TIDMEUZ
RNS Number : 1248W
Europa Metals Ltd
14 August 2020
14 August 2020
Europa Metals Ltd
("Europa Metals", the "Company" or the "Group") (AIM , AltX: EUZ
)
Updated Resource Estimate - 40% Increase in Indicated Resource,
Toral Pb, Zn & Ag Project, Spain
Europa Metals, the European focused lead-zinc and silver
developer, is pleased to announce the results of an updated
independent Mineral Resource Estimate, reported in accordance with
JORC (2012), in respect of its wholly owned Toral lead-zinc-silver
project located in northern Spain ("Toral" or the "Toral
Project").
Highlights :
-- Updated independent Indicated and Inferred Mineral Resource
Estimate for Toral, reported in accordance with JORC (2012). The
input database for the estimate, included:
o 113 diamond (including wedges) and 4 reverse circulation (RC)
drill holes totalling 60,915.65 metres, and 19 underground channels
for 18.75 metres.
o Drill holes TOD-024 and TOD-025 and updated fault models for
the first time.
-- Indicated resource estimate of approximately 3.8Mt @ 8.3% Zn
Equivalent (including Pb credits) and 30g/t Ag, representing an
approximate:
o 40% increase in Indicated resource tonnes;
o 38 % increase in Indicated contained tonnes of zinc to
approximately 180,000 tonnes;
o 36% increase in Indicated contained tonnes of lead to
approximately 150,000 tonnes; and
o 32% increase in Indicated contained ounces of silver to
approximately 3.7 million ounces.
-- 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:
o 720,000 tonnes of zinc, 510,000 tonnes of lead and 14 million
ounces of silver.
Outlook
The Company expects to utilise the updated resource model,
together with ongoing engineering analysis and the upcoming third
phase metallurgical results, for assimilation into updated
preliminary economic parameters, to be conducted by Bara
Consulting, ahead of a Pre-Feasibility Study. The revised economics
will represent an update to those derived from the 2018 Scoping
Study, bringing the significant amounts of work completed, and data
obtained, over the last two years into the operating and financial
model for Toral. Prior to establishing the revised economic
parameters, the Company intends to announce updates in respect of
the third phase metallurgical test work and ore sorting.
Laurence Read, CEO of Europa Metals, commented :
"In commissioning this updated Mineral Resource Estimate in
respect of Toral, our key objective was to include, in the resource
model, the successful results from the Company's last drilling
campaign, which saw not only high grade intersections but, due to
the location of the drill holes, also enabled us to tie together
two areas of the mineable lead, zinc and silver deposit into a
continuous Indicated resource zone.
"Concentrated around the initial mineable area of the Toral
Project, we have achieved an approximate 40% increase in the
Indicated resource at an average grade of 8.3% zinc equivalent
(including Pb credits) and a significant average grade above
cut-off that should have a bearing on the overall mining profile
once the effects of ore sorting are fully assessed .
"With every stage of additional work over the last 12 months we
have further identified Toral as having significant potential to be
a future high-grade producer of concentrates, located in an area
with first-rate infrastructure and benefitting from the support of
the Junta of Castilla y Leon. Europa Metals looks forward to
releasing operational updates on metallurgy and ore sorting
shortly, following which revised, independent economic parameters
shall be determined for Toral, effectively updating the financial
profile of the project to reflect the work accomplished since the
2018 Scoping Study ."
Myles Campion, Executive Chairman of Europa Metals, further
commented :
"Increasing the level of confidence in the deposit is key for
deriving reliable, quality data for use in economic models. By
drilling two key targeted holes in the last drilling campaign we
have been able to both increase Toral's Indicated resource estimate
by 40% and obtain sufficient samples for further metallurgical
analysis. The significant increase in the Indicated resource
category achieved on the back of the last drilling campaign
reflects well on Europa Metals' technical team."
Overview
Europa Metals is pleased to announce the results of an
independent updated Mineral Resource Estimate, in accordance with
JORC (2012), pursuant to which there has been an approximate 40%
increase in the Indicated resource category to approximately 3.8Mt
at 8.3% Zinc Equivalent (including Pb credits) and 30g/t Ag. The
upgrade follows the processing of assays from the Company's 2020
diamond drilling campaign (involving key drill holes TOD-024 and
TOD-025) and incorporation of updated fault models. The update has
been prepared by Addison Mining Services Limited ("AMS") and Bara
Consulting.
