TIDMEUZ
RNS Number : 8746K
Europa Metals Ltd
07 September 2021
7 September 2021
Europa Metals Ltd
("Europa Metals", the "Company" or the "Group") (AIM, AltX:
EUZ)
Pb, Zn, Ag & Cu Drilling Results and Updated Resource
Estimate to be Commissioned - Toral Project, Spain
Europa Metals, the European focused lead-zinc and silver
developer, is pleased to announce further assay results including
high-grade intersections of lead, zinc and silver, in addition to
an interval of nearly 1% copper, at the Company's 100% owned Toral
Pb, Zn & Ag project ("Toral" or the "Toral Project").
This latest 2021 infill drilling campaign was designed to
improve the Company's understanding of the deposit and assess the
potential for increasing future production in the early years of
the planned mine life, thereby enhancing the project's pay-back
period and profitability. Following the high-grade results
consistently generated during the last eight months and the
retrieval of significant amounts of material for metallurgical ore
sorting work the Company has now concluded this drilling phase.
Europa Metals is now assessing the impact of these final assay
results on its existing global and indicated resource and
commissioning a new independent updated resource estimate from
Addison Mining Services Limited ("AMS"). A further, independent,
metallurgical and concentrate work programme will then contribute
to the Toral project's production profile/design within the early
years of the project with a view to enhancing the project's
pay-back period and profitability.
The wide diameter, PQ, diamond drilling programme was conducted
by Sondeos y Perforaciones Industriales de Bierzo SA ("SPI
Drilling").
Highlights
Results :
-- Significant intersections from the remaining drillholes into
the upper zone, namely holes TOD-032, TOD-033 and TOD-034,
including:
-- TOD-032 2.7m @ 11.14% ZnEq(PbAg) from 225.90m to 228.60m
-- TOD-033 1.1m @ 4.24% ZnEq(PbAg) from 251.50m to 252.60m
-- TOD-034 14.85m @ 8.36% ZnEq(PbAg) from 328.50m to 343.35m including
o 5.85m @ 11.44% ZnEq(PbAg) from 330.40m to 336.25m; and
o 4.85m @ 12.64% ZnEq(PbAg) from 338.50m to 343.35m.
-- All drilling in 2021 has focused on the upper zones of the
Toral project in order to further determine:
-- the early years' production profile for a Pre-Feasibility Study ("PFS")/Future Development;
-- the ability to enhance payback and establish the most
profitable mining route into the spatially lower but higher-grade
areas of Toral and retrieve geotechnical data to advance ore
sorting and metallurgical testwork focusing on likely, final,
saleable, future concentrate products.
-- Drilling campaign has exceeded initial expectations with
consistent grades and intersections reported within the upper zone
well in advance of internal schedule.
-- 2.7m @ 0.93% Copper in hole TOD-032 most significant result
from within what is principally a Pb, Zn & Ag project. With the
presence of copper in the system, the Company is now considering
third party technical options to further understand the potential
benefits to Toral.
-- Further to the successful campaign, the Company shall now:
o Commission an independent updated Mineral Resource Estimate
from AMS to a JORC (2012) standard seeking a potential increase in
the indicated/global resource and examining the consequences that
the high-grade results have on the upper zone of the block
model.
o Conclude and announce the findings from an independent
hydrogeological report on bore hole pump testing conducted to
provide a greater understanding of the sub surface water conditions
during future production.
o Progress metallurgical test work with Wardell Armstrong
International ("WAI") looking at the recovery circuit, specifically
examining the ore sorting systems treating different material
types.
o Pursue the drawdown of Stage 2 grant funds of EUR158,628.60
once the Spanish Government Centre for the Development of
Industrial Technology ("CDTI") completes its final review of the
Stage 1 milestone documentation submitted in connection with the
Company's innovation partnership with the University of
Salamanca.
Commenting today, Laurence Read, CEO of Europa Metals said :
"The results from this latest round of drilling in terms of
grades and widths of lead, zinc and silver are in our view
exceptional and exceed our initial expectations for the upper zone
of the Toral project, an area that we have always viewed as being
the 'path' towards the lower, high-grade production zones.
