Motopia (ASX: MOT), (soon to be renamed "ausbase minerals"), has received a SRK Consulting Report which has recognised the high prospectivity potential of the three key Cyprus based projects the company is currently acquiring.
The SRK report will be include in the re-compliance Prospectus which will soon be issued by the company.
A highlight of the report is the SRK view that the projects are sufficiently prospective to warrant exploration at the budgetary levels indicated by Motopia, and that it is SRK's opinion that the objectives of the company are closely aligned to its proposed exploration budgets and programs.
Importantly - the SRK report vindicates Motopia's decision to move into exploration / mining in the Republic of Cyprus, and the proposed acquisition of Treasure Development Limited which currently holds the projects.
The projects are known as: Pevkos-Laxia tou Mavrou, Kambia-Mathiatas-Sha and Vrechia, and are located in established areas of Cyprus, with roads, power / water supply, port infrastructure and a processing plant.
Worth noting for Motopia is the potential to utilise existing privately owned processing plants, to treat ore and produce saleable concentrates - which could deliver cash flows to fund exploration.
The largely underexplored region of Cyprus has great potential for the discovery, delineation and economic production of a variety metals including copper, gold, nickel and zinc.
Another plus for Motopia is that prospecting permits have been granted and compelling drill targets have already been identified, with drilling set to commence early 2013.
Pevkos-Laxia tou Mavrou
SRK said that the Pevkos-Laxia tou Mavrou Project represents the most advanced project, (although still early stage).
Historic exploration (1950s to 1970s) has identified pyrrhotite-dominated massive sulphide mineralisation with anomalous to high grade copper and gold reported in drilling, adits, and surface mapping / sampling.
SRK considers the project to have "walk up" drill targets for copper.
The project has the potential for high-grade, high-value copper, nickel, cobalt, gold sulphide mineralisation, with a gossan near the western adit entrance returing 9.77g/t gold, 0.43 % copper and 0.25 % nickel.
Kambia-Mathiatas-Sha has a long history of mining with six abandoned copper mines within 500 metres of the permit boundary, with two historic mines on the tenure Motopia is acquiring.
SRK said that the prospectivity of the area is high, which also has elevated gold values at the project which have not been previously tested in the area.
The project area comprises 11 permits, and is 22 by 6 kilometres and includes the Kappedhes Mine, the Mathiatas Mine, possible extensions of the Peristerka-Pytharochoma, Kambia (Kokkinonero), South Mathiatas (Psathas) and Sha Mines
Records for the Vrechia area report numerous slag dumps and copper-sulphide localities, and the historic Vrechia open pit with production of 80,000 tonnes of ore at 0.55% copper, and 120,000 tonnes of ore at 0.45% copper.
The Vrechia project comprises three prospecting permits covering 27 square kilometres.
Recent drilling by Northern Lion, 800 metres east of the Vrechia tenure and in the same rock units, returned 28 metres at 4.5g/t gold and 1% copper.
CYPRUS: LARGEST KNOWN DEPOSIT
Cyprus has a long history of mining and contains existing infrastructure with a favourable jurisdiction - including a 10% Corporate Tax rate, the lowest in the EU.
Mining has focused on the many exposed massive pyrite deposits, which have been exploited for copper, gold, silver, zinc and sulphur.
The largest known of these deposits was Mavravouni with 17 million tonnes at 4.5% copper, for 765,000 tonnes of contained copper.
Mineral exploration is active in Cyprus with Northern Lion Gold Corp (CVE: NL) exploring numerous concessions covering massive pyrite deposits.
The consideration for the acquisition of Treasure Developments Ltd (TDL) acquisition (a Cyprus based company), covers a Share Sale Agreement relating to 100% of the issued share capital in TDL which has been executed between Motpoia and the TDL shareholders.
Under the agreement, Motopia will pay A$1.6 million as consideration for the deal, with $850,000 split between cash and shares and a deferred consideration of $750,000 which is only payable on receipt of a Bankable Feasibility Study.
The agreement is subject to shareholder approval, the issue of shares under a prospectus, the issue of shares to Treasure shareholders, approval to the change in nature and scale of the company's activities as well as raising at least A$2.5 million under a prospectus.
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