May 10, 2023

Western Tethyan Resources Ltd (the “Company” or “WTR”) is pleased to announce it has entered into a definitive Earn-In agreement with Avrupa Minerals Ltd (“Avrupa”), pursuant to which WTR will acquire up to an 85% interest in the Slivova Gold project in Kosovo.

Highlights:

  • As announced on 7 September 2022, Avrupa and WTR signed heads of terms for an Earn-In Agreement in relation to the Slivova Gold Project. This was subject to a period of due diligence which was completed in March, and following which both parties have now executed the Earn-in Agreement.
  • WTR can earn-in up to 75% of the Project within the next three years by committing up to €1.8m in funding.
  • WTR can increase its interest to 85% of the Project on delivery of a Feasibility Study and Environmental Impact Assessment and a completed Mining License application.
  • Ultimately, WTR can increase its interest to 100% of the Project if Avrupa does not fund its share of the associated costs of any mine construction.
  • As part of the initial phase of due diligence work WTR has been able to redevelop a mineral deposit model with integration of additional drillhole data to work towards an improved resource estimate that will be delivered soon.  The current work demonstrates both the viability and exploration upside of the larger Slivova license.
  • WTR has spent over €275,000 on due diligence, development of a Concept Study, and continuing work on an ongoing Preliminary Economic Assessment on the Project to date.  

Mentor Demi, Managing Director of Western Tethyan Resources stated that “Alongside an aggressive exploration program throughout Western Tethyan Belt, we are actively seeking acquisition opportunities. The acquisition of the Slivova gold deposit is a significant step towards building Western Tethyan Resources Ltd into a development company, as well as progressing Slivova as potentially the first modern mine in Kosovo since 1920s.



About the Slivova project

The Slivova Gold Project covers 32km2 and is valid for 7 years of exploration (Figure 1).  The license area was subject to a previous joint venture between Avrupa and Byrnecut International Ltd (“Byrnecut”), until 2019 when the license was terminated after Byrnecut had incurred exploration expenditures in excess of US$ 7 million. 

The Peshter Main Gossan and Gossan Extension zones are hosted within a steeply-dipping package of intercalated pebble to cobble conglomerates and finer-grained sandstone units with subordinate shale horizons. The mineralisation is interpreted to be controlled by the host lithology and is associated with strong silicification and de-calcification. Gold mineralisation in the Main Gossan and Gossan Extension is concentrated in the calcareous pebble conglomerate and calcareous sandstone. The reactive nature of the matrix appears to have provided the best environment for base and precious metal mineralisation. 

A total of 40 drill holes define the Mineral Resource for 4,161.65 m of predominantly HQ, NQ and NWT diameter diamond drilling core.  Drill hole spacing in the core of the deposit is approximately 15m x 15m.  An Indicated Mineral Resource (NI 43-101) was subsequently defined at Slivova of 640,000 mt @ 4.8 g/t gold and 14.68 g/t silver, for approximately 98,700 ounces of gold and 302,000 ounces of silver (see: https://avrupaminerals.com/wp-content/uploads/2018/08/NI43101_AvrupaMinerals_Slivovo.pdf).  A significant part of the exploration licence remains to be explored in detail and there are indications of further mineralisation in the immediate vicinity (Figure 1), which will require drill-testing.

Significant sulphide mineralisation in the form of pyrite, with minor amounts of sphalerite, chalcopyrite, pyrrhotite and arsenopyrite occurs with the gold and silver mineralisation, although it is interpreted that the main high-grade gold mineralising event occurred after the sulphidation event.  Leach analyses on 255 mineralised samples from four holes evenly spaced through the deposit demonstrated that the majority of the mineralisation is amenable to conventional hydrometallurgical processes.  Further metallurgical testwork will be undertaken as a priority to determine the optimal process route.

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Figure 1: Main resource area and surrounding prospects at the Slivova Project, showing the surface sampling results of prior exploration.  Inset on the top right is the same area (in red), shown within the boundaries of the licence (in black).  Inset on the bottom right is the Slivova licence, shown in relation to the borders of Kosovo and the currently held licenses of WTR

Terms of the Agreement

Under the terms of the Definitive Agreement, WTR will have the right to acquire, in multiple stages, up to 85% of the Slivova project, by completing a series of exploration and development milestones and making staged payments to AVU. 

On Closing

  • Euro 35,000 cash payment upon signing the Definitive Agreement on March 1st 2023

Earn-In Phase

Stage 1:

  • Euro 30,000 cash payment on September 1, 2023
  • If WTR elects to enter the Definitive Agreement, it will invest 800,000 euros, during first two years from the effective date (minimum of Euro 150,00 must be spent by September 1, 2023, post DD Phase) for exploration, drilling, baseline environmental and social surveys, landowners etc, for 51% of the project

Stage 2: 

  • After completion of Stage 1, during the third year from the Effective Date, WTR will invest Euro 1,000,000 for NI 43-101 resource estimation, commencement of full Environmental Impact Statement (“EIS”), etc., for 75% of the project.

Stage 3: 

  • During fourth and fifth year from the Effective Date, WTR must complete the EIS, Feasibility Study (“FS”), and Mining License application, for 85% of the Project.

Stage 4: 

  • WTR completes success payments to previous JV partner, Byrnecut International Ltd.  accordingly:
    • Euro 125,000 in cash within 30 days of the first to occur of: 1) Completion of a positive FS (minimum 15% IRR) or; 2) Avrupa or related party making a decision to proceed with development of a mining operation within the license area;
    • Euro 125,000 within 30 days of issuance of a mining license for the Project, and
    • Euro 125,000 within 30 days of commencement of mine construction within the license area;
    • 100 troy ounces of gold within 30 days of commencement of commercial production (“CCP”), then increasing by 75 troy ounces per year until and including the third anniversary of commercial production when 325 troy ounces will be delivered.

Stage 5: AVU participate in the mine build or dilute to 1% NSR

For further information, please contact:
Mentor Demi, Managing Director

 

About Avrupa Minerals

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 license in Portugal, the Alvalade VMS Project, presently optioned to Sandfire MATSA in an earn-in joint venture agreement. The Company now holds one exploration license covering the Slivova gold prospect in Kosovo, and is actively advancing four prospects in central Finland through the recently announced 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.

www.avrupaminerals.com

 

About Western Tethyan Resources

Western Tethyan Resources Ltd (“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 in Kosovo. The company is assessing several other exploration project opportunities across Eastern Europe, targeting major copper-gold deposits across the porphyry-epithermal transition. For further information on Western Tethyan Resources you are invited to visit the Company’s website at www.wtrltd.com