Euromax Receives US$13.5M Payment For Bulagou

VANCOUVER — With US$13.5 million now in the bank from the sale of a gold property in China, Euromax Resources (EOX-V, EOXFF-O) is ready to step up exploration efforts on its projects in Macedonia and Serbia.

At the end of June, Euromax merged with Silk Road Resources, exchanging 2.2535 of its shares for every Silk Road share. In the months leading up to the merger, Silk Road arranged to sell its Bulagou gold property, in Gansu province, China, to Chenzhou Mining Group.

The gold property, which does not have a defined resource but hosts gold in vertically dipping quartz veins within an altered, sheared diorite intrusive stock covering 30 sq. km, attracted a sale price of $20 million. After brokerage fees and taxes, Euromax was expecting roughly US$14 million and has received the bulk of that amount. The company expects to get the remaining US$1.46 million by the end of July.

And Euromax is primed to start spending its new cash on exploration. The newly combined company plans to drill at both of its projects in Macedonia and complete a geophysical and drilling program at its Serbian property.

At Ilovitza, in eastern Macedonia, Euromax is planning to drill two 750-metre holes beside the defined resource to test for the presence of a core to the porphyry copper-gold system. Ilovitza currently hosts an inferred resource of 303 million tonnes grading 0.23% copper, 0.31 gram gold per tonne, and 0.005% molybdenum.

The exploration program at Kazandol, which is only 30 km southwest, consists of 5,000 metres of reverse-circulation drilling, 4,000 metres of trenching, and metallurgical test work. The Kazandol property does not yet host a defined resource but Euromax hopes to delineate one on the northern portion of the licence.

And in central Serbia, at the company’s Ceovishte property, the first step will be to complete a geophysical survey over the 1.4-km-long, 1- km-wide silica breccia zone that sits at the end of a 5-km-long trend of alteration and historic mine workings. The results of the survey will then guide a 2,000-metre drill program.

On news of the US$13.5-million payment receipt, Euromax’s share price held steady amidst falling markets at 18¢. The company has a 52-week trading range of 5-40¢ and 119 shares outstanding.