Avrupa Minerals Ltd. announced that it has received the Slivovo Gold Project Study from its partner on the Project, Byrnecut International Limited. The study contains detailed geological, geochemical, and geophysical information about the Slivovo gold deposit, as well as chapters covering environmental, social, metallurgical, mining, infrastructure and surface facilities, waste management, capital costs, and other studies.
Avrupa is currently evaluating the information contained in the Study and will advise Byrnecut as to how it will proceed in the joint venture. By delivering the Slivovo Gold Project Study, Byrnecut has earned into 85% of the Joint Venture entity, Peshter Mining JSC. Avrupa, through its Kosovo subsidiary, now holds 15% of PMJSC. To reach the 85% shareholder level in PMJSC, Byrnecut spent approximately 4 million euros at Slivovo.
Since the start of the joint venture in April 2014, Avrupa and Brynecut have made a gold discovery at Slivovo, calculated an initial NI 43-101 indicated resource estimate, and produced an extensive study of the deposit. As expected, the Slivovo Study advises that further exploration, particularly drilling, is necessary to increase the size of the Slivovo gold deposit.
PMJSC has proposed a results-dependent, multi-stage drilling program for 2017 and beyond to potentially increase the amount of contained ounces of gold in the Slivovo deposit to a level that can sustain a profitable mining operation on the site. PMJSC has proposed an exploration budget in excess of 5 million euros to accomplish this goal.
After completion of the review of the Study, Avrupa will have the opportunity to choose to continue to invest in the Slivovo Project at the 15% shareholder level or allow Byrnecut to carry all future costs to a point where Avrupa would be diluted to a 2% net smelter royalty. To date, since discovery of the mineralized Slivovo outcrop, Avrupa has spent approximately 115,000 euros on the Project.
Avrupa is also pleased to report the receipt of Value Added Tax return funds for the years 2011-2016, as stipulated by the tax laws and regulations of Kosovo. Future VAT returns should come in on a regular basis, now that the procedure for the returns has been established. The newly-received tax refunds have been used to complete certain payments, and will also be used for new exploration in Kosovo. Avrupa wishes to thank the Government of Kosovo for their efforts in establishing a working VAT return system.