AVPMF - Avrupa to Acquire Four Exploration Properties in Finland
(TheNewswire)
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Three base metal properties coverapprox. 600 km inthe Vihanti–Pyhäsalmi VMSBelt, central Finland
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65 km south of Pyhäsalmi base metalmine and flotation plant
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Two properties contain small historiccopper/zinc resource estimates (see below)
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Under-explored gold property locatedin the Oijärvi Greenstone Belt in north-central Finland included inproperty package
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Binding Letter Agreement signed withprivate Finnish company
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Avrupa to pay 3 million commonshares, €165,000, and fund earn-in exploration expenditures of€400,000 to earn 100%
Vacouver, BC - TheNewswire - December20, 2021 - Avrupa MineralsLtd. ( TSXV: AVU) (OTC:AVPMF) is pleased to report that it hassigned a binding letter agreement (the “Letter Agreement”) withDutch holding company, Akkerman Exploration B.V., to acquire 100%ownership of Akkerman Finland OY (“AFOy”). Finnish-registered AFOy ownsthree mineral reservations in the past-producing and highlyprospective Vihanti-Pyhäsalmi VMS district in central Finland.Deposits in this belt are similar, though much older than those foundin the Iberian Pyrite Belt where Avrupa is currently drilling insouthern Portugal. The three projects will be upgraded from a“reservation” to “licenses” as the first step of theexploration program. Once license areas are defined and theapplication process is underway, Avrupa will oversee detailedsystematic data compilation and review, historic drill core review,basic surface geochemical exploration, and new drill targeting inpreparation for drilling when the license applications areapproved.
The acquisition includes a fourth reservation held byAFOy covering under-explored gold targets in a greenstone belt-hosted,major shear zone located along strike from the Oijärvi gold projectrecently purchased by Gold Line Resources Ltd. from Agnico Eagle MinesLimited.
Paul W. Kuhn, President and CEO of Avrupa, commented,“We are excited to make these additions in two active, historicmining districts in Finland to our ongoing projects in Portugal andKosovo. The current market for copper and zinc is growing rapidly tosupport the advancement of new environmentally-friendly technologiesthat are already important contributions to the manufacture and use offully electric vehicles. EV’s use, on average, 180 pounds ofcopper per vehicle. The historic exploration on these projects by theGeological Survey of Finland and Outokumpu during the 1960’s throughthe 1980’s will form a strong base to outline new copper-zinctargets in central Finland. Finally, we are equally excited toacquire a new gold project in the highly prospective Oijärvi golddistrict close to an existing reported historic resource.”
Acquisition Terms
Avrupa can earn an initial 49% of AFOy in Stage One byissuing 1,470,000 common shares, paying €150,000 and depositing€200,000 into an account dedicated for first year explorationexpenditures.
As a Stage Two earn-in, Avrupa can acquire theremaining 51% of AFOy by issuing a further 1,530,000 common shares anddepositing an additional €200,000 into the dedicated account forfurther exploration expenditures. Avrupa will also pay out theremaining advances of approximately €15,000 to AFOy’s parentcompany at this stage.
A Technical Committee comprised of one representativefrom each party will oversee the work programs of each project. AFOy’s majority shareholder will have the deciding vote during theinitial earn-in period.
The Letter Agreement will be superseded by a DefinitiveAgreement which is expected to be completed in January 2022. Avrupapaid €10,000 upon signing of the Letter Agreement.
Avrupa will engage a qualified professional geologistto complete a NI 43-101 compliant report on the projects as part ofits due diligence process. The Company expects to complete thereport during the Stage One exploration program as part of a rigorousreview of data and drill core from historic operations covering theproject areas.
Projects
Figure 1. General location of AFOy project areas in CentralFinland.
Figure 2. Location of the Vihanti-Pyhäsalmi VMS Districtreservations.
The Pielavesi Reservation
Historic exploration within the Pielavesi Reservationarea by the Geological Survey of Finland (GTK) and Outokumpu showsthat the Paloniemi-Säviä-Leväniemi Belt offers promisingexploration potential. The Pielavesi reservation coversapproximately 213 km 2 and has widespread hydrothermal alterationof felsic volcanics which can be traced over 10 kilometers. Previousoperators identified the presence of at least four individual centersof mineralization, including one with clear evidence of a stockworkfeeder zone accompanied by massive sulfide deposition containingcopper, zinc, and gold. Despite many years of previous explorationand a large number of h oles drilled, known centers of mineralization have not beendrilled off and remain open at depth and along strike in bothdirections. No systematic exploration of the area has been completedin over 30 years.
