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.
In January, Europa paused drilling to analyse the data accumulated, with metallurgical testing to be accompanied by hydrology and geotechnical modelling to help move the development of Toral forward in a cost-effective and optimal manner
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.
What the boss says: Laurence Read, director
Laurence Read, Europa's executive director, described April's metallurgical results as “excellent”.
“We are particularly pleased with the increase in zinc recovery versus the first set of results and the significant silver credit,” he said.
“We believe that Toral has the potential to be a near term producer of silver, lead and zinc but that further work must be carried out on the flow-sheet before looking to move towards future development. In addition, importantly, chemical analysis has allowed Europa Metals, for the first time, to look at potential smelter suitability for the project, although additional assessment is required, as part of the overall flow-sheet optimisation process, to reduce by-product elements.”
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.