EurOmax Resources’ quest for Balkan gold and copper about to pay off

EurOmax Resources (CVE:EOX)  is a Canadian company with a focus on precious and base metals projects located in the Balkans of Southeastern Europe, currently centered  in Bulgaria, Serbia and Macedonia, which is an address with excellent exploration potential. This includes the Dundee Precious Metals’ (TSE:DPM) Chelopech Project, hosting 3.77 million ounces of gold, 8.5 million ounces of silver, and 866.6 million pounds of copper, and the Greek Skouries Deposit of European Goldfields, hosting 4.0 million ounces of gold and 0.80 million tonnes of copper.

EurOmax has cash of $7.5 million to fund an exploration program built around five advanced stage projects  including the Trun Gold Project in Bulgaria, Karavansalija copper-gold mineralized complex or KMC Project in Serbia, and the Ilovitza Porphyry Copper-Gold Project in Macedonia. The Breznik and Rakitovo Gold Projects in Bulgaria are also advancing towards mining concession status.

The Trun Gold Project is 100% owned by EurOmax and covers 67 km² of exploration licenses in Western Bulgaria.
The northern claims cover the Big Hill intrusion, which contains the Logo Gold Prospect, containing a shallow, near surface, sheet like zone of gold mineralization that measures 1,200 meters long, 300 meters wide and 100 meters thick and remains open to the north, east and west, and hosts a NI 43-101 compliant Inferred Resource of 91.2 million tonnes at a grade of 0.70 g/t gold, for 2.1 million ounces of gold, at a cut off grade of 0.3 g/t gold.

Management identifies this mineralization as an Intrusion Related Gold Deposit, which is similar to the Fort Knox deposit, with proven and probable reserves of 253 million tonnes at 0.45 g/t gold, and the Dublin Gulch deposit, which holds a resource of 163 million tonnes at 0.82 g/t gold, found in the Tintina Gold Belt in Alaska and the Yukon.

The company will commence a drilling program at the Logo Prospect and seek a mining concession in 2011.
 
The southern claims carry similar geology and include the K2 intrusion, which is a sheet of gold mineralization measuring approximately 600 meters in length and 150 meters in width, open along strike and down dip. K2 drill results include 50 meters at 0.94 g/t gold, and 65 meters at 0.75 g/t gold. Six additional targets containing abandoned mining operations include Krushov Dol that was an open pit producing 0.59 million tonnes at 1.77 g/t gold, and 14.43 g/t silver. The Zlata Mine operated from several open pits and an underground resource producing 0.72 million tonnes at 5.97 g/t gold for 138,000 ounces of gold. Additional drilling is planned at K2 and other targets at Trun.

The KMC Project is a 42 km² block, held under option from an international mining company, and is located in Serbia, approximately 100 kilometers to the northwest of Trun. The property contains a tertiary, volcanic intrusive complex containing at least five types of mineralization, including skarns of copper, gold, lead and zinc, along with volcanic hosted gold and breccia pipe hosted gold. One or more porphyries may be present at depth.

Drilling at the Copper Canyon Prospect has outlined a skarn measuring 500 meters by 300 meters, and 80 to 90 meters thick, where a recent drill intersection included 113 meters at 0.32% copper and 0.52 g/t gold. A second skarn recorded an intersection of 143 meters grading 1.60 g/t gold. An Induced Polarization survey indicates that the same 500 meter long skarn may extend for an additional 1,000 meters to the southwest. A historical hole 1,600 meters to the north reported 0.50 g/t gold over 265 meters, including 1.08 g/t over 68 meters, which are typical grades for substantial bulk tonnage gold deposits. Geophysical and geochemical surveys are underway to better define drilling targets to be drilled in 2011.

The Ilovitza Project is a large Tertiary age copper/gold porphyry system located in Macedonia, about 100 kilometers directly south of Trun, and is ideally located for power, access and supplies. The property has a 2008 NI 43-101 compliant Inferred Resource of 303 million tonnes grading 0.23% copper, 0.32 g/t gold, and 0.005% molybdenum.

Recent drilling includes EOIC-10-18, which intersected 570 meters at 0.25% copper and 0.27 g/t gold including 336.5 meters at 0.30% copper and 0.37 g/t gold, and further including 166.5 meters at 0.36% copper and 0.46 g/t gold. Seven drill holes totaling nearly 3,400 meters were completed in a 2010 drill campaign. Six of these holes were drilled north of the existing resource and one hole, EOIC-10-14, tested the eastern side of the system. All holes encountered significant copper and gold mineralization, and will enable calculation of an updated NI43-101 compliant resource.

Management says that this drilling has successfully vectored in on the higher grade core of the system, and has now expanded its footprint by nearly double, and confirms that mineralization remains open in all directions. 

The 19 km² Breznik Project is located nearby Trun, and approximately 30 kilometers west of Sofia, in Western Bulgaria. Breznik covers a 3,500 meter by 1,500 meter hydrothermal system which is both intensively altered and host to widespread gold mineralization, and has shed gold into placer gold deposits along its flanks. The Project lies within the Late Cretaceous Banat-Srednogorie copper gold belt hosting large gold and copper deposits straddling Bulgaria and neighboring countries.

This is a high grade gold and silver vein system, which has been drilled to a shallow depth of 150 meters, and remains open along strike and at depth. Gold mineralization is found in eight zones, with an east to west strike of up to 2.5 kilometers, with potential for associated porphyry mineralization. EurOmax has completed a NI 43-101 compliant Inferred Resource of 2.4 million tonnes grading 5.91 g/t gold and 26.78 g/t silver for a total contained metal content of 463,217 ounces of gold and 2,100,112 ounces of silver, at a cut off grade of 2 g/t gold. The company plans to convert the exploration permit into a mining concession later this year.

Breznik is the most advanced project in the entire property portfolio and is ready for a joint venture partner to develop into an operating gold-silver mine. Multiple mineralized zones have not yet been completely delineated along strike or at depth, and should lead to a substantial boost in gold and silver resources.The company is completing an IP/resistivity survey of 30 line kilometers and a magnetic survey over the same area to better define additional drilling targets.

The Rakitovo Project is located about 75 kilometers to the southeast of Trun, in Southern Bulgaria. Mineralization is associated with a quartz veined shear zone in a granite porphyry stock. Three mineralized zones have been identified. Drilling on the first zone has identified mineralization averaging 9.7 meters, with recent drilling intersecting 5.38 g/t of gold, and 108 g/t of silver over 10.1 meters. A joint venture partner is being sought to develop this property.

EurOmax intends to seek multiple partners to develop its properties, and is not interested in maintaining operator status on any mines. Considering the recent positive drill results, resource announcements and record prices for gold and silver in recent days, this is a great time to be seeking potential partners  and will help Euromax build out value for shareholders while also ensuring all of its projects continue to be advanced at a healthy clip. 2011 is looking very promising.