07:00 Wed 05 Aug 2020
Europa Metals Ltd - Board Changes & Update re: Current Work Programmes
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Board Changes and Update regarding Current Work Programmes
Mr
The restructuring of the Board comes at a time when
The Company is currently focused on increasing its understanding of the
· A new, third phase, metallurgical study, being conducted by
· An ore sorting analysis programme conducted by
· A product marketing and sales initiative.
· EU grant application for project funding.
· Awaiting Investigation Permit decision by the Junta of Castilla y León for a further three years.
Given the progress being made in respect of ongoing workstreams, the Board believes it is an appropriate time to commission an independent JORC (2012) resource update, to be conducted by Addison Mining Services ("AMS"). The updated JORC resource will include the high grade drilling results from the 2019 programme that included the TOD-025 drill hole (which WAI is utilising in its third phase metallurgical work) that intersected 7.70m @ 17.3% ZnEq(PbAg) from 483.6m to 491.3m, including 4.3m @ 25.6% ZnEq(PbAg) from 486.3m to 490.6m. A further announcement(s) will be made in due course.
The Company's main objective is to bring together the results of the ongoing workstreams with data generated from previous work, completed by
"I would like to thank Colin for his contribution to the Company during its initial period of operations in
"The diligent work of the team in
For further information on the Company, please visit www.europametals.com or contact:
T: +61 417 978 955
T: +44 (0)20 3289 9923
Strand
T: +44 (0)20 7409 3494
T: +44 (0)20 3657 0050
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.
Notes to Editors
Appendix: Further information on the
Notes to Editors
Appendix: Further information on the
JORC (2012) Mineral Resource Estimate
Historic drill hole re-logging undertaken by the Company in 2018 provided improved geological, structure, alteration and weathering/oxidation information, which was incorporated into the interpreted geological and mineralised models for the current JORC (2012) mineral resource estimate. Surface mapping and remote data interpretation by
The latest mineral resource estimate (as of
· An Indicated resource of approximately 2.7Mt @ 8.9% Zn Equivalent (including Pb credits), 5% Zn, 4.2% Pb and 32g/t Ag
o Including 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 22g/t Ag
o Including 690,000 tonnes of zinc, 450,000 tonnes of lead and 11 million ounces of silver
· Total Resources of approximately 18Mt @ 7.4% Zn Equivalent (including Pb credits), 4.5% Zn, 3.1% Pb and 24g/t Ag
o Including 830,000 tonnes of zinc, 570,000 tonnes of lead and 14 million ounces of silver
--The latest resource update identified potentially economic mineralisation ranging from surface to approximately 1,100m below surface. The block model currently extends for a strike length of 3,600m and is still open to the east and west along strike and also at depth where it has not yet been closed off.
Cut-Off Zn Eq (PbAg)% |
Tonnes (Millions) |
Density |
Zn Eq (Pb)% |
Zn Eq (PbAg)% |
Zn % |
Pb % |
Ag g/t |
Contained Zn Tonnes (000s) |
Contained Pb Tonnes (000s) |
|
Indicated |
||||||||||
6 |
2.1 |
3 |
10 |
11 |
6 |
4.7 |
35 |
120 |
100 |
2.4 |
5 |
2.3 |
2.9 |
9.6 |
10 |
5 |
4.5 |
34 |
130 |
100 |
2.6 |
4 |
2.7 |
2.9 |
8.9 |
9.5 |
5 |
4.2 |
32 |
130 |
110 |
2.8 |
3 |
3.0 |
2.9 |
8.3 |
8.9 |
5 |
3.9 |
31 |
140 |
120 |
2.9 |
Inferred |
||||||||||
6 |
11 |
2.9 |
8.4 |
8.9 |
5 |
3.5 |
26 |
550 |
360 |
8.8 |
5 |
12 |
2.9 |
7.9 |
8.4 |
5 |
3.2 |
24 |
610 |
400 |
9.7 |
4 |
16 |
2.9 |
7.2 |
7.6 |
5 |
2.9 |
22 |
690 |
450 |
11 |
3 |
18 |
2.9 |
6.7 |
7.1 |
4 |
2.7 |
21 |
740 |
480 |
12 |
Total |
||||||||||
6 |
13 |
2.9 |
8.7 |
9.2 |
5 |
3.7 |
28 |
670 |
460 |
11 |
5 |
15 |
2.9 |
8.2 |
8.6 |
5 |
3.4 |
26 |
740 |
510 |
12 |
4 |
18 |
2.9 |
7.4 |
7.9 |
5 |
3.1 |
24 |
830 |
570 |
14 |
3 |
21 |
2.9 |
6.9 |
7.3 |
4 |
2.9 |
22 |
880 |
600 |
15 |
Transitional Oxide Material Total |
||||||||||
4 |
3 |
2.9 |
5.8 |
6.3 |
3 |
3.2 |
27 |
87 |
97 |
2.6 |
Unweathered Fresh Rock Total |
||||||||||
4 |
15 |
2.9 |
7.8 |
8.2 |
5 |
3.1 |
23 |
740 |
470 |
11 |
Table 4: Summary of 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.
