07 Jun - 9 min read

Pb, Zn, Ag & Cu PFS Drilling Results - Toral Project, Spain

Pb, Zn, Ag & Cu PFS Drilling Results - Toral Project, Spain

 Europa Metals Ltd
(Formerly Ferrum Crescent Limited)
(Incorporated and registered in Australia
and registered as an external company in
the Republic of South Africa)
(Registration number 4459850)
(External company registration number 2011/116305/10)
Share code on the ASX: EUZ
Share code on AIM: EUZ
Share code on the JSE: EUZ
ISIN: AU0000014342
("the Company")

Pb, Zn, Ag & Cu PFS Drilling Results - Toral Project, Spain

Europa Metals, the European focused lead-zinc and silver developer, is pleased to announce initial
assay results from its Pre-Feasibility Study (“PFS”) diamond drilling programme being conducted by
Sondeos y Perforaciones Industriales de Bierzo SA (“SPI Drilling”) at the Company’s 100% owned
Toral Pb, Zn & Ag project (“Toral” or the “Toral Project”).

The current infill drilling campaign is seeking to improve the Company’s understanding of the deposit
to assess the potential for increasing future production in the early years of the planned mine life
thereby enhancing the project’s pay-back period and profitability.


•   Significant intersections from drillholes TOD-028, 029, 030 & 031, including:
    -   TOD-028: 2.4m @ 10.58% ZnEq(PbAg)*;
    -   TOD-029: 20.45m @ 2.68% ZnEq(PbAg)* including:
    -   3.8m @ 8.87% ZnEq(PbAg); and
    -   TOD-029: significant widths over 20m suitable for metallurgical ore sorting testwork.

•   Drilling campaign’s objectives are being achieved in the upper zone of the deposit with regards
    to both drillhole spacing and metallurgical sample collection.
•   The campaign area is providing results that could support the ore sorting processing route
    identified in the 2020 independent preliminary economic study, with significant widths of <4%
    cut-off grade being intersected.
•   Both siliceous and carbonate styles of mineralisation intersected as expected.
•   Detailed geotechnical data captured to contribute to the PFS-level mine design.
•   As previously reported, four daughter holes were drilled from TOD-029 (designated TOD-029 a-
    d) following pre-assay inspection of the intersections. The assay results support the decision to
    target a meaningful mineralised sample from the TOD-029 daughter holes to undertake further
    ore-sorting testwork for the PFS.
•   Drilling is ongoing and further updates will be provided once additional results are received - a
    resource update will be commissioned at the appropriate time for input into the planned PFS.
•   Hydrogeological campaign is on schedule with completion of the main bore hole work to test
    water levels/conditions within the proposed mining area being the next key component.
    Piezometer work to monitor local water conditions ongoing.

Current drilling campaign objectives:

•   Focused on the 100 - 800m horizon, with initial drilling on the upper siliceous material zone that
    would potentially host the early years of future production.
•   Targeting gaps within the current JORC (2012) resource model to enhance understanding of
    the block model, retrieve geotechnical information for mine design, and identify opportunities to
    gather further metallurgical samples from within substantive intersections encountered.
•   Collation of data to inform development of the early years of potential future production at Toral
    and refine the pay-back period in the current economic model.
•   Drilling data being utilised to progress the Company’s innovation partnership with the University
    of Salamanca facilitated by the grant of €466,801 received by way of a loan from Spain’s Centre
    for the Development of Industrial Technology.

Commenting today, Laurence Read, CEO of Europa Metals said:
“Today’s assay results are excellent and we look forward to incorporating a new resource zone into
the early years of potential future production at Toral. This will clearly be dependent on the results
of an independent JORC (2012) resource update to be commissioned in due course, however the
campaign’s findings to date are supportive of us meeting this objective.
“It is particularly pleasing to see the team’s decision to initiate daughter holes off TOD-029, pre
assay, being supported by today’s results. By securing meaningful metallurgical samples for PFS
level work, Europa Metals can build on its existing metallurgical testwork findings as well as further
assessing the implementation of ore sorting within the upper siliceous zone of the project. Further
enhancement of the early pay-back and economics for the Toral Project at a PFS level remains one
of our key objectives.
“I would like to thank the team for their hard work in delivering these results as well as progressing
our other workstreams in 2021 to date. Operationally, worker safety, particularly during the
coronavirus crisis, remains our priority and with an experienced and well established team we have
achieved a significant amount without any lost-time injuries or incidents.”

