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Euromax Resources Establishes Major Position In The Balkans

Few people would likely consider the Balkans to be an area that could provide fertile ground for major mineral deposits, yet EurOmax Resources (TSXV: EOX) had the foresight to establish a major presence in this formerly troubled region in 2003. Opportunity is often available in the most unlikely places and EurOmax is capitalizing on developing resources in areas first mined by the Greeks, Romans and their predecessors thousands of years ago. With four projects scattered across Bulgaria, Macedonia and Serbia, the company has established a strong beachhead from which to advance into possible production in as little as 18 to 24 months. EurOmax is exploring its Kazandol North prospect in Macedonia for oxide copper mineralization, which could be amenable to low cost Solvent Extraction Electro-winning (SX-EW) technology. Karavansalija in Serbia hosts copper-gold skarns, lead-zinc-copper-gold skarns, gold in volcanics and gold-nickel-cobalt silica breccias. Its Breznik project in Bulgaria hosts significant gold and silver resources, and its Ilovitza project in Macedonia has a resource of 303 million tonnes containing 1.6 billion pounds of copper and 2.9 million ounces of gold plus molybdenum and silver. Christopher Serin, EurOmax’s Interim CEO and CFO spoke with us about the exciting prospects for his well-positioned company.

Resource Intelligence: In a number of respects EOX appears to be in a very interesting and enviable position. What’s the story on how it got here?
Christopher Serin: After doing a systematic review of prospective global geological terrains, EurOmax made the strategic decision in 2003 to focus on the metals potential of SE Europe. The attraction of SE Europe to us was based on the high potential of the geological terrain, the availability of quality exploration and support professionals and a long history of gold and base metal mining going back thousands of years. Plus there appeared to be little, if any competition; so in 2003 EurOmax acquired six gold and copper exploration properties in Bulgaria and set up shop in Sofia, the capital. In 2006, three of these projects formed the basis of an Australian IPO, Balkans Gold Ltd in which EurOmax was the largest shareholder. In July 2007, EurOmax entered into an option to acquire 100% in nine exploration properties and applications in Macedonia and Serbia from Freeport McMoRan Copper and Gold Inc. As a result we were able to create the most geographically diverse, SE European minerals exploration company existing today.

RI: Can you give us a brief rundown on your main property holdings?
CS: Certainly. Let’s start with Ilovitza, which is a newly discovered porphyry copper-gold-molybdenum deposit in Macedonia. Mapping and drilling work there has defined an intrusive complex some 1.2 kilometres wide and more than 1.3 kilometres long. One of the great advantages of being in Europe, versus in the middle of nowhere, as is often the case with mineral properties, is that there is infrastructure in place and close by. This project is located close to road, rail, water and power and, importantly, there are two smelters within 400 kilometres via heavy rail. An independent Mineral Resource Statement on the property shows an inferred resource of 303 million tonnes containing 1.6 billion pounds of copper, 2.6 million ounces of gold and 34 million pounds of molybdenum.
Next we have our Kazandol prospect in Macedonia where outcropping copper mineralization has been mapped over a length of five kilometres. Within this zone, two large copper oxide targets have been defined: Kazandol North and Kazandol South.
At Kazandol North, an 800m by 600m zone of copper oxide mineralization has been mapped within which a narrower 800m long and up to 250m wide zone grading over 0.1% copper has been defined by trenching across the strike of the mineralization. Recent mapping and geochemistry has extended this mineralized zone another 4,000 metres to the south. We are exploring the North prospect for oxide copper mineralization, which could be amenable to low cost SX-EW technology. Initially, however, we’d like to develop a copper-oxide resource, which could be used to produce copper sulphate for sale to markets in the region and in Europe. This is something which we could bootstrap fairly quickly at relatively low cost. Recent mapping at Kazandol South has shown this area to be significantly more mineralized than Kazandol North.

