Eurasian Minerals Inc. (the "Company" or "EMX") (TSX
VENTURE:EMX)(NYSE Amex:EMXX) is pleased to announce the acquisition
of the Neavesville gold-silver property (the "Property") located in
the Hauraki goldfield of New Zealand's North Island. The Company is
also pleased to announce the execution of a definitive agreement
with Glass Earth Gold Limited (TSX VENTURE:GEL)(NZAX:GEL) ("GEL")
giving GEL an option to acquire the wholly-owned EMX subsidiary
that controls the Property. The agreement provides for staged
payments and work obligations from GEL, as well as immediate
reimbursement of EMX's exploration costs.
EMX acquired the Neavesville exploration licenses by staking,
and with minimal cost. The sale of a property covering a historic
gold-silver resource reported under JORC standards in a key mining
district serves as another example of the Company's execution of
the prospect generation model. The agreement with Glass Earth Gold
is structured with a) in-ground spending requirements to further
develop the asset's value, b) a pre-production revenue stream
denominated in terms of gold ounces, and c) a revenue stream based
on production, all to the benefit of EMX.
The Neavesville Property consists of two exploration permits
totaling over 30 square kilometers that cover two main centers of
epithermal gold-silver mineralization (Neavesville and Chelmsford).
One of the mineralized centers, named Trig Bluffs, has a historic
near-surface inferred resource of 3.2 million tonnes averaging 2.7
g/t gold and 8.9 g/t silver, and containing 289,000 ounces of gold
and 944,000 ounces of silver (R. Brathwaite, IGNS report, 1999;
2001). In addition, a separate higher-grade historic inferred
mineral resource of approximately 0.47 million tonnes at 7.1 g/t
gold and 20.7 g/t silver, and containing 107,000 ounces of gold and
312,000 ounces of silver, was reported for mineralization at depth
beneath Trig Bluffs.
Overview of Commercial Terms. The agreement with GEL provides
for staged payments and obligations as summarized below:
-- Immediate reimbursement of EMX's exploration costs (C$85,567);
-- Payment of 850 troy ounces of gold(i) prior to the earlier of
acquisition of surface access or December 31, 2013;
-- A total of 5,000 meters of drilling;
-- The filing of a Technical Report with updated NI 43-101/JORC resource
estimates before the earlier of (a) 24 months after the gold payment
above or (b) December 31, 2015, at which time GEL can exercise the
option;
-- Additional payments ("Additional Payments") prior to exercise of the
purchase option at the rate of 75 troy ounces of gold(i) per annum and,
after exercise of the purchase option, at the rate of 100 troy ounces of
gold(i) per annum, which payments may be credited against the Deferred
Consideration as set forth below;
-- Agreement to pay amounts ("Deferred Consideration") equivalent to 2% of
net smelter returns from production from the exploration licenses; in
any given year, Additional Payments made prior to production may be
credited against up to 80% of the Deferred Consideration payable in that
year;
-- Beginning with a decision to construct a mine based on a NI 43-101 /
JORC feasibility level Technical Report that supports a positive
production decision, payment of 0.01 troy ounce of gold for each of the
first 500,000 ounces of contained gold in proven and probable (P&P)
reserves(i). For any contained ounces of gold in P&P reserves that
exceed 500,000 ounces over the life of the project, the gold payment to
EMX will be reduced to 0.005 troy ounces of gold per contained ounce.
(i) Gold payments may also be made in equivalent US dollars at
the then spot price of gold or in equivalent Glass Earth fully paid
ordinary shares - the mode of payment to be at Glass Earth's
election. Payment using Glass Earth shares would be subject to TSX
Venture approval.
Neavesville Property Background. Neavesville occurs in the
Hauraki goldfield of New Zealand's North Island. The Hauraki
goldfield hosts several gold-silver and copper-gold-molybdenum
deposits in a 200 by 40 kilometer, north-south trending
metallogenic belt. The Property hosts a variety of gold-silver
mineralization styles that include replacement bodies in black
shales and breccias, as well as higher-grade, structurally
controlled quartz veins that have similar geologic features to
other deposits of the Hauraki goldfield, including Newmont's Martha
Hill gold-silver mine located 25 kilometers to the southeast.
The Property consists of the Pakirarahi No. 1 and No. 2
exploration permits, which cover the historic underground and
shallow open cut workings of the Neavesville "gold-silver field".
These mines produced intermittently from 1875 to 1940.
Neavesville's history of gold-silver mining attracted a number of
exploration companies that were active from the 1970s through 2007,
including Amoco (Cyprus), CRA, Homestake, City Resources, Normandy,
and Newmont. Work conducted by previous operators includes 63
diamond holes totaling over 8,900 meters of drilling, more than
1,400 rock samples, soil sampling grids, and numerous campaigns of
geophysical surveys (i.e., magnetics, gravity, EM, etc.).
The largest of the gold systems defined by the historic drilling
and surface geochemistry is centered on Trig Bluffs, and measures
approximately 2.5 by 1.5 kilometers. Epithermal gold-silver
mineralization is developed in a large multiphase breccia complex
that cuts faulted volcanic and minor sedimentary sequences, as well
as along steeply dipping quartz-adularia veins, and as stockworks
in breccias and dacite porphyry. Further, the historic exploration
datasets, as augmented by recent EMX geophysical surveys, have
identified additional targets at the Chelmsford and Oneura
prospects.
