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Avrupa Minerals Intersects 26.95 Meters @ 2.18% Copper, 2.58% Lead, 5.60% Zinc, and 88.2 ppm Silver at Sesmarias, Portugal
Avrupa Minerals Ltd. (TSXV:AVU)(TSXV:AVU) is pleased to provide new assay results from the Sesmarias massive sulfide target area, Alvalade JV Project, Portugal. The program is a joint venture between Avrupa Minerals (“AVU” or “Company”) and Minas de Aguas Teñidas, S.A. (“Sandfire MATSA” or “MATSA”). Avrupa continues to operate the project through the JV entity PorMining Lda., and MATSA continues to fund the exploration work. Previously, through the JV, during 2020-2021, the Company drilled 17 diamond drill holes, totaling 8,900 meters, on six different fences along a strike length of 400 meters in the Sesmarias North Zone.
The JV returned to drilling at Sesmarias in mid-April, targeting the Central Zone, where Avrupa drilled the high-grade discovery hole, SES002, in 2014 (see February 27, 2014 News Release). Follow-up drilling in the immediate discovery area at that time unsuccessfully targeted shallow extensions of the mineralization seen in SES002 at a depth of about 150 meters. Armed with a significantly upgraded targeting model constructed after a total of 46 holes and nearly 20,000 meters of drilling at Sesmarias since 2014, the JV geological team aimed deeper to 400 meters depth to attempt to locate further high-grade mineralization.
Results from SES23-047 are:
- 26.95 meters of 2.18% copper; 2.58% lead; 5.60% zinc; and 88.2 g/t silver from 393.80 to 420.75 meters depth, within a wider interval of:
- 43.40 meters of 1.51% copper; 2.15% lead; 4.78% zinc; and 64.1 g/t silver from 392.80 to 436.20 meters depth.
At this time, with only one drill hole in the new zone, the true thickness of the massive sulfide mineralization is unknown. The drill hole intercepted at least part of the eastern limb of the target mineralized syncline, and possibly part of the hinge of the syncline. Further drilling is clearly necessary to search for both extension and shape of the mineral body. We are currently drilling a follow-up hole, collared approximately 150 meters southeast of SES23-047, with five more holes planned, also funded by the JV partner.
Paul W. Kuhn, President and CEO of Avrupa Minerals commented, “We are truly excited about the SES23-047 results. The entire team effort putting together a coherent targeting model led to this initial success in the Sesmarias Central Zone, which we hope will continue with follow-up drilling. Previous JV drilling demonstrated the potential for significant thicknesses of massive sulfide mineralization, and we recognized the potential for higher grade mineralization as we moved south towards the Central Zone, perhaps the center of the mineral system. We now recognize that the SES002 lens should be part of the new discovery lens, separated by faulting. Perseverance, continued creative thinking, and strong financial support led to a real success that shows possibilities for further follow-up success.”
The following summary cross section demonstrates the potential for further mineralization on this section line, in the middle of the Central Zone.
Figure 1. SES23-047 cross section showing previous drilling and discovery hole SES002. The mineralized syncline seen here is a continuation from the previously-reported, more northerly sections that show development of an eastern overturned limb, a western normal limb, and development of a robust hinge zone. Further drilling is warranted to develop a potential high grade central zone to the developing system.
Potential for further higher-grade mineralization lies from the present 650S section to the 350S section, north of the present drilling, and possibly for another 300 to 400 meters to the south of the 650S section. We are presently drilling at SES23-048, collared approximately 150 SE of SES23-047, on the 800S section.
Figure 2. Simplified, schematic diagram of Sesmarias massive sulfide “lenses”, actually the limbs of the synclinal mineralization. Note that the Central Zone appears to be open and untested for at least 300 meters in either direction from the 650S section. Presently drilling on the 800S section line at SES23-048.
Results and information for SES21-044, Section 350S, may be found in the January 25, 2022 News Release. Results and information for SES026, located approximately 350 meters SE of SES23-047 on the 1000S section, may be found in the March 11, 2019 News Release.
Notes on analytical methods and quality control. The JV analyzed the mineralized material at two different laboratories, as the table below demonstrates. For certified, NI43-101 – acceptable assay results, we selected the ME-MS61 method performed by ALS Global at their Seville sample preparation facility and Loughrea, Ireland analytical laboratory. For in-house reasons and desire to have overnight results, we authorized preliminary analytical procedures at the non-certified, MATSA laboratory facilities at the Aguas Teñidas Mine.
Table 1. Fully accredited, NI 43-101 compliant, certified analytical results from ALS Global laboratory highlighted in yellow. Overnight analytical results from MATSA mine lab at Aguas Teñidas, Spain.
For technical reasons, at the depth of the Sesmarias mineral intersection, drillers had reduced core size to NQ (47.6 mm diameter). Project personnel collected oriented drill core twice daily from the drill rig and delivered the boxes directly to the Project core storage facilities in Grândola, Portugal. Here, after geological and geotechnical review of the core, a Project geologist measured and marked the core for sampling, with sample length averaging one meter depending on visual factors such as change in texture, style of mineralization, and/or host rock type. Project employees systematically and methodically halved the core, utilizing an electric core saw, and then placed one half of the split material for each sample length into separate, numbered, plastic sample bags. In order to get fast, first-hand results, Project personnel transported the core samples to partner Sandfire MATSA’s Aguas Teñidas Mine laboratory in Almonaster la Real, Spain for preliminary, non-certified analytical information.
After acquiring the preliminary results, Project personnel carried the sample pulps (-80 mesh material used for metals’ digestion) to the ALS Global (“ALS”) sample preparation facility in Seville, Spain. ALS directly shipped the pulp material to their main European analytical laboratory located in Loughrea, Ireland. At the analytical laboratory, we requested the samples to be analyzed via the lab’s ME-MS61 technique which uses a four-acid, near-total metals’ extraction method, followed by analysis using the industry-standard technique of inductively coupled plasma – atomic emission spectroscopy (ICP-AES).
At all times, prior to submission of the samples to ALS Global, Project or Sandfire MATSA personnel maintained supervision, oversight, and custody of the samples.
In addition to ALS Global in-house quality assurance/quality control (QA/QC) for all work orders, the Project conducted its own normal, internal QA/QC from results generated by the systematic inclusion of certified reference materials, blank samples and field duplicate samples. Project personnel reviewed and evaluated the analytical results from the quality control samples in the SES23-047 work orders, and confirmed that these results conform to industry best practice standards.
Minas de Aguas Teñidas, S.A. (Sandfire MATSA) is a modern mining company which owns and operates the MATSA Mining Operations in the Huelva province of Spain. With a processing plant located to the north of the Iberian Pyrite Belt that sources ore from three underground mines, Aguas Teñidas and Magdalena Mines in Almonaster la Real and the Sotiel Mine in Calañas, Sandfire MATSA produces copper, zinc and lead mineral concentrates that are sold from the port of Huelva. Sandfire MATSA also holds an extensive portfolio of exploration tenements in both Portugal and Spain. Sandfire MATSA is a wholly owned company of Sandfire Resources Ltd, a mining and exploration company listed on the Australian Securities Exchange (ASX: SFR).
Avrupa Minerals Ltd. is a growth-oriented junior exploration and development company directed to discovery of mineral deposits, using a hybrid prospect generator business model. The Company holds one 100%-owned license in Portugal, the Alvalade VMS Project, presently optioned to Sandfire MATSA in an earn-in joint venture agreement. The Company now holds one 100%-owned exploration license covering the Slivova gold prospect in Kosovo, and is actively advancing four prospects in central Finland through its in-process acquisition of Akkerman Finland Oy. Avrupa focuses its project generation work in politically stable and prospective regions of Europe, presently including Portugal, Finland, and Kosovo. The Company continues to seek and develop other opportunities around Europe.
For additional information, contact Avrupa Minerals Ltd. at 1-604-687-3520 or visit our website at www.avrupaminerals.com.
On behalf of the Board,
Paul W. Kuhn, President & Director
This news release was prepared by Company management, who take full responsibility for its content. Paul W. Kuhn, President and CEO of Avrupa Minerals, a Licensed Professional Geologist and a Registered Member of the Society of Mining Engineers, is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. He has reviewed the technical disclosure in this release. Mr. Kuhn, the QP, has not only reviewed, but prepared and supervised the preparation or approval of the scientific and technical content in the news release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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Avrupa Minerals
Overview
Avrupa Minerals (TSXV:AVU) is a junior exploration and development company based in Vancouver, British Columbia. The company follows a unique prospect generator model focused on aggressive modern exploration for world-class mineral deposits in politically-stable jurisdictions across Europe, including Portugal, Kosovo and more recently, Finland.
Avrupa’s hybrid prospect generator model is designed to create shareholder value by building an extensive portfolio of projects suitable for exploration to be funded by joint venture or sold to larger mining companies. The company leverages new techniques and technologies to improve exploration efforts and facilitate new discoveries. In some cases, companies following the prospect generator model have become royalty companies by allowing partners to dilute them to a valuable royalty, and Avrupa has significant exposure to this route to liquidity.
Avrupa’s goal is to have one flagship, 100-percent-owned project, that it advances with its own funds instead of through partner funding. The Finland projects, some of which have historical base metal resources, are being assessed to identify flagship potential for one of the assets.
The company's projects are all located in areas with existing mines and strong geological potential for the discovery of further economic metal deposits. For example, the company’s flagship Alvalade JV project is located in the Iberian Pyrite Belt (IPB) of southern Portugal, a hotspot for mining with over 80 historic mines in the Belt. Presently, there are seven active mining operations in the IPB of Portugal and Spain.
Company Highlights
- Operates in mining-friendly jurisdictions that are also prospective for large deposits
- Europe offers established mining districts, pro-mining policies and a variety of metals including gold, silver, copper, lead, zinc and tungsten
- Seeking partners for strategic alliances and/or project-specific JVs to fund large drill programs.
- Owns the Alvalade JV (VMS-copper-zinc), located in the Pyrite Belt of southern Portugal.
- JV earn-in agreement with Sandfire-MATSA on the Alvalade copper project
- Sandfire-MATSA currently funding drilling at the Alvalade copper-zinc project
- Slivova Gold Project in the Vardar Mineral Belt in Kosovo. Discovery made in 2012. Initial gold resource estimate completed in April 2016.
- Made two significant discoveries: the Slivova gold target and the Sesmarias VMS at Alvalade.
- Four Finland projects acquired in 2021, some with historical copper and/or zinc resources.
Key Projects
Alvalade copper project
The IPB is one of the world’s largest and most prolific copper-zinc-iron massive sulfide belts with mining history dating back more than 2,000 years. Three out of four of the last greenfield discoveries in the IPB are now large operating mines, including the giant Neves Corvo copper-zinc-tin massive sulfide mine. However, the area has not experienced any real exploration since the mid-1990s. In 2012, Avrupa Minerals' team began applying its expertise to the region resulting in a new discovery at Alvalade in 2014.
Avrupa Minerals’ Alvalade license is located along trend to the northwest of Neves Corvo, which is currently the largest operating copper-zinc mine in Europe.
The Alvalade project involves an earn-in agreement that Avrupa (the operator) does not have to fund at present. The project was previously optioned to Antofagasta Minerals, one of the world’s largest copper producers. Armed with a new geological model, Avrupa Minerals was able to successfully complete five rounds of drilling at Alvalade between April 2012 and October 2014.
The initial 2014 drill program made a significant VMS discovery in the Sesmarias West target on the Alvalade JV; the first of its kind on the Iberian Pyrite Belt in 20 years. New massive sulfide targets were also identified at Sesmarias East and at Pombal 15 kilometers south of the Sesmarias area.
Sesmarias drill results include:
- SES002 – 10.85 meters @ 1.81 percent copper, 75.27 parts per million (ppm) silver, 2.57 percent lead, 4.38 percent zinc, 0.13 percent tin
- SES010 – 57.85 meters @ 0.45 g/t gold, 25.1 g/t silver, 0.32 percent copper, 0.61 percent lead, 1.95 percent tin
Under a new partner, a drill program was initiated in Q4 2015. Four holes were drilled around the area of SES010 and results confirmed and extended the massive sulfide lens to a length of 300 meters with a 35- to 40-meter thickness.
In February 2019, Avrupa Minerals reported additional drill results from its own drilling program at the Sesmarias prospect. The company completed six holes totaling 2,498 meters including results from SES026, which extended the “10” lens by 300 meters to the north.
- SES026 – 28.95 meters @ 0.48 percent copper, 0.77 g/t gold, 15.7 ppm silver, 0.52 percent lead and 1.31 percent zinc.
In March 2019, Avrupa Minerals released assay results for drill hole SES003, which was drilled on the Alvalade project back in 2014. The results from SES003 were not initially analyzed due to its general proximity to SES002, and were similar to those high-grade assays noted above.
- SES003 – 13.65 meters @ 1.92 percent copper, 38.8 ppm silver, 1.03 percent lead, 1.91 percent zinc, 0.03 percent tin
Alvalade Joint Venture
In October 2019, Avrupa Minerals entered into a letter of intent with Minas de Aguas Teñidas, S.A.U. (MATSA) to form an earn-in exploration and exploitation joint venture on the Alvalade copper-zinc massive sulfide project. Under the terms of the agreement, the companies created a new joint venture company, PorMining, Lda., to direct future operations.
The first stage of the JV is designed to delineate a deposit at Sesmarias and the other mineralized targets within the boundaries of the Alvalade license, including the past-producing Lousal Mine, Monte de Bela Vista, and the past-producing Caveira Mine. Avrupa also defined a number of additional close-to-drill-ready target areas across the property.
In order to acquire a 51-percent interest in the new JV company, PorMining, Lda., MATSA must make a series of payments, including €1.2 million of exploration expenditures during the first year of the agreement and a further €1.2 million at MATSA’s discretion during the following two years. MATSA, now called Sandfire-MATSA, also has the opportunity to earn-in to 85 percent of the project by providing a bankable feasibility study while also making all required payments to the original JV partner.
To date, MATSA has paid Avrupa approximately C$580,000 and has completed the required work commitment guarantee of approximately C$348,000 upon issuance of the new Alvalade Experimental Exploitation License (EEL) to the new JV company. The payment is refundable to MATSA pending completion of the license work commitment and approval by the Portuguese Mining Bureau (DGEG).
The PorMining geological team has made significant advances in developing a new and highly successful exploration model, based on systematic re-logging of all the Avrupa core, as well as re-logging all available historic cores held by the Portuguese geological survey. The company flew an extensive helicopter-supported VTEM geophysical survey over 75 percent of the Alvalade License, soil sampled the area between the Caveira Mine and the Lousal Mine and over the northern and central sectors at Sesmarias, and then analyzed the samples utilizing an advanced ionic leach technology to support ultra-low detection levels. The JV team detail re-mapped the Monte da Bela Vista and Caveira areas and compiled and digitized all historic data from the two old mines, Lousal and Caveira. The updated model has pushed the drilling at Sesmarias, as the drilling has improved the discovery model for the deposit.
Since the inception of the JV, the company has drilled 17 core holes at Sesmarias and one south of the old Caveira Mine, totaling approximately 9,515 meters. The previously reported lenses are now recognized to be intercepts of massive sulfide mineralization on separate limbs of a district-size fold system. Recent JV drilling at Sesmarias focused on the previously named “8” Lens and has shown a strike length of over 400 meters of continuous sulfide mineralization.
Location of Sesmarias massive sulfide mineralization
Avrupa Minerals and Minas de Aguas Teñidas have resumed drilling on the Alvalade joint venture project. The new phase of drilling initially targets anomalies located between the historic Lousal and Caveira Mines, over a strike length of approximately 11 kilometers. The first drill hole targets potential mineralization located 300 to 400 meters northwest of the last reported mineralization in the Lousal Mine. The company expects to cover 10 to 12 drill holes totaling more than 6,000 meters in the current re-drilling program.
Slivova Gold-Silver Project
The Slivovo project in Kosovo’s Vardar Mineral Trend is now wholly owned by Avrupa. Previously, the project was previously operated and funded by partner Byrnecut International Ltd. of Australia. Byrnecut completed an 85 percent earn-in requirement by spending close to €7 million for exploration on the 15.2-km2 Slivovo license, outlining a maiden gold resource estimate of 98,700 ounces of gold and 302,000 ounces of silver indicated in 640,000 metric tonnes grading 4.8 grams per ton gold, from the surface. See the following AVU news releases for further information about the NI 43-101 indicated resource (NI 43-101 Report) and results from follow-up drilling that were not included in the resource calculation (Further Slivovo Drilling Results). Byrnecut is a mining contractor and had completed a study to earn up to 85 percent of the project. However, Byrnecut decided to vacate the project, and Avrupa made an agreement with Byrnecut to repay them from future production, if any, to get 100 percent of the project back.
The project has been dormant since 2018 when Byrnecut left. The original license expired in 2019, and Avrupa re-applied at the same time for a larger area covering Slivovo and the surrounding prospectable lands. The new license, renamed Slivova, was finally issued in June 2022.
In September 2022, Avrupa entered into an option agreement with Western Tethyan Resources (WTR) for the latter to earn-in up to 85 percent of the Slivova Gold Project by funding and performing certain work programs to potentially advance the Slivova Project to a mining solution. The agreement is subject to WTR completing its due diligence review of the project on or before March 1, 2023.Project History
In 2011, wide-scale geological mapping of the Peshter gossan zone on the Slivovo property led to the discovery of the potential for the gold-bearing, massive sulfide mineralization common in the Vardar Mineral Trend.
In 2014 under the JV with Byrnecut, Avrupa Minerals stepped up the exploration activity at Slivovo with an aggressive exploration program that has included trenching, first-pass and follow-up geological mapping, sampling and drill targeting. Phase One drilling totaled 1,002 meters and was completed in Q4 2014.
Highlights of this first drill campaign include:
- 126.5 meters @ 6.2 g/t gold, 15.0 g/t silver, 0.092 percent copper, 0.16 percent lead, and 0.45 percent zinc in SLV004
- 12 meters @ 12.2 g/t gold, including 7.4 meters @ 19.3 g/t gold in SLV005
- 8 meters @ 1.25 g/t gold and 3.4 meters @ 3.12 g/t gold in SLV006
Phase Three drilling totaled 46 holes and 5,040 meters. Results released by Avrupa Minerals include:
- 57.35 meters @ 2.09 g/t gold and 15.94 g/t arsenic in SLV014
- 125 meters of 6.91 g/t gold and 19.19 g/t silver in SLV018
- SLV025 intercepts 24 meters of 11.59 g/t gold, 9.26 g/t silver
- 42 meters @ 9.20 g/t gold and 9.57 g/t silver in SLV033
- 74 meters @ 6.02 g/t gold and 20.23 g/t silver in SLV037
Byrnecut completed a large program in 2017 to follow up on a section of mineralization that hit a new extension of gold in three deeper holes that had similar grades to the average of the resource estimate at 4.8 g/t gold. This data is not currently in the resource estimate.
With issuance of the new 7-year exploration license, the Slivovo Project enters a new phase, hopefully culminating in a mining decision. The government of Kosovo has requested that the project be called “Slivova,” with respect to the main local language.
