EurOmax reports gold resource in Bulgaria

In early February EurOmax Resources (EOX-V) released its first National Instrument 43-101 resource estimate on the Logo gold prospect at its 100%-owned Trun gold project in Bulgaria.

The Trun project is in western Bulgaria, about 50 km from the capital city of Sofia, and close to the border with Serbia.

At a 0.3 gram gold per tonne cutoff grade, Logo contains an inferred resource of 91.2 million tonnes grading 0.70 gram gold per tonne for 2.1 million contained oz. gold.  

In the weeks following the resource announcement, the junior raised $7.88 million – more than enough to meet its budget and exploration requirements of $6.7 million for 2011.

On Feb. 25, EurOmax closed a non-brokered private placement of 22.5 million units at a price of 35¢ per unit. Each unit comprises a share and half-warrant, exercisable at 50¢ up until Feb. 24, 2012.

The Logo resource was based on data generated to the end of the field season last year and the deposit remains open to the north, east and west.

Gold mineralization at Trun is related to granitic intrusives in the K2, Little Hill, Big Hill, and KD prospects. The mineralization occurs in stockwork quartz carbonate veins with sulphide contents generally less than 3%. The company also reports that significant scheelite accompanies gold in places. 

The Trun project spans about 75 sq. km and contains at least five additional gold targets besides Logo and K2 that are defined by broad (more than 500 metres in diameter) gold-in-soil anomalies.  

Two small operations on the Trun property produced gold in the past. Zlata, with several open pits and underground operations, turned out about 717,000 tonnes grading 5.97 grams gold between 1939 and 1973, while Krushov Dol, an open pit that operated between 1965 and 1974, produced about 590,000 tonnes of 1.77 grams gold and 14.43 grams silver per tonne.

At presstime in Toronto, EurOmax was trading at 36.5¢ per share. Over the last year, it has traded between a low of 9.5¢ per share (July 27, 2010) and a high of 40¢ (Feb. 8, 2011). The company has 124 million shares outstanding.