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EurOmax begins drilling at Serbian KMC property

EurOmax (CVE:EOX) announced Tuesday it has begun a diamond drill program at its wholly owned Karavansalija Mineralized Complex (KMC) property in Serbia, following the positive results of its geophysical program at the site.

The fall 2011 drill program has been authorized for six holes totaling 2,500 metres. Hole 1141 has already been completed to 296 metres, while hole 1142 is in progress.

The company had acquired a full interest in the KMC property in late July 2011, after modifying a pre-existing options deal it had with a major international mining company. Under the amended deal, the unnamed mining company agreed to give up its option to buy a 70% stake in the KMC property, in exchange for a 2% net smelter royalty on gold, and a 1.5% net smelter royalty on all base and precious metals other than gold.

Shortly thereafter, it completed an aggressive geophysical program, including comprehensive magnetic and induced polarization (NYSE:IP) resistivity surveys. The magnetic data it collected suggested the presence of at least seven buried intrusive centres.

However, EurOmax said that, though gold and copper mineralization has been revealed in drilling, no mineralized porphyry has been encountered.

One pronounced magnetic anomaly exists a few hundred metres southwest of Copper Canyon, where EurOmax intersected gold and copper over a 1,000-metre by 500-metre area, it said. This region is included in the drill program, and will be tested over the next two months.

EurOmax technical advisor, Dr. Quinton Hennigh said: "We are very pleased with results from our geophysical program at KMC.

"We suspect there should be one or more intrusions driving this huge mineralized system, and now we are seeing good evidence from magnetic for at least seven intrusions.

"Coupled with our IP/resistivity data, which suggests the presence of chargeable disseminated sulphides, we have numerous targets requiring drilling. Our plan is to drill these as aggressively as possible during 2012."

EurOmax said it may test other new targets before the year's end, depending on weather conditions. Any targets that are not completed in 2011 will be tested once drilling resumes in the spring of 2012.

Based in Vancouver, B.C., EurOmax shares closed on Monday at $0.245.