Finland Copper/Zinc and Gold Projects
In late 2021, Avrupa made an agreement with the sole owner of Akkerman Finland Oy AFOy) to acquire four projects in Finland. Highlights of the assets include:
- Three base metal property reservations cover approx. 600 km2 in the Vihanti–Pyhäsalmi VMS Belt, central Finland
- 65 km south of Pyhäsalmi base metal mine and flotation plant
- Two properties contain small historic copper/zinc resource estimates (see below)
- One under-explored gold property reservation located in the Oijärvi Greenstone Belt in north-central Finland included in property package
- Binding Letter Agreement signed with private Finnish company
- Avrupa to pay 3 million common shares, €165,000, and fund earn-in exploration expenditures of €400,000 over two years to earn 100 percent
In 2022, Avrupa Minerals submitted a third exploration license application in the Pyhäsalmi Mining District in central Finland. The Hallaperä exploration license application is located near the town of Kiuruvesi, about 20 kilometers east of the Pyhäsalmi Mine and processing plant. The application area covers known copper and zinc sulfide mineralization discovered by Outokumpu Oy in 1967 and partially outlined by drilling of 42 holes during the period 1967 to 1990. The known mineralization extends for more than 1,000 meters, and is open at depth below 150 meters.
The Kolima Property
The 187-km2 Kolima Reservation covers a target zone consisting of a thick layer of mineralized distal-type volcanics containing thin beds and layers of zinc-rich massive sulfide mineralization in some areas. The Geological Survey of Finland (GTK) discovered and explored the area in the period from 1956 to 1983. The GTK found zinc mineralization in an area two kilometers long and 200 to 400 meters wide within strongly altered metasediments and fine-grained volcanic rocks. GTK drilled 70 holes and detected widespread polymetallic sulfide mineralization occurring as fine disseminations and thin layers of semi-massive sulfides. Generally, it seems that the currently-known mineralization represents distal-style metals’ deposition within a larger VMS system that has not yet been discovered. Numerous mineralized boulders containing anomalous gold and copper are present around the site.
AFOy completed a helicopter-supported SkyTEM geophysical survey over the mineralized area of the reservation. Preliminary analysis of the data by AFOy did not suggest any obvious targeting. However, recently-completed detailed review of the data by AFOy and AVU outlined subtle anomalism over southern extension of the known volcanics-hosted mineral trend and also outlined a deeper (175 meters), strong geophysical target in a trend of the volcanic rocks parallel to those that host the known zinc mineralization. There is no reported previous exploration along this second trend, located a few kilometers west of the known zinc showings.
AFOy submitted a mineral exploration license application in January 2022 for the Kolima Exploration License. Given standard timing of fulfillment of all regulations by the Finnish mining authority, Tukes, we expect issuance of the new exploration license to come 12-14 months after submission of the application. In the meantime, there are a number of non-invasive activities to complete that will greatly assist in drill targeting, in anticipation of receiving the license in early 2023. The following figure shows the area of license application covering two SkyTEM anomalies, but also keeping out of the most environmentally and socially sensitive areas.
Historic geophysical map with geology, drill hole locations, main SkyTEM conductors, location of the Kärnä Anticline (in blue), and overall permissive target area (yellow bands). Base map from GTK work from late-1950’s through mid-1980’s. The work completed, to date, including re-logging of representative core, widespread core sampling, and various levels of geophysics, strongly suggests that the known mineralization on the Kolima property is actually distal mineralization in a large VMS system. Drilling targets lie along the 5-kilometer strike length of the Kärnä Anticline, highlighted in blue, and aim to discover the whereabouts of the proximal and central portions of the VMS system, and presumably extensive zinc- and copper-bearing massive sulfides.
In 2022, the company contracted with the Finland Geological Survey (GTK) to re-log and sample four representative, historic drill holes from the Kolima exploration projects carried out from the mid-1950's to the early-1980's by GTK. GTK completed re-logging of the four drillholes, totaling 743.55 meters and situated along a 2-kilometer strike length.
The Kangasjärvi Property
The 203-km2 reservation covers the Kangasjärvi deposit, a satellite deposit of the Pyhäsalmi mine, located about 25 kilometers to the north of the site. The massive sulfide was exposed at the surface, and Outokumpu mined 1 to 9 percent zinc material from the Kangasjärvi open pit in 1984 to 1985 down to less than 100 meters from the surface. Exploration drilling by Outokumpu intersected massive sulfides down to 250 meters depth beneath the pit but did not attempt deeper drilling, leaving the deposit open at depth, as well as along strike.
In 1983, GTK estimated a small historic, non-NI 43-101 compliant resource in two separate lenses: 1) 393,000 tonnes of 5.3 percent zinc, and 2) 159,960 tonnes of 6.0 percent zinc. Later Outokumpu reported an estimated mineral resource of approximately 300,000 tonnes of 5.4 percent zinc. Records in 1987 indicate that Outokumpu mined about 86,000 tonnes of 5.12 percent zinc. There is also reported anomalous copper, silver, and gold in the deposits.
Note again that both resource estimates are historic in nature, pre-dating NI 43-101, and the company is not treating them as current resources. A qualified person, as such term is defined in NI 43-101, has not completed sufficient work to confirm the estimates as current mineral resources under NI 43-101, and therefore they cannot be considered reliable and are presented here merely to show the potential of the projects. Further efforts to confirm the presence of potential mineral resources are planned for the initial exploration period and will commence once the definitive agreement is completed.
In addition to the Kangasjärvi deposit, there are at least three other mineral occurrences within the reservation area. Little work of any sort has been completed anywhere on the reservation for at least 20 years, even though there are historic drill holes throughout the district.
Figure 5. Location of known mineral targets and deposits within the Kangasjärvi reservation area.
AFOy also completed helicopter-supported SkyTEM geophysical work over known significant areas within the Pielavesi and Kangasjärvi reservations. AFOy and AVU continue to review the results from these surveys. Further information will be disseminated as we obtain a better understanding of the initial targeting data.
AFOy purchased an extensive drillhole database covering the Kangasjärvi and satellite deposits, and is now in the process of properly compiling and reviewing the data. The company recently completed a drone-based magnetics survey in the deposit area, but results have not yet been fully-reviewed. Avrupa completed and submitted an application for a new exploration permit to cover Kangasjärvi zinc mine, potential extensions, and new targets along strike of the favorable mineral-hosting horizon. The application spans approximately 18.4 square kilometers of favorable terrane for copper- and zinc-bearing volcanogenic massive sulfide deposits
The Yli-li Gold Property
The 332 km2 Yli-li gold reservation covers 30 kilometers strike length of the southern extension of the Oijärvi greenstone belt and major shear zone. Currently, Gold Line Resources Ltd. operates the Oijärvi gold project where they plan to drill over 4,000 meters in a step-out drilling program to expand the known zones of gold mineralization and delineate new targets in the vicinity of the mineralization. In 2013, Agnico Eagle reported an inferred mineral resource estimate at Kylmäkangas of 1.9 MT at 4 g/t Au and 31 g/t Ag, containing approximately 250,000 ounces of gold and 1.9 million ounces of silver.
Note again that this resource estimate is historic in nature and was reported by a third party. The Company is not treating the estimate as a current resource. A qualified person, as such term is defined in NI 43-101 and related to Avrupa Minerals Ltd., has not completed sufficient work to confirm the estimates as current mineral resources under NI 43-101, and therefore they cannot be considered reliable from the company standpoint. The company cannot confirm the estimates under any circumstances and merely uses the information to suggest potential exploration possibilities on the Yli-li property.
Figure 6. Location of Yli-li reservation. Note proximity to Kylmäkangas gold deposit.
GTK first explored the southern extension of the Oijärvi shear zone, covered by the reservation, from 2001 to 2014. Initial studies turned up gold-in-till anomalies over intensely sheared and altered rocks. Limited drilling resulted in one intercept of 3 g/t gold over two meters at the Kupsusselkä prospect. Given these promising early-stage results, there is clearly a need for a wider-scale systematic exploration program to determine the best targets within the area.
The Pielavesi Reservation
Historic exploration within the Pielavesi Reservation area by the Geological Survey of Finland (GTK) and Outokumpu shows that the Paloniemi-Säviä-Leväniemi Belt offers promising exploration potential. The Pielavesi reservation covers approximately 213 km2 and has widespread hydrothermal alteration of felsic volcanics which can be traced over 10 kilometers.
Previous operators identified the presence of at least four individual centers of mineralization, including one with clear evidence of a stockwork feeder zone accompanied by massive sulfide deposition containing copper, zinc, and gold. Despite many years of previous exploration and a large number of holes drilled, known centers of mineralization have not been drilled off and remain open at depth and along strike in both directions. No systematic exploration of the area has been completed in over 30 years.
Figure 3. Geology and known mineralization in Pielavesi Reservation
Previous operators completed two historic, non-NI 43-101 compliant, resource estimates at the Säviä prospect within the limits of the Pielavesi Property. The initial review, reported in 1968, and based on 62 drill holes at 50-meter spacings, estimated a copper-rich deposit of 4 million tonnes grading 1.1 percent copper and a zinc-rich deposit of 1 million tonnes grading 2 percent zinc. And, in fact, a number of nearby mineralized holes were not included in the resource estimate, one of which assayed 0.98 percent copper over 70.5 meters.
In 1986, Outokumpu estimated a resource at Säviä of 1.8 tonnes grading 1.52 percent copper.
Note that both resource estimates are historic in nature, pre-dating NI 43-101, and the company is not treating them as current resources. A qualified person, as such term is defined in NI 43-101, has not completed sufficient work to confirm the estimates as current mineral resources under NI 43-101, and therefore they cannot be considered reliable and are presented here merely to show the potential of the projects. Further efforts to confirm the presence of potential mineral resources are planned for the initial exploration period and will commence once the Definitive Agreement is completed.
Management Team
Paul Kuhn - CEO and Director
Paul Kuhn joined Avrupa Minerals in July 2010 after working with Metallica Mining in Oslo, Norway in August 2008. He has more than 40 years of experience in the minerals exploration business in North America, Central Asia and Europe. He earned an AB degree from Dartmouth College, US, in 1978, and an M.S. degree from the University of Montana, US, in 1983. Kuhn has worked in a variety of geological terrains, exploring for gold, silver, base metals, uranium, and phosphate deposits, and has spent time as a production geologist in the deep underground mines of the Coeur d'Alene Mining District, historically one of the world’s most important silver districts. Kuhn has managed successful exploration programs in the US, Turkey, and Western Europe. He was involved in a number of base and precious metal discoveries in Turkey, including the Taç and Çorak polymetallic deposits, the Cerattepe Cu-Au volcanogenic massive sulfide deposit, the Altıntepe epithermal Au deposit (being mined by Bahar Madencilik), the Diyadın/Mollakarra Carlin-style Au deposit (operated by Koza Altın), and the Karakartal porphyry Cu-Au deposit (being developed by SSR Mining). Kuhn was also involved with the original mapping, description, and drill targeting of the Çöpler porphyry Au deposit (presently being mined by SSR Mining).
Mark T. Brown - Director
Mark Brown is the president of Pacific Opportunity Capital Ltd., headquartered in Vancouver BC. Pacific Opportunity is a financial consulting and merchant banking firm active in venture capital markets in North America. Brown has assisted in the successful establishment of several private and public companies. In the mining and mineral exploration sector, Brown has played key roles in the success of Rare Element Resources Ltd., Pitchstone Exploration Ltd., Animas Resources Ltd., and other exploration companies. His corporate activities include merger and acquisition transactions, financing, strategic corporate planning, and corporate development. Prior to joining Pacific Opportunity, Brown managed the financial departments of two TSE 300 companies, Miramar Mining Corp. and Eldorado Gold Ltd. Brown has a Bachelor of Commerce from the University of British Columbia and qualified as a Chartered Professional Accountant in 1993, while working with PricewaterhouseCoopers in Vancouver.
Paul Dircksen - Director
Paul Dircksen has more than 35 years of experience in the mining and exploration industry, serving in executive, managerial, and technical roles at several companies. He has a strong technical background, serving as a team member on ten gold discoveries, seven of which later became operating mines. Dircksen has held senior management positions with a number of resource groups including Orvana Minerals, Lacana Gold, The Cordex Group, Brett Resources, and the Bravo Venture Group. He holds an MS in geology from the Mackay School of Mines at the University of Nevada.
Dircksen is currently the president and CEO of Timberline Resources Corporation which is listed on the NYSE Market Exchange under the symbol “TLR” and on the TSX Venture Exchange under the symbol “TBR”. Timberline holds a 50-percent carried interest ownership stake in the Butte Highlands Joint Venture in Montana, USA. Timberline Resources focuses on exploration and development of precious metal deposits in the western United States.
Frank Högel - Director
Frank Högel currently serves as the CEO of Peter Beck Performance Funds GbR and sits on the advisory board of Concept Capital Management. Concept Capital is an asset management company focused on evaluating and investing in Canadian resource companies through equity investments, convertible bonds and gold, silver and copper off-take agreements. Mr. Högel has an MBA with a focus on financial management, banking, and international business and management from the University of Nürtingen, Germany. He also sits on the board of several other public companies listed on the TSX Venture Exchange.
Paul Nelles - Director
Paul Nelles graduated from TU Berlin in 1972 with a degree in mining engineering and obtained a PhD in mineral processing in 1975. He worked internationally in base metal mining for Metallgesellschaft between 1975 and 1991, at which stage he held the position of general manager project development. In 1991 he was employed as technical director and appointed to the executive board of DESTAG, a leading dimension stone producer and worldwide trader. He was subsequently appointed CEO of the company. Dr. Nelles joined Normandy LaSource in France, as executive director for gold production and industrial minerals in 1997. In 2002 he was appointed as the “Trepca Manager” by the United Nations Mission in Kosovo and was promoted to deputy managing director of the Kosovo Trust Agency in 2004, in charge of all major publicly owned enterprises. Since 2006 he has worked as an independent mining industry advisor and has been instrumental in the formation of Innomatik Exploration Kosovo LLC, a wholly-owned subsidiary of Avrupa Minerals.
Winnie Wong - CFO
Winnie Wong received a bachelor of commerce degree (honours) from Queen’s University in 1996 and is a chartered professional accountant. She is currently vice-resident of Pacific Opportunity Capital Ltd. Prior to joining Pacific Opportunity Capital Ltd., Wong was the controller of Pivotal Corporation, a company providing software, services, and support to a variety of businesses. Between 1996 and 1999, Wong worked with Deloitte & Touche, Chartered Accountants.
Avrupa Minerals Ltd. 2023 Progress and 2024 Plans
Vancouver, BC TheNewswire February 21, 2024 - Avrupa Minerals Ltd. (AVU:TSXV) is pleased to report on its progress during 2023 on programs in Portugal, Kosovo, and Finland, as well as comment on expected programs for 2024. The Company's projects in Kosovo and Portugal are fully-funded by Joint Venture partners. The Company is seeking a potential joint venture entity for its program(s) in the Vihanti-Pyhäsalmi VMS District, Central Finland.
Paul W. Kuhn, President and CEO of Avrupa Minerals ("AVU" or "Company"), noted, "Strong progress in deposit definition work at the Sesmarias copper-zinc-lead Project in Portugal during 2023 will be the underpinning for an aggressive drilling program in the SES Central Zone starting in Q2 2024.
After a successful PEA and Mineral Resource Estimate upgrade at the Slivova Project in Kosovo during 2023, we are looking forward to further upgrade of the precious metal inventory in and around the deposit, itself, as well as continued progress in the ESG aspects of the Project.
In Finland, we acquired new massive sulfide licenses in a well-endowed mining district, defined new drilling targets at one former producer, discussed the potential of acquiring several other VMS base metal targets, and commenced search for viable joint venture partners to advance the program there."
Portugal
Drilling continued throughout the year around the Alvalade pre-exploitation license in several target areas, including Caveira South, Casas Novas, Lousal Northwest, Brejo, and Sesmarias. The Company drilled 14 holes totaling 6,530 meters in 2023: two at Caveira South, one at Casas Novas, four in the Lousal Northwest area, one at Brejo, and six in the Sesmarias massive sulfide VMS deposit area.
Figures 1, 1a. 2023 drilling along trend of Pyrite Belt mineralization within the Alvalade JV license, with Sesmarias enlargement. Background data from 2020-21 helicopter-supported VTEM project. Intense electromagnetic response to railroad tracks and power lines in linear purple colors.
The highlight of the 2023 drilling program was the re-discovery of the high-grade copper-zinc-lead-silver mineralization at Sesmarias in SES23-047 (see AVU news release June 12, 2023 ). Follow-up drilling at Sesmarias confirmed potential for more high-grade massive sulfide and stockwork mineralization in the Central Zone at Sesmarias (see AVU news release November 28, 2023 ). The success of the Sesmarias drilling underlies potential for the next phase of drilling there, tentatively commencing in Q2 of 2024. This phase will be aimed at defining the high-grade mineralization located in/around the hinge of the Sesmarias Syncline, particularly along strike between the 250 South and 800 South section lines, noted in the figures below. Plans for the next phase are underway.
To enhance targeting at Sesmarias, The Company performed an IP-Resistivity survey at the end of 2023 covering Sesmarias Central and Northern Zones and the Brejo target area just north of Sesmarias. Results are presently under evaluation, particularly for the North area and for the Brejo area where we have less historic drilling information. The level of success in the coming phase of drilling will determine how best to move towards a mining license application which will be necessary in the first half of 2025.
Figure 2. Sesmarias section lines, AVU generated. Drillholes in red were completed during 2023 drilling program. Coordinate system, UTM Zone 29 (ED50).
Figure 3. Known massive sulfide mineralization at Sesmarias, open both north and south. Drilling in the upcoming phase will target potential high-grade mineralization in the Central Zone between 250 South and 800 South sections. Modeling and interpretation of accumulated data suggests that strong, polymetallic VMS mineralization is hosted in and close to the hinge of the Sesmarias Syncline. UTM Zone 29 (ED50).
Drilling in the northern target areas of the Alvalade license was less successful than at Sesmarias. Drilling intersected narrow lenses of polymetallic sulfide mineralization in both Caveira South drill holes and wispy, distal facies, replacement sulfide mineralization in the Casas Novas drill hole. We hope to do follow-up drilling in both areas at some point in the future, but there are no plans for this in the up-coming drilling phase. Drilling at Lousal Northwest intercepted the mineral horizon black shales, but no significant sulfide mineralization.
The Alvalade project is a joint venture between Avrupa Minerals and Minas de Aguas Teñidas, S.A. ("Sandfire MATSA" or "MATSA"). Avrupa continues to operate the project through the JV entity PorMining Lda., and MATSA continues to fund the exploration work.
Kosovo
Work continued at the Slivova gold-silver project in Kosovo during 2023, undertaken by partner Western Tethyan Resources, and supported by 70%-owner Ariana Resources. Highlights of the work included the completion of a NI 43-101 Preliminary Economic Assessment (PEA) study that included a significant mineral resources' upgrade (see AVU news releases July 17, 2023 and September 6, 2023 for further, detailed information and notes concerning QP sign-off).