Figure 3. Geology and known mineralization in PielavesiReservation
Previous operators completed two historic, non NI43-101 compliant, resource estimates at the Säviä prospect withinthe limits of the Pielavesi Property. The initial review, reportedin 1968, and based on 62 drill holes at 50-meter spacings, estimated acopper-rich deposit of 4 million tonnes grading 1.1% copper and azinc-rich deposit of 1 million tonnes grading 2% zinc. And, in fact,a number of nearby mineralized holes were not included in the resourceestimate, one of which assayed 0.98% copper over 70.5 meters.
In 1986, Outokumpu estimated a resource at Säviä of1.8 tonnes grading 1.52% copper.
Note that both resource estimatesare historic in nature, pre-dating NI 43-101, and the Company is nottreating them as current resources. A Qualified Person, as such termis defined in NI 43-101, has not completed sufficient work to confirmthe estimates as current mineral resources under NI 43-101, andtherefore they cannot be considered reliable and are presented heremerely to show the potential of the projects. Further efforts toconfirm the presence of potential mineral resources are planned forthe initial exploration period and will commence once the DefinitiveAgreement is completed.
The Kolima Property
The 187 km 2 Kolima reservation covers a target zonecomprised of a thick layer of mineralized distal-type volcanicscontaining thin beds and layers of zinc-rich massive sulfidemineralization in some areas. The Geological Survey of Finland (GTK)discovered and explored the area in the period from 1956 to 1983. TheGTK found zinc mineralization in an area two kilometers long and 200to 400 meters wide within strongly altered metasediments andfine-grained volcanic rocks. GTK drilled 70 holes and detectedwidespread, polymetallic sulfide mineralization occurring as finedisseminations and thin layers of semi-massive sulfides. Generally,it seems that the currently-known mineralization representsdistal-style metals’ deposition within a larger VMS system that has not yet been discovered. Numerousmineralized boulders containing anomalous gold and copper are presentaround the site.
AFOy completed a helicopter-supported SkyTEMgeophysical survey over the mineralized area of the reservation. Preliminary analysis of the data by AFOy did not suggest any obvioustargeting. However, recently-completed detailed review of the databy AFOy and AVU outlined subtle anomalism over southern extension ofthe known volcanics-hosted mineral trend and also outlined a deeper(175 meters), strong geophysical target in a trend of the volcanicrocks 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.
The final date for application for license parcels inthe Kolima reservation comes near the end of January 2022. AFOy andAVU will work during the coming weeks to make appropriate applicationsfor licenses through the licensing process. Further updates on theprogress will be forthcoming.
Figure 4. Northern areas of the Kolima exploration reservation. Detailed review of the SkyTEM data shows two important target zoneswithin the reservation area.
The Kangasjärvi Property
The 203 km 2 reservation covers the Kangasjärvi deposit,a satellite deposit of the Pyhäsalmi mine, located about 25kilometers to the north of the site. The massive sulfide was exposedat the surface, and Outokumpu mined 1-9% zinc material from theKangasjärvi open pit in 1984-85 down to <100 meters from thesurface. Exploration drilling by Outokumpu intersected massivesulfides down to 250 meters depth beneath the pit, but did not attemptdeeper drilling, leaving the deposit open at depth, as well as alongstrike.
In 1983, GTK estimated a small historic, non NI 43-101compliant, resource in two separate lenses: 1) 393,000 tonnes of 5.3%zinc, and 2) 159,960 tonnes of 6.0% zinc. Later Outokumpu reportedan estimated mineral resource of approximately 300,000 tonnes of 5.4% zinc. Records in 1987 indicate thatOutokumpu mined about 86,000 tonnes of 5.12% zinc. There is alsoreported anomalous copper, silver, and gold in the deposits.
Note again that both resourceestimates are historic in nature, pre-dating NI 43-101, and theCompany is not treating them as current resources. A QualifiedPerson, as such term is defined in NI 43-101, has not completedsufficient work to confirm the estimates as current mineral resourcesunder NI 43-101, and therefore they cannot be considered reliable andare presented here merely to show the potential of the projects. Further efforts to confirm the presence of potential mineralresources are planned for the initial exploration period and willcommence once the Definitive Agreement is completed.
In addition to the Kangasjärvi deposit, there are atleast three other mineral occurrences within the reservation area. Little work of any sort has been completed anywhere on thereservation for at least 20 years, even though there are historicdrill holes throughout the district.