Figure 1 showing AMS' resource block model for Toral as a 3D
view looking north, by Zn Equivalent grade:
http://www.rns-pdf.londonstockexchange.com/rns/1248W_1-2020-8-13.pdf
Figure 2: showing AMS' resource block model for Toral as a 3D
view looking north, by resource category:
http://www.rns-pdf.londonstockexchange.com/rns/1248W_1-2020-8-13.pdf
This latest updated Mineral Resource Estimate, effective as of
12 August 2020 for the Toral deposit comprises:
-- 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:
o 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:
o 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:
o 720,000 tonnes of zinc, 510,000 tonnes of lead and 14 million
ounces of silver.
The Company's Board believes the results of this update compare
favourably with the previously reported Mineral Resource Estimate,
announced on 29 October 2019, comprising the following tonnages and
grade:
-- An Indicated resource of approximately 2.7Mt @ 8.9% Zn
Equivalent (including Pb credits), 5% Zn, 4.2% Pb and 32 g/t Ag,
including:
o 130,000 tonnes of zinc, 110,000 tonnes of lead and 2.8 million
ounces of silver.
-- An Inferred resource of approximately 16Mt @ 7.2% Zn
Equivalent (including Pb credits), 4.5% Zn, 2.9% Pb and 22 g/t Ag,
including:
o 690,000 tonnes of zinc, 450,000 tonnes of lead and 11 million
ounces of silver.
-- A total resource of approximately 18Mt @ 7.4% Zn Equivalent
(including Pb credits), 4.5% Zn, 3.1% Pb and 24 g/t Ag,
including:
o 830,000 tonnes of zinc, 570,000 tonnes of lead and 14 million
ounces of silver.
*Zn Eq % 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.
Implications of the resource update and updated resource model
for the Toral Project
The increased size and contained metal of the Indicated resource
exceeded management's expectations and forms a significant
cornerstone from which to establish the preliminary economic
parameters for an eventual Pre-Feasibility Study, which will
utilise the data sets compiled and work programmes completed since
the publication of the 2018 Scoping Study.
The independent economic study, which will be conducted by Bara
Consulting, will incorporate, inter alia, a mine schedule, mine
plan, third phase metallurgical testwork (currently in progress),
this latest resource update, updated commodity prices, ore sorting
analysis (currently in progress), new engineering components and an
infrastructure layout.
Revised inputs
The geological team at Europa Metals has completed several
important workstreams and internal projects over the last four
years to improve the geological understanding of the Toral
deposit.
The 2018 re-logging exercise of the historic Peñarroya core at
the IGME facilities, proved to be beneficial as it assisted in
increasing the Company's understanding of the geological
environment and controls on mineralisation. In addition, it
provided basic structural data and, importantly, increased the
quantity and quality of bulk density measurements.
The completion of detailed surface geological mapping in 2019
led to the 2020 updated structural database to provide further data
and guidance on structural influences within the confines of the
Toral deposit.
The findings of such ongoing work has been incorporated into the
updated resource model, thereby providing better delineated
geological boundaries, and utilised for updating the structural
framework which has been integral in establishing the updated
resource model (which can be viewed in Figures 3 and 4)
Figure 3: Mineralisation wireframes, looking north:
http://www.rns-pdf.londonstockexchange.com/rns/1248W_1-2020-8-13.pdf
Figure 4: Mineralisation wireframes with major fault
surfaces:
http://www.rns-pdf.londonstockexchange.com/rns/1248W_1-2020-8-13.pdf
Europa Metals completed two diamond drill holes (TOD-024 and
TOD-025) (and one 53 m wedge, TOD-025D) in the last drilling
campaign for total drilling of 852.6 metres. Holes TOD-024 and
TOD-025 targeted the vein at approximately 300 and 500 metres below
surface, respectively, as well as targeting the high-grade areas in
the block model with a view to increasing the confidence level and
the resource category of that area.
Competent Person's Documentation: Updated Inferred and Indicated
Mineral Resource Estimate, Reported in Accordance with the JORC
code (2012 edition).
Further to the recent diamond drilling conducted between
November 2019 and January 2020, the Company recently commissioned
AMS to complete an updated Mineral Resource Estimate. The updated
Mineral Resource Estimate is based on all the available historical
data from five drilling campaigns conducted on licence number
15.199 (namely, the 1972 - 1984 Peñarroya-Adaro campaign, the 2006
- 2008 Lundin Mining campaign, the 2016 - 2017 Europa Metals'
campaign and the Company's September 2018 to August 2019 RC and
diamond drilling and November 2019 to January 2020 diamond
drilling), along with underground channel sampling results from
numerous old adits.
The updated Mineral Resource Estimate has been reported in
accordance with the Joint Ore Reserve Committee (JORC) code, 2012
edition.