Global in situ gold resource increases by 78% over original MRE
Global in situ silver resource increases by 113% over original MRE
New MRE figures:
Measured Resources: 835,000 mt @ 4.3 g/t Au and 15 g/t Ag
Indicated Resources: 296,000 mt @ 3.6 g/t Au and 15 g/t Ag
Inferred Resources: 250,000 mt @ 3.7 g/t Au and 13 g/t Ag
4,500-meter drilling program planned for the next phase of field work, which will include resource infill drilling and exploration drilling around the license
Western Tethyan also commenced environmental and social baseline studies in the project area, committing to a strong and positive social relationship with the communities around the project area, and performed exploration rock and soil sampling around the license to help identify satellite deposits. The government issued trenching and drilling permits for this year, and Western Tethyan is in the midst of planning and budgeting for the 2024 program. Work planned, in addition to continued environmental and social licensing, includes trenching over several untested targets and exploration drilling outside of the main deposit in efforts to increase the mineral resources. Eventually, there may be some infill drilling completed in 2024, as well. We anticipate that Western Tethyan will perform the necessary work to reach the 51% ownership level of the license during 2024, as required by the JV agreement (see news release of May 9, 2023 ).
Finland
During 2023, Avrupa's 49%-held Akkerman Finland Oy (AFOy) continued to advance the exploration program in the Vihanti-Pyhäsalmi VMS District of central Finland. The joint venture now holds two exploration permits covering known massive sulfide deposits (Kangasjärvi and Hallaperä), an application over a massive sulfide deposit (Rauhala), and an exploration permit covering a massive sulfide target (Kolima) that has been approved by the mining bureau, but not yet issued due to appeals court handling of the process.
Basic exploration work, continued review of historic core and geophysical data, and modeling of SkyTEM data from the Kangasjärvi license suggest an outstanding un-drilled target close to the old Kangasjärvi Mine. The joint venture is making plans for drilling at the target in 2024. There are further SkyTEM anomalies that may rate drilling after planned exploration work during the up-coming field season.
Figure 4. Map of Vihanti-Pyhäsalmi VMS District with AFOy-AVU holdings and location of the two major mines, Pyhäsalmi and Vihanti.
Figure 5. Plan view of the Kangasjärvi SkyTEM drill target, showing a strong conductor northwest and across a major area fault from the historic Kangasjärvi Mine. Most of the conductor has never been drilled.
Figure 6. Kangasjärvi SkyTEM drill target, section view. The joint venture plans three diamond drill holes totaling 1000 meters later this year. There are other SkyTEM anomalies around the license that may become drill-ready later this year.
AFOy officially acquired the Hallaperä exploration license in the past year. The license covers a known massive sulfide deposit discovered by Outokumpu in 1967. The deposit is 1,500 meters long and ranges from two to 18 meters thick. It remains open at depth below 200 meters from the surface. The most recent drilling, in 1990, cut 1.85 meters @ 1.72% Cu, 1.7 g/t Au, and 44 g/t Ag, with no further work completed since that time.
Figure 7. Copy of the original geological map of the Hallaperä VMD deposit.
The Finnish mining bureau recently awarded an exploration permit to AFOy for another license covering a massive sulfide deposit near the historic Vihanti Mine. The Rauhala deposit was discovered in 1985 by the Finnish Geological Survey (GTK), and later worked by Outokumpu Oy. It measures nearly 600 meters long and 350 meters wide and averages about 2 meters thick, as presently known. Virtually no work on the deposit has been completed in the past 20-25 years.
Figure 8. Plan view of the Rauha Deposit (blue/black/yellow lenticular outline). The deposit was discovered via a zinc anomaly in till material, and is covered by 2-20 meters of till at its closest point to the surface.
Figure 9. Section view of the sediment-hosted Rauhala Deposit, sub-cropping under 2 to 20 meters of till.
Upcoming Events
Avrupa will attend PDAC and participate in the Western Tethyan and Europe Session, organized by Mundoro Capital on Sunday morning, March 3 rd , at 8-12 am in Room 206D. We have accepted an invitation to present updated information about the Company's Sesmarias Joint Venture Project. Later, Avrupa will display Sesmarias core at Booth # 2614B, Tuesday and Wednesday, March 5 th and 6 th in the main investor's hall at the Conference.
Minas de Aguas Teñidas, S.A. (Sandfire MATSA) is a modern mining company which owns and operates the MATSA Mining Operations in the Huelva province of Spain. With a processing plant located to the north of the Iberian Pyrite Belt that sources ore from three underground mines, Aguas Teñidas and Magdalena Mines in Almonaster la Real and the Sotiel Mine in Calañas, Sandfire MATSA produces copper, zinc and lead mineral concentrates that are sold from the port of Huelva. Sandfire MATSA also holds an extensive portfolio of exploration tenements in both Portugal and Spain. Sandfire MATSA is a wholly owned company of Sandfire Resources Ltd, a mining and exploration company listed on the Australian Securities Exchange (ASX: SFR).
Western Tethyan Resources (WTR) is a UK-registered, mineral exploration and development company focused on South East Europe. The company has a strategic alliance with Newmont Corporation and Ariana Resources and is currently focused on exploration for major copper-gold deposits in the Lecce Magmatic Complex and Vardar Belt. The company is assessing several other exploration project opportunities across Eastern Europe, targeting copper-gold deposits across the porphyry-epithermal transition.
Avrupa Minerals Ltd. is a growth-oriented junior exploration and development company directed to discovery of mineral deposits, using a hybrid prospect generator business model. The Company holds one 100%-owned license in Portugal, the Alvalade VMS Project, presently optioned to Sandfire MATSA in an earn-in joint venture agreement. The Company now holds one 100%-owned exploration license covering the Slivova gold prospect in Kosovo, and is actively advancing four prospects in central Finland through its joint venture in Akkerman Finland Oy. Avrupa focuses its project generation work in politically stable and prospective regions of Europe, presently including Portugal, Finland, and Kosovo. The Company continues to seek and develop other opportunities around Europe.
For additional information, contact Avrupa Minerals Ltd. at 1-604-687-3520 or visit our website at www.avrupaminerals.com .
On behalf of the Board,
Paul W. Kuhn, President & Director
This news release was prepared by Company management, who take full responsibility for its content. Paul W. Kuhn, President and CEO of Avrupa Minerals, a Licensed Professional Geologist and a Registered Member of the Society of Mining Engineers, is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. He has reviewed the technical disclosure in this release. Mr. Kuhn, the QP, has not only reviewed, but prepared and supervised the preparation or approval of the scientific and technical content in the news release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright (c) 2024 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
Avrupa Minerals Updates Drilling Results at the Sesmarias VMS target, Alvalade JV, Portugal
Company completes drilling at Sesmarias for 2023
Five holes drilled in the Sesmarias Central area targeting potentially high-grade hinge zone of Sesmarias synform-shaped VMS target;
One hole drilled to test potential west limb mineralization in the Sesmarias South area.
Company completes IP-Res geophysical survey over Sesmarias Central and North areas: results pending.
Partners Avrupa Minerals and Sandfire Minerals making plans for continued work at Sesmarias in 2024.
Vancouver, BC - TheNewswire - November 28, 2023 - Avrupa Minerals Ltd. (AVU:TSXV) (OTC:AVPMF) (FRANKFURT:8AM) is pleased to update the investor community concerning progress at the Sesmarias copper-zinc massive sulfide prospect, located within the Alvalade Joint Venture Project in the Iberian Pyrite Belt of Portugal. The program is a joint venture between Avrupa Minerals ("AVU" or "Company") and Minas de Aguas Teñidas, S.A. ("Sandfire MATSA" or "MATSA") through their local subsidiaries. Avrupa continues to operate the project through the JV entity PorMining Lda., and MATSA continues to fund the exploration work. Previously, through the JV, during 2020-2021, the Company drilled 17 diamond drill holes at Sesmarias, totaling 8,900 meters, on six different fences along a strike length of 400 meters in the Sesmarias North Zone.
The JV returned to drilling at Sesmarias in mid-April 2023, targeting the Central Zone, where Avrupa drilled the high-grade discovery hole, SES002, in 2014 (see February 27, 2014 News Release ). Follow-up drilling in the immediate discovery area at that time unsuccessfully targeted shallow extensions of the mineralization seen in SES002 at a depth of about 150 meters. Armed with a significantly upgraded targeting model, constructed from 46 holes, totaling nearly 20,000 meters at Sesmarias since 2014, the JV geological team aimed deeper to 400 meters depth to attempt to locate further high-grade mineralization.
As reported in June (see June 12, 2023 News Release ), the JV intersected strong copper-zinc massive sulfide mineralization in SES23-047. Since completion of that hole, the JV drilled a further five holes, totaling 2,766 meters, in the Sesmarias Central and South Zones. Total drilling at Sesmarias is now at 22,612 meters in 52 diamond drill holes, over a mineralized strike length of 1,700 meters.
The following general schematic section demonstrates how the target is perceived after 52 drillholes, geological and structural interpretation, surface geochemistry, and a variety of geophysical surveys since the original discovery in 2014.
Figure 1. Schematic cross section of the Sesmarias massive sulfide target. Note that the field of view is 500 meters SW to NE and encompasses 1,400 meters of strike length of mineralization from SE to NW. Most of the drilling in the just-completed phase targeted the hinge zone of the Sesmarias synform in the Central area. Due to small, but important, post-mineral structural complications and drilling difficulties, three of five holes intersected the hinge zone massive mineralization and/or stockwork, feeder-style mineralization, while one hole intersected the synform above targeted mineralization, and one hole missed below the hinge zone. The sixth hole targeted massive sulfide mineralization on west limb of the synform in the Sesmarias South area. The schematic section suggests that there is significant, un-explored target area in the hinge zone along strike and in both limbs of the synform, as well, along strike.
Encouraging results continued in the 6-hole phase of drilling in the Central and South areas on five separate fences over 600 meters of mineralized strike length. The following diagram shows the extent of drilling in the Sesmarias North and Central Zones from SES019 northwest to SES21-036 as shown in the general schematic section. The six recently-completed drill holes are highlighted in red.
Figure 2. Drill hole locations and sections for Sesmarias North and Central (2014-2023).
The following tables summarize the most important results from the most recent drilling in the Sesmarias massive sulfide target area:
SES23-047
Drillhole | Interval | From | To | Cu (%) | Pb (%) | Zn (%) | Ag (g/t) | Au (g/t) | |
SES23-047 | 26.95 | 393.80 | 420.75 | 2.18 | 2.58 | 5.60 | 88.2 | 0.33 | |
w/i | 43.40 | 392.80 | 436.20 | 1.51 | 2.15 | 4.78 | 64.1 | 0.26 |
Table 1. Previously-reported high-grade results from SES23-047. The hole intersected massive sulfides near the presumed bottom of the hinge zone on Section 650 South.
Figure 3. Section 650 South showing SES002, SES003, SES23-041, and SES23-047.Note that SES23-041 crossed the Sesmarias synform above the hinge zone, and missed mineralization. It appears that the high grade SES002/003 mineralization may have been displaced from the larger hinge zone target intersected by SES23-047.
SES23-048
Drillhole | Interval | From | To | Cu (%) | Pb (%) | Zn (%) | Ag (g/t) | Au (g/t) | |
SES23-048 | 9.20 | 419.10 | 428.30 | 1.20 | 1.46 | 3.05 | 30.1 | 0.43 | |
and | 8.30 | 428.30 | 436.60 | 0.31 | anom. | 0.33 | anom. | 0.43 | |
total | 17.50 | 419.10 | 436.60 | 0.78 | --- | --- | --- | 0.43 | |
also | 0.25 | 348.40 | 348.65 | 1.01 | 0.74 | 1.32 | 39.2 | 0.14 |
Table 2. New results for SES23-048. The hole intersected 9.2 meters of massive sulfide mineralization, followed by 8.3 meters of stockwork sulfide mineralization near the presumed top of the hinge zone, or possibly on the western, upright limb of the Sesmarias synform on Section 800 South.
Figure 4. Section 800 South showing SES23-048.
SES23-049
Drillhole | Interval | From | To | Cu (%) | Pb (%) | Zn (%) | Ag (g/t) | Au (g/t) | |
SES23-049 | no significant results | ||||||||
0.70 | 332.55 | 333.25 | 0.29 | 0.19 | 0.32 | anom. | anom. |
Table 3. SES23-049 did not cut significant mineralization, as the hole crossed too high in the Sesmarias synform, much like SES23-041, drilled in 2021. Fragments of massive sulfide mineralization are present in the major thrust fault that bounds and cuts the eastern, overturned limb of the Sesmarias synform.
Figure 5. Section 500 South showing SES23-049 and SES23-051. SES23-049 crossed the synform above the hinge zone, while SES23-051 crossed zinc-rich stockwork sulfide mineralization below the hinge zone. Significant results for SES23-051 are found below in Table 5.
SES23-050
Drillhole | Interval | From | To | Cu (%) | Pb (%) | Zn (%) | Ag (g/t) | Au (g/t) | |
SES23-050 | samples in lab -- no significant results expected, though crossed faulted east limb at 397.50 to 398.70 meters, below hinge zone |
Table 4. SES23-050 did not intersect any significant visible mineralization, as the hole crossed beneath the Sesmarias synform. It did cross the eastern limb fault containing abundant disseminated and fragmented pyrite.
Figure 6. Section 950 South showing SES23-050 crossing below the hinge zone. Folding of the hinge zone is possible, as shown in the section, but not yet confirmed.
SES23-051
Drillhole | Interval | From | To | Cu (%) | Pb (%) | Zn (%) | Ag (g/t) | Au (g/t) | |
SES23-051 | 9.00 | 456.80 | 465.80 | anom. | 0.99 | 2.35 | 11.7 | anom. | |
and | 8.00 | 467.80 | 475.80 | anom. | 3.04 | 3.47 | 50.7 | wk anom. | |
strong stkwk | 19.00 | 456.80 | 475.80 | --- | 1.77 | 2.61 | 27.3 | --- | |
total stkwk | 30.70 | 456.80 | 487.50 | --- | 1.18 | 1.88 | 17.8 | --- | |
remainder of samples in lab -- no significant results expected, below hinge zone |
Table 5. SES23-051 crossed 30.7 meters of zinc-rich stockwork sulfide mineralization beneath the hinge zone. This included an intercept of 9 meters of semi-massive to massive sulfide mineralization and a further zone of 8 meters of semi-massive sulfides, followed by another 11.7 meters of stockwork sulfide mineralization. The cross section for SES23-051 is shown above in Figure 4.
SES23-052
Drillhole | Interval | From | To | Cu (%) | Pb (%) | Zn (%) | Ag (g/t) | Au (g/t) | |
SES23-052 | 5.60 | 358.60 | 364.20 | 0.45 | --- | --- | --- | 0.33 | |
and | 7.00 | 366.20 | 373.20 | anom. | 0.84 | 2.72 | 24.8 | wk anom. | |
incl. | 4.00 | 368.20 | 372.20 | anom. | 3.40 | wk anom. | |||
3.00 | 370.20 | 373.20 | anom. | 1.33 | wk anom. | ||||
2.00 | 370.20 | 372.20 | anom. | 45.1 | wk anom. | ||||
w/i | 28.40 | 358.60 | 387.00 | total zone of sulfides, including insipient stkwk to massive mineralization | |||||
now cutting remainder of samples -- no significant intervals of high-grade results expected, though several zones of stkwk exist |
Table 6. SES23-52 crossed the western, upright limb of the Sesmarias synform in the Sesmarias South area. This is the first deeper intersection of the western limb in the Central and South zones at Sesmarias. The intersect included 28.4 meters of variable sulfide mineralization from stockwork to massive mineralization.
Figure 7. Section 1100 South showing SES022 and SES23-052 cutting the western limb of the Sesmarias synform.
Paul Kuhn, President and CEO of Avrupa Minerals, commented, "Geochemical and geological results from drilling in the Sesmarias Central and South Zones this year are a really positive revelation after nine years of working at Sesmarias. The Team has put together a great, drillable massive sulfide target, and the results are confirming the robustness of that target. It is clearly zoned along strike and proximity to the hinge zone in the central area, yet still has close to 2000 meters of mineralized strike length potential. We are looking forward to continuing upgrade of the mineralization in the coming months."
The Joint Venture just completed a 6-line, 2100-meter-long IP-Resistivity survey covering the North and Central Zones. The hope is that the survey can assist in identification of stockwork sulfide mineralization in proximity to massive sulfides. We expect final results before the end of the month and these will be reported in due time.
Minas de Aguas Teñidas, S.A. ("Sandfire MATSA" or "MATSA") is a mining company which owns and operates the MATSA Mining Operations in the Huelva province of Spain. With a processing plant located to the north of the Iberian Pyrite Belt that sources ore from three underground mines, Aguas Teñidas and Magdalena Mines in Almonaster la Real and the Sotiel Mine in Calañas, Sandfire MATSA produces copper, zinc and lead mineral concentrates that are sold from the port of Huelva. Sandfire MATSA also holds an extensive portfolio of exploration tenements in both Portugal and Spain. Sandfire MATSA is a wholly-owned company of Sandfire Resources Limited, one of the largest copper-focused companies on the Australian Securities Exchange (ASX: SFR).
Avrupa Minerals Ltd. is a growth-oriented junior exploration and development company directed to discovery of mineral deposits, using a hybrid prospect generator business model. The Company holds one 49%-owned license in Portugal, the Alvalade VMS Project, presently optioned to Sandfire MATSA in an earn-in joint venture agreement. The Company now holds one 100%-owned exploration license covering the Slivova gold prospect in Kosovo, and is actively advancing four prospects in central Finland through its in-process acquisition of Akkerman Finland Oy. Avrupa focuses its project generation work in politically stable and prospective regions of Europe, presently including Portugal, Finland, and Kosovo. The Company continues to seek and develop other opportunities around Europe.
For additional information, contact Avrupa Minerals Ltd. at 1-604-687-3520 or visit our website at www.avrupaminerals.com .
Paul W. Kuhn, President & Director
This news release was prepared by Company management, who take full responsibility for its content. Paul W. Kuhn, President and CEO of Avrupa Minerals, a Licensed Professional Geologist and a Registered Member of the Society of Mining Engineers, is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. He has reviewed the technical disclosure in this release. Mr. Kuhn, the QP, has not only reviewed, but prepared and supervised the preparation or approval of the scientific and technical content in the news release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright (c) 2023 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
Positive Preliminary Economic Assessment Completed for the Slivova Gold Project, Kosovo
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:
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.
Capital expenditure is estimated at $33.4 million and sustaining capital requirements of $9.4 million are envisaged in the study.
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.
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 | 250,000 | 2.8 | 3.7 | 3.7 | 13 | 30,000 | 100,000 |
Table 1: Estimated Mineral Resources for Slivova. Numbers are rounded to an appropriate number of significant figures, and as such, discrepancies may exist between individual values, products, and totals.
Notes to the Mineral Resource Estimate (1-9):
The independent Qualified Person responsible for Mineral Resource disclosure, as defined by NI 43-101, is Mr. Richard Siddle, MSc, MAIG, of Addison Mining Services Ltd. The effective date of the Mineral Resource Estimate is 22 June 2023.
