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.  Work continued slowly around the license until the joint venture agreement with Byrnecut International Ltd. (BIL) commenced in April 2014.

Once the Slivovo JV became operational, the Avrupa geological team completed a program of trenching, first-pass and follow-up geological mapping and sampling, and drill targeting.  The first phase of drilling was completed during Q4 2014, highlighted by SLV004, SLV005, and SLV006 gold results reported below, and in news releases of December 17th, 2014, and January 27th, 2015.  Avrupa drilled eight holes, totaling 1,002 meters during this phase.

The second phase of drilling, totaling five holes and 1,035 meters, was completed during Q2 2015.  Results were announced on May 28th, 2015, highlighted by the SLV011 gold intercept, reported below.  SLV014 was reported on June 25, 2015. Phase 3 of drilling was completed and results were announced in Q4 2015 for SLV14-SLV27 and SLV28-SLV44.

A generalized geological map of the Slivovo license and a more detailed geological map of the Slivovo Gossan zone, itself can be viewed below.  Field review and mapping of the Peshter Gossan during Q1-2 2015 has shown that the potential mineral target zone is larger than previously known.  Two drill holes completed during the Phase 2 program tested the eastern edge of the new eastern extension of the Peshter Gossan.  Results included both gold and base metal anomalism, as reported in the May 28th, 2015 news release.

Avrupa announced the initial resource estimation on May 5, 2016 for the main Peshter Gossan Zone.  Following these results, Byrnecut is moving ahead with the Pre-Feasibility Study.

The results of the Mineral Resource estimate are provided in the table below. The Indicated Mineral Resources are reported at a cut-off of 1.0 g/t gold.

Au Cut-off
(g/t)
Tonnes > Cut-off
(tonnes)
Grade>Cut-off Contained Metal
Au
(g/t)
Ag
(g/t)
Au
(ozs)
Ag (ozs)
0.50 660,000 4.66 14.61 98,900 310,000
1.00 640,000 4.80 14.68 98,700 302,000
1.50 590,000 5.07 14.85 96,200 282,000
2.00 540,000 5.39 15.09 93,500 262,000
2.50 490,000 5.71 15.32 89,900 241,000
3.00 440,000 6.08 15.55 86,000 220,000
3.50 380,000 6.49 15.75 79,300 192,000
4.00 340,000 6.87 16.03 75,100 175,000
4.50 290,000 7.32 16.18 68,300 151,000
5.00 240,000 7.79 16.39 60,100 126,000
 

The preceding statement of Indicated Mineral Resources conforms to the following definitions from National Instrument 43-101 and from CIM (2014):  “In this Instrument, the terms "Mineral Resource", and "Indicated Mineral Resource" have the meanings ascribed to those terms by the Canadian Institute of Mining, Metallurgy and Petroleum, as the CIM Definition Standards (May 2014) on Mineral Resources and Mineral Reserves adopted by CIM Council, as those definitions may be amended.” 

“An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation. An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable Mineral Reserve.”

“Mineralisation may be classified as an Indicated Mineral Resource by the Qualified Person when the nature, quality, quantity and distribution of data are such as to allow confident interpretation of the geological framework and to reasonably assume the continuity of mineralisation.  The Qualified Person must recognise the importance of the Indicated Mineral Resource category to the advancement of the feasibility of the project.  An Indicated Mineral Resource estimate is of sufficient quality to support a Preliminary Feasibility Study which can serve as the basis for major development decisions.”

All tonnages reported are dry metric tonnes.  Minor discrepancies may occur due to rounding to appropriate significant figures.  The information in this release that relates to the Estimation and Reporting of Mineral Resources has been compiled by Mr. Gary Giroux, M.Sc., P. Eng. ( BC).  Mr. Giroux, a consulting geological engineer employed by Giroux Consultants Ltd., is acting as the Qualified Person, as defined in NI 43-101, for the Slivovo mineralization inventory estimate.  He has over 40 years of experience in all stages of mineral exploration, development, and production.  Mr. Giroux specializes in computer applications in ore reserve estimation, and has consulted both nationally and internationally in this field.  He has authored many papers on geostatistics and ore reserve estimation, has practiced as a Geological Engineer since 1970, and has provided geostatistical services to the industry since 1976.  Both Mr. Giroux and Giroux Consultants Ltd. are independent of the Company under NI 43-101.

 

Geological Maps


Geological map of the Slivovo exploration license


Geological map of the Peshter Gossan Zone, with completed drill holes

The following sections show the present understanding of the gold target at Peshter.  At this point, the technical team notes that the location of higher grade gold mineralization may be related to steeply dipping, NNE-trending shears, vertically-oriented bedding in folded and strongly altered vuggy, calcareous sandstone host rocks.  The Avrupa team also sees spatial relation of gold mineralization to altered, porphyritic hornblende dikes, which are far more widespread in the gossan zone, than previously noted.  The timing of the gold emplacement in the Peshter Gossan area appears to be a later and separate event from deposition of base-metal sulfides, and at the microscopic level, appears mostly as free gold.  The presence of:  1) intrusive rocks; 2) the distribution of anomalous accessory metals bismuth, tellurium, copper, lead, and zinc; and 3) the style and distribution of alteration at Peshter and the surrounding target areas suggests an intrusive source to the mineralization system.  While the immediate goal of the exploration program is to identify a close-to-surface gold deposit, future exploration thinking will also cover the possibility of identifying a presumably larger, sub-surface intrusive-related metal deposit.

 

Sections

Schematic Section

 

Schematic Section

 

Early geochemical evaluation of the Peshter Gossan, 2014

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

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