Europa Metals Ltd (AIM:EUZ, JSE:EUZ) announced the highest-grade drilling result so far for its flagship Toral lead-zinc-silver project in Spain.
Shares in the AIM-traded group jumped as high as 23% following the release of the latest assay results from the project.
Europa reported a significant intersection from drillhole TOD-042 of 5.25 metres (m) at 23.24% zinc equivalent (including lead and silver credits), including 2.50m at 44.55%.
"Hole TOD-042 contained the highest-grade intersection that the company has drilled to date at Toral with over 5m in excess of 20% Zn [zinc] equivalent representing a fantastic result,” said executive chairman and acting chief executive Myles Campion.
The hole is adjacent to hole TOD-041, where the company previously announced an intersection of 3.20m at 15.16% zinc equivalent (including lead and silver credits).
Both holes could link together the current indicated resource estimate to a part of the inferred resource at depth which demonstrates continuity, said Europa.
The aim of the drilling campaign is to expand on the existing indicated resource of 5.9 mln tonnes at 7.1% zinc equivalent (including lead credits) and 27 g/t silver at depth.
"We targeted this area of the deposit in order to increase our confidence in a potential extension to the indicated resource and also from the concept that it could be a higher grade 'channel' within the resource,” said Campion.
“Both concepts have been proven which is an excellent result for the team and Toral's future".
The shares pared earlier gains to trade 16% higher at 3.10 pence in early trading.