Europa Metals Ltd (AIM:EUZ, JSE:EUZ), the European-focused lead, zinc and silver developer, has announced its final results for the year ended 30 June 2022, during which it "conducted additional highly successful drilling campaigns and metallurgy work".
In the results statement, Myles Campion, the company's executive chairman and acting CEO (UK) noted the update to the independent Indicated resource estimate for its wholly-owned Toral Project in northern Spain which "represented a substantial, approximate 55%, increase in the indicated resource component and the updated resource estimate can be utilised in calculations for feasibility studies and to support future mine planning".
He pointed out that: "The 2021 drill campaign targeted the upper more siliceous levels of the resource at Toral, which exhibits a lower grade and thinner horizon than the lower carbonate facies. The campaign yielded some tremendous results with hole TOD-029 intersecting 20.45m @ 2.68% ZnEq(Pb+Ag) and hole TOD-034 intersecting 14.85m @ 8.36% ZnEq(Pb+Ag).
"The campaign also successfully obtained a bulk sample from some of the daughter holes from holes TOD-029 and TOD-034 which were submitted to Wardell Armstrong International Limited for further metallurgical evaluation. As part of this testwork, we also engaged TOMRA GmbH in Germany to complete a programme of X-Ray transmission ore sorting work. Previous programmes had yielded positive results from such siliceous material illustrating the ability for the grade of this zone to potentially be upgraded."
Campion noted that the results from the ore sorting testwork at Toral were also most reassuring, and following the year-end, the company announced further highly encouraging metallurgical testwork results including locked cycle flotation testwork, in respect of sample material from both the upper siliceous zone and the lower carbonate zone.
"Over the coming period, the Board will continue with its endeavours to establish a clear pathway forward for Toral as we continue to believe in the clear potential for the profitable future development of Toral in a stable and secure first-world jurisdiction," the Europa Metals boss added.
In this regard, the company recently announced a letter of intent in respect of a proposed US$6mln farm-in arrangement with Denarius Metals Corp, involving a two-stage option and joint venture, under which it will be afforded the right to acquire up to an 80% ownership interest in Toral.
Campion said: "This proposed investment by Denarius represents a significant step forward with respect to the advancement of Toral, but also our ambition to secure potential further concessions in the surrounding Northern Spain region."
"In addition, we have continued to pursue our stated business development strategy and identify promising complimentary opportunities for portfolio expansion. As at the end of the reporting period, the management team had reviewed over 18 projects, with four being discussed and evaluated at Board level, and we intend to continue such activity and to identify, investigate and assess additional opportunities of potential interest. Further updates will be provided as and when appropriate," he concluded.
Looking at the financials for the year ended June 30, 2022, Europa Metals narrowed its loss before taxation to $2,463,069, down from a $3,258,664 loss in 2021, with basic loss per share reduced to 3.57 US cents (2021: 7.03 US cents).
The company had cash and cash equivalents as at June 30, 2022, of US$1,650,056 (2021: US$1,180,768).