The Volcanogenic Massive Sulphide (VMS) deposit within the Sesmarias Prospect is rich in base metals, where the Company, in its 8
th separate phase of drilling, has completed two diamond drill holes, totaling 874 meters, and is near completion on a third hole testing northern extensions of the Sesmarias copper-zinc-iron sulfide mineralization system. The program is fully partner-funded.
In
a media release for investors on this news, AVU President and Chief Executive Officer Paul W. Kuhn, explained that positive geochemical and geological results from hole SES20-031 indicated potential for a continuing strong VMS system.
Through its hybrid prospect generator business model, the Junior exploration and development Company has drilled 900 meters out of its 7000- to 8,000-meter drilling program.
- SES20-031: 10.75 meters @ 0.19% Copper and 0.74% Lead in disseminated and banded, sulfide-bearing silica, hosted in massive sulfide horizon black shales;
- SES21-032: Targets electromagnetic conductor and intercepts distal massive sulfide horizon black shales;
- SES21-033 underway: Targeting downdip continuation of the SES008 massive sulfide lens at multiple target depths.
To date, the Company has completed two drill holes and started a third one in the SES008 area at the north end of the known Sesmarias massive sulfide mineralization zone (pictured above). In 2014, Avrupa discovered massive sulfide mineralization at Sesmarias and since then, intermittent drilling increased the known strike length of the massive lenses to 1.6 kilometers.
The program is a joint venture between Avrupa Minerals and
Minas de Aguas Teñidas, SA (MATSA) and is operated by Avrupa through the JV entity
PorMining Lda.
Positive geochemical and geological results from SES20-031, show the potential for a strong continuous VMS system.
The Company is still in the early stages of work at the north end of the Sesmarias system and now has a much better understanding of the structural controls to the massive sulfide mineralization after completing two drill holes and starting a third.
CEO Kuhn took time out of his busy schedule to sit down with Stockhouse Editorial and talk about how the team can better target the massive sulfide bodies, as they move north along strike, and at some depth targeting downdip mineralization ….
Thank you for joining us today. Let’s dig into the fresh results from the Sesmarias Prospect, where there is potential for a continuing strong VMS system, what do you make of these numbers and their potential? At this point, how large do you believe the Sesmarias system could be?
While we have spent quite a bit of time and energy proving up strike length to the system, we have not spent much in developing down dip extension, or any sort of in-fill work, yet. The purpose of the present work is to do both strike and dip extension, and eventually in-fill work. So it would be difficult to describe how large the system is just now. However, using the nearby Lousal VMS Mine as a yardstick, we are targeting a minimum 20- to 50-million tonne massive sulfide deposit at Sesmarias. As we move towards the north to the next sector of potential mineralization, which we designate as the Brejo area (see the diagrams at the top of page), we could very well discover a further system!!
A strong focus had been placed upon Lens 8 toward the “Northern Deep” targets, which will be (the Brejo area). The area had been under review for the upcoming holes at and along Lens 8, can you explain this process and the significance of what lies within the Brejo area?
Over the time since the Sesmarias discovery in 2014, we have completed seven separate drilling programs with partners and on our own dime. We developed a strong exploration model and upgraded it with new knowledge gained from each session of drilling. This new phase has brought a further sophisticated advance in our exploration development, as we brought in a highly skilled partner with strong success in the Iberian Pyrite Belt of Spain. The geological team detail-reviewed past work, historic drill core, and developed a highly advanced model for the Sesmarias deposit. We are using that knowledge to push forward from the SES008 mineralization, both down dip and towards the north to extend the massive sulfide deposit into a new target zone. Previous exploration groups drilled sporadically in the Brejo area, leaving tantalizing clues for mineralization. Our review of the old drilling gives us strong impression that our enhanced exploration model for Sesmarias will give us a real shot at discovery in the Brejo area.
We have also started geological review in the Lousal Mine workings, and we see nearly the exact same geology as we have interpreted in the drilling. This is a super advantage to actually see the geology and mineralization at the surface. We have always supposed that the Sesmarias (and presumably Brejo!) mineralization is directly related to the Lousal deposit, but separated by a major fault system that displaced mineralization by up to seven kilometers. So, optimistically, instead of talking about a 50 million tonne system (Lousal), perhaps we could be talking about something much, much larger. Only the drilling will answer that…
We are totally funded by our partner for this program, and beyond. It’s a great position for The Company!
Can you speak about the VTEM electromagnetic survey done by Geotech Ltd.?
The VTEM survey is a regional exploration tool developed by Geotech. The reason for the survey is to develop new targets around the Alvalade license. The survey, funded by our partner MATSA, covered about two thirds of the license. We expect the results in the near future, and I look forward to the excitement of confirming new areas for future exploration work around the property. In the past, we completed first-pass work in a number of other places around the license, so we already have some ideas. However, this should give us more potential targets around Alvalade.
We have not advertised this too much yet, but there is a second former operating mine on the license, the Caveira Mine. We have completed only cursory work around Caveira, but that’s on tap after this drilling program is completed later this spring. Additionally, our previous work identified several other areas that display Sesmarias characteristics, and the VTEM survey will hopefully confirm those, as well. As an explorationist, I am hugely excited about the potential targeting that the survey should provide. The license is loaded with possibilities and is under-explored!!
How would their work enhance your understanding of the property?
It’s not really a matter of enhancing our understanding, but really an exercise in producing new targets. We are in this work long-term, with a fully-supportive and highly experienced partner, so while working in the immediate term at Sesmarias, Brejo, Lousal, and Monte da Bela Vista, we are also in the business of developing further ideas on the 115-square-kilometer license. It’s great to have the luxury of looking that far ahead, and be funded for doing so!!