Figure 5. Location of known mineral targets and deposits within theKangasjärvi reservation area.
AFOy also completed helicopter-supported SkyTEMgeophysical work over known significant areas within the Pielavesi andKangasjärvi reservations. AFOy and AVU continue to review theresults from these surveys. Further information will be disseminatedas we obtain a better understanding of the initial targetingdata.
The Yli-li Gold Property
The 332 km 2 Yli-li gold reservation covers 30 kilometersstrike length of the southern extension of the Oijärvi greenstonebelt and major shear zone. Currently Gold Line Resources Ltd.operates the Oijärvi gold project where they plan to drill over 4,000meters in a step-out drilling program to expand the known zones ofgold mineralization and delineate new targets in the vicinity of themineralization. In 2013, Agnico Eagle reportedan inferred mineral resource estimate at Kylmäkangas of 1.9 MT at 4g/t Au and 31 g/t Ag, containing approximately 250,000 ounces of goldand 1.9 million ounces of silver.
Note again that this resourceestimate is historic in nature and was reported by a third party. The Company is not treating the estimate as a current resource. AQualified Person, as such term is defined in NI 43-101 and related toAvrupa Minerals Ltd., has not completed sufficient work to confirm theestimates as current mineral resources under NI 43-101, and thereforethey cannot be considered reliable from the Company standpoint. TheCompany cannot confirm the estimates under any circumstances andmerely uses the information to suggest potential explorationpossibilities on the Yli-li property.
Figure 6. Location of Yli-li reservation. Note proximity toKylmäkangas gold deposit.
GTK first explored the southern extension of theOijärvi shear zone, covered by the reservation, from 2001 to 2014. Initial studies turned up gold-in-till anomalies over intenselysheared and altered rocks. Limited drilling resulted in oneintercept of 3 g/t gold over two meters at the Kupsusselkä prospect. Given these promising early-stage results, there is clearly need forwider-scale systematic exploration program to determine the besttargets within the area.
Avrupa Minerals Ltd. is a growth-oriented junior exploration and developmentcompany directed to discovery of mineral deposits, using a hybridprospect generator business model. The Company holds one 100%-ownedlicense in Portugal, the Alvalade VMS Project, now optioned to MATSAin an earn-in joint venture agreement. Avrupa focuses its projectgeneration work in politically stable and prospective regions of Europe, presently including Portugal andKosovo. The Company continues to seek and develop otheropportunities around Europe.
For additional information, contact Avrupa Minerals Ltd. at1-604-687-3520 or visit our website at www.avrupaminerals.com .
On behalf of the Board,
Paul W. Kuhn, President & Director
This news release was prepared byCompany management, who take full responsibility for its content. Paul W. Kuhn, President and CEO of Avrupa Minerals, a LicensedProfessional Geologist and a Registered Member of the Society ofMining Engineers, is a Qualified Person as defined by NationalInstrument 43-101 of the Canadian Securities Administrators. He hasreviewed the technical disclosure in this release. Mr. Kuhn, the QP,has not only reviewed, but prepared and supervised the preparation ofthe scientific and technical content in the news release.
Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this release.
Cautionary Statement Regarding“Forward-Looking” Statements:
Except for the statements ofhistorical fact, this news release contains "forward-lookinginformation" within the meaning of the applicable Canadiansecurities legislation that is based on expectations, estimates andprojections as at the date of this news release. "Forward-lookinginformation" in this news release includes information about thedefinitive agreement and the Company’s proposed exploration programsdescribed herein, and other forward-looking information. Factors thatcould cause actual results to differ materially from those describedin such forward-looking information include, but are not limited to,the inability to obtain the necessary resources to complete theexploration programs and poor exploration results.
The forward-looking information inthis news release reflects the current expectations, assumptionsand/or beliefs of the Company based on information currently availableto the Company. In connection with the forward-looking informationcontained in this news release, the Company has made assumptions about the Company's financialcondition and development plans do not change as a result ofunforeseen events, and that the Company will receive all requiredregulatory approvals.
Although the Company believes thatthe assumptions inherent in the forward-looking information arereasonable, forward-looking information is not a guarantee of futureperformance and accordingly undue reliance should not be put on suchinformation due to the inherent uncertainty therein. The Company doesnot assume any obligation to update the forward-looking statements, orto update the reasons why actual results could differ from thosereflected in the forward-looking statements, unless and until requiredby applicable securities laws. Additional information identifyingrisks and uncertainties is contained in the Company's filings with theCanadian securities regulators, which filings are available at www.sedar.com .
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