TIDMEUZ
RNS Number : 9890H
Europa Metals Ltd
30 November 2022
30 November 2022
Europa Metals Ltd
("Europa Metals", the "Company" or the "Group") (AIM, AltX:
EUZ)
Updated Mineral Resource Estimate - Indicated Resource increase
and substantial grade increase for Toral Pb, Zn & Ag Project,
Spain
Europa Metals, the European focused lead, zinc and silver
developer, is pleased to announce, following its highly successful
2022 drilling campaign, a 19% increase to the Indicated Mineral
resource and a 14% increase in grade, in respect of an updated
independent Mineral Resource Estimate ("MRE") for the Company's
100% owned Toral Pb, Zn & Ag project ("Toral" or the "Toral
Project") in the Castilla y León region, northern Spain.
Highlights :
Updated independent Indicated and Inferred resource estimates
reported by Addison Mining Services Limited ("AMS"), in accordance
with JORC (2012) comprise:
-- An Indicated Mineral Resource of approximately 7Mt @ 8.1% Zn
Equivalent (including Pb credits), 5% Zn, 3.7% Pb and 29g/t Ag,
containing:
o 349,000 tonnes of zinc, 260,000 tonnes of lead and 6.6 million
ounces of silver.
-- An Inferred Mineral Resource of approximately 13Mt @ 6% Zn
Equivalent (including Pb credits), 4.1% Zn, 2.3% Pb and 19 g/t Ag,
containing:
o 540,000 tonnes of zinc, 300,000 tonnes of lead and 8 million
ounces of silver.
-- A total Mineral Resource of approximately 20Mt @ 6.8% Zn
Equivalent (including Pb credits), 4.4% Zn, 2.8% Pb and 23 g/t Ag,
containing:
o 890,000 tonnes of zinc, 560,000 tonnes of lead and 15 million
ounces of silver.
-- A total of 61,545m of drilling is now included in the
drillhole database for the Toral Project. This includes
environmental monitoring drillholes, 174 diamond drillholes
(including wedges) and 4 reverse circulation (RC) drillholes.
The Board of Europa Metals believes that the results of this
latest update compare very favourably with the Company's previously
reported Mineral Resource Estimate, announced on 1 October 2021, as
it represents a:
-- 19% increase in Indicated Mineral Resource tonnes;
-- 39% increase in Indicated contained tonnes of zinc to approximately 349,000 tonnes;
-- 33% increase in Indicated contained tonnes of lead to approximately 260,000 tonnes; and
-- 27% increase in Indicated contained ounces of silver to approximately 6.6 million ounces.
Commenting today, Myles Campion, Executive Chairman and acting
CEO of Europa Metals said :
"Toral's latest resource upgrade is a great achievement for the
Europa Metals' team. We have now delineated 7Mt of Indicated
resources at a much improved overall grade (approximately 14%
increase) following the recently reported success of holes TOD-041
and TOD-042. This will enable the project team to now utilise a
substantial tonnage of independently reported Indicated Mineral
Resources in the mine plan for the upcoming mining licence
application scheduled to be delivered by 31 July 2023 to the Junta
of Castilla y León".
JORC (2012) Mineral Resource Estimate - November 2022
This latest updated independent MRE, effective as of 5 November
2022, for the Toral deposit is set out in the table below. It is
reported at a cut-off grade of 3.5% Zn (PbAg) equivalent, to
encapsulate resources that are considered to have a reasonable
prospect of eventual economic extraction, however a cut-off grade
of 4% Zn (PbAg) is to be taken forward as the base case for
resource reporting.
This MRE complies with the resource definitions as set out 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).
Image 1: 3-D Block Model looking North
Table 1: Summary of JORC (2012) Mineral Resources for the Toral
Project reported using a Zn equivalent cut-off grade (including Pb
and Ag credits).
