Europa Metals Ltd (EUZ.L) Updated Resource Estimate

Updated Resource Estimate – 40% Increase in Indicated Resource, Toral Pb, Zn & Ag Project, Spain

Europa Metals, the European focused lead-zinc and silver developer, is pleased to announce the results of an updated independent Mineral Resource Estimate, reported in accordance with JORC (2012), in respect of its wholly owned Toral lead-zinc-silver project located in northern Spain (“Toral” or the “Toral Project”).

Highlights :

· Updated independent Indicated and Inferred Mineral Resource Estimate for Toral, reported in accordance with JORC (2012). The input database for the estimate, included:

o 113 diamond (including wedges) and 4 reverse circulation (RC) drill holes totalling 60,915.65 metres, and 19 underground channels for 18.75 metres.

o Drill holes TOD-024 and TOD-025 and updated fault models for the first time.

· Indicated resource estimate of approximately 3.8Mt @ 8.3% Zn Equivalent (including Pb credits) and 30g/t Ag, representing an approximate:

o 40% increase in Indicated resource tonnes;

o 38 % increase in Indicated contained tonnes of zinc to approximately 180,000 tonnes;

o 36% increase in Indicated contained tonnes of lead to approximately 150,000 tonnes; and

o 32% increase in Indicated contained ounces of silver to approximately 3.7 million ounces.

· A total resource of approximately 17Mt @ 6.9% Zn Equivalent (including Pb credits), 4.1% Zn, 2.9% Pb and 24 g/t Ag, including:

o 720,000 tonnes of zinc, 510,000 tonnes of lead and 14 million ounces of silver.

Outlook

The Company expects to utilise the updated resource model, together with ongoing engineering analysis and the upcoming third phase metallurgical results, for assimilation into updated preliminary economic parameters, to be conducted by Bara Consulting, ahead of a Pre-Feasibility Study. The revised economics will represent an update to those derived from the 2018 Scoping Study, bringing the significant amounts of work completed, and data obtained, over the last two years into the operating and financial model for Toral. Prior to establishing the revised economic parameters, the Company intends to announce updates in respect of the third phase metallurgical test work and ore sorting.

Laurence Read, CEO of Europa Metals, commented :

“In commissioning this updated Mineral Resource Estimate in respect of Toral,our key objective was to include, in the resource model, the successful results from the Company’s last drilling campaign, which saw not only high grade intersections but, due to the location of the drill holes, also enabled us to tie together two areas of the mineable lead, zinc and silver deposit into a continuous Indicated resource zone.

“Concentrated around the initial mineable area of the Toral Project, we have achieved an approximate 40% increase in the Indicated resource at an average grade of 8.3% zinc equivalent (including Pb credits) and a significant average grade above cut-off that should have a bearing on the overall mining profile once the effects of ore sorting are fully assessed .

“With every stage of additional work over the last 12 months we have further identified Toral as having significant potential to be a future high-grade producer of concentrates, located in an area with first-rate infrastructure and benefitting from the support of the Junta of Castilla y Leon. Europa Metals looks forward to releasing operational updates on metallurgy and ore sorting shortly, following which revised, independent economic parameters shall be determined for Toral, effectively updating the financial profile of the project to reflect the work accomplished since the 2018 Scoping Study .”

Myles Campion, Executive Chairman of Europa Metals, further commented :

“Increasing the level of confidence in the deposit is key for deriving reliable, quality data for use in economic models. By drilling two key targeted holes in the last drilling campaign we have been able to both increase Toral’s Indicated resource estimate by 40% and obtain sufficient samples for further metallurgical analysis. The significant increase in the Indicated resource category achieved on the back of the last drilling campaign reflects well on Europa Metals’ technical team.”

Overview

Europa Metals is pleased to announce the results of an independent updated Mineral Resource Estimate, in accordance with JORC (2012), pursuant to which there has been an approximate 40% increase in the Indicated resource category to approximately 3.8Mt at 8.3% Zinc Equivalent (including Pb credits) and 30g/t Ag. The upgrade follows the processing of assays from the Company’s 2020 diamond drilling campaign (involving key drill holes TOD-024 and TOD-025) and incorporation of updated fault models. The update has been prepared by Addison Mining Services Limited (“AMS”) and Bara Consulting.

Figure 1 showing AMS’ resource block model for Toral as a 3D view looking north, by Zn Equivalent grade:

http://www.rns-pdf.londonstockexchange.com/rns/1248W_1-2020-8-13.pdf

Figure 2: showing AMS’ resource block model for Toral as a 3D view looking north, by resource category:

http://www.rns-pdf.londonstockexchange.com/rns/1248W_1-2020-8-13.pdf

This latest updated Mineral Resource Estimate, effective as of 12 August 2020 for the Toral deposit comprises:

· An Indicated resource of approximately 3.8Mt @ 8.3% Zn Equivalent (including Pb credits), 4.7% Zn, 3.9% Pb and 30g/t Ag, including:

o 180,000 tonnes of zinc, 150,000 tonnes of lead and 3.7 million ounces of silver.