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resource will be converted to Mineral Reserves.
A gold equivalent (AuEq) grade was calculated for each block using the formula AuEq = (Ag g/t x 0.05) + Au g/t. It is the opinion of the Qualified Person that all elements included in the Au Equivalent calculation have a reasonable prospect of being recovered and sold, the calculation of the Au equivalent value considers the relative recovery and payability of each element (recovery by cyanide leaching of 93.4% for gold and 50% for silver and 95% and 85% payability, respectively, as informed by metallurgical test work completed to date) as well as the assumed commodity prices.
Reasonable prospects of eventual economic extraction are satisfied by the estimation of break-even cut-off grades for each anticipated mining scenario (0.5g/t AuEq for open pit and 1.5g/t AuEq for underground mining). These cut-off grades were used to report the Mineral Resource. The cut-off grades were estimated on the basis of the following assumptions: a gold price of US$1850/oz (selected following consideration of (1, 2 and 3 year trailing average LMBA gold price and LMBA 2023 average forecast gold price, a silver price of US$20/oz, underground mining costs of US$43.7/t, processing costs (including tailings disposal) of US$29.5/t and GA costs of US$3/ROMt.
Estimates in the above table have been rounded to three significant figures for Measured and Indicated Resources and two significant figures for Inferred Mineral Resources.
CIM Definition Standards for Mineral Resources have been followed.
The independent Qualified Person for Resources is not aware of any additional known environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues that could materially affect the Mineral Resource Estimate.
The Mineral Resource figures set out above are quoted gross with respect to the Project. WTR of which Ariana owns 75%, has yet to establish a net attributable interest under the Earn-in and accordingly, no separate net attributable figures are reported.
Mine Design
A revised approach to the mining of Slivova involves a small starter pit to access the outcropping mineralized gossan area, followed by underground extraction of the gold resource below the open pit at an appropriate extraction rate to suit the size and grade of the deposit. Mine design involved a more detailed analysis of the potential mining method and a mineable stope optimization exercise to fully assess and define the underground stoping extents.
A geotechnical review was undertaken to validate extraction methods. Ore zones and host rocks are either non-calcareous or calcareous sequences of altered sedimentary rocks with ore zone strengths varying between 45 MPa and 50 Mpa. Mine design was adapted to be flexible to varying competencies of host rock, particularly in the contact areas.
The starter pit has been designed to be mined from the top bench downwards with ore being accessible and extracted immediately, i.e., there is no requirement or need for any pre-stripping. It has been assumed that this small open pit can be mined by local contractors who have quarries within the vicinity of the proposed mine at Slivova. The revised starter pit design is also situated such that there is now no requirement for stream re-alignment where the pit can be accessed for initial extraction via existing tracks on the north side of the stream. Pit extents minimize the impact on the surrounding countryside and local communities.
Due to the requirement for a 25 m crown pillar, the bottom bench was modified to a base of 865 mRL. Bench access was linked into the existing tracks and roads on the site. This allows for easy access to each bench for overburden and ore removal without the need for any ramps. Access to the bottom bench is directly in from topography. Pit operations cease after Year 1.
Underground access is envisaged as a portal developed directly into the south valley wall, supporting mining typically by sublevel open stoping, unless ore zone geometry dictates a step down to cut-and-fill methods. Main sublevels are 20 m, with stoping separated 25 m from the open pit bottom by a crown pillar which will be mined by sublevel caving methods at the end of mine life.
Mining is suggested to be via small teams of approximately 16 people per shift, using small diesel fleet appropriate for production at between 300 t/day and 400 t/day. Mined material to be trammed directly from underground operations through the portal to the primary crusher tip located at the plant site on the saddle of the southern ridge 500 m to the east.
Recovery Methods
Results of extensive characterisation and testing of the Slivova ore by a range of methods suggest that treatment would be via carbon-in-leach ("CIL") methods, delivering gold recovery of 92-94.5% and silver recovery of 19.8-22.5%. Some gold may be extracted via gravity recovery methods. Nominal plant throughput will be 142,000 tpa, with primary, secondary, and tertiary crushing of the ore, followed by ball milling to 106 m and leaching of the ore by CIL methods. Loaded carbon is stripped, with electrowinning and final EAF smelting of the doré to bullion on site.
Environmental
The environmental and social work completed to date is in line with that required for the PEA based on the revised mining plan. No environmental or social fatal flaws have been identified, and Bara is not aware of any environmental or social issue that would prevent the project from proceeding to the PFS phase, during which time various potential environmental risks would need to be evaluated further.
Economic Analysis
The economic analysis presented here is preliminary in nature and is based in part on Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as Mineral Reserves. There is therefore no certainty that the PEA presented here will be realised.
PEA level economic analysis is based on the production schedule presented with capital and operating cost estimates for the Slivova Project and other information as of July 2023. The discounted cashflow analysis ("DCF") is presented in United States Dollars (US$) in real money terms, free of escalation or inflation. Revenue has been determined through application of the recovered troy ounces produced by Slivova to the gold and silver prices as stated, less payability.
Depreciation has been calculated on the assumption that 100% of capital expenditure may be deducted from profits in the year that they are incurred (Deductibility Rate). It is assumed that all capital expenditure is eligible for deduction. A discount rate of 8% has been used for the evaluation, and no tax treatment has been applied.
The conceptual DCF analysis shows the Project is economic with a pre-tax net present value ("NPV"), at 8% discount rate, of US$27 million, and an internal rate of return ("IRR") of 29% with upfront capital requirements of $33.4 million, and sustaining capital requirements of $9.4 million.
Western Tethyan Minerals (WTR) is a UK-registered, mineral exploration and development company focused on South East Europe. The company has a strategic alliance with Newmont Corporation and Ariana Resources and is currently focused on exploration for major copper-gold deposits in the Lecce Magmatic Complex and Vardar Belt. The company is assessing several other exploration project opportunities across Eastern Europe, targeting copper-gold deposits across the porphyry-epithermal transition.
Ariana Resources is an AIM-listed mineral exploration and development company with an exceptional track-record of creating value for its shareholders through its interests in active mining projects and investments in exploration companies. Its current interests include gold production in Turkey and copper-gold exploration and development projects in Cyprus and Kosovo.
Avrupa Minerals Ltd. is a growth-oriented junior exploration and development company directed to discovery of mineral deposits, using a hybrid prospect generator business model. The Company holds one 100%-owned license in Portugal, the Alvalade VMS Project, presently optioned to Sandfire Mineira Portugal in an earn-in joint venture agreement. The Company now holds one 100%-owned exploration license covering the Slivova gold prospect in Kosovo, and is actively advancing four prospects in central Finland through its in-process acquisition of Akkerman Finland Oy. Avrupa focuses its project generation work in politically stable and prospective regions of Europe, presently including Portugal, Finland, and Kosovo. The Company continues to seek and develop other opportunities around Europe.
For additional information, contact Avrupa Minerals Ltd. at 1-604-687-3520 or visit our website at www.avrupaminerals.com .
Paul W. Kuhn, President & Director
This news release was prepared by Company management, who take full responsibility for its content. Paul W. Kuhn, President and CEO of Avrupa Minerals, a Licensed Professional Geologist and a Registered Member of the Society of Mining Engineers, is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. He has reviewed the technical disclosure in this release. Mr. Kuhn, the QP, has not only reviewed, but prepared and supervised the preparation or approval of the scientific and technical content in the news release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright (c) 2023 TheNewswire - All rights reserved.
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Avrupa Minerals Announces Updated Slivova Mineral Resource Estimate
Global in situ gold resource increases by 78% over original MRE
Global in situ silver resource increases by 113% over original MRE
New MRE figures:
Measured Resources: 835,000 mt @ 4.3 g/t Au and 15 g/t Ag
Indicated Resources: 296,000 mt @ 3.6 g/t Au and 15 g/t Ag
Inferred Resources: 250,000 mt @ 3.7 g/t Au and 13 g/t Ag
4,500-meter drilling program planned for the next phase of field work, which will include resource infill drilling and exploration drilling around the license
Vancouver, BC - TheNewswire - July 17, 2023 - Avrupa Minerals Ltd. (TSXV:AVU ) is pleased to announce that its partner at the Slivova Gold Project in Kosovo, Western Tethyan Resources (WTR), has provided a new Mineral Resource Estimate and general near-term work plan for the gold-silver deposit. Slivova is located in the prolific Vardar Mineral Trend, about 30 km SE of the capital, Pristina. 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.
Paul W. Kuhn, President and CEO of Avrupa Minerals, commented:
"We are truly excited about this new development in the progress of the Slivova Project, and look forward to continued success in the program. WTR and its associated company, Ariana Resources, are working hard to advance the Project to the next level. We expect further information concerning progress, as the two companies work to complete a Preliminary Economic Assessment for Slivova in the coming months and begin a 4,500-meter drilling program to further define the Slivova deposit and test other attractive, previously-identified possibilities around the license."
Dr. Kerim Şener, Managing Director of Ariana Resources, provided further information:
"We are very pleased to provide a substantial resource update on the Slivova Gold Project in Kosovo. With a Measured and Indicated Resource of 146,000 oz of gold and 546,000 oz of silver, and an Inferred Resource of another 30,000 oz of gold and 100,000 oz Ag in global resources now defined, Slivova is now well on track to be developed conceptually as a high-grade, open-pit and underground mining operation.
We are increasingly confident that further resource expansion will occur as exploration proceeds at the site in the upcoming years. Several exploration targets in the immediate vicinity require follow-up and drill-testing, and the broader project area contains significant exploration potential for similar mineralisation based on the latest regional BLEG stream-sediment results.
We are firmly in the planning stage for a new drilling programme at Slivova, which will be focused in part on resource infill and extensional drilling. We are targeting a minimum resource of 200,000 oz of gold prior to the initiation of more advanced project development work, which would include more advanced studies."
Mentor Demi, Managing Director of Western Tethyan Resources added:
"Western Tethyan Resources is very excited to announce a significant resource increase for the Slivova gold deposit. The resource growth came mostly from the incorporation of the new historical drilling data and the revision of the geology and resource interpretation and model.
Based on the current resources' size, Slivova represents a very prospective, undeveloped gold project, in Kosovo.
Slivova is well on its way to becoming an advanced project, yet with a lot of exploration upside, down dip from the current resource, as well as from the surrounding satellite prospects. WTR is looking forward to starting in Q3 with the exploration program, Environmental Impact Assessment, and Social Engagement Plan following recommendations from the Preliminary Economic Assessment."
The following information is a Summary of the Mineral Resource Estimate, provided by Mr. Richard Siddle, MAIG, of Addison Mining Services Ltd., an Independent Qualified Person, as defined by Canadian NI 43-101 regulations. With the publication of this document, the full MRE must be publicly filed within 45 days.
Introduction
Between October 2022 and June 2023, the Western Tethyan and Ariana teams completed detailed field, drill core and digital data reviews of all information attributed to the Slivova Project and its Mineral Resources. Mineral Resources have been estimated by Mr. Richard Siddle, MAIG, of Addison Mining Services Ltd., an Independent Qualified Person as defined by Canadian NI 43-101.
The Slivova gold and silver deposit, consists of intrusive-related, stratiform massive to disseminated gold-bearing and base metal mineralogy hosted in Cretaceous-aged calcareous sediments. The mineralisation occurs as disseminated to massive replacement of calcareous sandstone to pebble conglomerate and minor replacement of limestone, associated with pyrite, pyrrhotite, arsenopyrite, and base-metal sulphides. Lithological control and structural features appear to have played a major role in focusing the alteration and mineralisation, both as fluid pathways and fluid retardants.
The Slivova Project exploration license is located along the Vardar Trend, approximately 30km SE of Pristina, the capital city of Kosovo (Figure 1).
Figure 1: The Slivova deposit (Peshter Target), and its associated license boundary.
Slivova Mineral Resource Estimate
Mineral Resources have been estimated for the Slivova deposit (Peshter Target) only. No Mineral Resources have as yet been declared for other targets within the Slivova Project, such as Dzemajl, Valiaviste and Brus.
The estimated Mineral Resource for Slivova is reported in accordance with CIM Definition Standards, comprising of an anticipated open-pittable portion and an anticipated underground extraction portion reported above appropriate cut-off grades reflecting each anticipated mining type. Identification of material which has a reasonable prospect of eventual economic extraction is supported by existing metallurgical test work and an ongoing Preliminary Economic Analysis by Bara Consulting Ltd of the UK.
Mineralisation and block models for the Mineral Resource Estimate were informed by data from 62 surface drillholes over a total of 6,640m performed between 2014 and 2018 by the previous explorer, Innomatik Exploration Kosova (IEK). The hole spacing for the deposit is approximately 15m north by 15m east in the core of the deposit, extending to 30m north x 30m east towards the edges (Figure 2). Sample spacing and distribution are considered sufficient to establish the geological and grade continuity required for modelling and resource estimation. Gold and silver have been estimated as mining products, with no by-products or deleterious elements modelled.
Figure 2: Summary map of the various phases of drilling completed within the Slivova Project area. Some drill collars in the core of the deposit are not visible at this scale. WGS84 Z34N.
The drill database was validated prior to resource estimation and quality control (QC) checks were made using industry-standard control charts for blanks, core duplicates and commercially certified reference material inserted into assay batches. The Qualified Person has reviewed the QC data and has found it suitable for use in Mineral Resource Estimation. Additionally, the assay database was reconstructed from the original assay certificates to increase confidence in the final assay database used in the resource estimation.
Geological Modelling
The mineralisation is understood to be typically defined as a single identifiable unit, and geologically constrained (e.g., higher grades are noted in some cases to be associated with coarser grained ‘pebble conglomerates'). The steeply-dipping, intercalated pebble and cobble conglomerates, sandstone and minor siltstone beds are thought to control the mineralisation through their different porosity and permeability characteristics. The geological model as applied to the Mineral Resource Estimate comprises a single domain plunging to the east-southeast, the strike of which is controlled by the host rocks (Figure 3).
The Slivova geological modelling used a combination of surface mapping data, structural measurements, geophysics, geological interpretations, and multi-element geochemical analysis in conjunction with date derived from diamond drill holes across the deposit area. Interpretations of geological surfaces are derived from 3D implicit modelling of drill hole data in Leapfrog GEO and EDGE v. 2023.1.0 using the software's ‘intrusion' function to generate an encapsulating volume over economically defined drill composites (Figure 3). All wireframes have been clipped to the topography.
A mineralised wireframe at a cut-off of approximately 0.2g/t Au was used to distinguish mineralised and unmineralised material. Grade continuity within the interpreted mineralised zones is generally robust. Where continuity was not established between sections, the strike extrapolation was limited both manually (wireframes) and statistically (interpolations). While higher-grade sub-populations of 3-10 g/t Au and above 10g/t Au are inferred from the data distribution inspection, the drill core indicated that this could not reliably be modelled, and as such an indicator kriging approach was adapted during block model estimation.
Figure 3: 3D view of the modelled mineralised volume looking north. WGS84 Z34N.
The mineralisation broadly follows a northwest-southeast trend, as supported by structural measurements both in outcrop and on oriented core. The mineralisation outcrops at surface with visible sulphides in the exposure. The mineralised zone is approximately 260m along strike and 70m wide and covers an area of approximately 1.7 hectares. The Mineral Resources extend from surface to a depth of approximately 200 metres, plunging for approximately 300 metres to the east-southeast with a vertical extent of 100-150 metres and is typically 50 to 100 metres wide. Mineralisation is closed by drilling to the north, south and east, however, remains open down plunge to the east-southeast. The northern contact of the mineralisation is interpreted to be controlled by a bounding fault.
Estimation Methodology
The block model was prepared using Micromine Origin and Beyond version 2023, Services Pack 4 (Figure 4). A 5m x 5m x 5m block model was created with sub-blocks of minimum size 1m x 1m x 1m on domain boundaries. Grade estimation from 2m composites was carried out using median indicator kriging (mIK) for gold and using ordinary kriging for silver. The model was validated by comparison of input and output statistics, de-clustering, kriging neighbourhood analysis and by inspection of the assay data and block model in cross-section.
Figure 4: Oblique view of the block model showing the estimated gold grades. WGS84 Z34N.
The density database contains 2,472 bulk density determinations of which 1,222 fall within the mineralised domain. Values within the domain were interpolated into each block using inverse distance weighting to a power of 2 with a lower limit of 1.5t/m 3 and capped at 3.8t/m 3 .
Slivova Mineral Resource Classification
Mineral Resources were classified according to the Qualified Persons' view of the accuracy of the estimates and the quality and confidence of data underpinning them. Mineral Resource classification considered the data quality, spacing and kriging standard error statistic (SE). Measured Mineral Resources are supported in the part of the deposit with the closest spaced drilling where the SE is 0.4 and the average data spacing was typically less than 25m. The remaining blocks were classified as Inferred Mineral Resources including the down plunge portion of the deposit which is largely informed by two drill holes and is extrapolated by approximately 55m.
The Mineral Resource Estimate has an effective date of 22 June 2023, superseding the previous Mineral Resource Estimate which had an effective date of 31 May 2016. The Mineral Resource Estimate for Slivova is reported in Table 1, which was completed 14 July 2023.
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.
Table 1: Estimated Mineral Resources for Slivova. Numbers are rounded to an appropriate number of significant figures and as such discrepancies may exist between individual values, products and totals.
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 | 250,000 | 2.8 | 3.7 | 3.7 | 13 | 30,000 | 100,000 |
Notes to the Mineral Resource Estimate (1-9):
The independent Qualified Person responsible for Mineral Resource disclosure, as defined by NI 43-101, is Mr. Richard Siddle, MSc, MAIG, of Addison Mining Services Ltd. The effective date of the Mineral Resource Estimate is 22 June 2023.
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resource will be converted to Mineral Reserves.
A gold equivalent (AuEq) grade was calculated for each block using the formula AuEq = (Ag g/t x 0.05) + Au g/t. It is the opinion of the Qualified Person that all elements included in the Au Equivalent calculation have a reasonable prospect of being recovered and sold, the calculation of the Au equivalent value considers the relative recovery and payability of each element (recovery by cyanide leaching of 93.4% for gold and 50% for silver and 95% and 85% payability, respectively, as informed by metallurgical test work completed to date) as well as the assumed commodity prices.
Reasonable prospects of eventual economic extraction are satisfied by the estimation of break-even cut-off grades for each anticipated mining scenario (0.5g/t AuEq for open pit and 1.5g/t AuEq for underground mining). These cut-off grades were used to report the Mineral Resource. The cut-off grades were estimated on the basis of the following assumptions: a gold price of US$1850/oz (selected following consideration of (1, 2 and 3 year trailing average LMBA gold price and LMBA 2023 average forecast gold price, a silver price of US$20/oz, underground mining costs of US$43.7/t, processing costs (including tailings disposal) of US$29.5/t and GA costs of US$3/ROMt.
Estimates in the above table have been rounded to three significant figures for Measured and Indicated Resources and two significant figures for Inferred Mineral Resources.