Block Model
The Inferred and Indicated resource for the Zn-Pb-Ag
mineralisation located on the Toral Project's licence area has been
estimated at various cut-offs (refer to Table 1 below). The Company
reviewed the new block model along with its appointed geological
consultants, AMS, and concluded that a 4% cut-off was appropriate
utilising estimated mining parameters typical for similar types of
projects and mineralogy, and an historical three-year trailing
average for metals prices, which, although conservative, was deemed
appropriate at this stage in the project's development.
Zn Price Used: US$2,680/t US$c/lb1.215
Pb Price Used: US$2,100/t US$c/lb0.952
Ag Price Used: US$16.2/oz
The resource update has identified potentially economic
mineralisation ranging from surface to approximately 1,100m below
surface. The new block model currently extends for a strike length
of 3,600m and is still open to the east and west along strike and
also at depth where it has not yet been closed off.
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
calculate exactly.
Cut-Off Tonnes Density Zn_Eq Zn Eq Zn % Pb % Ag g/t Contained Contained Ag Troy Oz
Zn Eq (Millions) (Pb)% (PbAg)% Zn Tonnes Pb Tonnes (Millions)
(PbAg)% (000s) (000s)
Indicated
6 2.8 2.9 9.5 10 5.3 4.5 34 150 130 3.1
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
5 3.3 2.9 8.9 9.5 5 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 26 450 310 8.6
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
4 14 2.9 6.5 6.9 4 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 24 650 430 11
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
1. No mineral reserve calculations have been undertaken. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability. See "Cautionary Note Concerning Reserve and
Resource Estimates".
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 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 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 >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.
Summary of updated Resource Estimate and reporting criteria
In accordance with JORC (2012) reporting guidelines, a summary
of the material information used to estimate the updated Mineral
Resource Estimate is set out below (for further detail please refer
to the JORC (2012) Table 1, located in the Appendix to this
announcement).
Geology and geological interpretation
The Toral Project is a traditional polymetallic
(lead-zinc-silver) deposit, which is hosted over 6km of strike
length of the prospective Lower Cambrian Vegadeo Limestone
formation, that is regionally mineralised along more than 40km of
its extent. The deposit represents a carbonate hosted, structurally
controlled deposit type, demonstrating fault-controlled contact,
vein, carbonate replacement and breccia styles of mineralisation
situated close to and along the boundary between footwall slates
and hanging wall limestones and dolomites. Sub-ordinate
lead-zinc-silver mineralisation also occurs wholly within the
hanging wall limestones and dolomites, approaching the contact with
the slates.
Historic drill hole re-logging undertaken in 2018 has provided
improved geological, structure, alteration and weathering/oxidation
information, incorporated in to the interpreted geological and
mineralised models for the updated resource estimate. Surface
mapping and remote data interpretation by Europa Metals has enabled
the development of an interpreted fault model, also incorporated in
to the updated geological and mineralised models used in the
updated mineral resource estimate.
Weathering
The weathering profile was observed throughout the drill holes
and historic shallowly emplaced horizontal adits. In general,
observations on weathering and oxidation at Toral suggests a poorly
developed or truncated profile overall, with minimal oxidation
developed much below 30 metres below surface, with the majority of
the country rock being un-weathered or showing only fractured
controlled weathering and oxidation in the form of Fe oxide joint
tarnishing and fracture infill. Weathering and oxidation is deeper
within the main parts of the mineralised structure, and is
interpreted as partial, being fracture controlled with less than
10% weatherable minerals weathered and/or oxidised. A weathering
surface was interpreted at the moderately oxidised-partially
weathered/fracture controlled weathered boundary to sub-divide the
moderately oxidised 'transitional' zone material and -10% weathered
'fresh' material below. Due to the strong lithological and
structure control, an observed trough is developed at the
transitional-fresh boundary along the main structure, interpreted
through the drill hole logging of weathering. The accuracy of the
surface at this stage is suitable for application and use in the
reporting of Inferred and Indicated resources.
Bulk density
The resource database contains 2,405 bulk density measurements,
with a total of 193 within the mineralised wireframe.
The mean for the mineralised domain transitional zone is 2.75
g/cm(3) and the mean for mineralised domain fresh material is 2.85
g/cm(3) . A broad linear relationship between Pb+Zn grade and Bulk
Density was identified from scattergrams and the formula 2.75 +
0.02(Pb+Zn%) used to estimate block density in relation to block
grade within the block model.
