TIDMEUZ
RNS Number : 5647F
Europa Metals Ltd
19 July 2021
19 July 2021
Europa Metals Ltd
("Europa Metals", the "Company" or the "Group") (AIM, AltX:
EUZ)
Milestone 1 of the CDTI EUR466,801.50 Innovation Grant
Completed
Toral Pb, Zn & Ag Project, Spain
Europa Metals, the European focused lead-zinc and silver
developer, is pleased to announce that it has now completed the
requisite work and collated and submitted all the relevant
documentation to the Spanish Government Centre for the Development
of Industrial Technology ("CDTI") in relation to the Stage 1
milestone of its EUR466,801.50 innovation grant (the "Grant"),
further details of which were announced on 19 October 2020.
Following receipt of an initial tranche of EUR163,380, Europa
Metals has worked closely with its innovation partners, the
University of Salamanca (Air Institute) and the drilling
contractors Sondeos y Perforaciones Industriales de Bierzo SA
("SPI") in recording and analysing data from the ongoing 2021
Pre-Feasibility Study drilling campaign at the Company's wholly
owned Toral Project. Using new down-hole monitoring technologies,
developed by SPI, the University of Salamanca has now compiled a
sufficient data set from over 2,800m of diamond drilling at Toral,
to create an initial, correctional algorithm to be further
researched to move towards potential commerciality. Any future
commercial benefit from an eventual product will be shared by the
Innovation Partnership (comprising Europa Metals, the University of
Salamanca and SPI).
Further to the abovementioned submission to the CDTI, it will
now undertake its formal review process, following which the
Company intends to draw down Stage 2 funds of EUR158,628.60.
Commenting today, Laurence Read, CEO of Europa Metals said :
"The work conducted with our Innovation Partners, the University
of Salamanca and SPI, has been outstanding and we are delighted to
have completed and submitted the necessary documentation on
schedule, in respect of the Stage 1 milestone requirements as
outlined under the EUR466,801.50 grant, awarded to us by the CDTI.
I would like to thank CDTI and the Spanish Ministry of Science and
Innovation for backing this exciting project as we continue to
support the University of Salamanca's investigation into new,
commercial, deviational correction algorithms for potential
application to diamond drilling campaigns .
"I look forward to updating the market further in due course as
the CDTI Stage 1 milestone review process is completed alongside
other activities on our Toral PFS campaign."
About CDTI
The CDTI ("Centro para el Desarrollo Tecnológico Industrial";
https://www.cdti.es/) is a Public Business Entity in Spain, under
the auspices of the Ministry of Science and Innovation, which
fosters the technological development and innovation of Spanish
companies. The Grant made to Europa Metals is categorised as a
partly refundable loan (with a nil per cent. interest rate) with
the funds received at each stage to be allocated towards the
development of R&D technologies relating to the recording and
correction of drillhole deviation at the Toral Project. Application
for the Grant was made further to the abovementioned ongoing work
by Europa Metals and the AIR Institute, linked to the Salamanca
University, in conjunction with SPI.
Grant terms
Europa Metals can draw the Grant monies down in up to three
tranches subject to certain, pre-defined, operational milestones
being met. The core objectives of the Innovation Programme are to
retrieve and process data from the Toral drilling campaign in order
to develop algorithmic software for use in exploration campaigns to
correct drilling deviation. Biannual repayments of EUR21,822 begin
in 2024, running for 7 years until 2031, with a fixed interest rate
being set by the prevailing Euribor rate at inception of nil per
cent.
Europa Metals anticipates that the Grant will enable the Company
to apply for reductions in taxes payable, relating mainly to labour
costs, and is satisfied that the terms of the Grant do not prevent
the Company from participating in other grant application processes
save where there is a specific technological overlap.
Once the funds have demonstrably been spent on appropriate
R&D exploration activity at the Toral Project by the Company,
70 per cent. of the total Grant will be repayable with the
balancing 30 per cent. then not required to be repaid.