CIM Definition Standards for Mineral Resources have been followed.
The independent Qualified Person for Resources is not aware of any additional known environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues that could materially affect the Mineral Resource Estimate.
The Mineral Resource figures set out above are quoted gross with respect to the Project. WTR of which Ariana owns 75%, has yet to establish a net attributable interest under the Earn-in and accordingly, no separate net attributable figures are reported.
Western Tethyan Resources is the operator of Slivova
Additional drilling is required to increase the confidence in the Mineral Resources in the Indicated and particularly Inferred parts of the resource estimate. Increased levels of information brought about by further drilling may serve to either increase or decrease the estimate of Mineral Resources. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. A 4,500-metre drilling programme has been planned for the next phase of resource infill and exploration work at Slivova.
Comparison to Previous Mineral Resources
A resource estimate was completed by Mining Plus for Slivova as part of the 2016 NI43-101 Study on the project (Table 2). The most significant change is the upgrade of Mineral Resources from the Indicated category to the Measured category.
115% increase in total tonnes
17% decrease in gold grade but a 78% increase in total gold ounces
1% decrease in silver grade but a 113% increase in total silver ounces
There was a slight decline in the gold grade due to extending the model in areas showing grade continuity, but at a lower grade. This increased the number of ounces and tonnage as the result of extrapolating the resource with the additional drilling. The 2016 estimate did not include any of the 2016 drill program data and, as such, a detailed comparison is less meaningful. Changes in the estimate, including classification, grade and contained metal can largely be attributed to the inclusion of additional data and increased confidence in the model due to better understanding of the geology and the outcomes of the in-depth QC review and reviewing laboratory assay certificates in detail.
Table 2: Mineral Resources reported in the 2016 NI43-101 study. The Mineral Resources were reported at a cut-off grade of 1.0g/t Au and had an effective date of 31 May 2016.
2016 MRE | Mass | Average Value | Material Content | ||
Au | Ag | Au | Ag | ||
t | g/t | g/t | oz | oz | |
Measured | - | - | - | - | - |
Indicated | 640,000 | 4.80 | 14.68 | 98,700 | 302,000 |
Inferred | 2,000 | 2.00 | 16.12 | 130 | 1,000 |
Total | 642,000 | 4.79 | 14.68 | 98,830 | 303,000 |
Other Considerations
To the best of the Qualified Person's knowledge, at the time of estimation there are no known environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other relevant issues that could materially impact the eventual extraction of the Mineral Resource.
The most likely extraction scenario is anticipated to be by means of a small 100m wide open pit to a depth of approximately 30m, followed by underground stoping. While a larger open pit would likely be economically viable based on pit optimisation tests, the size of the pit may encroach on local waterways and bring nearby farm buildings within the safe blast radius of the pit. As such, the above scenario is considered more likely.
Studies have been previously completed as part of the 2017 PFS (internal, unpublished) on the natural environment and potential impacts on the local community.
GR Engineering Services Ltd (GRES) completed a metallurgical and processing report for the project as part of the 2017 PFS (internal, unpublished). The metallurgical work was conducted at ALS Metallurgical Laboratories in Balcatta, Western Australia with initial tests confirming the gold is not refractory. In summary, good gold recovery was demonstrated in cyanide leaching (96%) and flotation (88%), whereas the gravity method gave only 36% recovery.
Detailed studies were previously completed as part of the 2017 PFS (internal, unpublished) on mining, hydrology, geomechanics, waste geochemistry, mine waste and tailings, power supply, surface infrastructure and CAPEX & OPEX.
Sampling and Assaying Procedures
All of the drill holes used to define the Slivova Project have been drilled using diamond core drilling techniques in HQ, NTW and NQ diameter core sizes. All diamond drill core is processed in the Company's core shed, near the Slivova Project. Initially, all sample preparation occurred at the ALS Group sample preparation facility at Rosia Montana, Romania and then at ALS in Bor, Serbia. Drill-core samples from the drilling programmes at Slivova were cut in half by a diamond saw and sent for analysis in batches in line with the Company's quality control procedures.
The review of the QA/QC results from the 2014-2016 drill programme, the holes which were used in the resource estimate, indicated no issues. Standards, blanks and duplicates all showed good performance. The insertion rate of QA/QC samples for these phases of the drill programme was 12% (4,930 samples incl. 582 QA/QC samples), with a similar proportion of blanks, standards, field duplicates, analytical duplicates and pulp duplicates inserted.
Diamond drill core recoveries were monitored and recorded in the sampling database. Overall core recovery for the diamond drilling is 92%, with core recovery for only the holes used in the resource estimate being 90%. There is no bias between sample recovery and grade. Samples with less than 80% recovery were noted to be in zones of fault gouge, highly broken core or drill-spun core.
All samples have been submitted for gold and silver analysis, with some batches being submitted for a full multi-element suite of analysis. Not all batches had multi-element analysis due to budget constraints. All analysis has been undertaken by ALS Group at their fully accredited laboratories, as detailed below.
Gold analysis was undertaken at the ALS laboratory in Rosia Montana, Romania using Fire Assay with an Atomic Absorption Spectrometry Finish on a 30g charge. The upper detection limit for this method (Au-AA23) is set at 10g/t gold, with any over-detection values re-analysed via Fire Assay with a Gravimetric Finish (Au-GRA21).
Silver analysis was undertaken at the ALS laboratory in Loughrea, Ireland using a multi-acid digest and a hydrochloric acid leach with an AAS read. An upper detection limit of 100g/t silver is set for this analytical technique – no samples returned grades at this upper detection limit.
Multi-element analysis was undertaken at the ALS facility in Ireland, using a multi-acid digest with the analysis completed by inductively coupled plasma-mass spectrometry (ICPMS).
Review of the assay results determined that all Quality Control and Quality Assurance samples (blanks, standards, and duplicates) passed the required quality control checks established by the Company, with duplicate samples showing excellent correlation. Laboratory sample preparation, assaying procedures and chain of custody were appropriately controlled. The Company maintains an archive of half-core samples and a photographic record of all cores for future reference.
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.
Ariana Resources is an AIM-listed mineral exploration and development company with an exceptional track-record of creating value for its shareholders through its interests in active mining projects and investments in exploration companies. Its current interests include gold production in Turkey and copper-gold exploration and development projects in Cyprus and Kosovo.
Western Tethyan Minerals is a UK-registered, mineral exploration and development company focused on South East Europe. The company has a strategic alliance with Newmont Corporation and Ariana Resources and is currently focused on exploration for major copper-gold deposits in the Lecce Magmatic Complex and Vardar Belt. The company is assessing several other exploration project opportunities across Eastern Europe, targeting copper-gold deposits across the porphyry-epithermal transition.
Avrupa Minerals Ltd. is a growth-oriented junior exploration and development company directed to discovery of mineral deposits, using a hybrid prospect generator business model. The Company holds one 100%-owned license in Portugal, the Alvalade VMS Project, presently optioned to Sandfire MATSA in an earn-in joint venture agreement. The Company now holds one 100%-owned exploration license covering the Slivova gold prospect in Kosovo, and is actively advancing four prospects in central Finland through its in-process acquisition of Akkerman Finland Oy. Avrupa focuses its project generation work in politically stable and prospective regions of Europe, presently including Portugal, Finland, and Kosovo. The Company continues to seek and develop other opportunities around Europe.
For additional information, contact Avrupa Minerals Ltd. at 1-604-687-3520 or visit our website at www.avrupaminerals.com .
On behalf of the Board,
Paul W. Kuhn, President & Director
This news release was prepared by Company management, who take full responsibility for its content. Paul W. Kuhn, President and CEO of Avrupa Minerals, a Licensed Professional Geologist and a Registered Member of the Society of Mining Engineers, is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. He has reviewed the technical disclosure in this release. Mr. Kuhn, the QP, has not only reviewed, but prepared and supervised the preparation or approval of the scientific and technical content in the news release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright (c) 2023 TheNewswire - All rights reserved.
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Avrupa Minerals Provides Alvalade JV Update, Portugal
Four holes, totaling 2,693 meters, completed in current phase of exploration drilling;
Geochemical results from the first three holes contain anomalous pathfinder metals, including Au, As, Cu, Mo, Pb, Sb, Sn, Zn, in target black shale horizon, suggesting potential proximity to massive sulfide targets;
Sample results from fourth hole pending;
Airborne gravity survey completed, final results pending;
New ground EM geophysical survey underway between Azinheira and Caveira target areas;
Plans for further exploration holes in present phase of drilling at Caveira, Lousal NW, Monte da Bela Vista, Brejo, and Sesmarias target areas underway; expected 4,000 to 6,000 meters.
Vancouver, B.C. – TheNewswire - March 3, 2023 – Avrupa Minerals Ltd. (TSXV:AVU) is pleased to provide an update on progress at the Alvalade JV in the Portuguese Pyrite Belt. The program is a joint venture between Avrupa Minerals ("AVU" or "Company") and Minas de Aguas Teñidas, S.A. ("Sandfire MATSA" or "MATSA"). Avrupa continues to operate the project through the JV entity PorMining Lda. Previously, through the JV, at Sesmarias North, the Company drilled 17 diamond drill holes, totaling 8,900 meters, on six different fences along a strike length of 400 meters, as well as one further drill hole in the Caveira District, totaling 614 meters (see news release of April 4, 2022 ).
The Company has now completed four exploration holes, totaling 2,693 meters, in the current phase of drilling, and started a fifth hole. The first two holes tested possible NW strike extension of the Lousal massive sulfide deposit (LNW22-001) and electromagnetic anomalism on a parallel trend to Lousal mineralization (LNW22-002). The third hole targeted a strong geophysical anomaly in mineral-host black shales, located about 4 kilometers further north of the Lousal NW holes (RAI22-001). The fourth hole tested another geophysical anomaly in the Casas Novas target sector, two kilometers south of the Caveira Mine area (INC22-001). All four holes cut through weakly mineralized, strongly folded and faulted, target black shales. Geochemical results from sampling of the first three holes suggest proximity to potential massive sulfide systems, particularly in the two Lousal NW drill holes. Results from INC22-001 are pending.
Paul W. Kuhn, President and CEO of Avrupa Minerals commented, "Considering that these holes are exploration holes, we are pleased that all four of the completed drill holes intersected sulfides in the targeted mineral horizon black shales, of the volcano-sedimentary rock package. Initial geological observations, interpretations, and trace element geochemistry (in particular, anomalous gold, arsenic, antimony, copper, molybdenum, lead, tin, and zinc) suggest that there is potential for nearby massive sulfide mineralization in the Lousal NW and Casas Novas sectors. A follow-up, ground electromagnetic survey around the Lousal NW holes indicates the presence of a conductive body located to the west of LNW22-001. We have just started the fifth hole of this campaign to test that target, and we have a follow-up electromagnetic survey underway in the Casas Novas sector."
Figure 1. Location map for Phase 9 drilling locations, as well as drill hole locations for two historic drill holes included in following interpretative geological and targeting cross section.
Figure 2. Schematic cross section showing Lousal NW drilling results, along with historic drilling at Monte da Bela Vista. There is no previous drilling in the western portion of the section, thus the geological interpretation is only predictive.
Subsequent to completing the two LNW holes, the Company performed a stationary-loop SQUID TEM electromagnetic survey to further attempt to identify potential massive sulfide mineralization in this sector. The survey identified an electrical conductor located west of the drilling in favorable geological target area, supported by anomalous base metal results from previous soil sampling work. Further electromagnetic studies, using a moving electrical loop for more detail, supported the presence of a strong conductor. The schematic location of the conductor is shown in red cross-hatch in the Lousal NW cross section, which will be tested by a new drill hole, LNW23-003. Furthermore, geochemical results from sampling of the first two LNW holes suggest the possibility of nearby sulfide mineralization. The Joint Venture continues detailed geochemical studies and interpretation covering the use of low-level results from elements including gold, silver, arsenic, antimony, manganese, molybdenum, thallium, tin, copper, lead, and zinc, to determine potential proximity to massive sulfide mineralization. In this case, while drilling did not intercept massive sulfide mineralization, the results from sampling of the weakly mineralized black shales, typically the host rock material for mineral deposits in this portion of the Iberian Pyrite Belt ("IPB"), suggest the presence of the kind of hydrothermal system that forms massive sulfide deposits in the IPB.
The Company continues planning for further drill holes in the target areas between Caveira and Lousal, and will soon return to the Sesmarias area to start drilling for extensions of the known mineralization, southwards, and at the Brejo target north of the Sesmarias North sector. The Company also expects to receive detailed airborne gravity information, which will enhance the targeting in the main sectors of interest.
Minas de Aguas Teñidas, S.A. (Sandfire MATSA) is a modern mining company which owns and operates the MATSA Mining Operations in the Huelva province of Spain. With a processing plant located to the north of the Iberian Pyrite Belt that sources ore from three underground mines, Aguas Teñidas and Magdalena Mines in Almonaster la Real and the Sotiel Mine in Calañas, Sandfire MATSA produces copper, zinc and lead mineral concentrates that are sold from the port of Huelva. Sandfire MATSA also holds 1,312 km 2 of exploration permits in the south of Spain and 1,106 km 2 in Portugal. Sandfire MATSA is a wholly owned company of Sandfire Resources Ltd, a mining and exploration company listed on the Australian Securities Exchange (ASX: SFR).
Avrupa Minerals Ltd. is a growth-oriented junior exploration and development company directed to discovery of mineral deposits, using a hybrid prospect generator business model. The Company holds one 100%-owned license in Portugal, the Alvalade VMS Project, presently optioned to Sandfire MATSA in an earn-in joint venture agreement. The Company now holds one 100%-owned exploration license covering the Slivova gold prospect in Kosovo, and is actively advancing four prospects in central Finland through its in-process acquisition of Akkerman Finland Oy. Avrupa focuses its project generation work in politically stable and prospective regions of Europe, presently including Portugal, Finland, and Kosovo. The Company continues to seek and develop other opportunities around Europe.
For additional information, contact Avrupa Minerals Ltd. at 1-604-687-3520 or visit our website at www.avrupaminerals.com .
Paul W. Kuhn, President & Director
This news release was prepared by Company management, who take full responsibility for its content. Paul W. Kuhn, President and CEO of Avrupa Minerals, a Licensed Professional Geologist and a Registered Member of the Society of Mining Engineers, is a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. He has reviewed the technical disclosure in this release. Mr. Kuhn, the QP, has not only reviewed, but prepared and supervised the preparation or approval of the scientific and technical content in the news release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright (c) 2023 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
Gidji JV Exploration Update
Miramar Resources Limited (ASX:M2R, “Miramar” or “the Company”) provides the following update on exploration activities within the Company’s strategic Eastern Goldfields project portfolio.
- RC drilling intersects “Paddington-style” dolerite at Blackfriars
- Potential bedrock structures identified in aircore assay data
As previously advised, the Company secured a drill rig at short notice and completed a single RC drill hole at the high-priority Blackfriars prospect, within the Gidji JV Project (“Gidji”).
GJRC028 was drilled beneath aircore hole GJAC627 (1m @ 11.8g/t Au and 6g/t Ag EOH) and planned to intersect the dolerite footwall contact but was abandoned at 130m due to difficult drilling conditions associated with running sands in the overlying Gidji Paleochannel.
The hole intersected a quartz-dolerite unit, similar to the >2 million ounce Paddington gold deposit along strike to the north, with significant sulphide mineralisation and quartz-carbonate stringer veins from 113m downhole (Figure 1).
Samples of the last three metres before the hole was abandoned contain anomalous gold, silver and antimony along with the increase in sulphide mineralisation (Table 2).
Figure 1. Examples of quartz-dolerite with sulphides (field of view ~20mm).
Miramar’s Executive Chairman, Mr Allan Kelly, said the Blackfriars target remained untested at this stage.
“Frustratingly, we had to abandon the hole just when it was starting to look interesting,” he said.
“The reason that the Gidji Project has remained underexplored for so long, despite its prime location on a major highway between two major gold camps, is due in large part to the presence of extensive transported cover and the Gidji Paleochannel,” Mr Kelly said.
“This makes drilling more challenging than in other parts of the Goldfields but also means that any potentially significant bedrock gold mineralisation remains undiscovered,” he said.
“Given the favourable geology and structural setting, and the amount of shallow gold we have outlined from aircore drilling so far, we still believe Gidji has the potential to host significant bedrock gold mineralisation in one or more deposits,” he added.
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This article includes content from Miramar Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Board Position Changes
True North Copper Limited (ASX:TNC) (True North, TNC or the Company) wishes to advise that effective immediately the following changes have been made to the Board structure of TNC:
- Ian McAleese will assume the role of Executive Chairman from his current position of Non-executive Chairman;
- Marty Costello will step down as Managing Director but will remain on the Board as Executive Director Business Development.
The Company further advises that it is actively seeking to recruit a new Managing Director and envisages that an appointment will be announced within the next month. When the new Managing Director commences, Ian McAleese will revert to his former role of Non-executive Chairman.
During the period that Ian McAleese is Executive Chairman, his annualised remuneration will be increased from $100k per annum including superannuation to $200k per annum including superannuation. All other material terms of his appointment remain unchanged.
True North Copper’s Chairman, Ian McAleese said:
On behalf of the Board I wish to thank Marty for his tireless work and enthusiasm as the founder of True North Copper by leading the Company which is now primed to become Australia's next copper producer.
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This article includes content from True North Copper, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Western Copper and Gold
Overview
Governments worldwide have ambitious goals to reach net-zero emissions, putting renewable energy in the spotlight. Every emerging clean technology has one material in common: copper. Thanks to its highly conductive properties, the base metal has been a standard component in existing electronics, and global electrification will increase demand drastically. As a result, copper consumption is forecasted to reach 36.6 million metric tons by 2031.
Western Copper and Gold Corporation (TSX:WRN,NYSE American:WRN) is ideally positioned to leverage this trend. It is currently focused on developing Canada’s premier copper-gold project - the Casino project. The deposit is located in the Yukon Territory, which ranks among the world's most attractive mining jurisdictions.The Yukon is known for its rich mineral deposits, including copper, gold, iron, silver and lead. It has attracted the attention of numerous major mining companies over the last few years, and recent infrastructure funding from the regional and federal governments has spurred additional investment in the territory. Miners in the Yukon, including Western Copper and Gold, are poised to benefit from this spate of new investments. The Carmacks Bypass, for example, is currently being constructed and will play an integral role in the Casino project.
In June 2022, Western Copper and Gold released the results of its feasibility study, which incorporated an updated mineral resource. The updated estimate includes 14.8 million ounces (Moz) of gold in the measured and indicated category, and 6.3 Moz of gold in the inferred category, in addition to 7.6 billion lbs of copper in the measured and indicated category, and 3.1 billion lbs of copper in the inferred category.
Western Copper and Gold’s positive feasibility study on the Casino project indicates a 27-year mine life and cash flow over the first four years of C$951 million per year at base case prices. In addition, the company has provided estimates for potential economic changes in copper prices and indicated the project will remain profitable even if the spot price decreases.