Cut-Off Tonnes Density Zn Eq Zn Eq Zn % Pb % Ag g/t Contained Contained Ag Troy
Zn Eq (Millions) (Pb)% (PbAg)% Zn Tonnes Pb Tonnes oz
(PbAg)% (000s) (000s) (Millions)
Indicated
6 5.0 2.95 9.5 10 5.9 4.3 33 296 215 5.4
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
5 6.2 2.93 8.6 9.4 5.3 3.9 31 331 244 6.1
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
4 7.0 2.92 8.1 8.9 5.0 3.7 29 349 260 6.6
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
3.5 7.2 2.92 8.0 8.8 4.9 3.7 29 352 263 6.8
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
Inferred
6 6 2.90 7.9 8.5 5.7 2.6 22 340 160 4.3
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
5 9 2.90 7.0 7.5 4.9 2.4 21 440 220 6.0
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
4 13 2.90 6.0 6.5 4.1 2.3 19 540 300 8.0
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
3.5 15 2.90 5.7 6.2 3.9 2.2 18 590 330 9.0
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
Total
6 11 2.90 8.6 9.3 5.8 3.4 27 640 370 10
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
5 15 2.90 7.6 8.3 5.1 3 25 770 460 12
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
4 20 2.90 6.8 7.3 4.4 2.8 23 890 560 15
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
3.5 22 2.90 6.4 7.0 4.2 2.7 22 940 600 16
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
Notes relating to the Mineral Resource Estimate :
1. The independent Competent Person for the Mineral Resource
Estimate, as defined by the JORC Code (2012 edition), is Mr Richard
Siddle, MSc, MAIG, an employee of AMS since November 2014. The
effective date of the Mineral Resource Estimate is 5 November 2022.
Mr Siddle completed a site visit from 1 - 4 November 2022.
2. No mineral reserve calculations have been undertaken. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability. The quantity and grade of reported Inferred
Resources in this Mineral Resource Estimate are uncertain in nature
and there has been insufficient exploration to define these
Inferred Resources as Indicated or Measured, however it is
reasonably expected that the majority of Inferred Mineral Resources
could be upgraded to Indicated Mineral Resources with continued
exploration.
3. The Indicated and Inferred mineral resource categories for
the Toral lead-zinc-silver project set out in the table above (at
cut-off grades >3.5% Zn Equivalent) comply with the resource
definitions as set out 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).
4. Numbers are rounded to reflect the fact that an Estimate of
Resources is being reported. Rounding of numbers may result in
differences in calculated totals and averages. All tonnes are
metric tonnes.
5. 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$2,865/t, Pb price of US$2,053/t and Ag price of US$22.17/oz.
Recovery and selling factors were incorporated into the calculation
of Zn Eq values. It is both the Company's and Competent Persons'
opinion that all the elements included in the metal equivalents
calculation (zinc, lead and silver) have a reasonable potential to
be recovered and sold.
6. 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 for reporting resources (Zn Eq (PbAg)% = Zn +
Pb*0.842 + Ag*0.026).
7. Zn Eq is the calculated Zn equivalent using lead credits and
does not include silver credits (Zn Eq = Zn + Pb*0.842).
8. The tonnes and grades reported at a cut-off grade of 3.5% Zn
(PbAg) equivalent are considered to have a reasonable prospect of
eventual economic extraction, however a cut-off grade of 4% Zn
(PbAg) is taken forward as the base case for resource
reporting.
9. 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 5
November 2022 . The block model used a cell size of 25m along
strike (east) and down dip (vertical) in areas of more dense
sampling, a cell size of 50m was used elsewhere. A single cell
dimension was used over the width of the mineralised unit. The
block model was rotated by 20deg in plan 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 a
Median Indicator Kriging method. The estimate was completed using
Micromine 2022.5 software.
10. No Top Cuts were applied to the 2m downhole composite data
used for grade estimation. A broad linear relationship between
Pb+Zn grade and Bulk Density was identified from scattergrams and
the formula 2.7 + 0.02(Pb+Zn%) used to estimate block density in
relation to block grade within the block model, density was capped
at 3.5 g/cm(3) .
11. The block model was restricted with wireframes representing
the main mineralised structure at Toral which is located along a
Carbonate-Shale contact, an approximate 0.4%Pb+Zn cut-off grade was
used for modelling. Wireframes were generated using Micromine's
implicit vein modelling tool and were restricted to the
topography.
12. The updated Mineral Resource Estimate includes new data from
drillholes TOD-041 and TOD-042. A total of 61,545m of drilling is
included in the drillhole database for the Toral Project. This
includes environmental monitoring drillholes, 174 diamond drill
holes (including wedges) and 4 reverse circulation (RC) drillholes
in addition to 19 underground channel samples for 18.75m. Average
core recovery is approximately 80% and is in excess of 95% for
Europa Metals drilling.
13. Drill and UG channel sample data spacing across the current
resource area ranges from approximately 50-100m x 50-100m centres
within the most densely tested area situated in the NW, stepping
out to approximately 200m x 200m within the mid-section and
100-200m x 500m in the SE.