Drilling techniques and hole spacing
The updated Mineral Resource Estimate includes new information
from two surface collared diamond holes and one wedge hole.
A total of 113 diamond (including wedges) and 4 RC drill holes
totalling 60,915.65 metres, and 19 underground channels for 18.75
metres were used as the input database for geological modelling and
resource estimation.
Drill core diameter was PQ, HQ, NQ2, NQ and BQ depending upon
depth. Tube type is unknown for the historic Peñarroya drilling,
whilst the triple tube method was used for the historic Lundin and
Europa Metals' drilling campaigns.
The recent diamond core has been orientated. No orientation has
been performed on the historic drill core.
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.
The distribution of drill holes and UG channel sampling,
supported by surface and underground mapping, is sufficient to
establish the degree of geological and grade continuity appropriate
for a JORC (2012) Inferred and Indicated classification of
resources.
Sampling and sub-sampling techniques
The four main phases of historic exploration drilling and
sampling are:
-- 1972-1984 Peñarroya-Adaro: diamond drill core method was used
to obtain samples for geological logging and sampling. Geological
and analytical data is recorded on hardcopy. Selective sampling
method was employed around areas of interest. Sampling intervals
measure approximately 1m, half core sent for analysis, with half
core retained for reference. Exact details on core processing,
sampling techniques and analytical methods are unclear, however
subsequent explorers Lundin Mining sent the majority of the
Peñarroya core pulp reject samples to ALS Chemex for multi element
re-analysis by ICP.
-- 2006-2008 Lundin Mining: diamond drill core method was used.
Core logging completed on hardcopy. Selective sampling method was
employed around areas of interest. Sampling intervals measure
approximately 1m, half core sent for analysis, with half core
retained for reference. Samples typically 1m half core, with
samples prepared at the then Lundin Laboratory in Suecia, then
shipped to ALS Chemex Vancouver for multi-element analysis by ICP.
Half core samples reduced to -400 microns and 100g sub-samples
taken for analysis. Multi-element re-analysis of available
Peñarroya diamond drill hole pulp reject samples completed at ALS
Chemex Vancouver using ICP.
-- 2016-2017 Europa Metals: diamond drill core and underground
cut channel sampling methods used to obtain samples for geological
logging and sampling. Geological and analytical data is recorded on
hardcopy. Selective sampling method was employed around areas of
interest. Sampling intervals measure approximately 1m, half core
sent for analysis, with half core retained for reference. Samples
sent to ALS Seville for preparation and multi-element analysis by
ICP. Half core samples reduced to -400 microns and 100g sub-samples
taken for analysis.
-- 2018-2020 Europa Metals: diamond drill core and RC chips used
to obtain samples for geological logging and sampling. Geological
and analytical data is recorded on paper and later digitised.
Selective sampling method was employed around areas of interest.
Sampling intervals measure approximately 1m, half core and RC
riffle splits sent for analysis, weighing approximately 2-3kg, with
half core and chip sub-samples retained for reference. Samples were
sent to ALS Seville for preparation and multi-element analysis by
ICP. Half core and RC samples were reduced to -400 microns and 100g
sub-samples taken for analysis.
Diamond Core Recovery
A total of 12,207 core recovery measurements exist in the
database for the drilling with average core recovery of 81%. The
average for the Europa Metals diamond drilling is 96%. Core
recovery is measured over run lengths.
Cut-off grades
The Inferred and Indicated resource for the Pb-Zn-Ag
mineralisation located on the Toral property, licence number
15.199, has been estimated at various cut-offs. For the Toral
deposit resource, the economic cut-off was determined by
calculation of block revenue factors based on Zn equivalent
calculations derived from an historical three-year trailing average
for Zn, Pb and Ag prices. Indicative mining and processing costs
typical of the region and deposit type were applied along with
typical mining recovery and dilution factors and metallurgical
recovery factors identified by laboratory studies and production at
comparable deposits and accepted by AMS.
For reporting in compliance with JORC (2012), an economic
cut-off grade of 4% Zn equivalent (including Pb and Ag credits) was
selected considering the aforementioned factors and allowing for
some increase in commodity prices to define resources with a
reasonable prospect of eventual economic extraction now or in the
near future. Resources are reported as follows:
The updated mineral resource estimate as of 12 August 2020 for
Toral comprises:
-- An Indicated resource of approximately 3.8Mt @ 8.3% Zn
Equivalent (including Pb credits), 4.7% Zn, 3.9% Pb and 30 g/t Ag,
including:
o 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:
o 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:
o 720,000 tonnes of zinc, 510,000 tonnes of lead and 14 million
ounces of silver.
