Eurasian Minerals Acquires Investment in Emerging Regional Porphyry Copper-Gold Discovery
Vancouver (British Columbia), 11. September 2012. Eurasian Minerals ("EMX" or "Company") is pleased to announce its involvement in ongoing discoveries in the Malmyzh porphyry copper-gold region in the Far East of Russia. Eurasian Capital, an EMX business led by Paul Zink, identified the private exploration company InterGeo Resources LLC ("IGR") as an early investment opportunity in 2011. EMX has invested 3,04 $ millions through four separate personal loans and is the largest shareholder of IGR with a fully diluted share holding of 36%. The Malmyzh exploration and dismantling concessions are owned by a joint venture between IGR and Freeport McMoran Exploration Corporation ("Freeport" or "FMEC"), with IGR acting as the operator and lead of the project. EMX believes that Malmyzh represents an exciting grassroots discovery that can quickly evolve into an exploration license that spans the entire belt.
IGR pointed out that diamond drilling in 14 separate targets within a regional 16 by 5 kilometer intrusive corridor beneath a narrow top layer of soil and vegetation confirmed the presence of porphyry copper-gold mineralization. IGR reported the following drill intercepts from 2 14 reconnaissance areas:
• 111,6 meters averaging 0,80% copper and 1,01 g / t gold (1,51% copper equivalent) within a more powerful zone of 459,3 meters averaging 0,36% copper and 0,41 g / t gold (0,65% copper equivalent)
• 406,7 meters averaging 0,52% copper and 0,29 g / t gold (0,72% copper equivalent)
• 223,1 meters averaging 0,54% copper and 0,18 g / t gold (0,66% copper equivalent)
The joint venture is currently furthering the project towards initial resource definition and exploration program planning to a) track multiple zones of higher grade copper-gold mineralization, b) drill-defined levels of 14 known copper-gold mineralization centers and c) perform initial drilling tests in further target areas identified by geophysical and geochemical surface anomalies along the belt.
Background information about the project Malmyzh. Malmyzh is located in the far east of Russia, about 220 kilometers northeast of the city of Khabarovsk and close to the Chinese border. The project has excellent logistics and infrastructure, including power lines, a paved highway and a railway line near the concession area. The Amur River, which is directly connected to major ports, is only two kilometers from the project boundary. The Property comprises two mining and exploration licenses totaling 153 square kilometers.
Freeport (formerly "Phelps Dodge") identified Malmyzh as a prospective prospect for porphyry copper mineralization in 2006 over a three-year period, conducting geochemical surface sampling, geophysics, and exploration drilling with a total of eight core holes (1.126 meters). These exploratory drillings intersected copper-gold mineralization in five of the target areas, which are still at an early stage. Subsequently, IGR acquired an 51% ownership interest in Freeport's Russian subsidiary, which controlled the property and other assets by drilling 2011 at 12.000 meters during the year. Freeport did not receive refunds or NSR royalties under the terms of the IGR Agreement. Should the participation of any of the parties fall below 10% of the joint venture, their participation will be converted into a payment of 0,005 US $ per pound of mineable copper equivalent in the tested and probable mineral reserve categories of each feasibility study that will be made during the lifetime of the project.
Headed by President and CEO Tom Bowens, the IGR team includes key personnel with expertise in this country and numerous exploration and project development achievements. EMX supports the senior management of IGR by appointing David M. Cole as Chairman of the Board of Managers and M. Stephen Enders as member of the Board.
Overview of geology and exploration at Malmyzh. Malmyzh's porphyritic centers date back to the Cretaceous dioritic and granodiorite canes that penetrated and altered siltstone and sandstone sediment sequences. The terrain of the project consists of deep relief hills in the valley of the Amur River, where the bedrock is covered by a relatively shallow thin layer of colluvium and alluvium. The drilling prospecting focused primarily on geophysical and geochemical anomalies, which have been very successful so far.
Porphyry copper-gold mineralization encompasses near-surface (e.g., within 2 to 50 meters below surface) zones of luster copper enrichment classified as chalcopyrite and chalcopyrite-bornite-magnetite mineralization. The copper-gold mineralization occurs in the porphyry intrusions as well as in the altered and sedimentary masonry. To date, 90 holes (29.300 meters) have been completed, 59 of which intersected significant (> 0,3% copper equivalent) copper-gold mineralization. The Central Zone, where drill definitions were made 200 meters apart, is the most developed prospect. The following table summarizes the drilling results reported by IGR.
The Joint Venture's ongoing exploration programs are designed to perform additional geophysical surveys, geochemical sampling and diamond drilling.
Comment on Drilling, Sampling, Investigations and QA / QC. The Malmyzh exploration samples were taken in accordance with accepted industry standards and procedures. The samples were sent to Ingiredmet Laboratories (certified to ISO 9001: 2008) in Irkutsk, Russia, where investigations and geochemical analyzes were performed. Gold was analyzed by fire assay with AAS finish, while copper analysis was performed by aqua regia digestion and ICP-AES. IGR performs routine QA / QC analysis on all assay results, including the systematic use of certified reference material as well as blanks and field duplicates. EMX has reviewed the core and QA / QC results and performed independent field tests and detailed check sampling to confirm IGR's results.
About EMX.
Eurasian Minerals is a global gold and copper exploration company that applies a partnership business model to explore the world's most promising and barely explored mineral belts. EMX currently has projects in eleven countries on five continents and is growing by creating grassroots reconnaissance projects, strategic acquisitions and increasing royalties.
Michael P. Sheehan, CPG, a Qualified Person under National Instrument 43-101 and an employee of the Company, has reviewed and verified the technical information in this news release.
For more information, please contact:
David M. Cole Valerie Barlow
President & Chief Executive Officer Corporate Secretary
Tel: +1-303-979-6666 Tel: +1-604-688-6390
E-mail: [email protected] E-mail: [email protected]
Website: www.eurasianminerals.com
The New York Stock Exchange (NYSE MKT), the TSX Venture Exchange and the Investment Regulatory Organization of Canada accept no responsibility for the adequacy or accuracy of this announcement.
Forward-looking statements
This press release may contain "forward-looking statements" that reflect the Company's current expectations and plans regarding future results. When used in this press release, terms such as "estimate," "intend," "expect," "will," or similar expressions express forward-looking statements that are not guarantees of the future operating or financial results of the company and risks, Uncertainties and other factors that could cause Eurasian's actual results, performance, expectations or opportunities to differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and factors include, but are not limited to, the lack of availability of financing, the inability to identify commercially viable mineral reserves, fluctuations in the market valuation of commodities, difficulties in obtaining required permits to develop a mineral project, project financing expectations through joint venture partners and other factors.
Readers are cautioned not to place undue reliance on forward-looking statements, as they speak only as of the date of this press release or the date stated herein. Due to the risks and uncertainties, including the risks and uncertainties identified in this press release, as well as other risk factors and forward-looking statements contained in the Company’s MD&A die (“MD&A”) for the six months ended June 30, 2012 As well as listed in the recently filed Annual Information Form (the "AIF") for the nine months ended December 31, 2011, actual results could differ materially from current expectations. Additional information about the company, including the MD&A, the AIF and the company's financial statements, is available on SEDAR at www.sedar.com and on the SEC's EDGAR website at www.sec.gov.
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