Portugal / Alvalade IOCG Project

Location Iberian Pyrite Belt
Ownership Optioned to Minas de Aguas Teñidas, S.A.  (MATSA)
Size 115 km2
Deposit Type VMS
Exploration Stage Exploration
Status Planning underway to commence Phase I of JV
Presentation The Alvalade Opportunity
The Sesmarias Discovery

Avrupa acquired the Alvalade Project in 2010 and initially optioned it out in 2012, but has been the operator of the project since acquisition. During that first earn-in period (2012-15), an initial hole, SES002, was drilled into the Sesmarias target and intersected 10.85 meters of 1.81% copper, 2.57% lead and 4.38% zinc. Drilling encountered numerous faults, but subsequent holes hit mineralization, on and off, over an 800-meter strike length, including SES010 which intersected 58 meters of 0.32% copper, 0.61% lead, 1.95% zinc, 0.45 g/t gold, 25 g/t silver. There is still at least another 1,000 to 1,500 meters of known mineralization along strike to the north, encountered in historic drilling.

The Project is currently optioned out to Minas de Aguas Teñidas, S.A.  (MATSA) under the following terms:

In order to acquire a 51% interest in Newco — “The Experimental Exploitation Phase”:

  • MATSA must provide to Avrupa 400,000 Euros (approximately C$ 580,000) payment upon signing of the Definitive Agreement.
  • MATSA must provide the required work commitment guarantee of 240,000 Euros (approximately C$ 348,000) upon issuance of the new Alvalade Experimental Exploitation License (EEL) to the new JV company (Newco), to be set up to hold the license. This amount is refundable to MATSA pending completion of the license work commitment and approval by the Portuguese Mining Bureau (DGEG).
  • MATSA must provide 2 million Euros (approximately C$ 1,740,000) for work on the Project during the first year after signing of the Definitive Agreement.
  • MATSA must provide, at its sole discretion, an additional 2 million euros for work over the second and third years of the joint venture.
  • Avrupa will be the Operator in this phase of work and will be paid 100,000 Euros (approximately C$145,000) annually as an operator’s fee.

In order to acquire a further 34% interest in Newco, for a total of 85% — “The Feasibility Study Phase”, MATSA must, at its option:

  • Provide a “bankable feasibility study” on one prospect within the Alvalade license. MATSA is responsible for 100% of the costs to produce the feasibility study, including preparation of a NI 43-101 compliant resource estimate;
  • Fund all necessary success-based payments to Avrupa’s previous joint venture partner, Antofagasta Minerals, S.A., as required by the Debt Cancellation Agreement between Avrupa and Antofagasta (see news release of June 19, 2017).

Project Commitment and Construction Phase:

  • In conjunction with the completion of the feasibility study, MATSA would be responsible to ensure that the application for a Mining License at Alvalade is completed, as required by Portuguese Mining Law.
  • During the Construction Phase, Avrupa will have the choice to participate as a 15% shareholder by providing its pro rata share of the necessary funding, or elect to transfer its 15% interest in Newco to MATSA in exchange for staged payments of 10 million euros (approximately C$ 14.5 million), as follows:
  1. 3,000,000 Euros upon a construction decision being made, and the permits received from the DGEG;
  2. 3,000,000 Euros upon commencement of commercial production; and
  3. 4,000,000 Euros upon the first anniversary of commercial production.
  • The remainder of necessary success-based payments to Antofagasta would be borne by the Project, in accordance with the respective holdings in Newco.
  • Completion of the earn-in and joint venture arrangement remains subject to a number of conditions, including finalization of the Definitive Agreement itself, issuance of the Alvalade Experimental Exploitation License by the DGEG, and receipt of any required board and/or regulatory approvals. All legal due diligence has already been completed by MATSA.