Commenting today, Myles Campion, Executive Chairman of Europa Metals said:
“The thick widths intersected in the upper siliceous zone are significant and the campaign is proving
up areas that were previously considered sub-economic. Today’s results, combined with our ongoing
drilling/metallurgical programme, should ultimately enable us to update the pre-existing resource
estimate and further enhance the economics for Toral as we advance towards a PFS.”

The Europa Metals’ team is delighted with today’s initial results and believes that the new data
obtained will significantly contribute to its understanding of the upper zones of the deposit and earlier
years of the production model and planned mine design, bringing in a new mineable area. With a
4% cut-off grade for the project, Toral typically demonstrates higher grades at depth; the high-grade
intersections reported below in the upper zones exceed our internal expectations.

Drill Campaign’s Objectives
The ongoing drilling campaign is seeking to infill known gaps in the resource drilling pattern, around
the current known Indicated resource at Toral between the 100 - 800 metre horizon. The holes have
also been designed to retrieve a bulk sample for use in further metallurgical testwork in order to
confirm the suitability of the siliceous ore type, found in the upper levels of the Toral deposit, for X-
Ray Transmission ore sorting. Geotechnical logging is also routinely being carried out for each hole
to aggregate further data for our geotechnical database to facilitate further design studies.

The target area for holes TOD-028, TOD-029, TOD-030 and TOD-031 is located above the current
Indicated resource area, in a zone containing a siliceous style of mineralisation (the lower, high grade
zones of Toral hosting a predominantly carbonate style mineralisation) with the drilling being
conducted using the biggest core size possible (PQ) to enable the retrieval of a new bulk sample for
further metallurgical test work.

Drilling Results
Hole TOD-029 identified significant widths of the siliceous style of mineralisation present in the upper
parts of Toral. The total length of the intersection was 20.45m @ 2.68% ZnEq(PbAg) which included
3.8m @ 8.87% ZnEq(PbAg).

The team elected to drill four “daughter” holes or wedges from the parent TOD-029 hole in order to
acquire more sample to be utilised in the PFS ore sorting metallurgical testwork programme.

Hole TOD-028 intersected 2.4m @ 10.58% ZnEq(PbAg), hole TOD-030 intersected 2m @ 1.11%
ZnEq(PbAg) and hole TOD-031 intersected 1.05m @ 4.39% ZnEq(PbAg).

Such heterogenous results were expected across this upper part of Toral and by utilising the samples
collated into a bulk sample, Europa Metals will be able to further determine and refine the economic
viability of ore sorting as a component of the processing route.

Figure 1: Toral Life of Mine Development Plan (looking North) with the current phase of the
2021 drilling campaign retrieving resource, geotechnical and metallurgical data to develop the
early years of a potential future mining scenario can be viewed on the following link:


Drilling parameters for the assay results reported for the 2021 diamond drilling campaign to date are
presented in the table below:

      TOD-028      681651.16   4710061.60       570.84       531.70    ETRS89utm29
      TOD-029      681408.63   4710017.25       542.91       370.00    ETRS89utm29
      TOD-030      681195.26   4710029.10       531.92       261.60    ETRS89utm29
      TOD-031      681194.48   4710029.68       531.78       374.00    ETRS89utm29

Figures 2 & 3: East-West long sections locating completed primary drill holes TOD-028, 029,
030 & 031 (2021 drilling campaign), the blue circle indicates area of TOD-029 and its daughter
holes can be viewed on the following link:


Drill holes TOD-028, 029, 030 and 031 (shown in yellow in figures 2 and 3) were drilled with a PQ
diameter, with half of the core being sent for independent analysis at ALS Laboratories. The key
selected assay results received to date are set out in the table below:
  Hole_ID        From       To          Interval    Zn_%      Pb_%      Ag_ppm       Cu_%      ZnEq(PbAg)%*
  TOD-028        514.10     516.50      2.40        6.50      3.78      30.18        0.05      10.58
  TOD-029        339.6      360.05      20.45       1.85      0.76      6.59         0.03      2.68
  TOD-029        339.60     341.30      1.70        2.31      0.35      1.88         0.01      2.67
  TOD-029        346.95     350.75 3.80             6.24      2.47      18.12        0.05      8.87
  TOD-029        355.00     356.65 1.65             2.54      0.13      2.37         0.01      2.71
  TOD-029        357.70     360.05 2.35             1.43      0.44      6.61         0.02      1.97
  TOD-030        243.10     245.10 2.00             0.06      0.37      37.07        0.53      1.11
  TOD-031        351.55     352.60 1.05             3.63      0.67      7.33         0.38      4.39

* - ZnEq (PbAg)% is the calculated Zn equivalent incorporating lead and silver credits; (ZnEq (PbAg)% = Zn +
Pb*0.926 + Ag*0.019). Zn equivalent calculations were based on 3-year trailing average price statistics obtained from
the London Metal Exchange and London Bullion Market Association giving an average Zn price of US$2,680/t, Pb
price of US$2,100/t and Ag price of US$16.2/oz.

