Exploitation Concession Granted for Ilovitza Project
VANCOUVER, July 24, 2012 /CNW/ - EurOmax Resources Ltd. (TSX-V: EOX; OTCQX: EOXFF): ("EurOmax" or the "Company") is pleased to announce that it has been granted a concession for the exploitation of mineral resources at its flagship Ilovitza copper-gold project (the "Project") in the municipality of Bosilovo in South Eastern Macedonia, (the "Exploitation Concession Agreement").
The Exploitation Concession Agreement was issued to EurOmax's wholly-owned subsidiary by the Government of Macedonia, represented by the Prime Minister, Nikola Gruevski and Minister of Economy, Valon Saracini, on 24 July 2012 at a formal signing ceremony in Skopje attended by members of the Company's senior management, the Prime Minister and the Minister of Economy.
The Exploitation Concession has been issued on the basis of:
A mineral resource report; A conceptual study of the development of Ilovitza, which included geo-mechanical, mineralogical and metallurgical reports and studies; An Environmental Impact Statement ("EIS"), which included geochemical, hydrochemical and hydro-geological reports; A public consultation in respect of the EIS on 1 November 2011 in the Municipality of Bosilovo; A cadastral report for the Exploitation Concession area including the area covered by the mining activities and proposed open pit.
The granting of the Exploitation Concession was supported by the positive opinions of the Ministry of Economy, Ministry of Agriculture, Forestry and Water, Ministry of Transport and Communications, Ministry of Culture and Municipality Administration.
The Exploitation Concession has been granted under the rules and regulations of the Law on Mineral Raw Materials in Macedonia and as such has an initial term of 30 years, is subject to royalties of 2% of the market value of metal contained in concentrate and a land usage fee of 180,000 Macedonian Denar per square kilometer (approximately USD 5,000 per annum based on current exchange rates and a concession area of 1.68 km2).
The Company is advancing a Preliminary Economic Assessment ("PEA") using the findings of the conceptual study referred to above to outline the economics of the project in different operating scenarios, through-puts and different cut off grades further to its Technical Report announced on 18 May 2012. The PEA is due to be completed by year-end.
Additionally, in parallel with the development of the PEA and as previously announced on 17 May and 14 June, the Company is continuing its step out and in-fill drilling programmes and metallurgical test work to advance the Ilovitza Project toward a Preliminary Feasibility Study ("PFS") level, which it anticipates completing by mid-2013.
Commenting on today's announcement, Steve Sharpe, President & CEO of the Company said:
"This is a very important milestone in EurOmax's transition from a pure exploration company into a development and exploration company. The newly established management team at EurOmax is now fully empowered to kick-start the detailed work that will enable Ilovitza to be developed in a timely manner and to world class technical and environmental standards that will be ultimately be beneficial to all stakeholders.
I would personally like to thank Prime Minister Gruevski and Minister Saracini for their support throughout this process and on a broader note the dynamism and pragmatism of the Macedonian authorities as a whole, in facilitating this first step towards the development of Ilovitza. I firmly believe that this is a very positive development for Macedonia, not only in terms of the direct investment and long-term job creation, but also in a broader sense by raising the profile of Macedonia on the international stage. Firstly, in terms of the international capital markets and secondly but perhaps most importantly, by being recognised as facilitating the socially and environmentally responsible development of its natural resources."