Estimation methodology
AMS verified new primary analytical data via cross reference
against original laboratory certificates. The database for use as
input for mineral resource modelling and estimation has also been
validated and verified by AMS. Micromine 2020 3D geological
modelling and estimation software was used for import, validation
and QC verification assessment, 3D solid modelling, geostatistics
and block model grade estimation and block model reporting. Data
checks include checks for overlapping and missing intervals, drill
hole trace errors, missing survey data, lithology and collars.
As with previous resource estimates completed by AMS (2017, 2018
and 2019) wireframe solid models were created for each domain based
on a mineralisation threshold of approximately 0.2% for Zn and Pb
(approximately 0.4% Zn+Pb). Analysis of Zn and Pb grades in cross
section and in scatter plots showed a strong relationship and no
requirement to model Zn and Pb separately was identified. Ag showed
a strong correlation with Pb and was estimated within the Zn/Pb
mineralised domain.
The updated wireframes were generated using Micromine's implicit
vein modelling functionality and incorporated major fault
boundaries to better honour offsets in the structure and preserve
thicknesses between intercepts. Interpretation of the mineralised
domains was guided by geological interpretation of the deposit
incorporating structural and lithological boundaries and surface
expression in topographical data and outcrop mapping.
To the north west the mineralised models are truncated by the
licence boundary and are extended approximately 10m past the most
south easterly drill hole which was mineralised but contained
sub-economic grades (3m at 2.4% ZnEq). The structure remains open
to the south east. Down dip the model was extrapolated
approximately 50-200m below the deepest sample in the north west
and central zones, and approximately 400m below the deepest sample
in the SE zone with consideration of depths tested along strike to
the NW. 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.
A uniform cell block model of 25 mE, 10 mN, 25 mZ was restricted
to the wireframes using block factors. The block model was rotated
by 20deg in plan view to best match the trend of mineralisation.
The uniform model and 2m sample composites for the mineralised
domain were then flattened to a constant vertical plane striking
110deg to account for fault offsets, improve variography and grade
mapping. Thickness was preserved in the flattening process and no
lateral stretching was applied.
Block model interpolation and extrapolation for Zn, Pb and Ag
was completed using directional variograms for each element in the
flattened space at the uniform block scale. Ordinary kriging was
used, and a multiple pass kriging neighbourhood used at increasing
radii to prevent smearing of high grades. The block model was then
sub blocked to the mineralised wireframes in real space to best
honour thickness and volume.
Top cuts were applied to the composite assay grades for 125 g/t
Ag, any value above the top cut value was reduced to that grade.
Top cuts were not deemed necessary for Zn and Pb data and therefore
no top cuts applied to Zn and Pb values used in block model grade
interpolation.
Figures 5 and 6 showing grade tonnage curves, tonnage based on
Zn equivalent with Pb and Ag credits, are available at the
following links:
Figure 5: Grade Tonnage Curves Inferred, tonnage based on Zn
equivalent with Pb and Ag credits
http://www.rns-pdf.londonstockexchange.com/rns/1248W_1-2020-8-13.pdf
Figure 6: Grade Tonnage Curves Indicated Resources, tonnage
based on Zn equivalent with Pb and Ag credits
http://www.rns-pdf.londonstockexchange.com/rns/1248W_1-2020-8-13.pdf
Classification criteria
The portion of the Toral deposit defined by drilling,
underground development and channel sampling, has been classified
as an Inferred and Indicated mineral resource in accordance with
JORC (2012) based on a combination of drill spacing, geological
confidence, grade continuity, previous mining and the quality
control standards achieved.
Mining and metallurgical methods and parameters
Based on the orientations, thickness and depths to which the ore
body has been modelled, as well as the estimated grade, underground
mining is the intended mining methodology with froth floatation for
recovery.
Comparison with Previous Mineral Resource Estimate
The updated Mineral Resource Estimaten compares favourably with
the previously reported Indicated and Inferred Mineral Resource
Estimate announced on 29 October 2019. The decrease in total
contained metal and tonnes is considered by AMS to be within
estimation error and is accounted for through updates to the
mineralisation and fault models resulting in different sample
configurations and deposit geometry.
