Issued Capital: 43,199,155 common shares
Stock Exchange
TSX Venture Exchange
Symbol: EOX
VANCOUVER, June 14 /CNW/ - EurOmax Resources Limited is pleased to announce it has executed an option agreement with Phelps Dodge Exploration Corp. (PDX), a subsidiary of Freeport-McMoran Copper & Gold Inc., to acquire all of the issued capital of Company for Mining and Geology South Danube Metals Beograd (SDM). Under the terms of the agreement EurOmax has an option to acquire a 100% interest in SDM, subject to exclusion of one of the SDM licenses, by the issuance of 2.40 million shares of EurOmax. In order to exercise the option EurOmax must meet license requirements and complete a USD 1.5 million exploration program over 3 years. PDX retains a one time back in-right on each of SDM's licenses, wherein PDX may elect to earn a 70% interest, after EurOmax has completed 10,000 metres of drilling on any such license. In order to earn its interest PDX must repay EurOmax twice its exploration expenditure on that license and fund the property though completion of a final feasibility study. This transaction is subject to regulatory approval.
Rudnitza Property
The Rudnitza license is located in the 500 km(2) Rashka mineral field. The license covers Jurassic serpentinite and Tertiary andesitic volcanics intruded by diorite dykes. There are two well defined mineralised targets at Rudnitza: the Rudnitza copper-gold porphyry and high grade lead-zinc-silver veins and stockworks.
Mining in the Rudnitza licence area commenced in ancient times as evidenced by more than 130 pits and shafts. Exploration from the 1970s focused on lead-zinc-silver veins which saw the discovery of the Karadak vein lead-zinc-silver deposit just to the north of the Rudnitza license.
Rudnitza Copper - Gold Porphyry (see attached plan and section)
--------------------------------
The Rudnitza copper-gold porphyry consists of a large iron oxide +/- quartz vein stockwork zone outcropping over an area of approximately 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.
In 2004 PDX recognized the potential for porphyry style mineralisation and drilled seven diamond holes in the license area - intersecting a mineralized medium-grained porphyritic diorite intrusion at shallow depth.
Diamond drill-holes PDRC 04-01, 04-03 04-04, 04-07 intersected Rudnitza porphyry copper-gold mineralisation, with PDRC 04-03 intersecting 144 metres of 0.62% copper equivalent or 1.06 g/t gold equivalent (0.40% copper and 0.38g/t gold) from the base of oxidation to total depth of 244 metres.
A significant portion of the prospective quartz stockwork zone in plan and at depth remains untested.
A summary of results (at a 0.1% copper cut off grade) is provided in the
table below:
-------------------------------------------------------------------------
Rudnitza Copper - Gold Porphyry Intercepts
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Drill Depth From To Intercept Cu Au CuEq AuEq
Hole (metres)(metres)(metres)(metres) % g/t % g/t
-------------------------------------------------------------------------
PDRC 04-01 171 5 170 165 0.17 0.20 0.28 0.48
83 99 16 0.62 0.32 0.80 1.37
PDRC 04-03 244 244 244 0.26 0.38 0.50 0.85
100 244 144 0.40 0.38 0.62 1.06
PDRC 04-07 345 118 190 72 0.22 0.16 0.31 0.53
244 332 88 0.26 0.44 0.52 0.89
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Copper and gold equivalent calculations use metal prices of USD 1.25/lb
copper and USD 450/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%.
-------------------------------------------------------------------------
Base Metal Veins (see attached plan and section)
-----------------
While lead-zinc-silver veins are widespread in the region they were not the focus of PDX exploration drilling. A single drill-hole PDRC 04-04 intersected colloform banded galena-sphalerite-pyrite veins peripheral to the Rudnitza Copper - Gold Porphyry with results such as 4 metres at 20.4% combined lead and zinc and 229 g/t silver from 370 metres. 800 metres to the north-east of PDRC 04-04 lead-zinc veins outcrop in an area of anomalously high lead soil geochemistry. A summary of intercepts (at a 1% lead cut off grade) is provided below:
-------------------------------------------------------------------------
Rudnitza North Lead-Zinc-Silver Intercepts
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Lead +
Drill Depth From To Intercept Lead Zinc Zinc Silver
Hole (metres)(metres)(metres)(metres) % % % g/t
-------------------------------------------------------------------------
PDRC 04-04 550 161 165 4 1.57 2.67 4.24 16.5
285 293 8 7.11 3.37 10.48 108.0
326 330 4 2.52 0.76 3.28 43.0
370 374 4 9.21 11.19 20.40 229.0
430 432 2 7.82 0.99 8.81 204.0
504 508 4 11.00 0.20 11.20 154.5
-------------------------------------------------------------------------
Ceovishte Property
The 48 square kilometre Ceovishte license is located in the Kopaonik district 28 kms to the north of the Rudnitza property. At Ceovishte, Jurassic ultrabasic rocks, Triassic schists and carbonates, and Tertiary andesitic volcanoclastics are intruded by Tertiary granodiorite and andesite stocks and dykes. Large areas of intense hydrothermal alteration have been mapped and three base and precious metal prospects have been identified.
North Prospect: A large area of ancient workings covering 500 metres by 1,500 metres within which zones of magnetite-chalcopyrite mineralisation outcrop along the contacts between dykes and silicified serpentinite.
Ceovishte Prospect: An inferred porphyry copper target in an area of ancient lead-silver(?) workings covering 800 metres by 400 metres. A strong multi-element soil geochemical anomaly which coincides with an altered intrusion and associated ancient workings remains untested.
South Prospect: A 200 metre by 200 metre high-sulphidation silica breccia body has returned up to 2 g/t gold in rock chips as well as high arsenic, copper soil values and remains untested.
Brestovac and Durlan Potok (see attached graphic)
The Brestovac (90 square kilometres) and Durlan Potok (56 square kilometres) properties are located within the Timok Magmatic Complex and are close to the world class Bor copper-gold mine (see graphic). Total metal endowment of the known ore deposits within the Bor - Majdanpek zone, including past production, was estimated by Jankovic et al., (1998) to be over 20 million tonnes of copper and 30 million ounces of gold, with 7 million tonnes of copper and 10 million ounces of gold for the Bor and Bor River deposits. The Bor deposit is reported to have contained initial resources of more than 200 million tonnes grading 1.5% copper and 0.8 g/t gold. The licences cover Cretaceous andesite volcanics and volcaniclastics and overlying Miocene and younger post-mineral sediments. PDX have conducted geophysics and limited drilling. Geological and geophysical targets remain untested.
Kamena Gora
The 56 square kilometre Kamena Gora licence covers Mesozoic limestone intruded by Tertiary granitoids. Based on historic data, copper-zinc skarns are developed along the limestone contact with the Tertiary intrusions.
Planned Program
EurOmax plans to commence a program of geophysical surveying (Induced Polarization, Resistivity and Magnetics) drilling, mapping and trenching at Runditza during June 2007. Drilling at the other properties will follow surface mapping, sampling and trenching.
Quality Control and Assurance. All of the work reported in this press release was undertaken by PDX. Samples were assayed at Eurotest Control AD and American Assay Laboratories both ISO 9001 accredited laboratories. The Company understands that PDX used quality control standards and blanks 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.