NEVADA AND THE WESTERN STATES — European American completes acquisition

In the Battle Mountain trend of central Nevada, newcomer European American Resources (EPAR-O) has completed the acquisition of the Prospect Mountain project, adjacent to Homestake Mining’s Ruby Hill gold mine.

The Prospect Mountain project covers 61 patented and 55 unpatented mining claims near Eureka, Nev. European American purchased the patented claims and acquired the unpatented claims through a quit-claim deed for 106,000 shares and an undisclosed amount of cash. The vendor is also entitled to a production royalty of 3% if gold is priced below US$400 per oz., and 4% if it is above that mark.

In addition to the Prospect Mountain property, European American also acquired a number of other claims in Eureka, White Pine and Nye counties.

Mining at Prospect Mountain dates to the 1860s, when high-grade gold-silver veins were exploited. Oxide mineralization follows a 2-mile fracture system and extends to a known depth of 2,300 ft.

The company plans to continue its program of surface and underground sampling, and then follow-up with drilling. Its goal is to delineate a minimum of 1 million oz. gold.