EurOmax Gains 100% Control of its KMC Property, Serbia
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/26/11 -- EurOmax Resources Ltd. (TSX VENTURE: EOX)(PINK SHEETS: EOXFF) ('EurOmax' or, the 'Company') is pleased to announce that the Company and a major international mining company have amended the existing option agreement on the Karavansalija Mineralized Complex ('KMC') Property in Serbia. Under the terms of the amendment, the major international mining company has agreed to forego its option to acquire a 70% interest in the KMC Property in exchange for a 2% net smelter returns royalty on gold, and a 1.5% net smelter returns royalty on all base and precious metals other than gold, extracted from the KMC property. The Company, through a wholly owned subsidiary, now owns a 100% interest in the KMC property, subject to these royalty obligations.
'This is a significant milestone for EurOmax,' comments Mark Gustafson, President and Chief Executive Officer of the Company. 'Elimination of this back-in right allows us better control over exploration and development activities at KMC, including this year's aggressive geophysical and drilling program.'
About the KMC Copper-Gold Project, Serbia
KMC is a large, Tertiary-aged precious and base metal district located in southwest Serbia in an area with excellent infrastructure. To date, several drill holes have identified extensive copper-gold skarn, gold skarn, and gold-bearing siliceous breccias in several locations. The Company believes one or multiple buried porphyry intrusions, perhaps also mineralized, may be the source for these widely occurring mineralized zones. An extensive geophysical program, including approximately 100 km of induced polarization-resistivity lines and magnetics and gravity surveys, is scheduled to commence this quarter. The objective of these surveys is to identify potential mineralized intrusions as well as additional skarn and breccia drill targets on this 60 square kilometer project.
Based upon the results of previous geophysical surveys and drill results, a 2,500 to 3,000 meter diamond drill program is scheduled to commence late in the third quarter to test new anomalies as well as extensions of known mineralized zones on the property.
Roger Moss, Ph.D., P.Geo., a member of the EurOmax Technical Advisory Board and a 'qualified person' as defined by NI43-101, supervised the preparation of the technical information contained in this news release.
About EurOmax Resources Ltd.
EurOmax is a Canadian company focused on precious and base metal projects in Southeastern Europe. Our strength is our local staff, knowledge and technical expertise in Bulgaria, Serbia and Macedonia.
This news release contains forward-looking statements including but not limited to statements regarding a drilling program and geological interpretations by the Company for its KMC project. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on information currently available to the Company as well as the Company's current beliefs and assumptions made by the Company, including that the key assumptions and parameters on which such geological interpretations are based are reasonable and that its planned drilling program will proceed as expected. Although the Company considers these beliefs and assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, unavailability of labour, equipment, materials or third-party contractors, delays or inability to obtain required government approvals, that actual results of exploration activities will be different than anticipated, and that data and assumptions underlying the geological interpretations may prove to be inaccurate, incomplete or to have been incorrectly interpreted. Readers are also encouraged to review all Company documents filed with the securities authorities in Canada, including the Management Discussion and Analysis in respect of the Company's recent financial statements under the heading 'Operational and Other Business Risks', which documents describe material factors and assumptions and risks that apply to the forward-looking statements in this release. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
San Diego Torrey Hills Capital
(858) 456-7300
www.torreyhillscapital.com
EurOmax Resources Ltd.
Mark Gustafson
President & CEO
(604) 454-8677
markg@euromaxresources.com
www.EurOmaxResources.com