Previous Mineral Resource Estimate Announced in October 2019
Cut-Off Tonnes Density Zn_Eq Zn Eq Zn Pb Ag Contained Contained Ag Troy
Zn Eq (Millions) (Pb)% (PbAg)% % % g/t Zn Tonnes Pb Tonnes Oz (Millions)
(PbAg)% (000s) (000s)
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
Indicated
6 2.1 3 10 11 5.6 4.7 35 120 100 2.4
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
5 2.3 2.9 9.6 10 5.4 4.5 34 130 100 2.6
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
4 2.7 2.9 8.9 9.5 5 4.2 32 130 110 2.8
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
3 3.0 2.9 8.3 8.9 4.7 3.9 31 140 120 2.9
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
Inferred
6 11 2.9 8.4 8.9 5.2 3.5 26 550 360 8.8
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
5 12 2.9 7.9 8.4 4.9 3.2 24 610 400 9.7
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
4 16 2.9 7.2 7.6 4.5 2.9 22 690 450 11
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
3 18 2.9 6.7 7.1 4.1 2.7 21 740 480 12
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
Total
6 13 2.9 8.7 9.2 5.3 3.7 28 670 460 11
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
5 15 2.9 8.2 8.6 5 3.4 26 740 510 12
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
4 18 2.9 7.4 7.9 4.5 3.1 24 830 570 14
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
3 21 2.9 6.9 7.3 4.2 2.9 22 880 600 15
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
Transitional Oxide Material Total
4 3 2.9 5.8 6.3 2.8 3.2 27 87 97 2.6
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
Unweathered Fresh Rock Total
4 15 2.9 7.8 8.2 4.9 3.1 23 740 470 11
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
Table 2 : October 2019 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.
1. No mineral reserve calculations have been undertaken. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability. See "Cautionary Note Concerning Reserve and
Resource Estimates".
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$2,780/t, Pb price of US$2,200/t and Ag price of US$16.4/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*0.935 + Ag*0.018).
5. Zn Eq is the calculated Zn equivalent using lead credits and
does not include silver credits (Zn Eq = Zn + Pb*0.935).
6. The mineral resource estimate set out above for the zinc,
lead and silver mineralization 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 30
September 2019. The block model used uniform cell size of 50x4x50m
to best suit the orientation of the mineralisation and sample
spacing. 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 an Ordinary Kriging.
7. Top cuts were applied to the composite assay grades for 20%
Zn, 17% Pb and 125 g/t Ag, any value above the top cut value was
reduced to that grade.
8. The Indicated and Inferred mineral resource category for the
Toral zinc-lead-silver project set out in the above table (at
cut-off grades >4% Zn Equivalent) comply with the resource
definitions as described in 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.
The updated Mineral Resource Estimate is therefore positive in
terms of increased Indicated resource tonnes and contained
metal.
-- Indicated resource estimate of approximately 3.8Mt @ 8.3% Zn
Equivalent (including Pb credits) and 30g/t Ag;
-- 40% increase in Indicated resource tonnes;
-- 38% increase in Indicated contained tonnes of Zinc to approximately 180,000 tonnes;
-- 36% increase in Indicated contained tonnes of Lead to approximately 150,000 tonnes; and
-- 32% increase in Indicated contained ounces of Silver to approximately 3.7 million ounces.
Competent Person's statement
The updated Toral resource estimate was prepared by Mr J.N.
Hogg, 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. The updated resource estimate was completed by
Mr R. J. Siddle, MSc, MAIG Senior Resource Geologist for AMS and
Competent Person. Mr Hogg 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 drill hole
logs, QA/QC data, density measurements, and sampling, diamond and
RC drilling and analytical techniques. Mr Hogg consents to the
inclusion in this announcement of the matters based on the
information, in the form and context in which it appears. Mr Hogg
has also reviewed and approved the technical information in his
capacity as a Qualified Person under the AIM Rules for
Companies.
Additionally, Mr Hogg 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
Laurence Read, CEO (UK)
T: +44 (0)20 3289 9923
Strand Hanson Limited (Nominated Adviser)
Rory Murphy / Matthew Chandler
T: +44 (0)20 7409 3494
Turner Pope Investments (TPI) Limited (Broker)
Andy Thacker
T: +44 (0)20 3657 0050
Sasfin Capital Proprietary Limited (a member of the Sasfin
group) (JSE Sponsor)
Sharon Owens
T (direct): +27 11 809 7762
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.
Glossary of technical terms :
"Ag" silver;
"g" grammes;
"g/t" grammes per tonne;
"ICP" inductively coupled plasma;
"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.
APPIX : Table 1 (JORC 2012)
Section 1 Sampling techniques and data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation AMS Commentary
Sampling
techniques * Nature and quality of sampling (e.g. cut channels, * Historic and recent diamond drill core and
random chips, or specific specialised industry underground cut channel sampling has been completed
standard measurement tools appropriate to the over three main phases of exploration drilling and
minerals under investigation, such as down hole gamma sampling:
sondes, or handheld XRF instruments, etc). These
examples should not be taken as limiting the broad
meaning of sampling. o 1972 - 1984 Peñarroya - Adaro.
