Eurasian Minerals Options Lomitas Negras Porphyry Copper Project to Kennecott Exploration Company
May 15 2014 - 7:30AM
Marketwired
Eurasian Minerals Options Lomitas Negras Porphyry Copper Project to
Kennecott Exploration Company
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 15, 2014) -
Eurasian Minerals Inc. (the "Company" or "EMX")
(TSX-VENTURE:EMX)(NYSEMKT:EMXX) is pleased to announce the signing
of an Exploration and Option to Purchase Agreement (the
"Agreement"), through its wholly owned subsidiary Bronco Creek
Exploration, for the Lomitas Negras porphyry copper project with
Kennecott Exploration Company ("Kennecott"), part of the Rio Tinto
Group. The project is approximately 50 kilometers northeast of
Tucson, Arizona within the prolific Laramide-age porphyry copper
belt of the southwestern United States. Please see
www.eurasianminerals.com for more information.
Commercial Terms Overview. Pursuant to the Agreement, Kennecott
can earn a 100% interest in the project by completing US$4,500,000
in exploration expenditures and paying escalating option payments
totaling US$900,000 within five years after the date of the
Agreement, after which EMX will retain a 2% NSR royalty.
In addition, Kennecott will make yearly advanced minimum royalty
("AMR") payments and other payments based upon project milestones
as outlined below:
- Annual AMR payments starting at US$125,000 and commencing upon
exercise of the option.
- Milestone payments consisting of:
- US$500,000 upon completion of an Order of Magnitude Study or
Preliminary Economic Assessment;
- US$1,000,000 upon completion of a Prefeasibility Study;
and
- US$2,500,000 upon completion of a Feasibility Study. The
Feasibility Study payment will be credited against future royalty
payments.
Property Overview. The Lomitas Negras project is located
approximately five kilometers southeast of the town of San Manuel,
and contains isolated altered outcrops that occur in a broad area
of post-mineral cover rocks. The project area is ringed by
Laramide-age intrusive rocks and porphyry copper/skarn deposits
that include BHP-Billiton's San Manuel-Kalamazoo deposits (~16
kilometer north), Redhawk's Copper Creek deposit (~20 kilometers
northeast), and Oracle Mining Corp.'s Oracle Ridge deposit (~10
kilometers southwest). Outcrops on the property exhibit alteration
and anomalous base metal mineralization that characteristically
occurs on the margins of porphyry copper systems. EMX's recognition
of the importance of the altered outcrops, combined with a new
interpretation of the extensional structural setting of the area,
led to the identification of concealed porphyry copper-molybdenum
targets beneath post-mineralization pediment cover.
EMX acquired the property and completed geologic mapping,
outcrop geochemical sampling, a soil gas hydrocarbon survey, and a
property-wide ZTEM/magnetic geophysical survey, all funded by a
previous partner. Three target areas with coincident geologic,
geophysical, and geochemical anomalies were identified from this
work, and 32 sites were permitted for drill testing. In 2013, EMX
completed a three hole, pre-collar reverse circulation drilling
program over two of the target areas in preparation for a follow-up
diamond drilling program. Two of these pre-collar holes encountered
altered porphyry and host rock fragments within the deepest
pediment horizon that suggest a nearby, concealed porphyry
source.
EMX and Kennecott are designing a work program to follow up on
EMX's previous exploration results and targets. EMX will be the
operator through the initial program.
About EMX. Eurasian Minerals Inc. is a royalty generator with a
growing portfolio. Eurasian leverages asset ownership and
exploration insight into partnerships that advance our mineral
properties where EMX retains royalty interests. EMX complements its
generative business through strategic investments and third party
royalty acquisitions.
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.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Forward-Looking Statements
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 three-month period ended March 31, 2014
(the"MD&A") and most recently filed Annual Information Form for
the year ended period ended December 31, 2013 (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.
Eurasian Minerals Inc.David M. ColePresident and Chief Executive
Officer(303) 979-6666Dave@EurasianMinerals.comEurasian Minerals
Inc.Scott CloseDirector of Investor Relations(303)
973-8585SClose@EurasianMinerals.comwww.EurasianMinerals.com
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