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. Highlights Results: • 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: http://www.rns-pdf.londonstockexchange.com/rns/9420A_1-2021-6-4.pdf Drilling parameters for the assay results reported for the 2021 diamond drilling campaign to date are presented in the table below: HOLE_ID EASTING NORTHING ELEVATION LENGTH COOR_SYS 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: http://www.rns-pdf.londonstockexchange.com/rns/9420A_1-2021-6-4.pdf 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 (included) TOD-029 346.95 350.75 3.80 6.24 2.47 18.12 0.05 8.87 (included) TOD-029 355.00 356.65 1.65 2.54 0.13 2.37 0.01 2.71 (included) TOD-029 357.70 360.05 2.35 1.43 0.44 6.61 0.02 1.97 (included) 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. Outlook 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. Notes: 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) Indicated 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 Inferred 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 Total 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. Notes: 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 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
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