“Casino is a rare asset in that it is sizable, economic, well-advanced and located in a great jurisdiction. Casino is the key asset in the emerging Yukon gold district,” said Paul West-Sells, Western Copper and Gold’s president.
Western Copper and Gold’s 2023 diamond drilling program involvedapproximately 2,244 meters of drilling in seven drill holes, ranging from 130 meters to 556 meters in depth located inside the current pit boundaries. Results from the program showed relatively higher grades encountered from DDH23-05, which intersected 158.5 meters of supergene mineralization, in part oxidized, with 0.82 percent copper equivalent. Fifteen composite samples that represent supergene and hypogene mineralization at various grades will be tested and results will be used to develop a more detailed geometallurgical model of the deposit.
Rio Tinto (NYSE:RIO) made a strategic C$25.6-million investment in 2021 to advance the Casino project. The placement, which was completed in 2024, allowed Rio Tinto to acquire 239,528 common shares of the company for C$1.35 per share for a total of C$323,363, resulting in approximately 9.7 percent ownership.
Additionally, the company announced the completion of a C$21.3 million strategic equity investment by Mitsubishi Materials Corporation to further advance the company's copper-gold Casino project in the Yukon. Mitsubishi Materials acquired 8,091,390 common shares of the company for C$2.63 per share, resulting in Mitsubishi Materials owning approximately 5 percent of Western's issued and outstanding shares.
Western Copper and Gold has entered into an amended agreement with Eight Capital, in which Eight Capital will buy 21,055,000 common shares for $1.90 per common share for gross proceeds of C$40 million. Net proceeds from the sale will be used to advance permitting and engineering activity at the Casino project.
A highly knowledgeable management team with a proven record of success leads Western Copper and Gold and is supported by a highly qualified team of engineers dedicated to bringing Casino into production.
Company Highlights
- Western Copper and Gold is an exploration and development mining company with a significant advanced-stage copper-gold asset in the Yukon.
- The Casino deposit hosts a significant resource of almost 21 Moz of gold and 11 billion lbs of copper (M+I+I).
- A strategic investment from Rio Tinto provides Western access to additional operational funding and technical knowledge, indicating Rio’s confidence in the Casino project.
- The federal government announced a funding package to finance the access road to the Casino project.
- Western Copper and Gold’s positive feasibility study on the Casino project, indicates a 27-year mine life and cash flow over the first four years of C$951 million per year at base case prices.
- The company received a C$21.3-million strategic equity investment from Mitsubishi Materials Corporation to further advance the company's copper-gold Casino project in the Yukon.
- Western Copper and Gold’s 2023 diamond drill program at the Casino Project included a metallurgical and infill drilling program with approximately 2,200 meters in seven drill holes, ranging from 130 meters to 560 meters in depth, and a geotechnical and hydrogeological drilling program with 800 meters of drilling.
Key Project
Casino Project
The Casino project is a large porphyry-type copper-gold-molybdenum deposit located 560 kilometers from the year-round port of Skagway, Alaska and 380 kilometers from the capital city of Whitehorse in the Yukon Territory of Canada.
Skagway’s construction of a marine services platform (MSP) to support ore export for the Yukon mining industry.
The company released its positive PFS for the Casino project in June 2022, which considered the project being constructed as an open-pit mine, with a concentrator processing 120,000 tonnes per day (td) to recover copper, gold, molybdenum and silver, as well as a 25,000 td oxide heap leach facility to recover gold, silver and copper.
The PFS examined the development of the Casino project, which includes the processing of 1.43 billion tons of mineral reserve for both the mill and heap leach, with deposition of mill tailings and mine waste in the tailings management facility consistent with the design concepts considered during the best available tailings technology study as a base case development.
The PFS indicated a $2.3-billion after-tax NPV (8 percent) at base case metal prices with an after-tax IRR of 18.1 percent. The cash flow over the first four years is C$951 million per year contemplating a 27-year mine life.
Results from the company’s 2023 drill program, which consisted of seven holes for 2,244 meters ranging from 130 meters to 556 meters in length, show the importance of the core zone wherein relatively higher grades are encountered. A metallurgical test program is underway to develop a more detailed geometallurgical model of the deposit.Management Team
Dr. Paul West-Sells - President
Dr. Paul West-Sells has more than 30 years of experience in the mining industry. After obtaining his Ph.D. from the University of British Columbia in metallurgical engineering, he worked with BHP, Placer Dome and Barrick in increasingly senior roles in research and development and project development. West-Sells has worked for Western Copper and Gold since 2006, where he held a number of technical and executive positions and is now the president and CEO overseeing the day-to-day operations of the company. West-Sells sits on the Yukon Minerals Advisory Board, the Board of the Yukon Mining Alliance and is also the chair of the Centre for Northern Innovation in Mining Governing Council.
Bill Williams – Interim Chairman
Bill Williams is an economic geologist with nearly 40 years of experience related to the exploration and development of mining and oil & gas projects, as well as oversight of mining operations. He provides consulting services to the mining industry with a focus on company/project (e)valuations, M&A analyses, risk analysis, project management, and permitting strategies. Most recently, he served as the interim CEO and director of Detour Gold Corporation and was a director and COO of Zinc One Resources Inc., with whom he led the team that made the discovery of the Mina Chica zinc-oxide deposit in the Bongará district, north-central Peru. He is the former CEO, president, and director of Orvana Minerals, prior to which he was a vice-president for Phelps Dodge Exploration overseeing activity in the Americas, which included the discovery of the Haquira porphyry copper deposit in Peru, and working on M&A opportunities. He holds a Ph.D. in economic geology from the University of Arizona and is a certified professional geologist.
Sandeep Singh - Chief Executive Officer
Sandeep Singh is a highly respected mining professional with 20 years of sector expertise. He was previously the president and CEO of Osisko Gold Royalties, where he led the successful turnaround of the company. For the fifteen years prior, Singh was an investment banker focusing on the North American metals and mining sector with BMO Capital Markets, Dundee Securities, and ultimately co-founding Maxit Capital, a leading independent M&A firm. He has advised numerous mining companies on financing alternatives and strategic matters as well as having acted on some of the most complex and value-enhancing M&A transactions in the mining sector. Singh holds a Bachelor of Mechanical Engineering from Concordia University and a Master of Business Administration from Oxford University.
Varun Prasad - CFO
Varun Prasad has been with Western Copper and Gold since 2011 and most recently served as interim CFO. Prior to that, he was corporate controller for the company. He has extensive experience in financial reporting and regulatory matters. Prasad holds a B.A. Technology (accounting) from British Columbia Institute of Technology and is a member of the Chartered Professional Accountants of BC.
Cameron Brown - Special Technical Advisor
Cameron Brown has 45 years of experience in mineral processing and has been responsible for plant maintenance, project engineering and project management of major base and precious metal projects. He was formerly project manager for Western Silver Corporation and worked for 22 years for Bechtel Mining & Metals in various capacities including: project manager, project engineering manager, and manager of engineering for Bechtel Mining & Metals (Global). He was Western Copper and Gold's project manager from 2006 to 2010, served as vice-president, engineering from 2010 to 2023, and is currently special technical advisor.
Shena Shaw - VP, Environmental and Community Affairs
Shena Shaw has been managing projects and contributing to environmental assessments across the North for nearly 20 years and she is supporting the Casino Project through the first ever panel review process in the Yukon. Her knowledge and advice helps the company make strategic and effective decisions when planning and implementing Indigenous and community consultation and engagement. After graduating from the University of Victoria with a Bachelor of Arts in anthropology focusing on First Nations studies and geography, Shaw joined the Yukon Chamber of Commerce supporting community-based entrepreneurship programs and services. A relocation to Yellowknife, NWT introduced her to the mining industry for the first time when she joined DeBeers Canada’s Snap Lake Project. Following that, she embarked on a lengthy career in environmental consulting in Yellowknife and Whitehorse, focusing on responsible development of resource extraction through the environmental assessment and Indigenous engagement processes of large-scale projects in the Yukon, NWT, Alaska and across Canada. Shaw participated in the consultation and socio-economic impact assessment work for the Kaminak Coffee Gold Project, Victoria Gold’s Eagle Gold Project and the Casino Project, all based in the Yukon. She is deeply familiar with the Yukon Environmental and Socio-economic Assessment Act process and was involved in the Mackenzie Gas Project Joint Review Panel process in the NWT. Shaw is currently a director for the Yukon Chamber of Mines.
Dr. Klaus Zeitler - Director
Dr. Klaus Zeitler was the founder and CEO of Inmet from 1987 to 1996. Zeitler was senior vice-president of Teck Cominco Limited from 1997 until 2002, and previously was on the board of directors of Teck Corp. from 1981 to 1997, and Cominco Limited from 1986 to 1996. Zeitler is currently director and executive chairman of Amerigo Resources Ltd. and lead director of Rio2 Limited.
Tara Christie - Director
Tara Christie has over 20 years of experience in the exploration and mining business. Currently the president and CEO of Banyan Gold, Christie serves on the boards of Constantine Metal Resources and Klondike Gold. She was formerly the president of privately owned Gimlex Gold Mines, one of the Yukon’s largest placer mining operations. Christie has been a board member of PDAC, AMEBC and other industry associations and was a founding board member of the Yukon environmental and socioeconomic assessment board. She is active in non-profits and charities, including being president of a registered charity “Every Student, Every Day” that works to improve attendance in Yukon schools.
Michael Vitton - Director
Michael Vitton is the former executive managing director, head, US Equity Sales, Bank of Montreal Capital Markets (BMO Capital Markets), where he originated and placed more than US$200 billion through public and secondary offerings and M&A transactions across all sectors. In the metals and mining sector, Vitton has acted as seed investor, lead/co-lead underwriter or in a M&A capacity in some of the most important deals in the sector, including African Platinum , Arequipa Resources, Bema Gold Brancotte Resources, Comaplex Minerals, Detour Gold, Diamond Fields Resources, Echo Bay Mines, Francisco Gold, Franco-Nevada Gammon Gold, Getchell Gold, among many others. Vitton was also the co-founder of MMX Minerals e Metalicos SA and LLX Logistica SA (Brazil). MMX sold Minas Rio and Amapa assets to Anglo American Corporation for US$5.5 billion in cash in December 2008, returning US$8.8 billion in cash or stock distributions to MMX shareholders, offering six times return from IPO. Additionally, he co-founded Petro Rio SA, one of the leading Brazilian public oil and gas producers, producing over 35,000 bbls per day. Recently, Vitton acted as seed investor and capital markets advisor to Newmarket Gold, which was sold to Kirkland Lake Gold Ltd. for C$1 billion, combining to form a C$2.4-billion company. He acted as investor and capital markets advisor to ASX-listed Gold Road Resources Ltd., raising AU$57 million, and bringing the Gruyere gold mine into production jointly with Gold Fields SA. Vitton is a graduate of the University of Michigan Business School, former seat holder, NYSE, and former president, New York Society of Metals Analysts. Vitton is focused on the energy, infrastructure, industrial and mining sectors.
Frequently Asked Questions
How can I invest in Western Copper and Gold?
Western Copper and Gold is a public company that trades in the top stock exchanges in the world, in both the New York Stock Exchange American and the Toronto Stock Exchange under the symbol "WRN".
Why is Western Copper and Gold a good investment?
Western Copper and Gold is an exploration and development mining company advancing its world-class Casino project, one of the largest copper-gold projects in Canada, located in the Yukon. The Casino deposit hosts a significant resource of almost 21 Moz of gold and 11 billion lbs of copper (M+I+I), and robust economics. According to its feasibility study which considered the project being constructed as an open pit mine, Casino has a 27-year mine life, with $2.33 billion NPV after tax, and 3 years payback period. Casino has also attracted strategic investments from Rio Tinto and Mitsubishi Materials, providing Western Copper and Gold access to additional operational funding and technical knowledge.
What separates Western Copper and Gold from the rest of the field?
Western Copper and Gold’s president Paul West-Sells, says, “Casino is a rare asset in that it is sizable, economic, well-advanced and located in a great jurisdiction. Casino is the key asset in the emerging Yukon gold district.” Canada’s Yukon territory ranks among the world's top most attractive mining investment jurisdictions, with major miners like Rio Tinto, Newmont, Agnico-Eagle and Kinross developing projects in Casino's neighbouring areas.
What is Western Copper and Gold's sustainability strategy?
Western Copper and Gold is committed to developing the Casino Project guided by the following four objectives: protect public health and safety; minimize, mitigate or prevent adverse environmental impacts; reclaim the site to a land use state consistent with surrounding conditions; and ensure long-term stability of the spent ore and waste rock storage area and site water quality.
Lundin Mining First Quarter 2024 Results
TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") today reported its first quarter 2024 financial results. Unless otherwise stated, results are presented in United States dollars on a 100% basis. View PDF
Jack Lundin , President and CEO commented, "Our strategic acquisition of a majority interest in the Caserones copper mine continues to drive revenue and production growth. First quarter revenue and copper production increased 25% and 43%, respectively, compared to the same quarter last year, and was in line with our expectations. Production at Candelaria will be second half weighted due to higher grades as a result of planned mine sequencing. We remain on track to meet our annual production and cash cost guidance."
First Quarter Operational and Financial Highlights
- Copper Production: Consolidated production of 88,013 tonnes of copper in the first quarter.
- Other Production: During the quarter, a total of 45,688 tonnes of zinc, 3,255 tonnes of nickel and approximately 33,000 ounces of gold were produced. All metals are tracking to meet full year guidance.
- Revenue: $937.0 million in the first quarter with a realized copper price 1 of $3.98 /lb.
- Adjusted EBITDA 1 : $362.9 million generated during the quarter.
- Adjusted Earnings 1 : Net earnings attributable to shareholders of the Company were $13.9 million or $0.02 per share in the first quarter with adjusted earnings 1 of $45.2 million or $0.06 per share.
- Cash Generation: Cash provided by operating activities was $267.5 million and free cash flow from operations 1 was $67.7 million , which was reduced by a working capital build of $46.1 million .
- Resource Growth: Earlier in the quarter the Company updated Mineral Reserve and Mineral Resource estimates and grew overall Proven and Probable copper reserves by 26% on a 100% basis.
- Outlook: With first quarter 2024 production and cash costs being in line with expectations, the Company's full year guidance remains unchanged:
- Copper production guidance of 366,000 – 400,000 t.
- Zinc production guidance of 195,000 – 215,000 t.
- Gold production guidance of 155,000 – 170,000 oz.
- Nickel production guidance of 10,000 – 13,000 t.
____________________________ |
1 These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis ("MD&A") for the three months ended March 31, 2024 and the Reconciliation of Non-GAAP measures section at the end of this news release. |
Summary Financial Results
Three months ended March 31, | ||
US$ Millions (except per share amounts) | 2024 | 2023 |
Revenue | 937.0 | 751.3 |
Gross profit | 185.4 | 213.3 |
Attributable net earnings a | 13.9 | 146.6 |
Net earnings | 58.6 | 165.3 |
Adjusted earnings a,b | 45.2 | 125.7 |
Adjusted EBITDA b | 362.9 | 336.9 |
Basic and diluted earnings per share ("EPS") a | 0.02 | 0.19 |
Adjusted EPS a,b | 0.06 | 0.16 |
Cash provided by operating activities | 267.5 | 211.9 |
Adjusted operating cash flow b | 313.7 | 235.1 |
Adjusted operating cash flow per share b | 0.41 | 0.30 |
Free cash flow from operations b | 67.7 | 71.1 |
Free cash flow b | (1.7) | (34.2) |
Cash and cash equivalents | 365.5 | 184.2 |
Net debt excluding lease liabilities b | 981.4 | 9.1 |
Net debt b | 1,241.9 | 34.6 |
a Attributable to shareholders of Lundin Mining Corporation. | ||
b These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis for the three months ended March 31, 2024 and the Reconciliation of Non-GAAP Measures section at the end of this news release. |
- For the three months ended March 31, 2024 , the Company generated revenue of $937.0 million (Q1 2023 - $751.3 million ), including 86,189 tonnes of copper sold at a realized price of $3.98 /lb. The increase from the prior year comparable period is primarily due to the inclusion of Caserones revenue and somewhat offset by lower sales volumes at most mines and lower realized copper and zinc prices.
- Gross profit of $185.4 million (2023 - $213.3 million ) and Adjusted EBITDA of $362.9 million (Q1 2023 - $336.9 million ) benefited from the inclusion of Caserones, favourable foreign exchange, and operational improvements at Chapada.
- Net earnings attributable to shareholders of the Company were $13.9 million or $0.02 per share in the three months ended March 31, 2024 , which were lower than in the prior year comparable period primarily due to non-cash unrealized losses related to the mark-to-market valuation of unexpired foreign exchange contracts, lower gross profit, and higher financing costs.
- Adjusted earnings attributable to shareholders of the Company for the three months ended March 31, 2024 of $45.2 million or $0.06 per share were $80.5 million lower than in the prior year comparable period primarily due to lower net attributable earnings.
- Cash and cash equivalents as at March 31, 2024 were $365.5 million . Cash provided by operating activities amounted to $267.5 million and cash used to fund investing activities amounted to $269.7 million .
- Free cash flow[2] for the three months ended March 31, 2024 of negative $1.7 million was $32.5 million higher than in the prior year comparable period as a result of reduced spending relating to the Josemaria Project.
- For the three months ended March 31, 2024 , the Company recognized a non-cash unrealized loss of approximately $53 million on a pre-tax basis related to the mark-to-market valuation of the Company's unexpired foreign exchange and diesel derivative contracts. For the three months ended March 31, 2024 , the Company entered into zero cost collar contracts in the total amounts of $24 million (equivalent to BRL 121 million ) and $950 million (equivalent to CLP 926 billion ) with collar ranges of BRL 5.10 to BRL 6.07 and CLP 900 to CLP 1,085 , respectively.
- As at May 1, 2024 , the Company had a cash balance of approximately $395.0 million and a net debt excluding lease liabilities balance of approximately $1,020.0 million .
___________________________ |
1 These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis ("MD&A") for the three months ended March 31, 2024 and the Reconciliation of Non-GAAP measures section at the end of this news release. |
Operational Performance
Total Production
(Contained metal) a | 2024 | 2023 | ||||
Q1 | Total | Q4 | Q3 | Q2 | Q1 | |
Copper (t) b | 88,013 | 314,798 | 103,337 | 89,942 | 60,057 | 61,462 |
Zinc (t) | 45,688 | 185,161 | 50,719 | 49,774 | 36,115 | 48,553 |
Nickel (t) | 3,255 | 16,429 | 3,729 | 4,290 | 4,686 | 3,724 |
Gold (koz) b | 33 | 149 | 44 | 35 | 34 | 36 |
Molybdenum (t) b | 864 | 2,024 | 928 | 1,096 | — | — |
a. Tonnes (t) and thousands of ounces (koz) | ||||||
b. Candelaria and Caserones production is on a 100% basis. |
Candelaria (80% owned): Candelaria produced 32,527 tonnes of copper and approximately 19,000 ounces of gold in concentrate on a 100% basis in the three months ended March 31, 2024 . Copper and gold production was lower than in the prior year comparable period, primarily due to lower grades as a result of planned mine sequencing. Production costs were lower than in the prior year comparable period largely owing to favourable foreign exchange as a result of the Chilean Peso weakening against the US dollar, and lower sales volumes. Copper cash cost of $1.89 /lb improved from the prior year comparable period due to favourable foreign exchange and higher by-product credits. Copper and gold production in 2024 are forecast to be weighted to the second half of the year, primarily owing to mine sequencing and the resultant grade profiles.