"The 2021 drilling campaign has been excellent and I would like
to thank our team on the ground for their hard work in consistently
delivering within the highly challenging environment of
COVID-19.
"The Company has decided to conclude drilling and is assessing
the potentially positive impact these intersections could have on
the existing resource model and the potential future economics for
the Toral project. Even with a high-grade project with a robust
EBITDA margin at the three-year trailing metals prices in the last
independent economic study, we believe that further enhancements
can be achieved from optimising the mining route and further
determining processing systems such as ore sorting, or separate ore
sorting processes for different ore types.
"We are also considering the recent copper results of nearly one
per cent. and potential options for technical partnering to assess
what is happening within the system regarding this metal. Whilst
Toral is to date primarily a lead, zinc and silver project, the
presence of copper in the system encourages our belief that
potential sources may be present below the current 1,000 metre cut
off.
"Such work continues to de-risk the Toral project as a viable
low cost, high margin future production source with the potential
to significantly expand both the current mine life and the metals
concentrate profile. "
Commenting today, Myles Campion, Executive Chairman of Europa
Metals said :
"This year's drilling campaign into the upper siliceous zone of
Toral has indeed exceeded expectations. We have obtained a
significant amount of bulk sample material from this zone, through
the utilisation of PQ size drilling, that will enable us to
complete an ore sorting and metallurgical testwork programme in
conjunction with WAI.
"Throughout the campaign the Europa Metals team has, in house,
been updating our resource model as further information has become
available. This will enable us to move quickly to commission an
independent update to the existing resource estimate. We look
forward to releasing such update to the market in due course."
Drill Campaign's Objectives
The drilling campaign was designed to infill known gaps in the
resource drilling pattern, around the current known Indicated
resource at Toral between the 100 - 800 metre horizon. The holes
were also designed to retrieve a bulk sample for use in further
metallurgical testwork in order to confirm the suitability of the
siliceous ore type, found in the upper levels of the Toral deposit,
for X-Ray Transmission ore sorting. Geotechnical logging was also
routinely carried out for each hole to aggregate further data for
our geotechnical database in order to facilitate further design
studies.
Drill holes were located above the current Indicated resource
area, in a zone containing a siliceous style of mineralisation (the
lower, high-grade zones of Toral hosting a predominantly carbonate
style of mineralisation) with the drilling being conducted using
the biggest core size possible (PQ) to enable the retrieval of a
new bulk sample for further metallurgical test work.
Drilling Results
Hole TOD-029 identified significant widths of the siliceous
style of mineralisation present in the upper parts of Toral. The
total length of the intersection was 20.45m @ 2.68% ZnEq(PbAg)
which included 3.8m @ 8.87% ZnEq(PbAg).
The team elected to drill four "daughter" holes or wedges from
the parent TOD-029 hole in order to acquire more sample to be
utilised in the PFS ore sorting metallurgical testwork
programme.
The results included:
-- Hole TOD-028 intersected 2.4m @ 10.58% ZnEq(PbAg)
-- Hole TOD-030 intersected 2m @ 1.11% ZnEq(PbAg)
-- Hole TOD-031 intersected 1.05m @ 4.39% ZnEq(PbAg)
-- Hole TOD-032 intersected 2.7m @ 11.14% ZnEq(PbAg)
-- Hole TOD-033 intersected 1.1m @ 4.24% ZnEq(PbAg)
-- Hole TOD-034 intersected 14.85m @ 8.36% ZnEq(PbAg)
-- Hole TOD-035 no significant intersection
Such heterogenous results were expected across this upper part
of Toral and by utilising the samples collated into a bulk sample,
Europa Metals will be able to further determine and refine the
economic viability of ore sorting as a component in the planned
processing route.