Metallurgical drilling
The assay results received for hole TOD-029 support the team’s decision to undertake four daughter
holes from the main drillhole in order to gather a meaningful mineralised sample for further
metallurgical testing. It is envisaged that as part of the PFS, further metallurgical testwork will be
undertaken to advance the pre-existing recovery and high-grade concentrate results from the
carbonate material in addition to determining ore sorting routes for the siliceous material present in
the upper zones of the Toral Project.

Copper results
The consistent presence of copper, up to 0.5% Cu, so far up in the mineralisation is noteworthy but,
as previously stated, the Company will not presently seek to incorporate copper into the resource. It
is anticipated that a future exploration campaign, post production being achieved, would focus on
mineralisation below the current 1,000m resource (and to the East) in order to determine expansion
possibilities to enhance the current, 12 year, mine life and potentially seeking to identify a separate
thermal event within the system hosting copper feeders.

Drilling operations are ongoing, in line with the objectives set out above, and further assay results
will be announced once processed and received. It is anticipated that a resource update (JORC
2012) will be commissioned, when appropriate, to form part of the project’s PFS. The Toral
hydrogeological campaign remains on schedule with the completion of the main bore hole work, to
test water levels/conditions within the proposed mining area, being the next key component of this
workstream. This is in addition to the ongoing monitoring of local water conditions via our piezometer
programme. All other project related workstreams and potential corporate initiatives are progressing
well and further updates will be made in due course as appropriate.

Competent Person’s Statement
The exploration results and activity reported in this announcement have been compiled and reviewed
by Mr Luis J. Pérez who is a Member of the Australian Institute of Geoscientists (AIG) and a
European Geologist (EurGeol). Mr Pérez has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which he is undertaking to
be regarded as a qualified person under the AIM Note for Mining and Oil & Gas Companies dated
June 2009. Mr Pérez consents to the inclusion in this announcement of the matters based on his
information in the form and context in which it appears.

For further information on the Company, please visit www.europametals.com or contact:

Europa Metals Ltd
Dan Smith, Non-Executive Director and Company Secretary (Australia)
T: +61 417 978 955
Laurence Read, CEO (UK)
T: +44 (0)20 3289 9923
Linkedin: Europa Metals ltd
Twitter: @ltdeuropa
Vox: Europametals

Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler
T: +44 (0)20 7409 3494

Turner Pope Investments (TPI) Limited (Broker)
Andy Thacker/James Pope
T: +44 (0)20 3657 0050

Sasfin Capital Proprietary Limited (a member of the Sasfin group)
Sharon Owens
T (direct): +27 11 809 7762

United Kingdom
7 June 2021

The information contained within this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United
Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018.


Appendix: Further information on the Toral Project

Mineral Resource Estimate
   •     An Indicated resource of approximately 3.8Mt @ 8.3% Zn Equivalent (including Pb credits), 4.7% Zn,
         3.9% Pb and 30g/t Ag, including:
             -   180,000 tonnes of zinc, 150,000 tonnes of lead and 3.7 million ounces of silver.
   •     An Inferred resource of approximately 14Mt @ 6.5% Zn Equivalent (including Pb credits), 4% Zn, 2.7%
         Pb and 23 g/t Ag, including:
             -   540,000 tonnes of zinc, 360,000 tonnes of lead and 10 million ounces of silver.
   •     A total resource of approximately 17Mt @ 6.9% Zn Equivalent (including Pb credits), 4.1% Zn, 2.9%
         Pb and 24 g/t Ag, including:
             -   720,000 tonnes of zinc, 510,000 tonnes of lead and 14 million ounces of silver.
Table 1: Summary of Indicated and Inferred mineral resources for the Toral property reported at a 4.0% Zn
equivalent cut-off grade (including Pb and Ag credits) and estimated grade and tonnages at the various cut-
off grades. Figures are rounded to reflect the accuracy of the estimate and, as such, totals may not cast.

