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Vancouver, BC – TheNewswire – September 6, 2023 – Avrupa Minerals Ltd. (AVU:TSXV) (OTC:AVPMF) (TSX-V:AVU) (FRANKFURT:8AM) is pleased to announce that its partner at the Slivova Gold Project in the Republic of Kosovo, Western Tethyan Resources (“WTR”), has provided a positive, independent Preliminary Economic Assessment (“PEA”) study based on the NI 43-101 Mineral Resources Estimate (“MRE”) previously reported by Avrupa on July 17, 2023 (see news release Slivova Mineral Resource Estimate). Bara Consulting completed the PEA in accordance with CIM standards, and Avrupa has publicly disclosed the document under NI 43-101 reporting requirements.
The Slivova Project is located in the prolific Vardar Mineral Trend, about 30 km SE of Pristina, the capital of Kosovo. WTR can earn-in to 75% of the Project by funding exploration and development for Euro 1,800,000 over three years, and then a further 10% by making certain milestone and success payments, producing an Environmental Impact Statement, delivering a Feasibility Study, and completing a Mining License application. WTR is 75%-owned by AIM-listed Ariana Resources.
Highlights from the PEA include:
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Slivova provides a conceptual pre-tax Net Present Value (NPV 8%) of US$27 million, and an internal rate of return (“IRR”) of 29% at a gold price of US$1,835/oz.
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Capital expenditure is estimated at $33.4 million and sustaining capital requirements of $9.4 million are envisaged in the study.
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Average production of 13,000 ounces of gold per annum projected over a seven-year mine life from a combined open-pit and underground mining operation is estimated from the study.
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Gold recovery by the Carbon-in-Leach (“CIL”) method, with recovery of gold at 92-94.5% Au (based on current testwork) and a processing rate of 142,000 tpa is estimated from the study.
The full PEA document, which includes the NI 43-101 Mineral Resource Estimate, may be accessed on SEDAR+ or via the Avrupa Minerals website: Slivova PEA
The independent Qualified Person for Mineral Resources as defined by NI 43-101 is Mr. Richard Siddle, MAIG, of Addison Mining Services Ltd. Mr. Siddle has reviewed and approved the scientific and technical content of this news release. The Qualified Person completed a site visit to the project on 13 June 2023, and has inspected the property, drillhole locations and has reviewed selected intervals of the drill core used in the Mineral Resource Estimate. No concerns were identified during the visit.
The independent Qualified Person for the disclosure of the Preliminary Economic Assessment, as defined by NI 43-101, is Dr. Andrew Bamber, BSc, MASc, PhD, P.Eng. of Bara Consulting Limited. Dr. Bamber has reviewed and approved the scientific and technical content of this news release, in the form and context in which it appears. Dr. Bamber completed a site visit to the project on 15 February 2023 and inspected the property, core samples, and visited locations relevant to the project including the gossan outcrop and potential access road, process plant, and tailings sites within the license area.
Paul W. Kuhn, President and CEO of Avrupa Minerals, commented, “We are delighted about the progress made at the Slivova Gold Project by Western Tethyan Resources and associated company Ariana Resources. In the past two months the Mineral Resource Estimate has been updated, and a positive Preliminary Economic Assessment has been completed by our partners. We look forward to seeing more positive results from the upcoming Q4 2023/Q1 2024 work field work program, including trenching and drilling, the Q4 2023 initiation of an Environmental Baseline Study, and continued, strong and proactive ESG work in the project area.”
Mentor Demi, Managing Director of Western Tethyan Resources, added, “The PEA prepared by Bara Consulting provides strong evidence that the Slivova Gold Project has the potential to develop into a profitable gold mine of modest size, even if no additional resources are identified. By showcasing a compelling economic viability, it also provides the basis for commencing the next phase of detailed exploration and techno-economic studies. In conjunction with the pre-established infill resources drill program, WTR is commencing a trenching program to enhance exploration in the areas bordering the primary resource zone, specifically targeting Dzemailj and Valijevishte. Throughout Q4, the company intends to initiate the Environmental Base Line Study, the Social Impact Assessment, and complete the planning for a drilling program, with the actual drilling activities scheduled to commence in the first quarter (Q1) of 2024.”
Dr. Kerim Sener, Managing Director of Ariana Resources, added, “This is an excellent positive outcome for the Slivova Gold Project, demonstrating its potential economics and highlighting opportunities to enhance the project in the longer term. The broader exploration potential of the Slivova project area, in particular the opportunity to define further mineralisation down-plunge of the existing orebody, bodes well for further economic upside. We are now looking to complete further work to demonstrate this upside, via a phased exploration programme, which will target the definition of additional resources and further investigate various aspects of the proposed mine design and processing route, among other technical matters.”
