Euromax closes option deal with Freeport McMoran
2007-07-13 02:51 MT - News Release
Mr. John Menzies reports
EUROMAX CLOSES PROPERTY ACQUISITIONS IN MACEDONIA AND SERBIA
Euromax Resources Ltd. 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 Corp. (PDX) and its Macedonian and Serbian subsidiaries. Under the terms of the agreement, Euromax has an option to acquire a 100-per-cent interest in the Macedonian properties by the payment to PDX of $600,000 (U.S.) and the issuance of 100,000 Euromax shares and an option to acquire 100 per cent 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 licences, by the issuance of 2.4 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 $1.5-million (U.S.) exploration program in each of Macedonia and Serbia over three years. PDX retains a one-time only back-in right on each concession, whereby PDX may elect to earn a 70-per-cent interest, after Euromax has 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 finance 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 mineralized porphyry. The mineralized stockwork is centred on a dacite porphyry stock central to a 1.3-kilometre 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 per cent copper and 0.36 gram 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 0.4 per cent copper and 0.37 gram per tonne gold in a 244-metre drill hole which graded 0.28 per cent copper and 0.37 gram 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 72 cents and a five-year term. All of the work reported herein was undertaken by PDX. Samples were assayed at Eurotest Control AD and American Assay Laboratories, Nev., 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.
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