Diamond drill core method was used to
obtain samples for geological logging
and sampling.
o 2006 - 2008 Lundin Mining. Diamond
drill core method was used. Core logging
completed on paper.
o Europa Metals. Diamond drill core,
RC chips and underground cut channel
sampling methods used to obtain samples
for geological logging and sampling.
* Drill core samples were half core with an average
length of 1m.
* No handheld XRF instruments were used.
------------------------------------------------------------ -----------------------------------------------------------------
* Include reference to measures taken to ensure sample * Channel sampling was supervised by a Europa Metals'
representivity and the appropriate calibration of any geologist and samples that did not cross lithological
measurement tools or systems used boundaries were possible.
* The measures for sample representivity are unknown
for the historical drilling.
* Efforts to ensure sample representativity for the
Europa Metals' drilling include:
o Constant review of recovery data with
drill crews,
o Review of downhole survey data while
drilling in progress to ensure the piece
points are being intercepted,
o Always sampling the same side of the
core, while leaving the orientation line
in place.
------------------------------------------------------------ -----------------------------------------------------------------
* Aspects of the determination of mineralisation that * 2006 - 2008 Lundin Mining sent half core samples for
are Material to the Public Report. multi-element analysis of available Peñarroya
DDH samples completed at ALS Chemex Vancouver using
ICP.
* Lundin sent their core samples to ALS Chemex
Vancouver for ICP analysis .
* Europa Metals sent all samples to ALS Seville for
preparation and multi-element analysis by ICP.
* ALS Seville is accredited and conforms with
ISO9001:2008.
------------------------------------------------------------ -----------------------------------------------------------------
* In cases where 'industry standard' work has been done * Historic and recent diamond drill core methods are
this would be relatively simple (e.g. 'reverse discussed below:
circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30 g
charge for fire assay'). In other cases more o 1972 - 1984 Peñarroya - Adaro.
explanation may be required, such as where there is Geological and analytical data is recorded
coarse gold that has inherent sampling problems. on hardcopy. Selective sampling method
Unusual commodities or mineralisation types (e.g. was employed around areas of interest.
submarine nodules) may warrant disclosure of detailed Sampling intervals measure approx. 1m,
information. half core sent for analysis, with half
core retained for reference. Exact details
on core processing, sampling techniques
and analytical methods are unclear.
o 2006 - 2008 Lundin Mining. Diamond
drill core method was used. Core logging
completed on paper. Selective sampling
method was employed around areas of interest.
Sampling intervals measure approx. 1m,
half core sent for analysis, with half
core retained for reference. Samples
typically 1m half core, with samples
prepared at the then Lundin Laboratory
in Switzerland, then shipped to ALS Chemex
Vancouver for multi-element analysis
by ICP.
o Europa Metals. Diamond drill core,
RC chips and underground cut channel
sampling methods used to obtain samples
for geological logging and sampling.
Geological and analytical data is recorded
on hardcopy. Selective sampling method
was employed around areas of interest.
Sampling intervals measure approx. 1m,
half core sent for analysis, with half
core retained for reference. Samples
sent to ALS Seville for preparation and
multi-element analysis by ICP. Half core
and RC samples reduced to -400 microns
and 100g sub-sample taken for analysis.
------------------------------------------------------------ -----------------------------------------------------------------
Drilling
techniques * Drill type (e.g. core, reverse circulation, open-hole * A total of 113 diamond (including wedges) and 4 RC
hammer, rotary air blast, auger, Bangka, sonic, etc) drill holes totalling 60,915.65 metres, and 19
and details (e.g. core diameter, triple or standard underground channels for 18.75 metres were used as
tube, depth of diamond tails, face-sampling bit or the input database for geological modelling and
other type, whether core is oriented and if so, by resource estimation.
what method, etc).
* Drill core diameter was PQ, HQ, NQ, NQ2 and BQ
depending upon depth. Standard tube was used for
Peñarroya drilling, double tube method was used
for Lundin and diamond Europa Metals' campaigns.
* Europa Metals' diamond core was orientated using the
reflex ACT III.
------------------------------------------------------------ -----------------------------------------------------------------
Drill
sample * Method of recording and assessing core and chip * Total core recovery, solid core recovery, Rock
recovery sample recoveries and results assessed. Quality Designation (RQD) and fracture frequency were
recorded on hardcopy tables for the diamond drilling.