A summary of some of the previously announced results from Alvalade is presented below:

  • SES002 – 10.85 meters @ 1.81% Cu; 75.27 ppm Ag; 2.57% Pb; 4.38% Zn; 0.13% Sn
  • SES006 – 1.5 meters @ 1.66% Cu; 54 ppm Ag; 2.30% Pb; 3.66% Zn; 0.091% Sn  — mineralization cut off by faulting
  • SES008 – 5.0 meters @ 0.64% Cu; 36.8 ppm Ag; 0.94% Pb; 1.54% Zn –   mineralization cut off by faulting
  • SES009 – 2.3 meters of massive pyrite (not analyzed)
  • SES010 – 57.85 meters @ 0.45 g/t Au; 25.1 g/t Ag; 0.32% Cu; 0.61% Pb; 1.95% Zn

The Project was optioned out a second time in Q3 2015.  During this earn-in period (2015-17), Avrupa drilled four additional holes into the Sesmarias target area that confirmed and extended one massive sulphide lens in the area to a length of 300+ meters with a 20-40 meter thickness. The lens is open to the northwest and down dip to the northeast.  The assays from those four holes are reported below.

Drill hole ID From
Cu (%) Pb (%) Zn (%) Au (g/t) Ag (g/t)
SES019 263.50 315.20 51.70 0.44 0.75 2.71 0.40 17.35
including 264.15 299.05 34.90 0.40 0.99 3.46 0.38 20.67
and including 280.45 290.95 10.50 0.36 1.71 5.18 0.37 21.71
SES020 277.85 287.55 9.70 0.25 0.57 0.99 0.47 24.70
297.70 319.95 22.25 0.55 0.59 0.66 0.53 20.54
325.00 334.10 9.10 0.32 0.14 0.52 0.68 11.31
337.85 356.65 18.80 0.33 0.14 0.64 0.26 6.40
SES021 262.85 277.65 14.80 0.36 0.29 0.40 0.43 9.82
SES022 323.90 376.00 52.10 0.43 0.49 0.98 0.62 17.31

Table 1.  2015-16 drill intercepts from the SES010 lens.

In 2015, Avrupa conducted downhole geophysics, utilizing the “mise-a-la-masse” (MALM) method, and combined with historic ground magnetics data, suggested that the sulfide lens may continue another 300 meters or more to the northwest from SES022.

To date, 54 holes have been drilled around the license by Avrupa for a total of 21,121 meters.  More than 10 of the holes intercepted massive sulfides with various grades of copper, lead and zinc.

There are at least four other separate targets in the immediate Sesmarias area, a significant target in the Pombal area located about 15 km southeast of Sesmarias, and several targets at the Monte da Bela Vista stockwork discovery located about 10 km north of Sesmarias, all on the Neves Corvo mineral trend.  Numerous general targets exist on the Aljustrel mineral trend, on the São Domingos mineral trend, and in several other areas along the Neves Corvo mineral trend.  All three mineral trends cut the Alvalade license, giving a total of 85 km of prospective Pyrite Belt potential on the license.

In 2019, Avrupa completed a drill program consisting of 6 holes totaling 2,498 metres.  SES026 extended the “10” Lens by 300 metres to the north from previous drilling.

Plan view of the “10” Lens, “2” Lens, and “8-9” Lens/Horizon (red) and East Bounding Fault zone (transparent blue). The recently drilled holes are highlighted with a transparent box.


SES026 From (m)



Intercept (m) Au (g/t) Ag (ppm) Cu (%) Pb (%) Zn (%)
Total lens 385.70 414.65 28.95 0.77 15.7 0.48 0.52 1.31
Base metal zone 385.70 392.70 7.00 0.52 19.0 0.66 0.57 1.44
Gold zone 392.70 401.70 9.00 1.09 13.7 0.40 .50 1.31


Assays for SES003 were returned in 2019 and the results are comparable to those from SES002, as shown in the table below.





Cu %

Ag ppm

Pb %

Zn %

Sn %

Co %















Cu ppm

Ag ppm

Pb ppm

Zn ppm

Co ppm

Weak/moderate stockwork