· An Inferred resource of approximately 14Mt @ 6.5% Zn Equivalent (including Pb credits), 4% Zn, 2.7% Pb and 23 g/t Ag, including:

o 540,000 tonnes of zinc, 360,000 tonnes of lead and 10 million ounces of silver.

· A total resource of approximately 17Mt @ 6.9% Zn Equivalent (including Pb credits), 4.1% Zn, 2.9% Pb and 24 g/t Ag, including:

o 720,000 tonnes of zinc, 510,000 tonnes of lead and 14 million ounces of silver.

The Company’s Board believes the results of this update compare favourably with the previously reported Mineral Resource Estimate, announced on 29 October 2019, comprising the following tonnages and grade:

· An Indicated resource of approximately 2.7Mt @ 8.9% Zn Equivalent (including Pb credits), 5% Zn, 4.2% Pb and 32 g/t Ag, including:

o 130,000 tonnes of zinc, 110,000 tonnes of lead and 2.8 million ounces of silver.

· An Inferred resource of approximately 16Mt @ 7.2% Zn Equivalent (including Pb credits), 4.5% Zn, 2.9% Pb and 22 g/t Ag, including:

o 690,000 tonnes of zinc, 450,000 tonnes of lead and 11 million ounces of silver.

· A total resource of approximately 18Mt @ 7.4% Zn Equivalent (including Pb credits), 4.5% Zn, 3.1% Pb and 24 g/t Ag, including:

o 830,000 tonnes of zinc, 570,000 tonnes of lead and 14 million ounces of silver.

*Zn Eq % is the calculated Zn equivalent incorporating lead credits; (Zn Eq (Pb)% = Zn + Pb*0.926). Zn Eq (PbAg)% is the calculated Zn equivalent incorporating silver credits as well as lead; (Zn Eq (PbAg)% = Zn + Pb*0.926 + Ag*0.019). Zn equivalent calculations were based on 3-year trailing average price statistics obtained from the London Metal Exchange and London Bullion Market Association giving an average Zn price of US$2,680/t, Pb price of US$2,100/t and Ag price of US$16.2/oz.

Implications of the resource update and updated resource model for the Toral Project

The increased size and contained metal of the Indicated resource exceeded management’s expectations and forms a significant cornerstone from which to establish the preliminary economic parameters for an eventual Pre-Feasibility Study, which will utilise the data sets compiled and work programmes completed since the publication of the 2018 Scoping Study.

The independent economic study, which will be conducted by Bara Consulting, will incorporate, inter alia, a mine schedule, mine plan, third phase metallurgical testwork (currently in progress), this latest resource update, updated commodity prices, ore sorting analysis (currently in progress), new engineering components and an infrastructure layout.

Revised inputs

The geological team at Europa Metals has completed several important workstreams and internal projects over the last four years to improve the geological understanding of the Toral deposit.

The 2018 re-logging exercise of the historic Peñarroya core at the IGME facilities, proved to be beneficial as it assisted in increasing the Company’s understanding of the geological environment and controls on mineralisation. In addition, it provided basic structural data and, importantly, increased the quantity and quality of bulk density measurements.

The completion of detailed surface geological mapping in 2019 led to the 2020 updated structural database to provide further data and guidance on structural influences within the confines of the Toral deposit.

The findings of such ongoing work has been incorporated into the updated resource model, thereby providing better delineated geological boundaries, and utilised for updating the structural framework which has been integral in establishing the updated resource model (which can be viewed in Figures 3 and 4)

Figure 3: Mineralisation wireframes, looking north:

http://www.rns-pdf.londonstockexchange.com/rns/1248W_1-2020-8-13.pdf

Figure 4: Mineralisation wireframes with major fault surfaces:

http://www.rns-pdf.londonstockexchange.com/rns/1248W_1-2020-8-13.pdf

Europa Metals completed two diamond drill holes (TOD-024 and TOD-025) (and one 53 m wedge, TOD-025D) in the last drilling campaign for total drilling of 852.6 metres. Holes TOD-024 and TOD-025 targeted the vein at approximately 300 and 500 metres below surface, respectively, as well as targeting the high-grade areas in the block model with a view to increasing the confidence level and the resource category of that area.

Full update https://www.investegate.co.uk/europa-metals-ltd–euz-/rns/updated-resource-estimate/202008140700041248W/


Linking Shareholders and Executives :Share Talk

If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates. Terms of Website Use All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned
Share via
Copy link
Malcare WordPress Security