VANCOUVER, May 26 /CNW/ - EurOmax Resources Limited (TSX-V: EOX) ("EurOmax") is pleased to announce a new agreement with Freeport-McMoRan Exploration Corporation ("FMEC") to acquire the Karavansalija property in Serbia.
John Menzies, Chairman and CEO of EurOmax commented, "Karavanslija is a
significant acquisition, with large mineralized systems within extensive
alteration zones. Drill results are encouraging with 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. In our
opinion, the Karavansalija property is one of the largest mineralised
systems presently being explored in SE Europe."
Karavansalija Property (Pronounced "karavan - sal - eya")
The 60 square kilometer Karavansalija licence in southern Serbia covers serpentinite in contact with up to 600 meters of carbonates which are overlain by younger volcanics intruded by dykes. Evidence of ancient mining activity is widespread on the property, extending well beyond the areas recently drilled. Soil geochemistry and geophysics have recently been completed over approximately 20 square kilometers and 27 diamond drillholes have been drilled.
There are two well defined mineralised centres on the property within a 60 square kilometer alteration zone: Karavansalija and Medenovatz Mineralised Centres.
Karavansalija Mineralised Centre
The Karavanslija mineralised centre (KMC) 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 geochem anomalies largely surround this feature and are often related to ancient mining activity. Skarn mineralisation is widespread in outcrop and the subsurface possibly forming mantos around an unexposed intrusion.
Diamond drilling has focused on the southern well exposed skarn mineralisation with several holes in and around the gravity-magnetic anomaly. Four styles of mineralisation have been encountered within the KMC: copper-gold skarns, lead-zinc-copper-gold skarns, gold in volcanics and gold-nickel-cobalt silica breccias.
Copper-Gold Skarns
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The copper-gold skarns within the KMC have been traced with drilling over a strike of more than 600 meters. The main 150 meter wide copper-gold skarn body is developed between thick quartz latite dykes. Geophysics (IP) suggests that this zone extends for another 1.5 kilometers to the southwest under marly limestone. A summary of drillhole results is provided below:
Karavansalija - Cu-Au Skarn Intercepts
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Intercepts
from To Length Cu Au Cu Eq. Au Eq.
Drill Hole No. (m) (m) (m) (%) (g/t) (%) (g/t)
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PDMC611 18 184 166 0.58 0.63 0.98 1.55
Incl. 82 144 62 1.05 1.01 1.69 2.67
PDMC616 10 165 155 0.40 0.32 0.60 0.95
Incl. 14 36 22 0.52 0.97 1.12 1.77
Incl. 124 165 41 0.97 0.17 1.08 1.71
228 258 30 1.85
PDMC618 5 199 194 0.67 0.34 0.88 1.40
339 364 25 1.22
PDMC620 201 316 115 1.37
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Metal equivalent calculations: See below.
PDMC620 interval to bottom of hole.
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Wide spaced drillholes within the gravity anomaly, well to the north of the main outcropping skarn, have intersected copper-gold skarn mineralisation beneath altered volcanics.
Lead-Zinc-Copper-Gold Skarns
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The lead-zinc-copper-gold skarns were the subject of ancient mining and more recent exploration and are locally high grade. Similar skarns are mined at the giant Trepca deposit (reported initial resources 60 million tonnes at 10% Pb+Zn and 100 g/t Ag) 20 kilometers to the south east. Within the KMC the lead-zinc skarns have not been systematically explored and their extent is unclear. A single recent drillhole PDMC721, intersected this style of mineralisation with 22 meters at 0.30% copper, 1.62% lead, 0.90% zinc and 0.45 grams per tonne gold.
Volcanic Hosted Gold
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Altered volcanics within the KMC overlie skarn and carbonates. Gold in the volcanics is hosted in silicified zones with massive and disseminated sulphides. Based on the results of only two drillholes the volcanic hosted gold mineralisation has a strike of at least 200 meters with a similar width. Diamond drillhole PDMC503 intersected 42 meters from surface at 3.1 grams per tonne gold including 28 meters at 4.37 grams per tonne gold.
Silica Breccias
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Five diamond drillholes holes at the eastern end of the exposed copper-gold skarn mineralisation intersected epithermal textured silica breccia beneath altered volcanics. No hole has penetrated the silica breccia unit and it does not outcrop, consequently its areal extent is unclear.
Karavansalija - Silica Breccia Intercepts
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Intercepts
from To Length Ni Co Au
Drill Hole No. (m) (m) (m) (%) (%) (g/t)
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PDMC503 136 235 99 0.38 0.03 0.55
Incl. 151 197 46 0.46 0.05 0.91
Incl. 159 175 16 0.67 0.09 1.45
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The above diamond drillhole ended in silica breccia.
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Note that drillhole PDMC503 intersected gold mineralisation in volcanics above the silica breccia at depth.
Medenovatz Mineralised Centre
At Medenovatz a prominent 400 metre high ridge of altered andesite overlies skarned carbonates. Extensive ancient workings cross the ridge which is surrounded by a 2.5 by 1.5 kilometer soil multi-element geochemical anomaly best defined by a 1000 ppm lead-in-soil contour. Recent prospecting by EurOmax has located a skarn with massive zinc and copper mineralisation in a creek below the ridge.
Acquisition Terms
EurOmax has executed an option to acquire a 100% interest in the Karavanslija property by the payment to FMEC of USD50,000, and the issue of 2,500,000 shares of EurOmax. In order to exercise the option EurOmax must complete an exploration program over 3 years from the date of execution of this amended agreement 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 This transaction is subject to all necessary regulatory approval.
Quality Control and Assurance.
All of the work reported in this press release was undertaken by FMEC's Serbian subsidiary South Danube Metals. 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%.
Latest Project Images
Images from site operations and drill core are updated regularly on the EurOmax website.
Click to see images of Diamond Drill core (www.euromaxresources.com)
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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