Avrupa Minerals (CVE:AVU) says it has agreed to option out its Arga tungsten-gold project to tungsten explorer Blackheath Resources (CVE:BHR), giving Blackheath the option to acquire up to an 85 per cent interest in the property over several years.
The deal represents the second option agreement for Avrupa Minerals signed with Blackheath Resources, as the two parties already have a joint venture on the Covas property in northern Portugal, which is located next to the Arga license. Just last week, Avrupa said it was aiming to option at least one of its properties this summer.
"The signing of this agreement with Blackheath Resources is a reflection of the recognition of continuing potential for tungsten and gold mineralization in the Covas-Arga area," said CEO of Avrupa, Paul W. Kuhn, in the release.
"We have already started the due diligence work at Arga and are waiting for sample results to assist in the targeting process for a small drilling program that will assess mineralization potential at Arga."
Under the terms of the latest deal, Blackheath can first earn a 51 per cent stake in the license by spending EUR200,000 in exploration before March 23, 2015. Blackheath can then earn a further 19 per cent by spending an additional EUR800,000 in the following two years. Finally, another 15 per cent stake can be acquired by Blackheath completing a pre-feasibility study by March 23, 2020.
According to a statement released Friday, the 27.71 square kilometre Arga property is now being explored, with work by previous explorers indicating potential for both tungsten and gold mineralization - tied to several structural zones that trend onto the Covas property.
Geological mapping and soil sampling at Arga some 20 years ago showed potential mineral target areas through sample results for tungsten, tin, arsenic, molybdenum and other metals, said Avrupa. It added that the samples were not analyzed for gold at that time.
More than 300 new soil samples have recently been collected to test for gold potential, the company said, with results now pending.
Meanwhile, at the nearby Covas project, both Avrupa and Blackheath are continuing to prepare for drilling later this year, which could upgrade and expand known mineral deposits, as well as test for several new targets. This property is a past-producing tungsten mine, with remaining historic resources on the asset estimated at 922,900 metric tonnes of 0.78% tungsten by Union Carbide in 1980.
Avrupa is in the process of upgrading precious and base metal targets to joint-venture ready status in a number of districts in Europe, with the aim of attracting potential partners.
The company, which has properties in Portugal, Kosovo and Germany, holds a total of 16 exploration licenses in these European countries, including 10 in Portugal. It operates two joint ventures in Portugal, including the Covas partnership with Blackheath Resources, and the Alvalade joint venture with Antofagasta Minerals in the southern part of the country.
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