RI: How about your other two properties?
CS: Karavansalija (Pronounced “karavan – sal – eya”) is a 60 square kilometer property located in a portion of southern Serbia where mining has been an important element in the local economy for many years. This is a very large mineralized system. The Karavanslija mineralized centre (KMC) covers an area of roughly 12 square kilometres. Silver and gold-bearing lead-zinc as well as copper ore were mined at a place called Rogozna going back to Roman times. In the Middle Ages there was surface mining activity along outcropping lead-silver zinc veins. In the 20th century, underground exploration, geophysics and exploration drilling focused on Pb-Zn-Ag mineralization, largely carried out by exploration teams from Trepca mines. Only intervals with visible base metal sulphides were assayed and rarely for gold. Significant lead-zinc and copper intercepts are reported. The lead-zinc-copper-gold skarns were the subject of ancient mining and more recent exploration and are locally high-grade. Similar skarns are mined at the giant Trepca deposit, which had reported initial resources of 60 million tonnes at 10% Pb+Zn and 100 g/t Ag. In addition, there is also volcanic hosted gold overlying the skarn and carbonates in silicified zones with massive and disseminated sulphides. Based on the results of only two drillholes the volcanic hosted gold mineralization has a strike of at least 200 metres with a similar width. We have had some pretty interesting drill results on the Karavansalija property including 235 metres grading 1.08 g/t gold and 120 metres grading 0.55 g/t gold, 0.48% copper and 3.2 g/t silver (1.4 g/t gold equivalent, 0.86% copper equivalent). Our diamond drill hole PDMC503 intersected 42 metres from surface at 3.1 grams per tonne gold including 28 metres at 4.37 grams per tonne gold.

RI: You acquired your newest project less than a year ago.
CS: Yes, the Breznik gold-silver project in Bulgaria is something we added to our portfolio last March when we re-acquired all of the shares of Thrace Resources EOOD from International Resource Holdings Ltd. Breznik is a high-grade gold-silver vein system which has been drilled over a strike of nearly 1,000 metres with more than 100 diamond and reverse circulation drillholes. It has a JORC (2004) code (similar to NI 43-101) compliant Indicated and Inferred Mineral Resource estimate. The total Indicated resource at a cut-off of 0.5 grams per tonne is 1.08 million tonnes at 2.01 grams per tonne gold and 6.05 grams per tonne silver, containing 70,000 ounces of gold, 210,000 ounces of silver. At a 0.5 grams per tonne cut-off grade, the Inferred mineral resource is 0.69 million tonnes at 1.79 grams per tonne gold and 5.66 grams per tonne silver, containing 40,000 ounces of gold and 125,000 ounces of silver. The deposit is open along strike and at depth. Ancient workings and geochemistry indicate that the vein system extends over more than 3,000 metres of strike length—most of which remains to be systematically explored.

RI: So what are your plans for your various properties?
CS: We started a planned 4,000 metre reverse circulation drilling program at Kazandol in Macedonia in January. Road and drill pad construction has been completed and 53 drillholes permitted. We plan to systematically test 5 kilometres of the strike of the previously mapped copper bearing, shallowly dipping, Kazandol copper zone. At Ilovitza, further work we will be doing there will include diamond drilling of the undrilled magnetic core of the system and metallurgical test work. At Breznik we will continue to evaluate the potential of the deposit for exploitation of higher grade material with a low impact underground mining operation.

RI: What important points would you like investors to remember about EurOmax?
CS: There are many very positive facets to EurOmax. We have a very important and solid presence in the areas where we are operating. We have great properties already with significant existing resources and excellent potential for expanding them along with discovering and developing new ones. We could find one or more “elephants” as we continue our exploration work. We have little competition for picking up more properties. We have well experienced corporate and area management and 13 to 14 local geologists, trained to western standards, who know the terrain, the people and the politics of the areas where they are working. We are well funded and have the ability raise capital as needed. We have built-in potential for participation from majors such as Freeport McMoRan and Teck Cominco, which are already shareholders.

Milestones:

* Complete drilling program at Kazandol
* Continue work to develop a copper-oxide resource at
* Kazandol
* At Ilovitza: continue diamond drilling and metallurgical test work
* At Breznik: continue to evaluate the potential for higher grade underground mining operation

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