Avrupa Minerals (TSX-V: AVU) CEO Paul Kuhn on Drilling at Slivovo Gold Project and Upcoming JV Possibilities in Portugal
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is President of Avrupa Minerals (TSX-V: AVU)(OTC: AVPMF), Mr. Paul Kuhn. Paul, thank you for joining me this morning.
Paul Kuhn: Hey, Gerardo. Nice to talk to you. It's actually afternoon here in Portugal.
Gerardo Del Real: There you go, it's morning in Austin, afternoon in Portugal. Speaking of Portugal, you've been very busy behind the scenes and we're starting to see some of those results play out here in the market. You had a news release yesterday where you are drilling, and you're drilling on someone else's dime because you're a prospect generator, of course. I want to talk about the drilling at Slivovo. Can you give us the details, Paul?
Paul Kuhn: Well, the drilling started a couple weeks ago, and our partners Byrnecut International have put together a pretty big program. As the news release said, there's 17 holes planned on various targets. They've gotten a good start. It's not easy drilling so it's taking time. I wouldn't expect any news right away, but anyway, they're started. There's two drills running and some of the holes are going to be 500 meters deep, some of the holes are going to be 100 meters deep. It's a real varied program, lots of different targets.
Gerardo Del Real: Excellent. Phase one the way that I understand it is meant to be the 17 holes that you just mentioned, totaling approximately 5,700 meters, give or take. Is that correct, Paul?
Paul Kuhn: That's correct. If phase one goes well, there will be a phase two to follow up on that for more resource definition. Let's get through phase one first.
Gerardo Del Real: Excellent. I'm going to look ahead just a little bit and be an optimist here. Let's assume that phase one goes well and that phase two goes well. There's actually plans for a full phase three program that, if I'm not mistaken, will total approximately 30,000 meters, and again, this is me getting ahead of myself, and will cost approximately $8.3 million Canadian, which if I'm not mistaken, I was joking off the air that it's about your market cap right now. Is that correct, Paul?
Paul Kuhn: That's right, and this is really getting ahead of ourselves, Gerardo. I might be an optimistic but I also like being realistic here. I think the first phase of drilling, if that goes well, then phase two is resource definition to some extent and phase three, if that really goes well, will be really detailed resource upgrade and ready for some kind of further study as to whether it can be mined or not. The total of all three phases if everything goes well will be 30,000 meters, that's correct.
Gerardo Del Real: Excellent. Well, I love that you're realistic. I think we need more of that in the junior resource space. Let's talk about the targets for just phase one, the 17 initial holes that you've commenced drilling on right now. Can we talk about what the targets look like there?
Paul Kuhn: Sure. Obviously the key thing is to continue to upgrade the resource in the Gossan Extension Zones, there's several of them. The next thing would be to actually find some new gold resource in what we call the Sandstone Gossan, which we pretty much have ignored for the past couple of years, but the geologist on site has been really keen on getting some holes in there. We had a lengthy one gram intercept way back when in the first phase of drilling, or second phase of drilling actually, and we want to follow that up and see if we can put together a larger resource, a little bit lower grade, but one to two grams right at the surface.
Then there's several far out, if you will, meaning 500 meters, far out targets that we've touched on the surface and taken good samples, and we want to get a hole on each one of those. Then we have a deep geophysical anomaly, which has not been explained yet. We did IP the beginning of last year, 2016, and got good surface anomalies correlating with what we knew already and what we've seen in the field. We also got a pretty significant deeper anomaly, which is 200 to 400 meters down below the surface, and we're going to aim a couple holes at that and see if there's anything there.
Gerardo Del Real: Excellent. These are targets that you've spent years developing if I'm not mistaken. Is that right, Paul?
Paul Kuhn: The company and the partner, Avrupa and with partner funding, have put together these targets over the past three years, that's correct.
Gerardo Del Real: Excellent. Let me switch gears and talk about another project that you recently optioned, the Alvito iron oxide, copper-gold project in Southern Portugal where you're at now. Can we talk about that? Is there any news on the horizon on that project?
Paul Kuhn: No, what I'm doing right now, Gerardo, is putting together a budget for the first half of the program. Basically we have a million dollars Australian to spend. We'd like to do it by the end of the year. This equates to €700,000 more or less, and I'm putting together the first phase budget which is going to be a significant ground gravity and ground magnetic survey to help us determine our drill targets in this iron oxide, copper-gold prospect. The key thing for the next two or three months is we're going to walk a lot of kilometers out there. We're going to walk almost 800 kilometers on about 40 lines of ground mag and ground gravity. We're going to be busy. It's not going to come up with a lot of news for a few months, but be assured we're out there drill targeting.
Gerardo Del Real: Excellent. It sounds like it's going to be busy obviously with the drilling going on now and setting up the future drill program with some of the fieldwork that needs to be done, and you know how to do it as good as anybody out there. That should be exciting late summer, early fall if you can outline some targets there.
Paul Kuhn: We hope to do it by then, Gerardo. Basically this looks like a two and a half month targeting program. We're going to be doing other stuff as well. We've got some geological targets. There's quite a bit of prospectable property on this license that we haven't looked at yet. The license is 25 kilometers long, maybe a little bit more, and we've only looked at the central part of the license, which is an area of about five kilometers by three kilometers, in any detail, and spread out a little from there. I expect we'll find some new targets on the property. That's what we're aiming for as well.
Gerardo Del Real: Excellent. Paul, I want to thank you very much for your time. Is there anything else that you'd like to add as far as the rest of the year and what we can expect from Avrupa?
Paul Kuhn: I'm working hard, like you said, behind the scenes on a couple of new joint venture possibilities. We have two Pyrite Belt licenses in Portugal that we'd like to get ventured out, and I've talked to some people recently. I had a meeting last night with a group that's interested in one of our properties, and I've got a large company coming to visit us in a couple weeks in the middle of May.
Gerardo Del Real: Excellent. Again, the market cap is tiny. It's sub-ten million now, and I want to say it's approximately eight to nine million Canadian right now. I encourage everyone to go to the website. It's avrupaminerals.com and just get familiar with the projects and the company, because I think that there's lots of upside, there's drilling, there's new targets being outlined with the JV partner on the other property, and it sounds like you're busy behind the scenes still, maybe with new joint ventures, so a lot to look forward to.
Paul Kuhn: We're looking forward to it too, Gerardo. It's going to be a good summer. It's nice to be really busy again and there's a lot of interest in what we're doing, so it's pretty exciting.
Gerardo Del Real: Excellent. Paul, thank you so much for the update.
Paul Kuhn: You bet, Gerardo. Talk to you later.
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