Karavansalija copper-gold acquisition completed, drilling commenced
Mon Jun 9, 9:02 AM
ca.news.finance.yahoo.com
VANCOUVER, June 9 /CNW/ - EurOmax Resources Limited (TSX-V: EOX.V) ("EurOmax") is pleased to announce the completion of a 43-101 report, the receipt of regulatory approval for and closing of the acquisition from Freeport-McMoRan Exploration Corporation ("FMEC") of the Karavansalija property. Drilling on this property has commenced.
The Karavansalija property covers a 60 square kilometre alteration zone and two well defined mineralized centres have produced encouraging results including, 166 metres at 1% copper equivalent including 62 metres at 1.7% copper equivalent, 194 metres at 0.9% copper equivalent, 115 metres at 1.4 grams per tonnes gold and in one hole 42 metres at 3.1 grams per tonne gold followed by 99 metres at 0.4% nickel, 0.03% cobalt and 0.55 grams per tonne gold.
Drilling will focus initially on the Karavansalija Mineralized Centre (KMC) which covers an area of roughly 12 square kilometers where carbonates and strongly altered volcanics are intruded by a wide quartz latite dyke swarm. Central to the KMC is a coincident gravity, magnetic and topographic anomaly covering approximately 4 square kilometers. Strong lead and copper soil geochemical anomalies largely surround this feature and are often related to ancient mining activity. Skarn mineralization is widespread in outcrop and the subsurface possibly forming mantos around an unexposed intrusion.
The first drill hole has commenced on the volcanic hosted gold and the underlying silica-breccia mineralisation. In this area previous drilling reported some encouraging results including: 42 meters from surface grading 3.1 grams per tonne gold including 28 meters grading 4.37 grams per tonne gold and 99 metres grading 0.4% nickel, 0.03% cobalt and 0.55 grams per tonnes gold. The objective is to test a strong IP-low resistivity feature which was only partially tested by previous drilling and is interpreted to be an intrusive breccia, 400 metres wide extending to the vertical limits of the survey - approximately 600 metres.
Acquisition Terms
EurOmax has acquired an option to acquire a 100% interest in the Karavanslija property by the payment to FMEC of USD50,000, and issuing 2,500,000 shares. In order to exercise the option EurOmax must complete an exploration program over 3 years including 4,400 meters of drilling at the direction of FMEC. FMEC retains a one-time only back in-right after Euromax has completed 20,000m drilling, wherein FMEC may elect to earn a 70% interest by completing a feasibility study and paying to EurOmax a 1% net smelter royalty ("NSR"). If FMEC does not exercise its back-in right, EurOmax shall pay to FMEC a 1% NSR.
Quality Control and Assurance
All of the work reported in this press release was undertaken by FMEC's Serbian subsidiary. Samples were assayed at Eurotest Control AD and American Assay Laboratories both ISO 9001 accredited laboratories. The Company believes these results to be reliable and understands that quality control standards and blanks were used.
Copper and gold equivalent calculations use metal prices of USD 1.25/lb copper and USD 550/oz gold. Adjustment factors for differences in relative metallurgical recoveries for gold and copper have not been be considered and metallurgical recoveries and net smelter returns are assumed to be 100%.
Independent Report
The independent 43-01 report is available of the company's website and on SEDAR.
Qualified Person
John Menzies, a qualified person as defined by National Instrument 43-101, supervised the preparation of the information in this release.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
On Behalf of the Board of Directors
"John C. Menzies"
Chairman and CEO
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EurOmax Resources Limited is listed on TSX Venture Exchange Symbol: EOX
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Contacts
www.euromaxresources.com
Investor Relations: David Stothard
T: (347) 284-0062
d.stothart@euromaxresources.com |
