Eurasian Minerals Announces Antofagasta's Selection of the Iekelvare Designated
Project for Copper Exploration in Sweden
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/25/13 -- Eurasian
Minerals Inc. (the "Company" or "EMX") (TSX VENTURE:EMX)(NYSE
MKT:EMXX) is pleased to announce the selection of the Iekelvare
Designated Project in Sweden pursuant to the Strategic Alliance and
Earn-In Agreement dated February 17, 2011 (the "Alliance Agreement"),
executed by the Company and Antofagasta Minerals S.A.
("Antofagasta"), a wholly-owned subsidiary of Antofagasta plc.
Iekelvare joins Kiruna South (see February 18, 2011 Company news
release) as a Designated Project in Sweden, with both projects
selected from EMX's property portfolio based upon their exploration
prospectivity. Antofagasta can earn up to a 70% interest in a
Designated Project through a combination of cash payments and work
commitments that result in a NI 43-101 compliant feasibility study.
EMX is conducting copper exploration in Sweden funded by Antofagasta
under the Alliance Agreement. The Company's work at Iekelvare
identified prospective copper-gold targets through field mapping and
the integration of comprehensive exploration databases. EMX and
Antofagasta have work programs that are either underway, or planned
for later in 2013, at both Iekelvare and Kiruna South.
Iekelvare Designated Project. The Iekelvare Designated Project ("DP")
consists of EMX's 5,250 hectare "Iekelvare 1" exploration license in
Norrbotten County, Northern Sweden. The project is situated within a
province of Iron-Oxide-Copper-Gold ("IOCG") style deposits in the
region. Exploration work conducted by the Swedish Geologic Survey
("SGU") in the 1970's demonstrated the presence of copper-rich
boulders and copper geochemical anomalies in glacial till materials,
as well as bedrock hosted copper and gold mineralization in the area.
A Phelps Dodge Exploration Sweden ("PDES") and Beowulf Gold plc joint
venture carried out further exploration work from 2003-2005,
including twelve diamond drill holes totaling over 1,400 meters.
Drill hole D1-MAJ intersected 110.3 meters (34.8-145.1 m) averaging
0.38% copper and 0.50 g/t gold (true width unknown) along what has
been interpreted as a contact zone between granitic and dioriti
units. Six additional holes intersected anomalous levels of copper
mineralization (i.e., greater than 0.1% Cu). Styles of mineralization
seen in the area include zones of massive chalcopyrite with
actinolite and iron-oxide-rich mineralization that resemble IOCG
deposits. The joint venture's exploration drilling was limited to
relatively small areas on the property, and several geochemical and
geophysical anomalies remain untested.
EMX has conducted reconnaissance geologic mapping, as well as rock
(n=57) and boulder (n=3) sampling at Iekelvare. This work yielded
seven rock samples with anomalous copper (gold) geochemistry,
including results of 6.62% copper with 0.673 ppm gold, 884 ppm copper
with 0.519 ppm gold, and 938 ppm copper (nil gold). EMX's field
evaluation verified the styles of mineralization identified by the
SGU and the PDES JV's previous work, and outlined a number of targets
for follow-up exploration.
Designated Project Earn-In Terms. Antofagasta may earn an initial 51%
interest in the DP by spending an aggregate of US $5 million over
five years (the "First Option Expenditures") and making a one-time
cash payment to EMX on, or before the fifth anniversary equal to the
product obtained by multiplying 225,000 pounds of copper times the
average copper price for the previous 30 trading days.
Antofagasta has the option to earn an additional 19% in the DP, for a
total of 70%, by sole funding work commitments resulting in the
completion of a NI 43-101 compliant feasibility study. These "Second
Option Expenditures" will initially consist of a minimum US $3
million over three years, with minimum expenditures of US $2 million
per year thereafter until the feasibility study is completed. In
addition, to complete the 70% earn-in, Antofagasta will make another
cash payment to EMX equal to the product obtained by multiplying
225,000 pounds of copper times the average copper price for the
previous 30 trading days.
In the event Antofagasta completes the earn-in requirements to hold a
70% interest in the DP, each party will fund its respective share of
further expenditures on a go-forward basis. Standard dilution clauses
will apply, and if either party's interest is diluted below 10%,
their interest will automatically be converted to a 2% NSR. EMX
retains the right to convert its participating interest in the DP
into a 2% net smelter return at any time after Antofagasta earns its
70% interest in such DP, and until commercial production is reached.
The conversion option also includes an annual advance royalty payment
equal to the product obtained by multiplying 90,000 pounds of copper
times the average copper price for the previous 30 trading days.
If Antofagasta fails to complete the Second Option Expenditures the
parties' interests in the DP will remain at Antofagasta 51% and EMX
49%, but EMX will take control and management of the project.
EMX Properties Available for Partnership. In addition, EMX is
advancing the Storasen, Aitik South, and Norrmyran properties outside
of the Strategic Regional Alliance with Antofagasta. The Storasen
copper-gold-PGE project contains a zone of drill-defined
mineralization, surface geochemical anomalies, mineralized boulders,
and multiple mineral occurrences for follow-up testing. The Aitik
South copper-gold project contains several historic prospects, and is
located along strike of the Salmijarvi copper and gold deposit.
Salmijarvi is a satellite deposit to Boliden AB's Aitik copper and
gold mine. The Norrmyran copper-gold project hosts porphyry style
alteration and mineralization exposed in outcrop over a six square
kilometer area. EMX's Storasen, Aitik South, and Norrmyran projects
are currently available for partnership.
Comments on Sampling, Assaying, and QA/QC. EMX's exploration samples
were collected in accordance with accepted industry standards and
guidelines. The samples were submitted to ALS Chemex laboratories in
Pitea, Sweden for sample preparation, and Vancouver, Canada (ISO
9001:2000 and 17025:2005 accredited) for analysis. Gold was analyzed
by fire assay with an ICP finish, and copper underwent aqua regia
digestion and analysis with ICP/AES techniques. As standard
procedure, the Company conducts routine QA/QC analysis on all assay
results, including the systematic utilization of certified reference
materials, blanks, and duplicate samples.
About Antofagasta. Antofagasta Minerals SA ("AMSA") is the mining
division of Antofagasta plc. Antofagasta plc is listed on the London
Stock Exchange and is a constituent of the FTSE-100 Index, with
interests also in transport and water distribution. Currently, AMSA
activities are primarily concentrated in Chile where it owns and
operates four copper mines: Los Pelambres, Esperanza, El Tesoro and
Michilla. The production in 2012 was 709,600 tonnes of copper, 12,200
tonnes of molybdenum and 299,900 ounces of gold. AMSA also has
exploration, evaluation and/or feasibility programs in North America,
Latin America, Europe, Asia, Australia, and Africa.
About EMX. Eurasian is a global gold and copper exploration company
utilizing a partnership business model to explore the world's most
promising and underexplored mineral belts. Eurasian generates wealth
via grassroots prospect generation, st
rategic acquisition and royalty
Mr. Dean D. Turner, CPG, a Qualified Person as defined by National
Instrument 43-101 and consultant to the Company, has reviewed,
verified and approved disclosure of the technical information
contained in this news release.
This news release may contain "forward looking statements" that
reflect the Company's current expectations and projections about its
future results. When used in this news release, words such as
"estimate," "intend," "expect," "anticipate," "will" and similar
expressions are intended to identify forward-looking statements,
which, by their very nature, are not guarantees of the Company's
future operational or financial performance, and are subject to risks
and uncertainties and other factors that could cause Eurasian's
actual results, performance, prospects or opportunities to differ
materially from those expressed in, or implied by, these
forward-looking statements. These risks, uncertainties and factors
may include, but are not limited to: unavailability of financing,
failure to identify commercially viable mineral reserves,
fluctuations in the market valuation for commodities, difficulties in
obtaining required approvals for the development of a mineral
project, increased regulatory compliance costs, expectations of
project funding by joint venture partners and other factors.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
news release or as of the date otherwise specifically indicated
herein. Due to risks and uncertainties, including the risks and
uncertainties identified in this news release, and other risk factors
and forward-looking statements listed in the Company's MD&A for the
year ended December 31, 2012 (the "MD&A") and most recently filed
Annual Information Form for the year ended December 31, 2012 (the
"AIF"), actual events may differ materially from current
expectations. More information about the Company, including the MD&A,
the AIF and financial statements of the Company, is available on
SEDAR at www.sedar.com and on the SEC's EDGAR website at www.sec.gov.
The NYSE MKT, TSX Venture Exchange and the Investment Industry
Regulatory Organization of Canada do not accept responsibility for
the adequacy or accuracy of this release.
Eurasian Minerals Inc.
David M. Cole
President and Chief Executive Officer
Eurasian Minerals Inc.
(604) 688-1157 (FAX)
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