Geologic Setting and Previous Exploration
The 528 square kilometer Akoguz license occurs in the southern Tien Shan gold belt and is adjacent to EMX’s Oital license located to the east. The region is underlain by folded and faulted lower Paleozoic sedimentary rocks. Gold mineralization is controlled by intense structural preparation and typically occurs in quartz stockworks, veins, and silica replacement zones. The Akoguz prospect was initially discovered by grassroots stream sediment sampling and explored in the 1998-1999 time frame by Newmont Kyrgyzstan Ltd., with more recent work conducted by Barrick Kyrgyzstan. The previous exploration work consisted primarily of regional stream sediment, soil, and trench sampling.
Soil and trench sampling at Akoguz delineate a coherent, east-northeast striking, 3,500 meter long goldarsenic- antimony anomaly. The soil gold anomaly, defined at a 50 ppb cutoff (0.05 grams/tonne), is 75 meters wide at its western limit and increases to a maximum 500 meter width to the northeast. The soil sample lines were oriented perpendicular to the strike of mineralization at a spacing of 200 to 400 meters. Trench sampling was also conducted over segments of the soil anomaly, and at a 0.5 grams/tonne gold cutoff reported approximate true-width intervals that range from one meter averaging 0.7 grams/tonne to 15.7 meters averaging 2.3 grams/tonne gold.
Further exploration follow-up consisted of four hand-dug, shallow exploration shafts that cut sheared black siltstone units with locally abundant quartz veining. Two shafts (HAK-00-1 and 00-2) were collared in trench TAK-00-8 (22 meters averaging 2.0 grams/tonne gold). Shaft HAK-00-3 was collared in trench TAK-00-3 (22 meters averaging 2.1 grams/tonne gold). The fourth shaft (HAK-00-4) was dug 35 meters to the west of HAK-00-3 along the interpreted strike of mineralization. The exploration shaft assay results are relatively consistent with the trench values, and are summarized in the table below.
Akoguz exploration shaft sampling results.
Exploration Depth # of Avg. gold Min. gold Max. gold
Shaft (meters) Samples g/t g/t g/t
HAK-00-1 6 21 2.7 0.9 4.9
HAK-00-2 7.5 28 2.0 0.8 3.9
HAK-00-3 2.5 5 3.2 0.6 5.3
HAK-00-4 10.2 27 0.5 0.1 1.6
Terms of the Agreement
Terms of the Agreement between the Company and Barrick Kyrgyzstan include a payment of US$250,000 worth of common shares of EMX (the “Shares”) and shall be issued at the two-week average closing price of the Company’s common shares prior to the date of the Agreement. In addition, Barrick Kyrgyzstan retains a royalty interest equal to 1.0% of Net Smelter Returns. The Company may repurchase the royalty from Barrick Kyrgyzstan at any time for the sum of US$2,000,000. Barrick Kyrgyzstan retains a right of first offer to the Property for a term of three years.
Statement on Previous Exploration Results
The Company has referenced recent results from previous operators that have conducted exploration on the Akoguz property. The Company believes that these results are reliable and relevant, and is currently performing independent verification and field follow-up.
Mr. Dean Turner, P.Geo., a Qualified Person as defined by National Instrument 43-101 and consultant to the Company, has reviewed and verified the technical mining information contained in this news release.
For further information contact:
David M. Cole
President and Chief Executive Officer
Phone: (303) 979-6666
Kim C. Casswell
Phone: (604) 688-6390
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Some of the statements in this news release contain forward-looking information that involves inherent risk and uncertainty affecting the business of Eurasian Minerals Inc. Actual results may differ materially from those currently anticipated in such statements.