Caserones (51% owned): During the three months ended March 31, 2024 , Caserones produced 34,216 tonnes of copper and 864 tonnes of molybdenum on a 100% basis. Copper and molybdenum production was slightly lower than expected due to reduced throughput caused by unplanned maintenance, combined with lower recoveries due to mine sequencing. Production costs and cash costs per pound in the three months ended March 31, 2024 were lower than planned primarily due to favourable foreign exchange as a result of the Chilean peso weakening against the US dollar.
Chapada (100% owned): Chapada produced 10,138 tonnes of copper and approximately 14,000 ounces of gold in concentrate in the three months ended March 31, 2024 . Copper and gold production were higher than in the prior year comparable period primarily due to higher recoveries. Production costs were lower than in the prior year comparable period primarily due to lower sales volumes and lower mining costs as a result of a planned reduction in waste movement. Copper cash cost of $2.01 /lb for the three months ended March 31, 2024 improved from the prior year comparable period due to higher by-product credits combined with mining cost decreases due to operational improvements.
Eagle (100% owned): During the three months ended March 31, 2024 , Eagle produced 3,255 tonnes of nickel and 2,514 tonnes of copper which were lower than in the prior year comparable period due to lower planned grades and recoveries. Production costs were lower than in the prior year comparable period due to lower sales volumes. Nickel cash cost of $4.04 /lb was higher than in the prior year comparable period and was impacted by lower sales volumes and lower by-product credits.
Neves-Corvo (100% owned): Neves-Corvo produced 7,044 tonnes of copper and 26,487 tonnes of zinc in the three months ended March 31, 2024 . Both copper and zinc production was lower than in the prior year comparable period due to lower grades and recoveries. Throughput was lower than planned in the three months ended March 31, 2024 due to a voluntary three-day shutdown and subsequent ramp-up following the fatality that occurred in February 2024 . Production costs during the quarter were lower than in the prior year comparable period due to lower sales volumes and lower unit production costs. Copper cash cost per pound of $3.24 /lb was higher than prior year comparable period as a result of lower production volumes, lower by-product credits and unfavorable foreign exchange.
Zinkgruvan (100% owned): Zinc production of 19,201 tonnes was lower than in the prior year comparable period primarily due to lower grades. Lead production of 6,748 tonnes and copper production of 1,574 tonnes were lower than in the prior year comparable period primarily due to lower grades as a result of delays in mining high-grade stopes. Production costs were slightly higher than in the prior year comparable period and zinc cash cost per pound of $0.65 /lb was higher than in the prior year comparable period primarily due to lower production volumes.
Outlook
Overall, operations performed well in the first quarter of 2024 and the Company is expected to meet annual production and cash cost guidance as disclosed in the Company's MD&A for the year ended December 31, 2023 .
Metal production continues to be weighted to the second half of the year at Candelaria, Chapada and Neves-Corvo due to mine sequencing and resultant forecasted grade profiles. As a result of production challenges at Neves-Corvo in the first quarter of 2024, copper production at that operation is tracking to the lower end of its annual production guidance range. Production challenges at Neves-Corvo, Eagle and Zinkgruvan in the first quarter of 2024 led to higher-than-expected cash costs per pound, which are expected to improve later in 2024.
Capital expenditure guidance also remains consistent as disclosed in the Company's MD&A for the year ended December 31, 2023 including $840 million sustaining capital expenditure and $225 million of expenditure related to the Josemaria Project. Similarly, exploration expenditure of $48 million remains on target for 2024.
Exploration
During the quarter ended March 31, 2024 , exploration activity focused on in-mine and near-mine targets at the Company's operations. Exploration drilling at Zinkgruvan was focused on resource expansion, Candelaria drilling was focused on Candelaria Norte , and Chapada drilling concentrated on delineating the high-grade, near-mine trend at Corpo Sul.
At Caserones, exploration remains in the early stages. Geophysical surveys were recently carried out on the land package and the data collected will help to refine our targets and advance our efforts. Exploration drilling was completed in the lower portion of the mineral resource and at the Angelica oxide and sulphide targets, both near-mine targets that would add potential mineral resources and extend the life of the operation.
At Josemaria, seasonal exploration drilling is coming to a close at the Cumbre Verde target near the Josemaria ore body. Six holes were drilled targeting the same mineralized system and structures that hosted high grade mineralization on the neighbouring property that run towards Josemaria. Exploration remains in its early stages and initial results highlight copper/gold/silver mineralization. The data obtained will help further refine and target this mineralization. Work will continue throughout the remainder of 2024, although it will be minimized during the winter season.
There was no exploration drilling at Neves-Corvo and Eagle in the quarter.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with projects and operations in Argentina , Brazil , Chile , Portugal , Sweden and the United States of America , primarily producing copper, zinc, nickel and gold.
The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below on May 1, 2024 at 14:30 Pacific Standard Time .
Technical Information
The scientific and technical information in this press release has been prepared in accordance with the disclosure standards of National Instrument 43-101 ("NI 43-101") and has been reviewed by Arman Barha , P.Eng., Vice President, Technical Services, a "Qualified Person" under NI 43-101. Mr. Barha has verified the data disclosed in this release and no limitations were imposed on his verification process.
Reconciliation of Non-GAAP Measures
The Company uses certain performance measures in its analysis. These performance measures have no standardized meaning within generally accepted accounting principles under International Financial Reporting Standards and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. For additional details please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis for the three months ended March 31, 2024 which is available on SEDAR+ at www.sedarplus.com .
Cash Cost per Pound and All-in Sustaining Costs per pound can be reconciled to Production Costs on the Company's Condensed Interim Consolidated Statement of Earnings as follows:
Three months ended March 31, 2024 | |||||||
Operations | Candelaria | Caserones | Chapada | Eagle | Neves-Corvo | Zinkgruvan | |
($000s, unless otherwise noted) | (Cu) | (Cu) | (Cu) | (Ni) | (Cu) | (Zn) | Total |
Sales volumes (Contained metal): | |||||||
Tonnes | 33,536 | 35,211 | 8,742 | 2,163 | 5,886 | 15,825 | |
Pounds (000s) | 73,934 | 77,627 | 19,273 | 4,769 | 12,976 | 34,888 | |
Production costs | 567,134 | ||||||
Less: Royalties and other | (19,970) | ||||||
547,164 | |||||||
Deduct: By-product credits | (165,308) | ||||||
Add: Treatment and refining | 46,951 | ||||||
Cash cost | 139,490 | 166,439 | 38,735 | 19,249 | 42,057 | 22,837 | 428,807 |
Cash cost per pound | 1.89 | 2.14 | 2.01 | 4.04 | 3.24 | 0.65 | |
Add: Sustaining capital | 99,532 | 42,754 | 29,199 | 4,078 | 22,413 | 14,341 | |
Royalties | 2,968 | 8,814 | 1,617 | 2,678 | 735 | — | |
Reclamation and other closure accretion and depreciation | 2,167 | 1,040 | 2,679 | 1,968 | 1,335 | 1,186 | |
Leases & other | 3,033 | 15,381 | 765 | 1,236 | 64 | 78 | |
All-in sustaining cost | 247,190 | 234,428 | 72,995 | 29,209 | 66,604 | 38,442 | |
AISC per pound ($/lb) | 3.34 | 3.02 | 3.79 | 6.12 | 5.13 | 1.10 |
Three months ended March 31, 2023 | |||||||
Operations | Candelaria | Caserones | Chapada | Eagle | Neves-Corvo | Zinkgruvan | |
($000s, unless otherwise noted) | (Cu) | (Cu) | (Cu) | (Ni) | (Cu) | (Zn) | Total |
Sales volumes (Contained metal): | |||||||
Tonnes | 35,570 | — | 9,072 | 2,735 | 8,031 | 16,612 | |
Pounds (000s) | 78,418 | — | 20,000 | 6,030 | 17,705 | 36,623 | |
Production costs | 417,764 | ||||||
Less: Royalties and other | (12,086) | ||||||
405,678 | |||||||
Deduct: By-product credits | (156,965) | ||||||
Add: Treatment and refining | 36,615 | ||||||
Cash cost | 173,692 | — | 47,318 | 14,640 | 29,892 | 19,786 | 285,328 |
Cash cost per pound | 2.21 | — | 2.37 | 2.43 | 1.69 | 0.54 | |
Add: Sustaining capital | 90,686 | — | 16,027 | 7,102 | 25,061 | 14,468 | |
Royalties | — | — | 2,223 | 5,686 | 1,730 | — | |
Reclamation and other closure accretion and depreciation | 2,307 | — | 1,801 | 2,958 | 1,324 | 1,061 | |
Leases & other | 3,143 | — | 966 | 747 | 158 | 102 | |
All-in sustaining cost | 269,828 | — | 68,335 | 31,133 | 58,165 | 35,417 | |
AISC per pound ($/lb) | 3.44 | — | 3.42 | 5.16 | 3.29 | 0.97 |
Adjusted EBITDA can be reconciled to Net Earnings (Loss) on the Company's Condensed Interim Consolidated Statement of Earnings as follows:
Three months ended March 31, | ||
($thousands) | 2024 | 2023 |
Net earnings | 58,555 | 165,311 |
Add back: | ||
Depreciation, depletion and amortization | 184,492 | 120,247 |
Finance income and costs | 35,694 | 15,699 |
Income taxes | 50,566 | 48,693 |
329,307 | 349,950 | |
Unrealized foreign exchange loss (gain) | (15,500) | 8,644 |
Unrealized losses (gains) on derivative contracts | 52,832 | (20,666) |
Ojos del Salado sinkhole (recoveries) expenses | (1,031) | 4,582 |
Revaluation loss (gain) on marketable securities | (2,430) | (438) |
Gain on disposal of subsidiary | — | (5,718) |
Other | (322) | 589 |
Total adjustments - EBITDA | 33,549 | (13,007) |
Adjusted EBITDA | 362,856 | 336,943 |
Adjusted Earnings and Adjusted EPS can be reconciled to Net Earnings (Loss) Attributable to Lundin Mining Shareholders on the Company's Condensed Interim Consolidated Statement of Earnings as follows:
Three months ended March 31, | ||
($thousands, except share and per share amounts) | 2024 | 2023 |
Net earnings attributable to Lundin Mining shareholders | 13,883 | 146,620 |
Add back: | ||
Total adjustments - EBITDA | 33,549 | (13,007) |
Tax effect on adjustments | (1,767) | (3,126) |
Deferred tax arising from foreign exchange translation | (6,300) | (6,007) |
Non-controlling interest on adjustments | 5,852 | 1,202 |
Total adjustments | 31,335 | (20,938) |
Adjusted earnings | 45,218 | 125,682 |
Basic weighted average number of shares outstanding | 773,048,710 | 771,216,060 |
Net earnings attributable to shareholders | 0.02 | 0.19 |
Total adjustments | 0.04 | (0.03) |
Adjusted earnings per share | 0.06 | 0.16 |
Free Cash Flow from Operations and Free Cash Flow can be reconciled to Cash provided by Operating Activities on the Company's Condensed Interim Consolidated Statement of Cash Flows as follows:
Three months ended March 31, | ||
($thousands) | 2024 | 2023 |
Cash provided by operating activities | 267,531 | 211,875 |
Sustaining capital expenditures | (213,260) | (155,564) |
General exploration and business development | 13,451 | 14,765 |
Free cash flow from operations | 67,722 | 71,076 |
General exploration and business development | (13,451) | (14,765) |
Expansionary capital expenditures | (55,981) | (90,519) |
Free cash flow | (1,710) | (34,208) |
Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per Share can be reconciled to Cash Provided by Operating Activities on the Company's Condensed Interim Consolidated Statement of Cash Flows as follows:
Three months ended March 31, | ||
($thousands, except share and per share amounts) | 2024 | 2023 |
Cash provided by operating activities | 267,531 | 211,875 |
Changes in non-cash working capital items | 46,135 | 23,192 |
Adjusted operating cash flow | 313,666 | 235,067 |
Basic weighted average number of shares outstanding | 773,048,710 | 771,216,060 |
Adjusted operating cash flow per share | $ 0.41 | 0.30 |
Net debt and net debt excluding lease liabilities can be reconciled to Debt and Lease Liabilities, Current Portion of Debt and Lease Liabilities and Cash and Cash Equivalents on the Company's condensed interim consolidated balance sheet as follows:
($thousands) | March 31, 2024 | December 31, 2023 |
Debt and lease liabilities | (1,417,892) | (1,273,162) |
Current portion of total debt and lease liabilities | (183,702) | (212,646) |
Less deferred financing fees (netted in above) | (5,729) | (6,374) |
(1,607,323) | (1,492,182) | |
Cash and cash equivalents | 365,451 | 268,793 |
Net debt | (1,241,872) | (1,223,389) |
Lease liabilities | 260,463 | 277,208 |
Net debt excluding lease liabilities | (981,409) | (946,181) |
Cautionary Statement on Forward-Looking Information
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company's plans, prospects and business strategies; the Company's guidance on the timing and amount of future production and its expectations regarding the results of operations; expected costs; permitting requirements and timelines; timing and possible outcome of pending litigation; the results of any Preliminary Economic Assessment, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; anticipated market prices of metals, currency exchange rates, and interest rates; the development and implementation of the Company's Responsible Mining Management System; the Company's ability to comply with contractual and permitting or other regulatory requirements; anticipated exploration and development activities at the Company's projects; the Company's integration of acquisitions and any anticipated benefits thereof; and expectations for other economic, business, and/or competitive factors. Words such as "believe", "expect", "anticipate", "contemplate", "target", "plan", "goal", "aim", "intend", "continue", "budget", "estimate", "may", "will", "can", "could", "should", "schedule" and similar expressions identify forward-looking statements.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of copper, nickel, zinc, gold and other metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions; that the political environment in which the Company operates will continue to support the development and operation of mining projects; and assumptions related to the factors set forth below. While these factors and assumptions are considered reasonable by Lundin Mining as at the date of this document in light of management's experience and perception of current conditions and expected developments, these statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: global financial conditions, market volatility and inflation, including pricing and availability of key supplies and services; risks inherent in mining including but not limited to risks to the environment, industrial accidents, catastrophic equipment failures, unusual or unexpected geological formations or unstable ground conditions, and natural phenomena such as earthquakes, flooding or unusually severe weather; uninsurable risks; volatility and fluctuations in metal and commodity demand and prices; significant reliance on assets in Chile ; reputation risks related to negative publicity with respect to the Company or the mining industry in general; delays or the inability to obtain, retain or comply with permits; risks relating to the development of the Josemaria Project; health and safety laws and regulations; risks associated with climate change; risks relating to indebtedness; economic, political and social instability and mining regime changes in the Company's operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings management, labour, trade relations, and transportation; inability to attract and retain highly skilled employees; risks inherent in and/or associated with operating in foreign countries and emerging markets, including with respect to foreign exchange and capital controls; project financing risks, liquidity risks and limited financial resources; health and safety risks; compliance with environmental, unavailable or inaccessible infrastructure, infrastructure failures, and risks related to ageing infrastructure; changing taxation regimes; the inability to effectively compete in the industry; risks associated with acquisitions and related integration efforts, including the ability to achieve anticipated benefits, unanticipated difficulties or expenditures relating to integration and diversion of management time on integration; risks related to mine closure activities, reclamation obligations, environmental liabilities and closed and historical sites; reliance on key personnel and reporting and oversight systems, as well as third parties and consultants in foreign jurisdictions; information technology and cybersecurity risks; risks associated with the estimation of Mineral Resources and Mineral Reserves and the geology, grade and continuity of mineral deposits including but not limited to models relating thereto; actual ore mined and/or metal recoveries varying from Mineral Resource and Mineral Reserve estimates, estimates of grade, tonnage, dilution, mine plans and metallurgical and other characteristics; ore processing efficiency; community and stakeholder opposition; regulatory investigations, enforcement, sanctions and/or related or other litigation; financial projections, including estimates of future expenditures and cash costs, and estimates of future production may not be reliable; enforcing legal rights in foreign jurisdictions; risks associated with the use of derivatives; risks relating to joint ventures and operations; environmental and regulatory risks associated with the structural stability of waste rock dumps or tailings storage facilities; exchange rate fluctuations; compliance with foreign laws; potential for the allegation of fraud and corruption involving the Company, its customers, suppliers or employees, or the allegation of improper or discriminatory employment practices, or human rights violations; risks relating to dilution; risks relating to payment of dividends; counterparty and customer concentration risks; activist shareholders and proxy solicitation matters; estimation of asset carrying values; relationships with employees and contractors, and the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; conflicts of interest; existence of significant shareholders; challenges or defects in title; internal controls; risks relating to minor elements contained in concentrate products; the threat associated with outbreaks of viruses and infectious diseases; and other risks and uncertainties, including but not limited to those described in the "Managing Risks" section of the Company's MD&A and the "Risks and Uncertainties" section of the Company's Annual Information Form for the year ended December 31, 2023 , which are available on SEDAR+ at www.sedarplus.com under the Company's profile.
All of the forward-looking statements made in this document are qualified by these cautionary statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, forecast or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. Accordingly, there can be no assurance that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future performance. Readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of this document. The Company disclaims any intention or obligation to update or revise forward‐looking information or to explain any material difference between such and subsequent actual events, except as required by applicable law.
SOURCE Lundin Mining Corporation
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True North Copper
Overview
True North Copper ((ASX:TNC) is entering a transformative and exciting phase as we become Australia’s next copper producer. It’s 2024 and we’re ready to mine our Cloncurry copper project - low-cost, low-risk, fully funded and permitted.
Our next mine is the Vero resource at our Mt Oxide project. We are committed to developing and understanding this phenomenally mineralised project. Exploration and mining studies are underway.
Copper demand is rising, in a market of diminishing supply. The global surge in artificial intelligence, electric vehicles, decarbonisation initiatives, and broader macro trends is intensifying the demand for copper.
TNC is ready.
Company Highlights
TNC is preparing to become Australia’s next copper producer.
TNC’s two principal assets are located in northwest Queensland, Australia - a Tier 1 Jurisdiction:
- Cloncurry Copper Project (CCP) - IOCG and ISCG copper-gold deposits proposed for open pit mining operations, with extensive surrounding exploration tenure.
- Mt Oxide Project (Mt Oxide) – IOCG high-grade, globally significant, copper-cobalt-silver deposit subject to re- optimisation studies, and exploration in surrounding tenure.
Cloncurry Copper Project (CCP)
- Mining restart study confirms positive CCP project economics - AU$367 million with free cash flow of AU$111 million, and a pre-tax NPV10 of AU$88 million over a 4.6 year mine life, at US$8,500 per ton copper price and US$1,850 per ounce gold price (0.7 AU$:USD exchange rate).