14. To the northwest the resource is truncated by the licence
boundary and extends approximately 10m past the south easterly most
drillhole which was mineralised but contained sub-economic grades
(3m at 2.4% ZnEq). The total strike length of the modelled
mineralisation within the licence area is approximately 3.1km. The
structure remains open to the southeast. Down dip the model was
extrapolated approximately 50-200m below the deepest sample in the
northwest and central parts of the deposit, and approximately
250-280m below the deepest sample in the southeast with
consideration of depths tested along strike to the northwest. The
model's extent is from surface to a range of approximately 800 -
1,150m below the surface. Extents of extrapolation are considered
appropriate for the level of information, deposit type, strike and
depth extents tested, observed and geostatistical grade continuity
and the assigned resource classification.
15. The updated MRE compares favourably to the previous MRE as
of 14 September 2021 and represents an increase in Indicated
Resources of 1.1 million tonnes, from 5.9 million tonnes. The
aggregated Inferred and Indicated tonnages remain unchanged.
Individual Lead, Zinc and Silver grades have also increased from
4.2%, 3.3% and 27 g/t to 5%, 3.7% and 29 g/t within the Indicated
Resources.
Image 2: Block Model Long Section West-East orientation
Image 3: Long Section showing the area of Indicated Mineral
Resources
Updated Investor Presentation
In addition, the Company is pleased to announce that an updated
investor presentation in respect of the recent farm-in/joint
venture arrangement with Denarius and this updated independent
mineral resource estimate is available to view on the Company's
website at:
www.europametals.com/site/news-announcements/presentations
Competent Person's Statement
This updated Toral resource estimate was prepared by Mr R.J.
Siddle, MSc., MAIG, Principal Geologist for AMS, an independent
Competent Person within the meaning of the JORC (2012) code and a
Competent Person under the AIM guidance note for mining and oil
& gas companies. Mr Siddle has reviewed and verified the
technical information that forms the basis of, and has been used in
the preparation of, the updated Mineral Resource Estimate and this
announcement, including all analytical data, diamond drillhole
logs, QA/QC data, density measurements and sampling, diamond and RC
drilling and analytical techniques. Mr Siddle consents to the
inclusion in this announcement of the matters based on the
information, in the form and context in which it appears. Mr Siddle
has also reviewed and approved the technical information in his
capacity as a Qualified Person under the AIM Rules for Companies.
Additionally, Mr Siddle confirms that AMS is not aware of any
information or data that materially affects the information
contained within the Company's previous announcements referred to
herein.
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
Myles Campion, Executive Chairman and acting CEO (UK)
T: +44 (0)20 3289 9923
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler
T: +44 (0)20 7409 3494
WH Ireland Limited (Broker)
Harry Ansell/Dan Bristowe/Katy Mitchell/Sarah Mather
T: +44 (0)20 7220 1666
Questco Corporate Advisory Proprietary Limited (JSE Sponsor)
Sharon Owens
T: +27 (11) 011 9212
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, as amended.
Glossary of technical terms :
"Ag" silver;
"g" grammes;
"g/t" grammes per tonne;
"Inferred resource" that part of a Mineral Resource for which quantity
and grade (or quality) are estimated on the basis
of limited geological evidence and sampling. Geological
evidence is sufficient to imply but not verify geological
and grade (or quality) continuity. It is based on
exploration, sampling and testing information gathered
through appropriate techniques from locations such
as outcrops, trenches, pits, workings and drill
holes;
"Indicated resource" that part of a Mineral Resource for which quantity,
grade (or quality), densities, shape and physical
characteristics are estimated with sufficient confidence
to allow the application of Modifying Factors in
sufficient detail to support mine planning and evaluation
of the economic viability of the deposit.
"JORC" the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves, as
published by the Joint Ore Reserves Committee of
The Australasian Institute of Mining and Metallurgy,
Australian Institute of Geoscientists and Minerals
Council of Australia;
"JORC (2012)" the 2012 edition of the JORC code;
"m" metre;
"Mineral Resource" a concentration or occurrence of material of economic
interest in or on the earth's crust in such form
and quantity that there are reasonable and realistic
prospects for eventual economic extraction. The
location, quantity, grade, continuity, and other
geological characteristics of a Mineral Resource
are known, estimated from specific geological evidence
and knowledge, or interpreted from a well-constrained
and portrayed geological model;
"Mt" million tonnes;
"oz" troy ounce;
"Pb" lead;
"QA/QC" quality assurance/quality control; and
"Zn" zinc.
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END
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