Europe-focused EurOmax Resources (CVE:EOX)(OTCQX:EOXFF) said Thursday that it plans to undertake an aggressive drill program testing multiple new targets at its KMC copper-gold project in Serbia this year.
KMC - which is 100 percent-controlled by EurOmax - is in a large, Tertiary-aged precious and base metal district located in southwest Serbia in an area with "excellent" infrastructure, the company said.
To date, drilling has identified extensive copper-gold skarn, gold skarn, and gold-bearing siliceous breccias in several locations.
EurOmax said it believes one or multiple buried porphyry intrusions, perhaps also mineralized, may be the source for these widely occurring mineralized zones.
In April, a planned 8,000 metre diamond drill program will test multiple new targets defined by magnetic, induced polarization and resistivity data collected in late 2011.
"Now that we have analyzed our comprehensive geophysical dataset from KMC, we are planning an aggressive drill program to test multiple new drill targets at our KMC project," said EurOmax's chief geologist and director Dr. Quinton Hennigh.
"Previous drilling at KMC has already identified a robust copper-gold skarn system at Copper Canyon. Our new dataset clearly indicates the presence of at least seven additional large geophysical anomalies similar in nature to Copper Canyon. Some of these are associated with strong surface geochemical anomalism.
"Beginning in late April, we will undertake systematic drilling of these new targets that we believe could generate significant results at KMC."
Drilling at KMC since 2006 led to the discovery of a significant zone of copper-gold skarn mineralization at Copper Canyon in the southern part of the property. Mineralization includes gold skarn, copper-gold skarn and gold mineralization hosted by silica stockwork, occurring in an area measuring nearly one kilometre east-west and 0.5 kilometres north-south.
Although Copper Canyon alone represents a significant zone of mineralization, multiple other targets have now been identified across the property and will be the subject of drilling this year.
An extensive geophysical program, including approximately 70 kilometres of induced polarization-resistivity lines and detailed ground magnetics surveys, was completed at KMC in the fall of 2011.
Processed magnetic data suggests the presence of as many as eight large magnetic anomalies on the 42 square kilometre property, the largest of which measures nearly two kilometres long and 1.5 kilometres wide.
Among the highlights of EurOmax's 2011 drilling campaign, four of five diamond drill holes completed in the Copper Canyon area intersected significant mineralization including hole EOKSC1141, which returned 67.6 metres of skarn mineralization grading 1.18 grams per tonne(g/t) gold.
A second step-out hole, EOKSC1142, was drilled approximately 150 metres further west from EOKSC1141 and intersected multiple intervals of skarn mineralization including 53.8 metres at 0.74 g/t gold and 47.3 metres at 0.84 g/t gold.
In addition, three holes, EOKSC1143, EOKSC1144 and EOKSC1145 were drilled approximately 450 metres southwest, 400 metres west and 300 metres west-northwest of the Copper Canyon Zone, respectively. Each of these holes tested IP anomalies, the company said.
Last month, independent equity research firm First Berlin said it expects positive news for EurOmax that could push it into a "different league". First Berlin started coverage of EurOmax with a "buy" rating and $0.45 price target.
EurOmax is a Canadian company with three core properties in Bulgaria, Serbia and Macedonia.