* A total of 12,207 core recovery measurements exist in
the database for the drilling with average recovery
of 81%. The average for the Europa Metals' diamond
drilling is 96%. Core recovery is measured over run
lengths
------------------------------------------------------------ -----------------------------------------------------------------
* Measures taken to maximise sample recovery and ensure * The drilling procedures for the historical works have
representative nature of the samples. not been reviewed and as such, the measures taken for
sample recovery and to ensure representativity cannot
be commented on.
* Effortsto maximise sample recovery for the Europa
Metals' drilling include:
o Constant review of recovery data with
drill crews,
o Slowing drill rate in areas of broken
ground,
o Reducing run lengths in areas of broken
ground.
o Use of specific drilling fluids (stabilised
slurries) in broken ground areas.
------------------------------------------------------------ -----------------------------------------------------------------
* Whether a relationship exists between sample recovery * There are 319 recovery measurements within the
and grade and whether sample bias may have occurred mineralised wireframes and statistical assessment
due to preferential loss/gain of fine/coarse suggests a possible slight negative bias exists
material. between recovery and grades, with higher recovery
returning slightly lower average grades
------------------------------------------------------------ -----------------------------------------------------------------
Logging
* Whether core and chip samples have been geologically * Selected intervals representing areas of interest
and geotechnically logged to a level of detail to were logged in the Peñarroya drill holes. All
support appropriate Mineral Resource estimation, Lundin and Europa Metals holes were logged in their
mining studies and metallurgical studies. entirety. The historical Peñarroya core was
re-logged by Europa Metals geologists in 2018 in its
entirety where the core was available.
* Core logging was recorded on paper logs, using a
combination of printed graphic log templates
(Peñarroya, Lundin), and paper (Europa Metals).
* Logging records lithology, textures, mineralisation,
weathering, alteration and veining where appropriate.
* The core and channel logging has been completed to a
sufficient level of detail to support appropriate
Mineral Resource Estimations.
* Geotechnical data for the drill holes has been
reviewed.
------------------------------------------------------------ -----------------------------------------------------------------
* Whether logging is qualitative or quantitative in * Drill core was qualitative and quantitative in
nature. Core (or costean, channel, etc) photography. nature.
* DH lithology, alteration, mineralisation and
structural observations were recorded by variable
interval based on characteristical similarities and
change boundaries.
* Summary interval information was inputted to Excel,
comprising single code field and codes to describe
logged lithology, alteration, mineralisation and
major structure for the interval.
* Lundin and Europa Metals core is routinely
photographed. Historical Peñarroya core was
photographed during the re-logging in 2018.
* Channel sample logging was quantitative in nature and
not photographed.
------------------------------------------------------------ -----------------------------------------------------------------
* The total length and percentage of the relevant * All drill core and RC chips were logged in their
intersections logged. entirety.
* Channel samples were logged in their entirety.
* Graphic and schematic logs were produced for all
drilling.
------------------------------------------------------------ -----------------------------------------------------------------
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * The sub-sampling techniques and sample preparation
and sample half or all core taken. details are not known for the Peñarroya drill
preparation core.
* Lundin and Europa Metals' core was cut in half using
a core saw. Sampling was supervised by the geologist.
* Europa Metals' field duplicates are quarter core.
* Underground channels were cut by angle
grinder/circular saw. A channel approximately 7 cm
wide and 5 cm deep to obtain 2-3 kg sample.
------------------------------------------------------------ -----------------------------------------------------------------
* If non-core, whether riffled, tube sampled, rotary * Channel samples were not split. They were sent to ALS
split, etc and whether sampled wet or dry. as bulk 2-3kg samples.
* RC samples were riffled at the rig and were generally
dry when split.
------------------------------------------------------------ -----------------------------------------------------------------
* For all sample types, the nature, quality and * The drilling procedures for the historical works have
appropriateness of the sample preparation technique. not been reviewed and as such, the appropriateness
cannot be commented upon. However, the lithology and
assay determinations are sufficient for an Inferred
category.
* Channel sample collection and Europa Metals' drilling
procedures, sample size, preparation and analysis are
considered appropriate for the mineralogy and deposit
type.
------------------------------------------------------------ -----------------------------------------------------------------
* Quality control procedures adopted for all * The drilling procedures for the historical works have
sub-sampling stages to maximise representivity of not been reviewed and as such, the QC procedures
samples. cannot be commented upon.
* All half core was taken on the left side.
* Samples were constrained by lithology but were 1m in
length where possible or divided equally where
necessary.
------------------------------------------------------------ -----------------------------------------------------------------
* