March 1, 2021 (Investorideas.com Newswire) The Vital Investor takes an in-depth have a look at Avrupa’s new drilling outcomes on the Alvalade copper-zinc undertaking in Portugal.
After Avrupa Minerals Ltd. (AVU:TSX.V; AVPMF:OTC; 8AM:FSE) commenced drilling final December at its Sesmarias goal on the flagship copper-zinc Alvalade undertaking in Portugal, which is operated along with JV companion MATSA (joined firm of Trafigura and Mubadala, two commodity giants), the corporate accomplished two drill holes to date for 874m of drilling, a part of the 7-8,000m program. Gap SES20-031 and Gap SES20-032 have been designed to check the realm between the huge sulfide intercepted in gap SES008 and the stockwork zone intercepted in gap SES028, additionally at depth:
Plan view map Sesmarias, gravity geophysical knowledge
The outcomes did not look so spectacular, as gap SES20-031 returned 10.75m @ 0.19% copper and 0.74% lead, and SES20-032 did not hit any huge mineralization, although samples from the goal horizon have been despatched to the lab for hint aspect, pathfinder geochemistry. My expectations have been greater than this, as SES008 returned 5.0m @ 0.64% Cu, 36.8 g/t Ag, 0.94% Pb and 1.54% Zn, and SES028 intercepted the sting of a big feeder zone beneath the 8 Lens. Administration stays extremely optimistic, as CEO Paul Kuhn acknowledges the complexity of the mineralized techniques at Alvalade:
“We’re excited in regards to the rapid prospects within the Sesmarias goal space. Constructive geochemical and geological outcomes from SES20-031 point out potential for a seamless robust VMS system. We’re nonetheless within the early phases of labor on the north finish of the presently-known Sesmarias system. Already, with the completion of two drill holes, and the beginning of a 3rd gap, we now have a much-improved understanding of the structural controls to the huge sulfide mineralization. This enables us to raised goal the huge sulfide our bodies, as we transfer north alongside strike, and at some depth concentrating on downdip mineralization. The geological staff has accomplished an important job in pushing the Challenge forward.”
The current work is the preliminary try to increase the mineralization to the north from SES008 to the Brejo goal space (previously Northern Deep goal), and the third gap, at the moment underway, is situated north of and near SES008. The subsequent goal is the Brejo goal space itself, representing the robust gravity anomaly indicated on the higher half of the determine. Administration plans to check this goal within the close to future.
Drill testing this goal will contain deep drilling, as wide-spaced, 500-600m deep historic drilling suggests robust risk of huge sulfide mineralization growing at depth:
This part additionally signifies a sub-vertical orientation of potential mineralization. A extra detailed part of intercepted geology by gap SES20-031 appears to point a extra vertical orientation of mineralization as effectively, and is the reason why not a lot mineralization was intersected:
“SES20-031 continued to 536 meters depth, in a number of locations intersecting the precise black shale unit that hosts huge sulfide mineralization at Sesmarias and on the Lousal Mine, situated six kilometers to the north. Detailed evaluate of the core confirmed that for its total size, the drill gap handed via intensely folded rock items of the Volcano-Sedimentary Formation, the final host of mineralization all through the Iberian Pyrite Belt. Total, nonetheless, the drillhole roughly paralleled the most important pattern of bedding, permitting just for slender true widths of mineralized intercepts.”
The fantastically visualized part confirmed the trajectory of the drill, however I nonetheless questioned how the drilling firm might draw conclusions in regards to the closely folded, vertically oriented constructions, as these have been principally missed. In response to Kuhn: “After we element log the core materials, we are able to simply see the angle of the bedding relative to the axis of the core. Since we orient the core because it comes out of the opening, we are able to inform the geological angle of the beds. We’re capable of see detailed modifications within the bedding and may simply interpret small to massive folds. Faults are straightforward to see within the core materials. With this work we are able to paint a sophisticated image of the geology. Even folding in brief intervals of core can mimic the larger-scale folding within the beds of goal horizons. Beforehand, we understood that the goal zones have been strongly folded and faulted, however the element of latest evaluate by the JV geological staff has superior the story additional, which is closely influencing our concentrating on and expectations.”
It was attention-grabbing to learn that the drill gap intercepted the black shale rocks that host huge sulfide mineralization not solely at Sesmarias, but additionally on the close by Lousal Mine. I questioned what share of the Lousal Mine mineralization is hosted in black shale rocks.
Kuhn thinks, based mostly on historic evaluation, that that is nearly common, indicating they may have discovered extensions of the Lousal deposit. The third gap at the moment underway, SES20-033 is testing precisely the black shale trajectory, at about 350-400 meters depth, but additionally on the opposite aspect of the most important fold, within the neighborhood of 650-800 meters depth.
In addition to this roughly greenfields drilling, a lot of curiosity to me is the next paragraph within the information launch:
“On the identical time, the geological staff continues to evaluate the historic core within the Brejo space, and has began to map geological constructions seen within the outdated Lousal Mine workings. Preliminary work there clearly exhibits similarity of ore management traits to what we now know in regards to the Sesmarias huge sulfide mineralization. Historic paperwork and educational research (non- compliant to NI 43-101 requirements) point out a common steel useful resource on the outdated mine of over 50 million tonnes of huge sulfide materials. Overview of authentic mine information by Avrupa demonstrates that lower than 20 million tonnes of ore have been really extracted from Lousal.”