Following is a summary discussion of important points from the PEA (from Western Tethyan Resources):
Introduction
The Slivova Gold-Silver Project (“the Project”) is located some 30 km southeast of Pristina, the capital of Kosovo. The Project was acquired by AVU Kosova, a wholly owned subsidiary of Avrupa Minerals (“Avrupa”), which was granted a seven-year exploration licence for the Project in 2022. In May 2023, Western Tethyan Resources Ltd (“Western Tethyan”, “WTR” or “the Company”) executed an earn-in agreement with Avrupa, in which WTR can earn-in up to 85% of the project.
Bara Consulting Limited (“Bara”) was engaged by WTR to prepare a Preliminary Economic Assessment (“PEA”) for Slivova. The study comprises the updated Mineral Resource Estimate (announced separately on July 17, 2023) and mining and tailings management assessments, which were used as inputs into a concept level techno-economic evaluation prepared in accordance with CIM guidelines and disclosed in accordance with NI 43-101 reporting requirements.
Project Location
The Slivova Project exploration license is located along the Vardar Mineral Trend, approximately 30 km (30 minutes by car) southeast of Pristina, the capital city of Kosovo. Access to the Project is via the Pristina-to-Gjilan, two-lane highway and then an unsealed road beyond the village of Peshter.
There are four main exploration targets within the Slivova licence: Peshter, Dzemail, Valjeviste, and Brus. The Peshter prospect is further subdivided into three portions: the Main Gossan, Gossan Extension, and the Sandstone Gossan. The Peshter prospect is the main subject of the PEA, for which there is material disclosure (Figure 1).
Figure 1: The Slivova deposit (Peshter Target), and its associated license boundary.
Project Geology
Within the Slivova license, two units are identified: the calcareous unit and the non-calcareous greywacke unit. They are moderately- to steeply-dipping, northwest striking, and beyond the mineralized prospects, tend to be unaltered and weakly to moderately oxidized.
Two types of intrusive dykes and sills were identified in the mapping and drilling: hornblende-biotite porphyry dykes and stock, and a feldspar porphyry dyke. The dykes represent less than 3% of the total rock volume within the Main Gossan, with the hornblende-biotite porphyry representing 99.5% of the intrusive rocks. Within the Gossan Extension, the hornblende-biotite porphyry is represented by a greater volume of rock and may be a series of northeast-trending dykes, or a larger stock.
Economic mineralization in the Main Gossan and Gossan Extension is concentrated in the calcareous pebble conglomerate and calcareous sandstones. Mineralization at Slivova is classified as a distal, intrusive-related, stratiform, massive to disseminated gold-silver-lead-zinc deposit. The principal minerals of economic interest are gold with minor amounts of galena, sphalerite, chalcopyrite, and silver. The gangue mineral assemblage consists of ilvaite(?), trace magnetite, arsenopyrite, pyrrhotite, marcasite, pyrite, quartz, and various carbonates. Trace elements include arsenic, bismuth, chromium, manganese, nickel, and vanadium.
Mineral Resources
The Mineral Resource Estimate, as previously announced, has an effective date of 22 June 2023. The Mineral Resource Estimate for Slivova, completed on July 14, 2023, is reported in Table 1 and is based on the block model shown in Figure 2. No estimates of Mineral Reserves have been prepared. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. The Qualified Person is not aware of any such issues at the time of writing.
Figure 2: Oblique view of the block model showing the estimated gold grades. WGS84 Z34N.
|
Category |
Tonnes |
Bulk Density |
AuEq (g/t) |
Au (g/t) |
Ag (g/t) |
Au (oz) |
Ag (oz) |
|
Total Mineral Resources (Gross to the Project) |
|||||||
|
Measured |
835,000 |
2.9 |
4.3 |
4.2 |
15 |
113,000 |
402,000 |
|
Indicated |
296,000 |
2.8 |
3.6 |
3.5 |
15 |
33,200 |
144,000 |
|
Meas + Ind |
1,130,000 |
2.9 |
4.1 |
4.0 |
15 |
146,000 |
546,000 |
|
Inferred |
250,000 |
2.8 |
3.7 |
3.7 |
13 |
30,000 |
100,000 |
|
Open Pit Resources Above 0.5g/t AuEq |
|||||||
|
Measured |
110,000 |
2.9 |
3.2 |
3.2 |
14 |
11,200 |
48,300 |
|
Indicated |
39,300 |
2.6 |
2.8 |
2.7 |
13 |
3,390 |
16,500 |
|
Meas + Ind |
150,000 |
2.8 |
3.1 |
3.0 |
13 |
14,600 |
64,800 |
|
Inferred |
nil |
nil |
nil |
nil |
nil |
nil |
nil |
|
Underground Resources Above 1.5g/t AuEq |
|||||||
|
Measured |
725,000 |
2.9 |
4.4 |
4.4 |
15 |
102,000 |
354,000 |
|
Indicated |
257,000 |
2.9 |
3.7 |
3.6 |
15 |
29,800 |
127,000 |
|
Meas + Ind |
982,000 |
2.9 |
4.2 |
4.2 |
15 |
131,000 |
481,000 |
|
Inferred |
Avrupa Minerals: Positive Preliminary Economic Assessment Completed for the Slivova Gold Project, 
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