Europe-focused EurOmax Resources (CVE:EOX)(OTCQX:EOXFF) said Thursday that it plans to undertake an aggressive drill program testing multiple new targets at its KMC copper-gold project in Serbia this year.
KMC - which is 100 percent-controlled by EurOmax - is in a large,
Tertiary-aged precious and base metal district located in southwest
Serbia in an area with "excellent" infrastructure, the company said.
To date, drilling has identified extensive copper-gold skarn, gold
skarn, and gold-bearing siliceous breccias in several locations.
EurOmax said it believes one or multiple buried porphyry intrusions,
perhaps also mineralized, may be the source for these widely occurring
In April, a planned 8,000 metre diamond drill program will test
multiple new targets defined by magnetic, induced polarization and
resistivity data collected in late 2011.
"Now that we have analyzed our comprehensive geophysical dataset from
KMC, we are planning an aggressive drill program to test multiple new
drill targets at our KMC project," said EurOmax's chief geologist and
director Dr. Quinton Hennigh.
"Previous drilling at KMC has already identified a robust copper-gold
skarn system at Copper Canyon. Our new dataset clearly indicates the
presence of at least seven additional large geophysical anomalies
similar in nature to Copper Canyon. Some of these are associated with
strong surface geochemical anomalism.
"Beginning in late April, we will undertake systematic drilling of
these new targets that we believe could generate significant results at
Drilling at KMC since 2006 led to the discovery of a significant zone
of copper-gold skarn mineralization at Copper Canyon in the southern
part of the property. Mineralization includes gold skarn, copper-gold
skarn and gold mineralization hosted by silica stockwork, occurring in
an area measuring nearly one kilometre east-west and 0.5 kilometres
Although Copper Canyon alone represents a significant zone of
mineralization, multiple other targets have now been identified across
the property and will be the subject of drilling this year.
An extensive geophysical program, including approximately 70
kilometres of induced polarization-resistivity lines and detailed ground
magnetics surveys, was completed at KMC in the fall of 2011.
Processed magnetic data suggests the presence of as many as eight
large magnetic anomalies on the 42 square kilometre property, the
largest of which measures nearly two kilometres long and 1.5 kilometres
Among the highlights of EurOmax's 2011 drilling campaign, four of
five diamond drill holes completed in the Copper Canyon area intersected
significant mineralization including hole EOKSC1141, which returned
67.6 metres of skarn mineralization grading 1.18 grams per tonne(g/t)
A second step-out hole, EOKSC1142, was drilled approximately 150
metres further west from EOKSC1141 and intersected multiple intervals of
skarn mineralization including 53.8 metres at 0.74 g/t gold and 47.3
metres at 0.84 g/t gold.
In addition, three holes, EOKSC1143, EOKSC1144 and EOKSC1145 were
drilled approximately 450 metres southwest, 400 metres west and 300
metres west-northwest of the Copper Canyon Zone, respectively. Each of
these holes tested IP anomalies, the company said.
Last month, independent equity research firm First Berlin said it
expects positive news for EurOmax that could push it into a "different
league". First Berlin started coverage of EurOmax with a "buy" rating
and $0.45 price target.
EurOmax is a Canadian company with three core properties in Bulgaria, Serbia and Macedonia.