Avrupa Minerals (AVU.V) confirmed earlier this month the Preliminary Economic Assessment provided by its partner, Western Tethyan Resources, has been filed on Sedarplus.

The economic study focuses on a small scale operation with an initial capex of US$33.4M and a total capita intensity of approximately $43M (including the anticipated sustaining capex). This should be sufficient to construct a 400 tpd mill resulting in an average annual production of 13,000 ounces of gold over a seven year mine life. The pre-tax NPV8% is estimated at US$27M resulting in a pre-tax IRR of 29% at a gold price of $1835 per ounce.

As a reminder, Western Tethyan can earn a 75% stake in the project by spending 1.8M EUR on exploration and development on the property. Once that 75% stake has been established, Western Tethyan can earn an additional 10% of the project by making certain milestone and success statements while it also has to complete a feasibility study and successfully permit the project. At that point, an 85/15 joint venture will be established.

Disclosure: The author has a small long position in Avrupa Minerals. Please read the disclaimer.