Figure 1 : Toral Life of Mine Development Plan (looking North)
with the 2021 drilling campaign retrieving resource, geotechnical
and metallurgical data to refine the scenario for the early years
of potential future mining activity.
http://www.rns-pdf.londonstockexchange.com/rns/8746K_1-2021-9-6.pdf
Drilling parameters for the assay results reported for the 2021
diamond drilling campaign are presented in the table below:
Hole ID Easting Northing Elevation Azi (o) Dip (o) Depth (m)
(ETRS89) (ETRS89) (m)
----------- ----------- ---------- -------- -------- ----------
TOD-028 681651.16 4710061.60 570.84 207.96 -45 531.7
--------- ----------- ----------- ---------- -------- -------- ----------
TOD-029 681408.639 4710017.25 542.91 202 -49 370
--------- ----------- ----------- ---------- -------- -------- ----------
TOD-030 681195.26 4710029.10 531.92 217 -63.5 261.60
--------- ----------- ----------- ---------- -------- -------- ----------
TOD-031 681194.48 4710029.69 531.78 217 -63.5 374
--------- ----------- ----------- ---------- -------- -------- ----------
TOD-032 681193.81 4710028.92 532.08 217 -63.5 244.9
--------- ----------- ----------- ---------- -------- -------- ----------
TOD-033 681458.81 4709821.63 670.62 255 -62 340
--------- ----------- ----------- ---------- -------- -------- ----------
TOD-034 681460.66 4709819.98 670.75 173 -70 358
--------- ----------- ----------- ---------- -------- -------- ----------
TOD-035 681684.13 4709851.95 660.97 187 -57 470
--------- ----------- ----------- ---------- -------- -------- ----------
Figures 2 & 3 : East-West long sections locating completed
primary drill holes with assays for holes TOD-032, TOD-033, TOD-034
and TOD-035 and all additional holes completed during the 2021
drill campaign (Yellow).
http://www.rns-pdf.londonstockexchange.com/rns/8746K_1-2021-9-6.pdf
All drill holes during the 2021 campaign were drilled with a PQ
diameter, enabling the retrieval of:
- Resource assay data
- Geotechnical data
- Metallurgical samples
Holes TOD-032 to TOD-034 Zn, Pb, Ag & Cu assay results
Set out in the table below are all assays for the 2021 resource
drilling campaign completed at the Toral project. The assays
announced today for PQ drill holes TOD-32 to 34 are
highlighted.
Following receipt of these latest results, combined with the
previous results from this campaign, the Company will now seek to
commission an independent updated Mineral Resource Estimate for
Toral under the JORC (2012) code from AMS.
Hole ID From To Int (m) Ag ppm Cu % Pb % Zn % ZnEq
(PbAg)%
TOD-028 514.10 516.50 2.40 30.18 0.05 3.78 6.50 10.58
TOD-029 339.60 360.05 20.45 6.59 0.03 0.76 1.85 2.68
TOD-029
* 339.60 341.30 1.70 1.88 0.01 0.35 2.31 2.67
TOD-029
* 346.95 350.75 3.80 18.12 0.05 2.47 6.24 8.87
TOD-029
* 355.00 356.65 1.65 2.37 0.01 0.13 2.54 2.71
TOD-029
* 357.70 360.05 2.35 6.61 0.02 0.44 1.43 1.97
TOD-030 243.10 245.10 2.00 37.07 0.53 0.37 0.06 1.11
TOD-031 351.55 352.60 1.05 7.33 0.38 0.67 3.63 4.39
------------ ---------- ---------- ----------- --------- ------ ------ ------ -----------
TOD-032 225.90 228.60 2.70 70.17 0.93 4.94 5.23 11.14
TOD-033 251.50 252.60 1.10 12.90 0.16 1.91 2.23 4.24
TOD-034 328.50 343.35 14.85 45.84 0.11 5.08 3.28 8.36
TOD-034
* 330.40 336.25 5.85 90.88 0.23 9.15 1.24 11.44
TOD-034
* 338.50 343.35 4.85 26.84 0.03 4.11 8.33 12.64
------------ ---------- ---------- ----------- --------- ------ ------ ------ -----------
Significant ZnEq intercepts were generated using a total length mineralisation.
