Drill Results Boost Potential for High-Grade Polymetallic Discovery in Portugal

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Avrupa Minerals Ltd. (AVU:TSX.V;  AVPMF:OTC;  8AM:FSE) has announced positive results from its ongoing drilling program at the Sesmarias VMS project. This is part of a joint venture with Sandfire Mineira Portugal, a subsidiary of Minas de Aguas Tenidas S.A. (Sandfire MATSA). Located within the Alvalade JV in the Iberian Pyrite Belt, Portugal, the latest drill results are encouraging.

Results from holes SES24-053 and SES24-054 are seen as particularly promising, as per the company news release.

The company reported the following drill results:

• SES24-054 intersected 41.2 meters of polymetallic sulfide mineralization, including:

  • 1.59% copper
  • 1.71% lead
  • 3.36% zinc
  • 54.90 grams per tonne (g/t) silver
  • Within this interval, a higher-grade section of 28.6 meters contained:
    • 1.68% copper
    • 2.42% lead
    • 4.75% zinc
    • 73.90 g/t silver

• SES24-053 intersected 13.15 meters of sulfide mineralization, including:

  • 0.31% copper
  • 1.57% lead
  • 3.00% zinc
  • 38.40 g/t silver
  • Within this interval, a higher-grade section of 9.15 meters contained:
    • 0.40% copper
    • 2.09% lead
    • 4.02% zinc
    • 50.5 g/t silver

Paul W. Kuhn, President and CEO of Avrupa Minerals, commented in the company news release, "These are exciting new assay results as we continue to develop a potential high-grade polymetallic core zone in the SES Central area." The current phase of drilling targets mineralization along a 600-meter strike length in the Sesmarias Central zone. The mineralization remains open to both the north and south along the strike.

Understanding Volcanogenic Massive Sulfide 

Volcanogenic Massive Sulfide (VMS) deposits have long been recognized as a critical source of metal resources in the mining sector. According to an October 2024 report from Ore Geology Reviews, VMS deposits have "contributed significantly to metal resources" and are found in some of the most significant metallogenic belts globally. This type of deposit is particularly valuable due to its polymetallic nature, typically containing copper, zinc, lead, silver, and sometimes gold, which allows mining companies like Avrupa Minerals to hedge against the volatility of individual metal prices.

Investing News highlighted the appeal of VMS deposits, stating in June that they "may look more attractive than ever thanks to their polymetallic content," offering resource investors a "cushion when it comes to the rise and fall of individual metals."

According to Technical Analyst Clive Maund in his September 12 analysis, Avrupa was rated a "Strong Buy" due to its "unusually favorable risk/reward ratio." 

This built-in diversification makes VMS projects valuable assets, particularly in an economic environment that may experience fluctuations in commodity prices.

Furthermore, these deposits "can often be long-term producers, with stacked layers of mineralization over large distances," providing companies like Avrupa with opportunities for sustained production over time.

The global copper and zinc markets have shown encouraging signs recently, further bolstering the sector's outlook. As Bloomberg News reported on September 20, "Copper rose to a two-month high," driven by favorable macroeconomic conditions, including a Federal Reserve rate cut and improving demand in China. The sentiment was echoed by analyst Xu Wanqiu from Cofco Futures Co., who noted, "Macro conditions are turning positive," reinforcing a more optimistic outlook for base metals such as copper.

Similarly, the zinc market has also experienced positive momentum. Reuters reported in August that while global zinc mine production continued to decline, the "Shanghai Futures Exchange (ShFE) zinc market has taken note, with the most active futures contract rallying by 10%." The report emphasized that the tightening of raw materials supply in China indicated a shift in supply dynamics, which contributed to the bullish sentiment in the zinc sector.

The Catalysts For Avrupa

Avrupa Minerals has several catalysts that may drive future growth. The company's ongoing exploration efforts at the Sesmarias VMS project are supported by recent successful drilling results, positioning the project for further advancement. According to the company's investor profile, the focus remains on extending the high-grade polymetallic mineralization zone in the central and northern sections of the project, with continued drilling to refine the zone's extent.

The addition of a second drill rig will expedite the program's progress, with three drill holes already completed and more results expected soon. Furthermore, Avrupa's joint venture with Sandfire MATSA ensures that the exploration program remains well-financed, with Sandfire continuing to fund the exploration work.

Looking ahead, Avrupa's involvement in the energy transition, particularly its copper and zinc projects, could offer significant potential. As noted in the company's investor profile (#2), "Copper is the metal of electrification," and the growing demand for renewable energy infrastructure could provide a long-term catalyst for the company's projects in Portugal and Finland.

Additionally, Avrupa's focus on zinc, essential for wind and solar energy production, might position the company to benefit from increasing demand for green energy technologies.

What Analysts Are Saying

Based on its diverse mineral exploration projects across Europe, Avrupa has found positive responses from experts.

*According to Technical Analyst Clive Maund in his September 12 analysis, Avrupa was rated a "Strong Buy" due to its "unusually favorable risk/reward ratio." He emphasized that the company's focus on metals such as copper and zinc, both essential for the ongoing energy transition, positions it well for future demand increases. Maund also pointed out that "demand for all of the metals that the company is exploring looks set to soar" as global economic conditions improve.

Maund highlighted that Avrupa's stock demonstrated bullish signs, citing a "robust upside volume in recent months," indicating strong market interest and position-taking by investors. He concluded that Avrupa's stock had "very little downside here and big upside potential," reinforcing the company's positive outlook in the current market environment.

The company also completed a fully subscribed private placement on September 5, raising CA$350,000, further boosting its financial position for ongoing exploration projects. This, combined with the favorable technical analysis, supported Maund's conclusion that Avrupa Minerals was an attractive investment opportunity for investors.

Ownership and Share Structure

According to Refinitiv, 5.73% of Avrupa is held by management and insiders. The holder with the most is Mark Thomas Brown with 3.36% and Paul W. Kuhn with 1.83%.

Of strategic investors, 11.84% is held by Pacific Opportunity Captial. The rest is retail.

Avrupa has a market cap of US$1.91 million and 53.32 million free float shares. They have a 52-week range of US$0.00 - 0.04.