Notes for table 4:
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 was 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
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*0.935 + Ag*0.018).
5. Zn Eq is the calculated Zn equivalent using lead credits and does not include silver credits (Zn Eq = Zn + Pb*0.935).
6. The mineral resource estimate set out above for the zinc, lead and silver mineralisation in the
7. Top cuts were applied to the composite assay grades for 20% Zn, 17% Pb and 125 g/t Ag, any value above the top cut value was reduced to that grade.
8. The Indicated and Inferred mineral resource category for the Toral lead-zinc-silver project set out in Table 2 (at cut-off grades ≥4% Zn Equivalent) comply with the resource definitions as described in the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves. The JORC Code, 2012 Edition. Prepared by: The
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.
Bulk density
The resource database contains 2,373 bulk density measurements, with a total of 177 within the mineralised wireframe.
The mean for the mineralised domain transitional zone is 2.75 g/cm3 and the mean for the mineralised domain fresh material is 2.85 g/cm3. A broad linear relationship between Pb+Zn grade and bulk density was identified from scattergrams and the formula 2.75 + 0.02(Pb+Zn%) used to estimate block density within the block model.
Second Phase metallurgical test results from
The metallurgical results contained arise from a testing programme that culminated in a second locked cycle test. Such testwork achieved the following recoveries:
o 83.7% Pb recovery to a 60.0% Pb concentrate;
o 87.1% Ag recovery to 1,350ppm Ag within Pb concentrate; and
o 77.0% Zn recovery to a 59.1% Zn concentrate.
These results show that the amount of lead recovered has remained broadly unchanged versus the lead recoveries obtained from the first locked cycle test. However, there has been a 2.5% increase in the Pb concentrate grade and zinc recovery has increased by 6.3% with a 3.3% increase in Zn concentrate grade.
Economic highlights from the Company's selected development scenario
Estimated economic forecasts for the
·
· 24.4% internal rate of return (IRR);
· Estimated
· Estimated total CAPEX of
·
·
· 15-year production plan, with significant potential for extension.
Basis for announcing economics
The factors that lead the Company to believe that it has a reasonable basis for announcing a production target and forecast financial information are detailed in the Scoping Study and can be summarised as follows:
Three conceptual underground mining development and production scenarios were considered and developed throughout the Scoping Study, resulting in the identification of a preferred scenario, highlights from which are set out below:
· decline ramp access to the north of the deposit, targeting mine production within the higher-grade core towards the centre of the planned mining blocks;
· entry to mine via a principal decline reaching various levels;
· series of internal mining inclined ramps constructed to access levels;
· mechanised cut and fill (MCAF) mining method proposed;
· 4x4 metre mine standard development size;
· a ventilation raise would be drilled (raise-bored) to provide both adequate ambient conditions underground and a second, emergency means of access/egress into the mine;
· ore transported to a flotation process plant by conveyor or haul truck from the mine and crushed to a suitable product for milling;
· milled ore floated by standard flotation technology to provide lead and zinc concentrate, with silver probably reporting to the lead concentrate for sale as a combined product; and
· 4% Zn Eq cut-off used with potential for mine life extension.
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