EMX’s Balya royalty property occurs in the historic Balya lead-zinc-silver mining district of northwestern Turkey. The Balya license was acquired by EMX in a 2005 government auction after review of historic exploration results. In 2006 EMX entered into an agreement to transfer the Balya and Sofular properties to Dedeman Madencilik San ve Tic. A.S. (“Dedeman”) a Private Turkish company in exchange for cash payments, work commitments, 4% NSR royalties, and the Alankoy gold-copper property (see EMX news release dated November 14, 2006). In January 2020 Dedeman sold the Balya property to Esan Eczacibaşi Endüstriyel Hammaddeler San. ve Tic. A.Ş. (“Esan”) a private Turkish company. Esan operates numerous mines and processing plants in Turkey, and is one of Turkey’s leading producers of raw materials and base metals. Most importantly, Esan operates a lead-zinc mine and flotation mill on the property immediately adjacent** to EMX’s royalty property at Balya. EMX retains a 4% net smelter return (“NSR”) royalty on the Property that is uncapped and cannot be repurchased. See Company news release dated January 7, 2020)

Mineralization at Balya consists of Pb-Zn-Ag rich skarn and carbonate replacement zones hosted in limestones and dacites. Hastanetepe is the main mineralized prospect, and occurs as a shallow dipping, 1,800 by 3,000 meter zone of multiple stacked horizons of mineralization at depths ranging from 10-20 meters to 200-300 meters. 

Dedeman’s exploration programs have resulted in over 300 core holes totaling more than 59,000 meters and the construction of a pilot-scale underground mine. This drilling has expanded the lead-zinc-silver mineralization in the Hastanetepe zone, and confirmed the continuity and tenor of the mineralization with in-fill holes at 25 to 50 meter spacing. Hastanetepe remains open for extension along strike, down dip, and to depth. 

Dedeman’s Balya drill samples were collected in accordance with industry standard best practices. The samples were submitted to ALS laboratories in Izmir, Turkey and Vancouver, Canada (ISO 9001:2000 and 17025:2005 accredited) for sample preparation and analysis. Silver and base metal analyses are determined by four acid digestion and ICP MS/AES techniques. Over-limit analyses are performed by atomic absorption, and in some cases (>30% Pb and >30% Zn) by volumetric titration techniques. Dedeman performs routine QA/QC analyses on their assay results, including the utilization of certified reference materials, blanks, and duplicate samples.

**Esan’s project provides context for EMX’s Balya royalty property, which occurs in a similar geologic setting. However, this is not necessarily indicative that Balya hosts mineralization with similar tonnages or grades.


* Grade x Thickness (PbEq x Meters) calculated from intervals> 2% PbEq. PbEq calculated as Pb%+Zn%+(Ag g/t * 0.026), and assumes that recoveries and net smelter returns are 100%. Assumed metal prices are $1/lb for Pb and Zn, and $17.50/oz for Ag. True widths vary from 60-95% of the drill intercepts. Click to Enlarge


Historic mining ruins at Balya. Click to Enlarge
Lead-zinc-silver mineralized core sample from Balya. Click to Enlarge

Sofular and Aktutan

EMX has a royalty interest in the Aktutan polymetallic project sold to Dedeman in 2007 for considerations that also include a 4% uncapped NSR. The Sofular royalty property, also held by Dedeman, was dropped in Q1 2015 due to a lack of encouraging exploration results.(see Company news release dated August 30, 2007 for more information).