Kvasovo Property

Kvasovo Property

The Kvasovo Property is an early-stage prospect in the eastern part of the Berogovo Mining District. The property lies off the eastern edge of the major caldera structure hosting the Muzhievo/Beregovo mineralized system and lies within a smaller, secondary caldera structure of similar age.

Property Description

The Kvasovo Property consists of mineral license number 4112 covering 691.5 hectares. The license was issued on March 16, 2012 and is valid until March 16, 2017 (figure 11). This license is renewable and provides permission for subsurface use including geological exploration, research and industrial development of polymetallic ores, and approval of the results of geological and economic evaluation by the State Commission for Reserves of Natural Resources of Ukraine.

Figure 11: Outline of Kvasovo License Number 4112 in vicinity of the villages of Kvasovo and Muzhievo..

Geology and Mineralization

Only two diamond drill holes were apparently collared on the Kvasovo Property (Besserer, 2008). Some surface sampling, including soil geochemistry, identified gold, silver and base metal anomalies covering an area of approximately 10 square kilometres and centered on the Kvasovo caldera structure (figure 12). The same style of mineralization as found at Muzhievi-Beregovo are also present on the Kvasovo Property.

Figure 12: Local Geology of Kvasovo Cladera Structure, Transcarpathian Region, Ukraine. Kvasovo license outlined in violet.

Many characteristics of the mineralization on the Kvasovo Property resemble the Beregovo-Muzhievo ore system. The morphology of the mineralized zones, the type of mineralization, the alteration and the metal ratios are all similar to Beregovo. The principal differences are related to the host rocks and in particular the volcanic lithologies which are dominated by rhyolitic and andesitic rocks. This may suggest that the Kvasovo system could be dominated by gold as opposed to base metals like the examples of Banská Štiavnica and Baia-Mare ore districts.

Historic Mineral Resources

The most detailed exploration work done on the property was undertaken in the 1980’s by Krechkovsky Z. et al. (1990) and included drilling and resulted in P2 and P3 category resources being published in 1991 after confirmation and approval by the Central Research Institute of Geological Prospecting for Base and Precious Metals, Moscow

As a result a total of 12.3 million tonnes of prognostic mineral resources were delineated at a grade of 4.99 gpt Au for a total of 61.4 metric tonnes of gold (1.97 million ounces Au) down to a depth of 500m. Table 9 summarizes the mineral resources on the Kvasovo property.

TABLE 9: Prognostic resources, Central Research Institute of Geological Prospecting for Base and Precious Metals, Moscow, 1991.

These mineral resources are historical estimates. Avellana does not consider these historical estimates as current mineral resources or mineral reserves and cautions readers not to do so. However, experience shows that prognostic (P-categories) resources approved by Central Research Institute of Geological Prospecting for Base and Precious Metals, Moscow, were rigorously done and clearly indicate that significant mineralization is present on the Kvasovo Property. Refer to the disclaimer for more details on historical mineral resources and mineral reserves estimates.