  Cut-Off                                                                        Contained   Contained       Ag Troy
               Tonnes                 Zn_Eq        Zn Eq       Zn    Pb    Ag
   Zn Eq                   Density                                               Zn Tonnes   Pb Tonnes         Oz
              (Millions)              (Pb)%      (PbAg)%       %     %     g/t
 (PbAg)%                                                                           (000s)      (000s)       (Millions)
     6           2.8         2.9        9.5        10.0        5.3   4.5   34       150          130              3.1
     5           3.3         2.9        8.9         9.5        5.0   4.2   32       170          140              3.4
     4           3.8         2.9        8.3         8.9        4.7   3.9   30       180          150              3.7
     3           4.1         2.9        7.9         8.5        4.4   3.7   29       180          150              3.8
     6            8          2.9        7.8         8.3        4.7   3.4   28       370          270              7.2
     5            10         2.9        7.2         7.7        4.4   3.0   26       450          310              8.6
     4            14         2.9        6.5         6.9        4.0   2.7   23       540          360              10
     3            17         2.9        5.9         6.3        3.7   2.4   20       610          400              11
     6            11         2.9        8.2         8.8        4.8   3.7   30       520          390              10
     5            14         2.9        7.6         8.1        4.5   3.3   27       620          450              12
     4            17         2.9        6.9         7.3        4.1   2.9   24       720          510              14
     3            21         2.9        6.3         6.7        3.8   2.7   22       790          560              15
                                              Transitional Oxide Material
     4            3          2.9        5.2         5.7        2.6   2.9   27       75            83              2.5
                                              Unweathered Fresh Rock
     4            14         2.9        7.2         7.7        4.5   3.0   24       650          430              11

* - Zn Eq (Pb)% is the calculated Zn equivalent incorporating lead credits; (Zn Eq (Pb)% = Zn + Pb*0.926). Zn
Eq (PbAg)% is the calculated Zn equivalent incorporating silver credits as well as lead; (Zn Eq (PbAg)% = Zn
+ Pb*0.926 + Ag*0.019). Zn equivalent calculations were based on 3-year trailing average price statistics
obtained from the London Metal Exchange and London Bullion Market Association giving an average Zn price
of US$2,680/t, Pb price of US$2,100/t and Ag price of US$16.2/oz.

1.   No mineral reserve calculations have been undertaken. Mineral resources that are not mineral reserves
     do not have demonstrated economic viability.
2.   Numbers are rounded to reflect the fact that an Estimate of Resources is being reported as stipulated by
     JORC 2012. Rounding of numbers may result in differences in calculated totals and averages. All tonnes
     are metric tonnes.
3.   Zn equivalent calculations were based on 3 year trailing average price statistics obtained from the London
     Metal Exchange and London Bullion Market Association giving an average Zn price of US$2,680/t, Pb
     price of US$2,100/t and Ag price of US$16.2/Oz. Recovery and selling factors were incorporated into the
     calculation of Zn Eq values. It is the Company’s opinion that all the elements included in the metal
     equivalents calculation (zinc, lead and silver) have a reasonable potential to be recovered and sold.
4.   Zn Eq (PbAg)% is the calculated Zn equivalent incorporating silver credits as well as lead and is the
     parameter used to define the cut-off grade used for reporting resources (Zn Eq (PbAg)% = Zn + Pb*0.926
     + Ag*0.019).
5.   Zn Eq is the calculated Zn equivalent using lead credits and does not include silver credits (Zn Eq = Zn
     + Pb*0.926).
6.   The Mineral Resource Estimate set out above for the zinc, lead and silver mineralisation in the Toral
     Project area is based on a 3D geologic model and wireframe restricted block model that integrated the
     exploration work on the Toral project up to 21 January 2020. The block model used uniform cell size of
     25x10x25m to best suit the orientation of the mineralisation and sample spacing. The block model was
     rotated by 20 degrees in plain view to best match the trend of mineralisation. Sub cells were applied to
     better fit the wireframe solid models and preserve accurate volume as much as possible. Cells were
     interpolated at the parent block scale using an Ordinary Kriging.
7.   Following statistical analysis and assessment of the updated assay composite database top cuts of 125g/t
     Ag were applied to the data. No top cuts were applied for Zn or Pb.
8.   The Indicated and Inferred mineral resource category for the Toral zinc-lead-silver project set out in Table
     1 (at cut-off grades greater than 4% Zn Equivalent) comply with the resource definitions as described in
     the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The
     JORC Code, 2012 Edition. Prepared by: The Joint Ore Reserves Committee of The Australasian Institute
     of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC).
9.   The tonnes and grades reported at a cut-off grade of 3% Zn equivalent are below the economic cut-off
     grade of 4% and as such should not be considered mineral resources, they are shown here for
     comparison purposes only.

Date: 07-06-2021 08:00:00
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