What are the next moves for the Avrupa team on the ground at the Alvalade Project?
Well, obviously to continue the drilling at Sesmarias-Brejo. We have another target area at Monte da Bela Vista, located just to the north of the Lousal headframe. We discovered mineralization there, back in 2014, and we are eager to follow-up on that. We have to do some basic preparatory compilation of the Lousal information, as well as more field work within the old mine pits before we can develop a drilling location plan for Lousal. This compilation and geological mapping/interpretation at Lousal will most definitely help our work in the other sectors, as it looks very much like all of the sectors are closely related.
We are in the beginning stages of an environmental and social baseline survey, in anticipation of further discovery at Sesmarias, Brejo, et al. This involves gathering present-time information about the area which we will need later on when/if we need to construct a full environmental and social impact assessment for ongoing operations.
We are also working diligently to keep our team and the local communities healthy during the pandemic. We are fortunate to be working in an area that has been less affected than some by COVID-19, and we definitely want to keep it that way. So far, so good!!
Looking at your Slivovo Gold Project in Kosovo, is there anything you can offer in terms of an update on where this project is at?
At this time, we continue to be on hold until a new government is formed, and then a new Board of Directors is appointed to the Kosovo Mining Bureau, ICMM. Once a new BOD is in place, we expect them to discuss and approve the re-issuance of the Slivovo exploration license. I have no timetable on this. Every explorer in Kosovo is in the same space, waiting for ICMM to be able to again fairly issue licenses.
For those who are unfamiliar with your “Hybrid Opportunity Generator, can you give a rundown on what makes this model different and highlight its advantages?
The hybrid model is a flexibility thing. We have choices that we can make as to how to advance our projects. With partners or without, depending on the characteristics of the project, availability of funds or potential partners. In the case of Alvalade, for example, we started out working with our own funds to the point where a medium-large copper producer became interested in our work and signed onto an earn-in JV. The partner spent over US$ 6 million to advance the property, before another group invested and spent a further US$ 1 million to further the exploration program. At that point, things were beginning to get difficult in the markets, and we advanced the project far enough ahead with our own funds to make the program attractive to MATSA. The flexibility of the hybrid business model allowed us to stay in business at Alvalade and give us the opportunity to see the next phase of the project, potentially building a mining solution for the Company and our shareholders.
By doing the early work ourselves, we have enhanced the value of the project, allowing us better options to move forward. In this case, Alvalade has been the Avrupa flagship for a long time, and essentially has kept us going in difficult times. Now, with the rise in copper and zinc prices, and a strong financial and technical partner, we will have the opportunities again to work on new generative projects and increase value for our shareholders and investors, all the while continuing to advance the Sesmarias discovery and more within the Alvalade license.
The Joint Venture option has supported your efforts along this path, and has allowed Avrupa to spend $1.50 (CAD) on exploration for every dollar raised, can you speak to the depth of this support and how it has helped set Avrupa Minerals apart from other operators in this space?
Well with the funds we’ve raised via partners and via equity, we have made two potentially mineable discoveries. While these seem to be “old hat” to investors, Alvalade, in particular, is a great project with really super potential in a world class mining district. We have weathered difficult times, and now seem ready to turn the corner, and get into new projects, perhaps in Portugal or elsewhere in the general Mediterranean Basin. With our technical experience and strong Board of Directors, I expect to continue in this manner.
Looking at your current stock valuation compared to where it was during our previous interview two months ago, why do you believe it’s a good value buy at this time?
Well, the valuation/market cap has not changed since then. Even with the price correction earlier this week, copper and zinc prices have risen substantially over the past year. Both metals have super important uses in the green economy and in basic infrastructure rebuilding all over the world. It’s a good time to be a base metal explorer and eventually producer! And if I have not said it already, the Sesmarias target is a copper and zinc system.
The recent work on the project gives us a lot of optimism that we are in the right area, close to the right spot. But the investment community ignores us because, I think, that the story is a bit old, and lacks perhaps a glitzy drill hole intercept. However, this is a long-term story, with long term support and funding, so we should do well as we continue the program.
In addition, we are looking at other possibilities for new projects, both in Portugal and elsewhere around Europe.
Late last year, the Company engaged in a four for one share consolidation, can you highlight the benefit this brings to shareholders old and new?
The major benefit is that we can raise money with a share price at 12 cents, whereas we could not do that without special permission at 3-4 cents. With a good project supporting the company, without too much news, we have maintained the share price since the consolidation. We look forward to plenty of news in the coming 2-3 months, as the drill continues to turn, we get new targets from the VTEM survey, and we acquire one or more new generative projects.
Looking to the near future, six to 12 months, can you outline the Company’s operational plans?
Short term is drill-drill-drill at Sesmarias, Brejo, Monte da Bela Vista.
Medium term is more drilling at/around Alvalade and the acquisition of one or more new projects in Europe.
Long term will be continuation of the Alvalade Project, and hopefully the start of exploration on other projects as we rebuild the generative pipeline.
Clearly within this time frame, we will have to generate some new cash, through equity raise, and eventually through new partnerships. Timing of that is uncertain, as we still have cash in the bank, and are heavily pre-occupied with operation of the Alvalade exploration program.
Thank you again for taking the time to speak with us and our readers, anything further to add?
No, think we’ve said it all. We’ve got a great project here in Portugal, and now looking forward to great results. The next few months of drilling should be pretty exciting.
For more information, visit
avrupaminerals.com.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.