The Slivovo exploration license is located approximately 15 km southeast of the capital Prishtine, and just five kilometers from the Company’s core storage facility.  Avrupa geologists discovered an outcropping gossan zone, 200 meters long x 100 meters wide x 75 meters in elevation, near the village of Pester in late 2011, and immediately submitted an exploration permit application.  The Kosovo mining authority (ICMM) issued the license in June 2012, and it covers slightly more than 15.1 km2.

Geological evaluation of the gossan zone indicates that it is probably near-vertical in position, and occupies a zone of intersecting NE- and NW-trending structural features.  A total of 22 rock samples were initially collected directly in the gossan and returned the following metal values of significant interest:

10 of 22 Au results greater than 1 ppm and up to 12.25 g/t
  6 of 22 Ag results greater than 10 ppm and up to 41.8 ppm
10 of 22 Pb results greater than 1000 ppm and up to 6110 ppm
20 of 22 Zn results greater than 1000 ppm and up to 8960 ppm


Distribution of gold values in the Pester gossan, after early sampling


Distribution of lead and zinc in the Pester gossan, after early sampling

With the start-up of the Byrnecut exploration Joint Venture, Avrupa geologists have now completed detailed mapping and sampling of the gossan zone.  Results are pending.  Further work in the area of the gossan zone is ongoing, and it appears possible that extensions to both the northeast and southwest may exist under shallow cover material.  The company is continuing exploration around the gossan with further detailed geological mapping and reconnaissance-style geochemical sampling.  Targeting work should lead to drilling by the end of the Q3 2014.

Results from previous first-pass reconnaissance soil sampling suggested potential for extension of the outcropping gossan mineralization, and further follow-up sampling assisted in discovery of two separate gold-bearing targets.  One zone of anomalous gold results surrounds the gossan zone and measures approximately 500 x 150 meters.  Here, gold in soil results ranged up to 1,435 ppb Au.  A second zone containing anomalous gold values, approximately 900 x 150 meters in size, appears to relate to subcropping, altered intrusive rocks, hosted in a north-south striking, altered, calcareous sandstone rock unit.  Here, gold in soil values ranged to 1,420 ppb Au, with 14 gold results returning with greater than 250 ppb Au.  The Company completed a series of three short trenches in 2013 to cover about 400 meters of the strike length of the target zone.  Geochemical results have recently been received from the sampling of these trenches, and indicate the possibility of epithermal gold and base metal mineralization.  Further trenching is planned to follow up the new anomalism.  Anomalous results include:

Trench 1:  162 meters @ 1,139 ppm Pb and 1,417 ppm Zn (to the SW end of the trench)
Trench 2:    82 meters @ 334 ppm Pb and 660 ppm Zn (to the SW end of the trench)
Trench 3:    74 meters @ 1,289 ppm Pb and 761 ppm Zn (to the SW end of the trench)
         Including a section of 22 meters @ 1.3 ppm Au and 9.52 ppm Ag

Since evaluating the gossan zone, Avrupa geologists have collected, to date, a further 110 rock samples around the entire Pester target area.  Twenty-seven of these samples carried greater than 100 ppb Au, with 13 of these having gold values greater than 500 ppb Au, and seven having gold values greater than 1 ppm Au.  One sample of brecciated, stockwork-veined sandstone had a value of 128.5 g/t gold.

Exploration work in the Pester area, and on the Slivovo license, in general, is still in the earliest stages.  Further work, including detailed mapping, additional sampling, and possibly ground geophysics, is planned for Q2 and Q3 2014.  Drilling is already warranted in the gossan zone, and more drilling targets are likely to be generated in the Pester area.  The Company hopes to implement a drilling program, beginning in late Q3 2014.

Following a plan and section view of the geology and presumed mineral targeting, are summaries of the gold, lead, and zinc geochemistry at Slivovo, starting with property-wide stream sediment geochemistry, followed by Pester target area soil and rock sample results, followed with rock sample results from the Pester gossan zone, and finally by trench results, to date.

At this time, the initial targeting work centers around the Pester epithermal zone, possibly related to felsic igneous rocks hosted in a calcareous sandstone, and located adjacent to a possible Tertiary age caldera fault, and the Pester gossan zone, with potential mineralization hosted in calcareous sedimentary rock unit.

Following are summaries of the gold, lead, and zinc geochemistry at Slivovo, starting with property-wide stream sediment geochemistry, followed by Pester target area soil and rock sample results, and ending with rock sample results from the Pester gossan zone.  There are clearly more areas for  exploration on the Slivovo license.


Results for gold in stream sediment sampling, Slivovo license


Results for lead in stream sediment sampling, Slivovo license


Results for zinc in stream sediment sampling, Slivovo license

First-pass follow-up soil sampling suggested the possibility of two target zones, most importantly at what is now called the Pester epithermal target, and the area to the southwest of the Gossan zone.  Recent work has been more dedicated towards second-pass follow-up around the potential epithermal target.


Results for gold in soils and rocks in the Pester area

Soil sampling in the Pester area showed the potential for several new target areas.  The Company has started follow-up work with trenching and detailed geological mapping around the village of Pester.


Results for lead in soils and rocks in the Pester area


Results for zinc in soils and rocks in the Pester area

The following figures show initial geochemical results for sampling in the Pester target area.  Note the open-ended anomalism in the trench results for both lead and zinc.  Previous rock sampling in the Pester area, located to the southwest of the trenches, also suggests open-ended anomalism in that direction.  At this time, it is not clear what could be the source of gold, lead, and zinc anomalism, though high angle faulting may provide open space for movement of mineralized fluids.


Gold in rock samples, Pester area epithermal and gossan zones


Lead in rock samples, Pester area epithermal and gossan zones


Zinc in rock samples, Pester area epithermal and gossan zones