Europa Metals Ltd (LON:EUZ) has released the findings of a preliminary economic study for the Toral lead-zinc-silver mine project, in north west Spain, proposing a significantly larger mining operation.
It envisages a 700,000 tonnes per annum operation over a 12-year life.
In a statement, Europa described a very robust project capable of producing high-grade saleable concentrates within an EU jurisdiction.
Wednesday’s early deals in London saw Europa shares advance around 11.6% to trade at 12p each.
The study pitched the project’s net value (NPV) at US$156mln and sees an internal rate of return (IRR) of 31.3%.
Upfront capital requirement is estimated at US$79mln and life-of-mine operating costs are seen at US$477mln.
The mine is predicted to generate US$963mln of revenue over life-of-mine, with life-of-mine earnings (EBITDA) forecast at US$471mln.
Europa highlighted meanwhile that whilst the LOM production schedule incorporates 100% of existing resources, the deposit is still open to the east and also at depth, which allows potential for production expansion.
"Having recently secured a new three-year investigation permit for Toral and with today's updated economics attributing a US$156mln NPV and a 31.3% IRR, the board shall progress Europa's strategy to secure the most value-accretive pathway to advance the project,” said Laurence Read, Europa chief executive.
"With work towards a PFS for Toral now underway, we look forward to updating the market in due course on our hydrogeology programme, planned resource and metallurgical drilling and geotechnical work.”
Chairman Myles Campion, meanwhile, added: “Today's release of the new economic numbers is a culmination of two years' work covering many aspects of the Toral deposit.
“All necessary programmes needed to move the project towards a PFS have been completed and we now look forward to advancing all these studies to put the company in the best position to assess all options."