- Wallace North Mine preparation and mobilisation. Wallace North is scheduled as the first open pit (one of four – Wallace North, Great Australia Mine [GAM], Taipan and Orphan Shear) to be mined as part of the mining restart at the CCP.
- Mining ramp-up will initially build ore stockpiles, with mining expected to start Q4 FY24(AUS). Oxide copper-gold ore will be transported by road train to the Cloncurry Operations heap leach. Sulphide ore will be transported to a nearby concentrator for toll treatment under TNC's toll-milling agreement with Glencore.
- CCP’s total reserves increased. TNC’s Cloncurry Copper Project (CCP) total reserves currently include 4.7Mt probable ore reserves grading 0.80 percent copper and 0.13g/t gold, containing 37.5 kiloton of copper and 20.0koz of gold.
Figure: Cloncurry copper project and Cloncurry operations hub
Mt Oxide Project
- Highly prospective and underexplored. Phenomenally mineralised system.
- Exploration results from TNC’s maiden diamond drill program across MT Oxide’s Vero Resource not only returned outstanding and globally significant grades but also showcase the expanding nature of the Vero high-grade ore body including:
- 66.50 metres @ 4.95 percent copper, 32.7g/t silver and 685 ppm cobalt from 234.00 metres
- [inc.] 20.60 metres @ 10.51percent copper, 63. g/t silver and 1,149 ppm cobalt from
234.60 metres and - [inc.] 8.55 metres @ 6.03 percent copper, 51.6 g/t silver and 98 ppm cobalt from
290.15 metres
- [inc.] 20.60 metres @ 10.51percent copper, 63. g/t silver and 1,149 ppm cobalt from
- 66.50 metres @ 4.95 percent copper, 32.7g/t silver and 685 ppm cobalt from 234.00 metres
- Vero Resource re-estimation and mining studies 2024.
- Vero Resource under tested to depth and along strike.
- Multiple exciting future exploration programs and high-priority potential targets along the 10 kilometres long mineralised trend that hosts Vero.
Figure: Cross-section of MOXD217 (10 metres clipping window) showing the location of geological and grade composites as well as the updated interpretation of copper grade domains based on the results from MOXD217
Funding and Strategic Partnerships
- AU$42 million (US$28 million) USD-denominated senior secured loan facility (loan facility) with Nebari Natural Resources Credit Fund II LP (Nebari)1. The Loan Facility is provided in two tranches. Drawdown of Tranche 1 – US$18M (approximately AU$25.5 million) on 9 February 2024.
- Binding offtake and toll-milling agreements with Glencore International AG(Glencore) for 100 percent of copper concentrate from TNC’s Cloncurry copper project (CCP) and toll-milling services of up to 1Mt of ore per year for the CCP’s Life of Mine (LoM).
Figure: Visual representation of Vero Resource within surrounding Mt Isa Inlier.
TNC 2024 Exploration Program
- Aggressive discovery strategy targeting transformative discoveries across TNC’s more than 850 sq km of tenure package within the Mt Isa Inlier.
- Significant potential for transformative discoveries of
copper-gold cobalt-silver) in three districts. - Numerous high-quality copper-gold-cobalt-silver targets located with mineralised structural corridors within the eastern & western fold belts such as:
- Cloncurry Fault Corridor 🡪 Host to the GAM and Mt Norma Resources
- Ernest Henry Corridor 🡪 Ernest Henry, E1 Camp and Monakoff
- Mt Gordon Corridor 🡪 Capricorn Copper and Vero
- Mt Roseby Corridor 🡪 Little Eva and Blackard.
- 12.55 Mt @ 0.82 percent copper (indicated and inferred resources).) and multiple prospects located within a 30-kilometre radius of the company's Cloncurry copper project represent near-term production advantage. Recent JV over highly prospective tenements with CMG deal increase TNC’s land position at the core of its Cloncurry copper project.
- TNC awarded the Queensland Government Collaborative Exploration Initiative (CEI) Grant. The CEI grant will be used towards delivery of leading edge MIMDAS induced polarisation, resistivity and magnetotellurics geophysical surveys at the Mt Oxide. The exploration aims to identify massive and disseminated sulphide mineralisation and deliver an improved understanding of the large-scale structural architecture that controls mineralisation throughout the Mt Oxide exploration leases.
Figure: Summary of exploration and development pipeline across all TNC projects.
Projects
Cloncurry Copper Project
Our Cloncurry copper project (CCP) hosts iron oxide copper-gold (IOCG) and iron-sulphide-copper-gold (ISCG) deposits with extensive surrounding exploration tenure. It is built on a strong economic basis and low-risk cost structure.
The CCP currently incorporates two reserves where mining will commence including – the Wallace North maiden resource and the Great Australia mine reserve (GAM):
- GAM includes GAM, Orphan Shear and Taipan deposits) totalling 4.7Mt grading 0.80 percent copper and 0.13g/t gold containing 37.5kt of copper and 20 koz of gold – upgrade to be announced mid-2024.
- Wallace North ore reserve totals 0.7Mt (probable) grading 1.01 percent copper and 0.46g/t gold for 6.8kt copper and 10 koz gold.
TNC’s CCP expansion is ongoing with exploration progressing and advanced projects in strategic locations surrounding the existing CCP operation, promising long-term growth prospects.
Our strategic partnerships, including a binding offtake and toll-milling agreements with Glencore International AG, supported by debt funding secured with Nebari, underscore our operational readiness and position TNC to capitalise on an extremely favourable copper market.
Mining operations will kick-off at the Wallace North open cut pit, targeting higher-grade ores (~1 percent copper) from surface mining. Ore will undergo primary crushing at the Cloncurry operations hub and the toll treatment facility, located within a 40km radius, with a predominant focus on sulphide ores.
All necessary permits for mining are secured across the CCP, bolstered by an established environmental monitoring network with a robust historical database.
TNC's operational strategy involves a phased approach to mine development, with plans to commence mining operations in 2024 and manage capacity ramp-up throughout 2025.
Cloncurry Operations Hub
The Cloncurry operations hub is strategically located to the CCP’s four open pit deposits including: Great Australia, Orphan Shear, Taipan and Wallace North.
The COH is located 2 kilometres from the township of Cloncurry and provides essential infrastructure, technical systems and support to all of TNC’s project operations. An active oxide heap leach and solvent extraction (SX) processing plant, mine buildings, site administration facilities, workshops, open pit mine facilities, onsite explosive magazines, site storage, water management systems and existing site power supply are located at the COH.
Cloncurry Copper Project – Project Economics
- Mining 4.8Mt of ore over an initial 4.6 year mine life, at a low strip ratio of 4.2, delivering 35kt copper and 29 koz gold contained metal (based on existing JORC reserves)
- Anticipated mine revenue of AU$367 million with free cash flow of AU$111 million, and a pre-tax NPV10 of AU$88 million, demonstrating strong operating economics at US$8,500/t copper price and US$1,850/oz gold price (0.7 AU$:USD exchange rate).
- Payback expected within six months post mining restart, driven by favourable commodity prices and low all-in sustaining cost (AISC) of US$2.65/lb copper.
- Low up front capex of AU$1.5 million leverages existing infrastructure, while peak operating expenditure is estimated at AU$2.2 million.
- Sulphide and oxide ore production – two copper products. copper sulphide (LoM approx. 90 percent) + copper sulphate (LoM approx. 10 percent).
- Mineral concentrate grade 22-26 percent copper (with gold/silver credits).
- Sulphide Ores more than88 percent expected recovery.
- Transitional Ores more than 77 percent expected recovery.
- Very low deleterious elements in mineral concentrate.
Cloncurry Copper Project – Exploration 2024
- CCP expansion and exploration focused on rapid copper-gold-ore source growth.
- With more than 80 prospects located within a 30-kilometre radius of the CCP, TNC is focused on significant expansion and the exploration potential for additional copper-gold-cobalt-silver mineralisation to be brought into the production fold including large-scale company transformative major discoveries.
- Thanks to our successful 2023 Exploration Program we have identified through a systematic approach, and analysis at a mineral system scale, the following new targets:
- Cloncurry Copper Project - eight new drill targets at Greater Australian and Copperhead in new Induced Polarisation.
- Salebury and Rocklands South - Compelling untested geophysical anomalies in historic data.
- Mt Norma- untested surface anomalies and down plunge resource extension targets on mining lease within 30 kilometres of the Cloncurry operations hub.
- Wynberg, Notlor, Marimo Trend and Tanbah limited historic exploration significant copper-gold in surface sampling and drilling, limited testing.
Figure: High priority exploration targets at the CCP
Figures above: Anomalies generated from TNCs 2023 induced polarisation program and structural analysis of the GAM Project.
Mt Oxide Project
The Mt Oxide project hosts the Vero resource of 15.98 Mt @ 1.43 percent copper(measured, indicated and inferred) a Mt Isa style sediment-hosted copper-silver-cobalt system. Analogues include Capricorn copper and Mt Isa copper.
The Vero resource at our Mt Oxide project is our next mine. We are focused on understanding this phenomenally mineralised system.
Mt Oxide’s Vero Resource 2023 exploration program returned outstanding and globally significant grades. The program included our 2023 maiden drilling program across the Vero resource and results showcased the expanding nature of the Vero high-grade ore body.
During 2024, TNC will be exploring multiple, exciting high-priority exploration targets along a 10 kilometres mineralised trend that hosts Vero.
We will also be delivering during 2024 the Vero Resource re-estimation and mining optimisation and feasibility studies.
Vero Resource maiden drilling program
In 2023, TNC completed an initial 12-hole diamond drilling program at Mt Oxide designed to confirm historical high-grade intersections and test the depth and strike extensions to the existing Vero Resource.
2023 Vero resource drilling highlights included (* = Estimated True Width):
MOXD217 returned phenomenal results that placed the drill hole in the top globally ranked copper drill holes of 2023 including :
- 66.50 metres (48.00 metres*) @ 4.95 percent copper, 32.7 g/t silver and 685 ppm cobaltfrom 234 metres.
- 11 metres (8.19 metres*) @ 3.06 percent copper, 34.2 g/t silver and 682 ppm cobalt from 357.50 metres.
- 8.55 metres (8.55 metres*) @ 6.16 percent copper, 45.9 g/t silver and 140 ppm cobalt from 172.50 metres.
MOXD221 intercepted a wide interval of high-grade shallow dipping mineralisation as well as a second deeper intercept, providing indications of rapidly increasing grade and widths of mineralisation to the south including:
- 42.10 metres (41 metres*) @ 1.66 percent copper, 13.5 g/t silver and 1,083 ppm cobalt from 154.90 metres.
- [including] 4 metres (2.24 metres*) @ 7.65 percent copper, 57.3 g/t silver and 1,164 ppm cobalt from 191.20 metres.
MOXD226A returned three key zones of strong mineralisation including a broad interval of 69.95 metres and further intervals of up to 11.19 percent copper.
Highlights include:
- 69.95 metres (42.85 metres*) @ 1.91percent copper, 17.7g/t silver and 675 ppm cobalt from 224.55 metres
- [including] 9.65 metres (5.89 metres*) @ 2.74 percent copper, 24.1g/t silver and 993 ppm cobalt from 239.50 metres
- [including] 18.15 metres (11.07 metres*) @ 3.23 percent copper, 26.8g/t silver and 585 ppm cobalt from 276.35 metres
- 16.75 metres (16.75 metres*) @ 5.30 percent copper, 44- g/t silver and 120 ppm cobalt from 165.25 metres
- [including] 4.65 metres (4.65 metres*) @ 11.19 percent copper, 93.9g/t silver and 136 ppm cobalt from 172.55 metres
Figure: Location of geological and grade composites as well as the updated interpretation of copper grade domains based on the results from MOXD226A
Mt Oxide Discovery Strategy
TNC is committed to unlocking Mt Oxide’s underexplored high-quality targets.
- Mt Oxide lies adjacent to a large crustal scale structure - the Mt Gordon Fault Zone. Splays off this structure (Dorman Fault) host Vero.
- Mt Oxide has evidence of large-scale fluid flow, big mineral system potential.
- Copper-silver-cobalt mineralisation interpreted to have been formed near surface and upper parts are preserved.
- Excellent depth potential of mineralisation in the Mt Oxide project.
- Limited systematic modern exploration outside of the Vero resource.
- Significant opportunity to apply leading-edge mineral exploration to build a larger copper inventory in a well-endowed mineral system.
- More than 10 kilometres trend along Dorman fault zone of intermittently outcropping gossanous / silica breccias, virtually no drilling, surface sampling or effective geophysics.
- Multiple untested targets with significant alteration-mineralisation footprints.
- No application of tried and tested geophysics or systematic surface rock chip geochemistry and mapping.
- Low cost highly effective exploration techniques to filter and prioritise drill targets.
Multiple exciting future exploration programs and high-priority potential targets along 10km long mineralised trend that hosts Vero including:
- Aquila & Mt Gordon
- Ivena North
- Camp Gossans
- Cave Creek
- Big Oxide
Figure: Multiple exciting future exploration programs and high-priority potential targets along the 10-kilometre long mineralised trend that hosts Vero resource’s Mt Oxide project.
Management Team
Marty Costello - Managing Director
Marty Costello is recognised as one of Australia’s leading project development and sustainability strategists across the resource sector, with more than 20 years of professional experience.
After working for several companies and government departments (domestic and international) managing, developing and implementing environment, sustainability and risk (ESR) programs and policies he established his own environmental consultancy – Northern Resource Consultants (NRC).
In the space of nine years, Costello developed NRC into an industry specialist with more than 25 employees focusing on environmental management and sustainability solutions for the resource sector. NRC delivered agile, best practice ESR strategies and multi-disciplinary environmental and sustainability services for clients like Evolution Mining, Futura, Sojitz, Adani, Red River Resources, CU River Mining, and others.
In 2018, NRC was acquired by SLR, a global leader in environmental and sustainability solutions. The acquisition facilitated considerable additional capability and geographic coverage to SLR’s existing mining and minerals in Asia Pacific business. During his consulting life, Costello was retained by Evolution Mining over an eight-year period to provide strategic project development, ESG advice to the board and executive management team.
Costello holds a Bachelor of Applied Science (environmental management) and Diploma of Applied Science.
Peter Brown - Chief Operating Officer
Peter Brown has held senior management roles in the resources sector, both domestically and internationally, including recent positions at Round Oak Minerals and Diatreme Resources where he oversaw project development and operations. Brown has diverse experience and an impressive track record that demonstrates his ability to successfully deliver projects and foster positive relationships with all project stakeholders.
He has managed discovery programs for gold, copper and chromite in South America, Japan, Vietnam and Indonesia, including government and community relations. He also drove improvements and provided training in mine geology, resource evaluation and mine technical services at prominent mines such as Mt Muro Gold Mine, George Fisher Mine and Peak Gold Mines. Additionally, Brown played a significant role in reviving abandoned satellite projects at Peak Gold Mines.
Other achievements include successfully re-permitting and constructing the 1-Moz Toka Tindung Gold Mine in Indonesia as director of Indonesian companies and general manager at Archipelago Resources; leading the permitting, engineering redesign and construction of the 0.8-Moz Mt Carlton Gold Mine in Queensland; the successful development of Mt Carlton and Pajingo projects, which contributed to the establishment of Evolution Mining; and recommissioning and developing several mining projects in the Mount Isa and Cloncurry region.
Rajesh Padmanabhan - Chief Financial Officer
Rajesh Padmanabhan is a highly skilled and experienced CPA-qualified accountant with expertise across a myriad of financial operations. He has many years of corporate governance experience as an executive team member across a variety of roles including as company secretary of an unlisted public company.
Throughout his career, Padmanabhan has held key finance management roles in mining and construction companies, including Constance Iron, Tablelands Mining Group, Barrick Australia (Porgera Operations) and Mastermyne Group (ASX:MYE).
Padmanabhan has more than 30 years’ experience managing company-wide financial operations, implementing streamlined financial processes, ensuring tax compliance and conducting financial analysis to support decision-making. His commitment to delivering results and his ability to navigate complex financial landscapes make him an integral part of the True North Copper team.
Padmanabhan is also an associate member of the Institute of Chartered Accountants of India and recently completed a certificate in governance and risk management from the Governance Institute of Australia.
Sven Sewell - Sustainability & Net Zero Manager
Sven Sewell has over 25 years’ experience working in a range of environmental fields, including environmental consulting, environmental regulation and within the industry.
For the 15 years prior to joining TNC, Sewell held senior environmental positions at several operating mines across northern Australia. At those operations, he was generally the most senior environment, responsible for all aspects of permitting, compliance, rehabilitation and general environmental management. Sewell's experience in northern Australian mines includes several new and established gold, uranium and bauxite operations.
Sewell holds a BSc (with honours) in environmental science.
Mark Brown - General Manager, Cloncurry Operations
With more than 30 years of domestic and international mining industry experience, Mark Brown offers a comprehensive skill set grounded in practical resource sector execution and invaluable leadership experience. His career journey has been marked by a commitment to safety, operational excellence, and fostering positive work cultures.
Brown has held a variety of senior leadership operational roles throughout his career, overseeing various aspects of mining operations. He has extensive experience across all mining regulatory and compliance aspects and has expertise in health and safety management including emergency response, crisis management, contractor management, and comprehensive incident investigations.
Michelle Ellis - Cloncurry Projects Exploration Manager
Michelle Ellis retains over 15 years’ mineral exploration, resource and mining experience predominantly in iron-oxide-copper-gold deposits and terrains across South Australia and Northwest Queensland.
Over the past 11 years, she has actively explored a range of commodities and deposit styles throughout the Mount Isa Inlier.
Ellis has an MSc in economic geology, MSc in environmental management and BSc in applied science - geoscience, and is a member of the Australasian Institute of Mining and Metallurgy.
Rhonda Freeman - Group Manager (Human Resources)
Rhonda Freeman has more than 18 years’ experience attracting top talent, fostering employee development and helping organisations develop safe and supportive work environments. She has worked extensively across the resource sector, including for large national-wide drilling companies.
Freeman has worked for mining companies across a variety of geological settings including brown coal, black coal, uranium, mineral sands and oil & gas. She brings a diverse skill set specific to the resource sector, having worked across all commercial aspects of drilling operations including as an exploration manager.
Lundin Mining Announces Updated Share Capital and Voting Rights
TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") reports the following updated share capital and voting rights, in accordance with the Swedish Financial Instruments Trading Act: View PDF
The number of issued and outstanding shares of the Company has increased by 534,183 to 775,718,751 common shares with voting rights as of April 30, 2024 . The increase in the number of issued and outstanding shares from April 1, 2024 to date is a result of the exercise of employee stock options or the vesting of employee share units.
Lundin Mining is a diversified Canadian base metals mining company with operations and projects in Argentina , Brazil , Chile , Portugal , Sweden and the United States of America , primarily producing copper, zinc, gold and nickel.
The information in this release is subject to the disclosure requirements of Lundin Mining under the Swedish Financial Instruments Trading Act. The information was submitted for publication, through the agency of the contact persons set out below on April 30, 2024 at 18:00 Pacific Time .
SOURCE Lundin Mining Corporation
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