Mr. David Cole of Eurasian reports
EURASIAN MINERALS EXECUTES AGREEMENT TO PURCHASE NSR ROYALTIES FOR THE MAGGIE CREEK AND AFGAN GOLD PROPERTIES, NEVADA
Eurasian Minerals Inc. has executed a purchase agreement for net-smelter-return royalty interests on the Maggie Creek and Afgan gold properties from Golden Predator U.S. Holding Corp., a wholly owned subsidiary of Till Capital Ltd. Golden Predator owns a 2-per-cent net-smelter-return royalty on all precious metals and a 1-per-cent net-smelter-return royalty on all other minerals for the Maggie Creek property, which is located north-northeast of Newmont Mining Corp.'s Gold Quarry open-pit operations on the Carlin trend, and a 1-per-cent net-smelter-return royalty on all minerals for the Afgan property, which occurs on the Battle Mountain/Eureka trend. The addition of these two royalty assets will strengthen Eurasian Minerals' growing Nevada gold portfolio that includes the Leeville royalty property on the northern Carlin trend, as well as the Maggie Creek South royalty property located south-southeast of Gold Quarry.
Commercial terms overview
A summary of the agreement's commercial terms includes:
Purchase by Eurasian Minerals of Golden Predator's net-smelter-return royalties covering the Maggie
Creek (2-per-cent net-smelter-return royalty on precious metals and 1-per-cent net-smelter-return royalty on all other
minerals) and Afgan (1-per-cent net-smelter-return royalty) properties;
Issuance by Eurasian Minerals of 250,000 Eurasian Minerals shares to Till Capital as consideration for the
Approval by the TSX Venture Exchange and NYSE MKT exchange as a condition
precedent to closing the transaction.
Royalty asset overview
Maggie Creek and Afgan are sediment-hosted gold royalty assets occurring within Nevada's prolific Carlin and Battle Mountain/Eureka trends, respectively. Both properties have significant upside potential as demonstrated by historical drilling and surface exploration assessments.
The Maggie Creek royalty property is located 14.5 kilometres (nine miles) northwest of Carlin, Nev., and approximately two kilometres (approximately 1.2 miles) north-northeast of Newmont's Gold Quarry mining operations. The project is covered by 102 unpatented lode mining claims controlled by Renaissance Gold Inc. Maggie Creek occurs along the northeast projection of the Gold Quarry fault zone, which is an important mineralizing control at the Gold Quarry mine. Exploration has been conducted by companies that include Wolfpack Gold, Newmont, Barrick, Western States, Teck, Cordex and Freeport. Most of the historical drilling consisted of shallow, vertical holes that did not thoroughly test Carlin-type targets in the upper-plate or lower-plate rocks of the Roberts Mountain Allocthon. Notably, a window of favourable lower-plate carbonate rocks is exposed in the Maggie Creek claim block just north of Newmont's Rainbow deposit (described in Nevada Bureau of Mines and Geology bulletin 111, 2002). Moderate to strong Carlin-type hydrothermal alteration (silicification, argillization and decalcification) extends north from Rainbow onto the Maggie Creek land position.
The proposed acquisition of Golden Predator's Maggie Creek royalty complements Eurasian Minerals' existing Maggie Creek South 3-per-cent net-smelter-return royalty property, which occurs approximately 1.5 kilometres (approximately one mile) south-southeast of Gold Quarry and covers about 5.2 square kilometres (two square miles). Maggie Creek South occurs on the southeast projection of the Good Hope fault trend, which has an alignment of deposits along its length, including Mike, Tusc, Mac and Gold Quarry, as well as the downdip projection of favourable host rocks. Taken together, the Maggie Creek and Maggie Creek South royalty properties cover approximately 12.5 square kilometres (4.8 square miles) of prospective ground in a world-class gold mining district.
The Afgan royalty property is located about 40 kilometres (25 miles) northwest of Eureka, Nev. The Afgan claim block consists of 73 unpatented lode mining claims controlled by McEwen Mining Inc. The property hosts a semi-continuous, 1,050-metre-by-450-metre (approximately 3,500-foot-by-1,500-foot), north-northwest-oriented zone of oxide gold mineralization delineated by historical drilling programs. The mineralization occurs along the contact of thinly bedded siltstones of the Webb formation with the underlying Devils Gate limestone.
The Afgan property has an historical resource estimate at a cut-off grade of 0.006 ounce per ton gold comprising 3,206,000 indicated tons averaging 0.021 ounce per ton gold and 3,972,000 inferred tons averaging 0.014 ounce per ton gold as reported by Mine Development Associates of Reno, Nev. (see previous owner NV Gold Corp.'s SEDAR-filed technical report with an effective date of May 9, 2011, and prepared by MDA's independent qualified person, Michael M. Gustin, PGeo). MDA's historical resource estimate utilized inverse-distance estimation constrained within interpreted mineral domains. The historical resource is not constrained by an open pit. Eurasian Minerals has not completed sufficient work to verify the MDA historical resource estimate and is not treating it as a current resource. The historical estimate should not be relied upon until it can be confirmed. However, the historical resource is considered relevant to provide context for the gold mineralization at Afgan. Additional work to verify the historical resource would include review of new exploration information, re-examination of the cut-off grade using a current metal price and constraining the resource within an open-pit shell configuration. The historical resource is contained within the Afgan claim block and, as noted in MDA's technical report, is open for expansion.
Comments on adjacent properties
Gold Quarry and other deposits of the district provide context for the Maggie Creek and Maggie Creek South royalty properties, which occur in a similar geologic setting. However, this is not necessarily indicative that Maggie Creek or Maggie Creek South hosts mineralization with similar tonnages or grades.
Dean D. Turner, CPG, a qualified person as defined by National Instrument 43-101 and employee of the company, has reviewed and approved disclosure of the technical information contained in this news release.
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