The Plavkovo Exploration Permit is located within the Vardar Zone of Neogene epithermal and porphyry copper mineralization, and at the northern extremity of the Trepça "Belt" of carbonate-replacement zinc-lead mineralization. The Vardar Zone contains several operating mines (including Sasa lead-zinc and Bucim porphyry copper in Macedonia, Olympias and Stratoni lead-zinc and the development of the Skouries porphyry copper deposit in northern Greece). The Plavkovo area contains a number of mineralized occurrences and is considered to be highly prospective. Porphyry copper-gold mineralization on the Rudnitsa Permit (adjacent to the north) was discovered by Euromax Resources Ltd. under the terms of an option agreement with Freeport McMoran Exploration.

The mineralization targets in the Permit include high-sulphidation gold mineralization, intermediate-sulphidation gold and base metal mineralization, and porphyry copper mineralization.

Neogene andesite volcanics and volcaniclastics, with very occasional dacite and andesite intrusives in the region dominate the geology of the Permit area. The Permit contains several occurrences of zinc-lead-copper epithermal vein mineralization that were explored by government agencies for lead-zinc in the 1970’s and 80’s, and an important occurrence of alunite with associated gold values was discovered at the Bukovik Hill during the 1980’s.

The Plavkovo Exploration Permit is held by Balkan Exploration and Mining (BEM d.o.o.) a 100% owned Serbian subsidiary of Reservoir Minerals and covers an area of 19.8 sq. km.

2011 exploration has focused on the Plavkovo prospects and extending the known gold mineralization within the “gypsum” zone to the east.

Regional stream sediment and rock sampling identified three main target areas: Plavkovo, Lipovice and Bukovik prospects. Subsequent work has included detailed geological mapping, soil sampling, and rock-chip sampling from outcrops and trenches. The geochemistry and geological mapping has been complemented by spectro graphic analysis (PIMA) for alteration identification that confirmed extensive silica-alunite alteration in the Bukovik prospect, and advanced argillicand, locally, silicic alteration associated with the known mineralization at the Plavkovo and Lipovice prospects. Ground magnetic and IP/resistivity geophysical surveys have been undertaken at Bukovik, and have successfully defined the silica-alunite alteration zone and identified IP anomalies adjacent to and below the alteration cap rock.

• Bukovik Prospect: The Bukovik high-sulphidation silica-alunite alteration extends over about 1000 by 250 meters along strike on the Veliki Bukovik Ridge. The area of alteration was previously investigated as a potential source of alumina by Yugoslav state organizations, but only limited exploration for gold was undertaken. The soil sample survey delineated a coherent, gold in soil anomaly ranging from 30 to 328 parts per billion (ppb) that is constrained within a 100 meter vertical elevation extent and occurs at the base of the silica-alunite alteration cap. The principal outcrops of intensely silicified andesite have been systematically sampled by 106 chip-channel rock samples, which assayed from 0.005 to 1.740 parts per million (ppm) gold, and averaged 0.267 ppm gold. The highest grade channel samples came from the Bukovik Mali Krs area, and reported up to 8 meters at 0.62 ppm gold, including 2 meters at 1.12 ppm gold. The IP and resistivity survey identified several conductors indicative of sulphide mineralization beneath the silica cap. A drilling progamme to test these conductors was initiated in winter 2007, but was abandoned due to poor weather before any targets could be tested.
• Plavkovo Prospect: The Plavkovo gold-copper prospect is located about 2700 meters to the northeast of Bukovik, and is marked by a 150 meter wide zone of anastomosing sulphide-bearing quartz veins and veinlets in a structurally controlled zone of brecciated and esite sexhibiting intense argillic alteration. Grab-sampling of outcrops in the Plavkovo area yielded a maximum of 13.55 ppm gold (253 rock samples from the prospect average 0.36 ppm gold). Chip-channel sampling from outcrops and four trenches tested a strike-length of 360 meters along the mineralized structure. The samples were all collected across strike, and the best results are tabulated below. The mineralization exposed in trenches B and C continues into waste material from earlier exploration and historic mining, which prevents a complete understanding of the true surface extent.

• Sample results from trenches in the Plavkovo Prospect
  
  Systematic sampling of outcrops in the “gypsum” zone, which is marked by pyritic and advanced argillic alteration of andesite, has yielded 14.2 meters at 0.58 ppm gold including 2 meters at 2.2 ppm gold. Two IP/resisitivity geophysical profiles across this zone identified very strong and coincident chargeability and conductivity anomalies. This zone is located about 400 meters east of the trenches, and suggests a possible continuation of the mineralized structure for nearly 800 meters.
• Lipovica Prospect: Detailed mapping revealed lead-zinc veins hosted by andesite exhibiting advanced argillic alteration. Extensive rock sampling (109 samples) yielded occasional samples greater than 1 ppm gold, with a maximum of 1.95 ppm gold.