09:00 Thu 13 Jun 2019
Europa Metals Ltd - Drilling Update for the Toral Project, Spain
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Drilling Update for the
Summary
· Drill hole 1 (TOD-021) terminated at the Company's instruction following a substantial deviation in trajectory:
-
- Upper zone mineralisation intersected but above the targeted high-grade zone; consequently drill hole 1 will not be used to secure a metallurgical sample for testwork.
- Mineralisation encountered in the upper zone will be assayed and reported on in due course.
- Drilling performance review initiated and hole 2 commenced.
· Drill hole 2 (TOD-022) commenced on
- Target depth of 750 metres, targeting the high-grade zone.
- Completion anticipated by end of
Hole TOD-021 has been terminated at a depth of 652.90 metres, as a result of a deviation of the hole during drilling operations away from its designated target, being the high-grade zone of the existing defined resource. The deviation took the hole above its planned high-grade zone target and it will not therefore be used to secure a metallurgical sample. Mineralisation was encountered at TOD-021 and will be assayed and reported on in due course.
Commencement of Hole TOD-022
Commenting today,
"TOD-021 has been terminated at the Company's instruction due to a deviation in the hole's trajectory. The
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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:
The core objectives of the current drilling campaign (initiated in
1. Drill into the higher-grade core of the Project, as defined within the existing Inferred JORC (2012) resource estimate;
2. Target high grade areas within the defined resource to further the Company's understanding of the Project, with the aim of increasing confidence in the resource estimate to delineate a portion of the deposit into the Indicated resource category; and
3. Obtain a significant sample for metallurgical testwork by independent consultants to determine the potential Zn, Pb and Ag concentrate composition from Toral. This will provide additional data to assist process plant design and discussions with potential offtake parties.
Rig mobilisation
The rig and associated operating crew is being supplied by Sondeos y
Economic highlights from the Company's selected development scenario
Estimated economic forecasts for Toral based on the current level of work (+/-30%) from the Scoping Study (
·
· 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
· 4% Zn Eq cut-off used with potential for mine life extension.
JORC (2012) resource estimate
The Scoping Study was based on a previously announced JORC (2012) resource estimate comprising 16 million tonnes in the Inferred category, @ 7.5% Zn equivalent (Pb, Ag), 3.9% zinc, 3.1% lead and 24g/t silver equating to 640,000 tonnes of zinc, 510,000 tonnes of lead and 13 million ounces of silver*.
4% Zn Eq (PbAg)% |
Tonnes (Millions) |
Density g/cm3 |
Zn Eq (Pb)% |
Zn Eq (PbAg)% |
Zn % |
Pb % |
Ag g/t |
Contained Zn Tonnes (000s) |
Contained Pb Tonnes (000s) |
|
|
16 |
2.8 |
7 |
7.5 |
3.9 |
3.1 |
24 |
640 |
510 |
13 |
*Zn Eq (PbAg)% is the calculated Zn equivalent incorporating silver credits as well as lead; (Zn Eq (PbAg)% = Zn + Pb*0.96 + Ag*0.022). Zn equivalent calculations were based on 3-year trailing average price statistics obtained from the
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