VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/05/13 -- Euromax Resources Ltd. 5 March, 2013 ("Euromax" or the "Company") (TSX VENTURE: EOX) (OTCQX: EOXFF) has been selected for a technical review by the British Columbia Securities Commission and as a result, the Company is issuing the following news release to clarify its disclosure.
Trun Property Technical Report
The Company refers to its report dated January 31, 2011 titled "Technical Report on the Gold Resources at Trun Property, Trun and Breznick Municipalities, Pernik District, Bulgaria" prepared by Broad Oak Associates (the "Broad Oak Report"). Following its review, the British Columbia Securities Commission identified concerns regarding the Broad Oak Report including with respect to the disclosure of assumptions, parameters in the Broad Oak Report and the estimation practices used. Accordingly, the Company advises that the resource estimate provided in the Broad Oak Report is not supported by a technical report that is compliant with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), contrary to NI 43-101, and the Company's previous disclosure of that resource estimate should not be relied upon.
A new mineral resource estimate and supporting NI 43-101 compliant technical report for the Trun Property is being prepared by Tetra Tech WEI Inc. The new report was commissioned in December 2012 and is expected to be completed in April. The new resource estimate is expected to include the mineralized zone described in the Broad Oak Report as well as additional areas of mineralization within the Trun Property that were the target of recent drilling.
Ilovitza Preliminary Economic Assessment
Following this review, the Company is preparing and will file an amended Preliminary Economic Assessment for the Ilovtiza Gold Project in Macedonia, for which the results are the same, but which is expected to provide additional explanation of adjustment procedures used to derive the alternate through-put scenarios from the Preliminary Economic Assessment dated December 5, 2012 on the Ilovitza Gold Project, Macedonia (the "Original Ilovitza PEA"), so as to be compliant with NI 43-101. The Company will issue a news release concurrently with the filing of the amended Preliminary Economic Assessment.
In addition, the Company provides further clarification regarding its disclosure in the Company's Corporate Fact Sheet dated January 2013 and Investor Presentation dated February 2013, which was not NI 43-101 complaint, as such disclosure either omitted or did not always include:
-- the discount rate used for the net present value of a preliminary economic assessment; the fact that results of Original Ilovitza PEA are only on a "pre-tax" basis; and other relevant parameters of a preliminary economic assessment such as internal rate of return and payback period;-- the basis the for the preliminary economic assessment and the qualifications and assumptions made by the qualified person; and-- the requisite proximate cautionary language specifically: -- that the preliminary economic assessment is preliminary in nature, that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized; and -- that mineral resources that are not mineral reserves do not have demonstrated economic viability.