Zn equivalent calculations were based on 3-year trailing average
price statistics obtained from the London Metal Exchange. ZnEq (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*0.904 + Ag*0.019).
No top cutting was applied to Zn, Pb, Ag or Cu grades. Interval widths
reported are the downhole length and are unlikely to reflect true
widths owing to the mineralisation style at the project. True thickness
is approximately 70% of the drill thickness.
* Included.
Competent Person's Statement
The exploration results and activity reported in this
announcement have been compiled and reviewed by Mr Luis J. Pérez
who is a Member of the Australian Institute of Geoscientists (AIG)
and a European Geologist (EurGeol). Mr Pérez has sufficient
experience that is relevant to the style of mineralisation and type
of deposit under consideration and to the activity which he is
undertaking to be regarded as a qualified person under the AIM Note
for Mining and Oil & Gas Companies dated June 2009. Mr Pérez
consents to the inclusion in this announcement of the matters based
on his information in the form and context in which it appears.
For further information on the Company, please visit
www.europametals.com 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
Linkedin: Europa Metals ltd
Twitter: @ltdeuropa
Vox: Europametals
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
Existing Mineral Resource Estimate
-- 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.
Table 1 : Summary of Indicated and Inferred mineral resources
for the Toral property reported at a 4.0% Zn equivalent cut-off
grade (including Pb and Ag credits) and estimated grade and
tonnages at the various cut-off grades. Figures are rounded to
reflect the accuracy of the estimate and, as such, totals may not
cast.
Cut-Off Tonnes Density Zn_Eq Zn Eq Zn % Pb % Ag g/t Contained Contained Ag Troy Oz
Zn Eq (Millions) (Pb)% (PbAg)% Zn Tonnes Pb Tonnes (Millions)
(PbAg)% (000s) (000s)
Indicated
6 2.8 2.9 9.5 10.0 5.3 4.5 34 150 130 3.1
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
5 3.3 2.9 8.9 9.5 5.0 4.2 32 170 140 3.4
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
4 3.8 2.9 8.3 8.9 4.7 3.9 30 180 150 3.7
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
3 4.1 2.9 7.9 8.5 4.4 3.7 29 180 150 3.8
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
Inferred
6 8 2.9 7.8 8.3 4.7 3.4 28 370 270 7.2
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
5 10 2.9 7.2 7.7 4.4 3.0 26 450 310 8.6
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
4 14 2.9 6.5 6.9 4.0 2.7 23 540 360 10
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
3 17 2.9 5.9 6.3 3.7 2.4 20 610 400 11
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
Total
6 11 2.9 8.2 8.8 4.8 3.7 30 520 390 10
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
5 14 2.9 7.6 8.1 4.5 3.3 27 620 450 12
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
4 17 2.9 6.9 7.3 4.1 2.9 24 720 510 14
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
3 21 2.9 6.3 6.7 3.8 2.7 22 790 560 15
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
Transitional Oxide Material
4 3 2.9 5.2 5.7 2.6 2.9 27 75 83 2.5
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
Unweathered Fresh Rock
4 14 2.9 7.2 7.7 4.5 3.0 24 650 430 11
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
* - ZnEq (Pb)% is the calculated Zn equivalent incorporating
lead credits; (ZnEq (Pb)% = Zn + Pb*0.926). ZnEq (PbAg)% is the
calculated Zn equivalent incorporating silver credits as well as
lead; (ZnEq (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. ZnEq (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 (ZnEq (PbAg)% = Zn +
Pb*0.926 + Ag*0.019).
5. ZnEq is the calculated Zn equivalent using lead credits and
does not include silver credits (ZnEq = 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 category for the
Toral zinc-lead-silver project set out in Table 1 (at cut-off
grades >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).
9. The tonnes and grades reported at a cut-off grade of 3% Zn
equivalent are below the economic cut-off grade of 4% and as such
should not be considered mineral resources, they are shown here for
comparison purposes only.
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