the Kirazli discovery. The property was originally discovered and explored by a Turkish-Japanese government initiative between 1989-1991. This work included 12 core holes totaling 1812 m. Alankoy is very similar to EMX’s Sisorta property, with gold mineralization hosted in high sulfidation style zones of capping silica and advanced argillic alteration. EMX will focus on surface mapping, sampling, and geophysical surveys to quickly advance the project to drill-ready targets.
The exchange includes transfer of EMX’s Balya and Sofular base metal properties to Dedeman. Balya consists of one exploration license covering 1,573 hectares, and is located in Balikesir province. A summary of the terms include:
• Dedeman is to make a US$100,000 advance royalty payment to EMX prior to the first anniversary of the agreement.
• Dedeman’s work commitment is to drill a minimum of 12 exploration holes for a total of 3000 meters during the first year of the agreement; $500,000 in year 2; and $1,000,000 in year three.
• EMX retains a four percent net smelter royalty.
• EMX retains a reversionary right to re-acquire the property if Dedeman decides to relinquish the license or does not meet its work commitment.
The Sofular property consists of four licenses totaling 5937 hectares located in Canakkale province. A summary of the terms includes:
• EMX retains a three percent net smelter royalty on the property.
• Dedeman has the right to purchase the three percent royalty at any time for US$ 1,000,000.
• EMX retains a reversionary interest in the properties should Dedeman decide to relinquish one or more of the licenses.
Alankoy Property to EMX
The exchange also includes transfer of Dedeman’s Alankoy property to EMX. A summary of terms includes:
• EMX is to make a US$100,000 advance royalty payment to Dedeman prior to the first anniversary date of the agreement.
• Dedeman retains a three percent net smelter royalty on the property.
• EMX retains the right to purchase Dedeman’s three percent royalty for US$ 1,000,000 at any time.
• Dedeman retains a reversionary right to re-acquire the property should EMX decide to relinquish the license.
EMX is exploring and investing in a first class mineral property portfolio located in some of the most prospective, but under-explored mineral belts of the world including Turkey, the Kyrgyz Republic, eastern Europe, and Haiti. EMX is also participating in quality, early stage exploration investment opportunities to add shareholder value while simultaneously minimizing stock dilution.
thenewanatolian.com
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