For further information on the Company, please visit:
www.europametals.com
Linkedin: Europa Metals ltd
Twitter: @ltdeuropa
Vox: Europametals
or contact:
Europa Metals Ltd
Dan Smith, Non-Executive Director and Company Secretary
(Australia)
T: +61 417 978 955
Laurence Read, CEO (UK)
T: +44 (0)20 3289 9923
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler
T: +44 (0)20 7409 3494
Turner Pope Investments (TPI) Limited (Broker)
Andy Thacker/James Pope
T: +44 (0)20 3657 0050
Sasfin Capital Proprietary Limited (a member of the Sasfin
group)
Sharon Owens
T (direct): +27 11 809 7762
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018.
Notes to Editors:
Appendix : Further information on the Toral Project
Developing Potential Future Lead, Zinc & Silver Production
within the EU
Located within the province of Castilla y León, Spain, Toral is
well positioned to become a potential high grade production source
of lead, zinc and silver within the EU trading block.
The Company is currently conducting a Pre-Feasibility Study
("PFS") on the project with Wardell Armstrong International Ltd as
PFS manager further to, inter alia, the successful completion of a
preliminary economic study by Bara Consulting and Addison Mining
Services Limited in November 2020 which determined the following
key parameters:
Resource Indicated Tonnes 3.8m
Inferred Tonnes 13.5m
-------------------------------------- --------------------
Total Tonnes 17m
-------------------------------------- --------------------
Av. ZnEq. (PbAg)% 7.3
-------------------------------------- --------------------
Mining Rate tpa 700,000
------------------------- --------------------
Grade ZnEq%* 7.6%
-------------------------------------- --------------------
Cost US$36/t
-------------------------------------- --------------------
LOM 12 years
-------------------------------------- --------------------
Metallurgy Process Sorting+Flotation
------------------------- --------------------
Recovery (Average) 85% Zn, 87% Pb, 86%
Ag
-------------------------------------- --------------------
Capex Mine US$86m
------------------------- --------------------
Upfront (to production) US$79m
-------------------------------------- --------------------
Financials NPV US$156m
------------------------- --------------------
IRR 31.3%
-------------------------------------- --------------------
Payback Year 4
-------------------------------------- --------------------
* - Zn Eq (Pb)% 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.
Notes:
1. No mineral reserve calculations have been undertaken. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability.
2. Numbers are rounded to reflect the fact that an Estimate of
Resources is being reported as stipulated by JORC 2012. Rounding of
numbers may result in differences in calculated totals and
averages. All tonnes are metric tonnes.
3. 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.
Recovery and selling factors were incorporated into the calculation
of Zn Eq values. It is the Company's opinion that all the elements
included in the metal equivalents calculation (zinc, lead and
silver) have a reasonable potential to be recovered and sold.
4. Zn Eq (PbAg)% is the calculated Zn equivalent incorporating
silver credits as well as lead and is the parameter used to define
the cut-off grade used for reporting resources (Zn Eq (PbAg)% = Zn
+ Pb*0.926 + Ag*0.019).
5. Zn Eq is the calculated Zn equivalent using lead credits and
does not include silver credits (Zn Eq = Zn + Pb*0.926).
6. The Mineral Resource Estimate set out above for the zinc,
lead and silver mineralisation in the Toral Project area is based
on a 3D geologic model and wireframe restricted block model that
integrated the exploration work on the Toral Project up to 21
January 2020. The block model used uniform cell size of 25x10x25m
to best suit the orientation of the mineralisation and sample
spacing. The block model was rotated by 20deg in plan view to best
match the trend of mineralisation. Sub cells were applied to better
fit the wireframe solid models and preserve accurate volume as much
as possible. Cells were interpolated at the parent block scale
using an Ordinary Kriging.
7. Following statistical analysis and assessment of the updated
assay composite database top cuts of 125g/t Ag were applied to the
data. No top cuts were applied for Zn or Pb.
8. The Indicated and Inferred mineral resource estimates for the
Toral zinc-lead-silver project set out above (at a cut-off grade
>4% Zn Equivalent) comply with the resource definitions as
described in the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves. The JORC Code, 2012
Edition. Prepared by: The Joint Ore Reserves Committee of The
Australasian Institute of Mining and Metallurgy, Australian
Institute of Geoscientists and Minerals Council of Australia
(JORC).
.
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