Historic inferred mineral resource estimates for Trig Bluffs
were reported according to JORC standards in 1999 (and amended in
2001) by the Institute of Geological and Nuclear Sciences ("IGNS"),
a government research institute (R. Brathwaite, IGNS report, 1999;
2001). A near-surface, historic resource estimate for the "upper
zone" mineralization was based upon cross-section polygons at
50-meter spacing and a cutoff grade of 0.7 g/t gold. This
near-surface inferred resource was reported as 3.2 million tonnes
averaging 2.7 g/t gold and 8.9 g/t silver, containing 289,000
ounces of gold and 944,000 ounces of silver. In addition, a
historic inferred mineral resource for deeper, potentially
underground mineable mineralization was also estimated with the
polygonal method, assuming a maximum projection of 25 meters, a
minimum width of one meter, and a cutoff grade of 10 gram-meters
(i.e., the product of the gold grade and true width thickness of
the drill hole intercept). This historic resource was reported as
0.47 million tonnes averaging 7.1 g/t gold and 20.7 g/t silver for
mineralization occurring at depth beneath Trig Bluffs (R.
Brathwaite, IGNS report, 1999; 2001). A Qualified Person has not
performed sufficient work to classify the historic estimates as
current mineral resources, and EMX is not treating the estimates as
current mineral resources. The historic estimates should not be
relied upon until they can be confirmed. However, the
drill-delineated Trig Bluffs gold-silver mineralization described
by the IGNS report is considered relevant.
Comments on Sampling, Assaying, and QA/QC. EMX conducted
reconnaissance level due diligence geologic mapping and rock
sampling at Neavesville. Over 20% of EMX's rock samples (total of
35 samples) assayed greater than 0.2 g/t gold, including 4.12 g/t,
2.74 g/t, and 1.89 g/t gold. One rock sample assayed 13.8 g/t
silver.
EMX's exploration samples were collected in accordance with
accepted industry procedures and best practice standards. The
samples were submitted to SGS Labs (ISO 9001:2000 accredited) in
Waihi, New Zealand for analysis. Gold was analyzed by fire assay
with an AAS finish, and multi-element analyses were determined with
aqua regia digestion and ICP/MS techniques. Routine QA/QC analysis
is conducted on assay results, including the systematic utilization
of certified reference materials, blanks and field duplicates.
About EMX. Eurasian is a global gold and copper exploration
company utilizing a partnership business model to explore the
world's most promising and underexplored mineral belts. Eurasian
generates wealth via grassroots prospect generation, strategic
acquisition and royalty growth.
David Royle, B.Sc. (Hons), FAusIMM, a Qualified Person as
defined by National Instrument 43-101 and consultant to the
Company, has verified and approved disclosure of the technical
information contained in this news release.
Forward-Looking Statement
This news release may contain "forward looking statements" that
reflect the Company's current expectations and projections about
its future results. When used in this news release, words such as
"estimate", "intend", "expect", "anticipate", "will" and similar
expressions are intended to identify forward-looking statements,
which, by their very nature, are not guarantees of the Company's
future operational or financial performance, and are subject to
risks and uncertainties and other factors that could cause
Eurasian's actual results, performance, prospects or opportunities
to differ materially from those expressed in, or implied by, these
forward-looking statements. These risks, uncertainties and factors
may include, but are not limited to: unavailability of financing,
failure to identify commercially viable mineral reserves,
fluctuations in the market valuation for commodities, difficulties
in obtaining required approvals for the development of a mineral
project, expectations of project funding by joint venture partners,
increased regulatory compliance costs and other factors.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
news release or as of the date otherwise specifically indicated
herein. Due to risks and uncertainties, including the risks and
uncertainties identified in this news release, and other risk
factors and forward-looking statements listed in the Company's
MD&A for the nine-month period ended September 30, 2012 (the
"MD&A") and most recently filed Annual Information Form for the
nine-month period ended December 31, 2011 (the "AIF"), actual
events may differ materially from current expectations. More
information about the Company, including the MD&A, the AIF and
financial statements of the Company, is available on SEDAR at
www.sedar.com and on the SEC's EDGAR website at www.sec.gov.
Cautionary Note to Investors Concerning Estimates of Indicated
and Inferred Resources
This news release may use the terms "inferred" and "indicated"
resources. Certain mineral resource numbers contained in this news
release have been prepared in accordance with the JORC Code. While
the terms "indicated mineral resource" and "inferred mineral
resource" are required pursuant to the JORC Code, the SEC does not
recognize such terms. JORC standards differ significantly from the
requirements of the SEC, and mineral resource information prepared
in accordance with the JORC Code is not comparable to similar
information regarding mineral reserves disclosed in accordance with
the requirements of the SEC. Investors are cautioned that "inferred
resources" have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of inferred mineral
resources may not form the basis of feasibility or prefeasibility
studies. Investors are cautioned not to assume that part or all of
an inferred resource exists, or is economically or legally
mineable. Investors are further cautioned not to assume that any
part or all of an indicated mineral resource will be converted into
reserves.
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The NYSE MKT, TSX Venture Exchange and the Investment Industry
Regulatory Organization of Canada do not accept responsibility for
the adequacy or accuracy of this release.
Contacts: Eurasian Minerals Inc. David M. Cole President and
Chief Executive Officer (303) 979-6666Dave@EurasianMinerals.com
Eurasian Minerals Inc. Valerie Barlow Corporate Secretary (604)
688-6390 (604) 688-1157 (FAX)Valerie@EurasianMinerals.com
www.EurasianMinerals.com