Issued Capital:
46,949,155 common shares
Stock Exchange
TSX Venture Exchange
Symbol: EOX
VANCOUVER, July 13 /CNW/ - EurOmax Resources Limited is pleased to announce it has closed the options to acquire four exploration properties in Macedonia and five exploration properties in Serbia from Freeport McMoran Inc subsidiary Phelps Dodge Exploration Corporation (PDX) and its Macedonian and Serbian subsidiaries. Under the terms of the agreement EurOmax has an option to acquire a 100% interest in the Macedonian properties by the payment to PDX of USD$600,000 and the issuance of 100,000 EurOmax shares and an option to acquire 100% of the shares of Mining and Geology South Danube Metals Beograd South (SDM), a PDX Serbian subsidiary, subject to exclusion of one of the SDM licenses, by the issuance of 2.40 million shares of EurOmax. In order to exercise the options EurOmax must fulfill all concession requirements, fulfill a certain minimum volume of drilling, and complete a US$1.5 million exploration program in each of Macedonia and Serbia over 3 years. PDX retains a one time only back in-right on each concession, whereby PDX may elect to earn a 70% interest, after EurOmax has EurOmax Resources Ltd. completed 10,000 metres on any such property. In order to earn its interest PDX must repay EurOmax twice its exploration expenditure on that property and fund the property though completion of a final feasibility study.
EurOmax is commencing an exploration program in each of Macedonia and Serbia.
In Macedonia the initial program includes 1,500 metres of diamond drilling at Ilovista and 1,000 metres of reverse circulation drilling and 1,000 metres of trenching at Kazandol. At Ilovitza a large copper-gold bearing quartz stockwork variably exposed over an area of 800 by 400 metres and has been traced to a depth of 500 metres. PDX drilled seven diamond drill-holes at Ilovitza, five of which intersected mineralised porphyry. The mineralised stockwork is centred on a dacite porphyry stock central to a 1.3 km diameter volcanic diatreme. The stock is pervasively altered and stockworked at surface. Included in this drilling was an intersection of 363 metres grading 0.25% copper and 0.36 grams per tonne gold.
In Serbia, the initial program includes 900 metres of diamond drilling at Rudnitza and 800 metres of diamond drilling at Ceovishte. The Rudnitza copper-gold porphyry prospect consists of a large quartz vein stockwork zone outcropping over an area of 400 metre by 300 metres. The quartz stockwork, with vein density greater than 30 veins per metre, is developed within a quartz-magnetite alteration zone with biotite at depth. This is surrounded by larger argillic and advanced argillic alteration zones. PDX drilled seven holes at Rudnitza. Included in the drilling was an intersection of 144 metres grading 0.40% copper and 0.37 grams per tonne gold in a 244 metre drill hole which graded 0.28% copper and 0.37 grams per tonne gold over the complete length of the drill hole.
EurOmax also announces that it has granted 195,000 stock options to directors and employees. The stock options have an exercise price of $0.72 and a 5 year term.
All of the work reported herein was undertaken by PDX. Samples were assayed at Eurotest Control AD and American Assay Laboratories, Nevada, both ISO 9001 accredited laboratories. The Company understands that PDX used industry standard quality control procedures and believes these results to be reliable. John Menzies, a qualified person as defined by National Instrument 43-101, supervised the preparation of the information in this release.
"John Menzies"
Chairman & CEO
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.