As has been identified for years, there might nonetheless be 30Mt of huge sulfide mineralization current on the Lousal Mine. This resembles low hanging fruit to me, as I indicated in earlier evaluation, and I am curious if administration is for instance considering digitizing historic knowledge and outcomes of ongoing mapping, in an effort to develop a drilling technique to show up these potential 30Mt. I am additionally questioning the place Lousal stands on the precedence listing of MATSA, because it appears comparatively low threat. CEO Kuhn answered: “Work at and across the Lousal Mine is a excessive precedence, after Sesmarias/Brejo and the stockwork discovery at Monte da Bela Vista, simply north of the Lousal Mine. For the time being we’re working at full pace at Semarias/Brejo, however plan to work at Lousal compilation within the coming months.”
As Kuhn indicated in December 2021 {that a} helicopter-supported VTEM electromagnetic survey was about to begin that month, masking a big a part of the Alvalade License, I’m interested in when the outcomes will probably be introduced. In response to him, outcomes are anticipated throughout the first half of March.
Within the meantime, the metals Avrupa is specializing in, copper and zinc, have been going via the roof, particularly copper. After rising to US$4.34/lb Cu, ranges not seen in 9 years, there was heavy promoting on February 26, 2021, bringing the worth all the way down to US$4.09/lb Cu for now as could be seen on this chart by Macrotrends:
Analysts see this promoting as an overdue and wholesome stage of consolidation at finest, or a correction at worst, based on this article at Mining.com. The large query for now could be the response of huge Chinese language gamers, holding huge lengthy positions in copper contracts. As numerous copper is projected to be arriving from Chile and Peru, it’s anticipated that the intense strain on the copper worth attributable to heavy shortages, in flip attributable to strikes and COVID-19, will ease considerably. Alternatively, when COVID-19 measures will step by step subside on the again of vaccination, the world economic system will collect pace once more, and if this occurs viciously as many analysts count on, additionally helped by the US$1.9T stimulus program from Biden, copper might stay across the US$4/lb ranges for fairly a while.
Avrupa’s second most vital steel, zinc, has additionally been doing effectively these days, as could be seen right here on this chart of Kitco:
As a reminder, based on the Worldwide Lead and Zinc Examine Group (ILZSG), a platform fashioned by the United Nations, consisting of all main producing nations and business gamers within the lead and zinc sector, a number of mines might expertise issues to nameplate capability once more, however world provide for refined zinc steel will exceed demand considerably in 2021, as this surplus is anticipated to be 463kt. However this, with the world economic system selecting up, I count on zinc to stay above US$1.15-1.20/lb ranges for the foreseeable future. Zinc at the moment sits at US1.27/lb Zn.
Such steel costs must be all the inducement JV companion MATSA wants in my opinion, to sink loads of exploration {dollars} (or euros on this case) into Alvalade. After the 4 to 1 consolidation of Avrupa shares, the corporate is trying to do a financing quickly, as a number of funds already expressed their curiosity. Avrupa remains to be buying and selling at rock-bottom costs (market cap of simply C$3.76M), regardless of copper costs going into the stratosphere:
Share worth Avrupa Minerals; 5 yr timeframe (Supply: tmxmoney.com)
When Avrupa begins hitting severe mineralization, these worth ranges must be one thing from the previous quickly in my opinion.
Conclusion
The primary drill holes did not herald fireworks but, however because the geology is kind of advanced and never straightforward to unravel, CEO Paul Kuhn is working diligently along with JV Accomplice MATSA to unravel the Sesmarias puzzle. The quickly to be introduced outcomes of the airborne VTEM survey will hopefully and certain herald numerous targets, as could be anticipated with a number of historic mines and remaining historic sources being current. In addition to all different targets, in my opinion, the remaining historic sources sitting within the floor on the Lousal Mine present a singular alternative to comparatively simply show up many tons of mineralization, and drilling on this location is deliberate for later in 2021. When good intercepts begin rolling in there, this tiny junior might very effectively turn into a multi-bagger in a brief time period.
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The Critical Investor is a publication and complete junior mining platform, offering evaluation, weblog and newsfeed and all kinds of details about junior mining. The editor is an avid and significant junior mining inventory investor from The Netherlands, with an MSc background in development/undertaking administration. Quantity cruncher at undertaking economics, in search of top quality corporations, largely progress/turnaround/catalyst-driven to keep away from an excessive amount of dependence/affect of long-term commodity pricing/market sentiments, and sometimes in search of long-term deep worth. Getting burned up to now himself at junior mining investments by following overly optimistic sources that as a rule averted to say (hidden) dangers or crucial flaws, The Vital Investor realized his lesson effectively, and goes a couple of steps additional ever since, offering a recent, extra in-depth, and significant imaginative and prescient on issues, therefore the identify.
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