Vancouver, British Columbia, August 27, 2007 (TSX Venture: EMX) – Eurasian Minerals Inc. (the “Company” or “EMX”) is pleased to announce it has signed a non-binding letter of intent to joint venture the Sisorta gold property with Chesser Resources Limited, (ASX:CHZ) (“Chesser”). EMX’s Sisorta property is a bulk tonnage, epithermal gold project with copper porphyry potential at depth.
Overview of the Sisorta Project
The Sisorta gold project is located in north-central Turkey’s Pontides mineral belt. Previous EMX drill results have yielded multiple, near surface, oxide gold intercepts averaging from 0.47 g/t to over 5 g/t gold. The best continuous drill intercept came from core hole Sis-5, which returned 30.4 meters averaging 3.83 g/t gold. In addition, drill holes targeting the deeper extents of the system intersected porphyry-style alteration and anomalous copper mineralization. The Sisorta altered and mineralized system remains open in all directions.
EMX has recently received government approval to reinitiate drilling at Sisorta. To date, three core holes totaling 385 meters have been completed, with the drill program progressing on the fourth hole. All assay results from this on-going campaign are pending.
Overview of Commercial Terms:
Subject to a 35 day due diligence period, Chesser has the opportunity to finalize a joint venture substantially in accordance with the following terms and conditions:
- Chesser will issue 500,000 shares and pay US$100,000 on execution of the definitive agreement.
- Chesser may earn a 51% in the property by spending US$4 million over a three year period of which US$750,000 is a firm year one commitment.
- Chesser will issue an additional 1 million shares and pay US$100,000 on the second anniversary of the agreement and 1.5 million shares and US$100,000 on the third anniversary.
- Chesser may subsequently earn an additional 19% interest (for a total 70% interest) in the project by sole funding exploration to delivery of a bankable feasibility study and annual cash payments of US$100,000 over the following five years.
- Once ownership is vested in the project, each partner must contribute or dilute. Should a partner dilute to 10%, their ownership is converted to a 3% NSR, which can be reduced to a 2% NSR through payment of US$1.5 million by the non-diluting partner.
The combination of Chesser’s work commitments and cash and equity payments will substantially accelerate the exploration program at Sisorta, while adding to EMX’s already strong treasury of cash and securities. Chesser is an ASX-listed exploration company with a portfolio of gold, copper and nickel properties.
EMX is exploring and investing in a first class mineral and royalty portfolio in some of the most prospective, but under-explored mineral belts of the world. EMX is also participating in quality, early stage exploration investment opportunities to add shareholder value while simultaneously minimizing stock dilution.
Mr. Dean Turner, P.Geo., a Qualified Person as defined by National Instrument 43-101 and consultant to the Company, has reviewed and verified the technical information contained in this news release.
For further information contact:
David M. Cole
President and Chief Executive Officer
Phone: (303) 979-6666
Email: dave@eurasianminerals.com
Website: www.eurasianminerals.com
Kim C. Casswell
Corporate Secretary
Phone: (604) 688-6390
Email: kcasswell@eurasianminerals.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Forward-Looking Statement
Some of the statements in this news release contain forward-looking information that involves inherent risk and uncertainty affecting the business of Eurasian Minerals Inc. Actual results may differ materially from those currently anticipated in such statements.