Toral is demonstrating itself to be a highly robust lead, zinc and silver project located in a first world jurisdiction.
Laurence Read, chief executive
How it's doing
Europa Metals Limited (LON:EUZ) is developing the Toral project in Castilla y León region in north-west Spain.
A scoping study in 2018 projected an internal rate of return (IRR) of 24.4% with total capital expenditure put at US$110mln.
An independent metallurgical report in April 2020 showed healthy recoveries and grades, with 83.7% lead (Pb) recovery to a 60.0% Pb concentrate; 87.1% silver (Ag) recovery to 1,350 parts per million (ppm) Ag within Pb concentrate; and 77% zinc (Zn) recovery to a 59.1% Zn concentrate.
The programme also provided some insight into possible areas for improvement and optionality that requires further work, with the result of the metallurgical testing leading the company to analyse whether ore-sorting could be a good optimisation route.
As part of this process, mineralisation in the upper portion of the ore body will now be tested using X-ray transmission (XRT) ore sorting techniques, while further metallurgical tests will be undertaken on mineralisation sampled from the high-grade intersection encountered in hole TOD-025.
The company raised £2mln in August to allow it to continue work on certain key components of a pre-feasibility study for Toral.
What the boss says: Laurence Read, director
Laurence Read, Europa's executive director, described April's metallurgical results as “excellent”.
“The Toral project has been continually advanced by Europa Metals and last week we reported a resource update estimating a 3.8Mt Indicated resource at 8.3% Zn Equivalent (including Pb credits) and 17Mt total resource at 6.9% Zn Equivalent (including Pb credits), at a 4% cut-off. With a total resource containing 720,000 tonnes of zinc, 510,000 tonnes of lead and 14 million ounces of silver and testwork recoveries of 83.7% lead recovery to a 60% concentrate, 77% zinc recovery to a 59.1% concentrate and 87.1% silver recovery to 1,350ppm Ag within lead concentrate, we have taken the decision to raise funds to complete certain key components of a PFS."
Watch April's interview
- Resource definition drilling to identify characteristics of metals in the concentrate
- Drilling in high-grade areas alongside metallurgical work to upgrade resource to indicated status
- Changes to regulations governing the use of land for mining in north-west Spain’s Castilla y Leon region can give a boost to Toral
- Shifted primary listing to AIM from ASX to reflect focus on Europe and where shareholders are largely based.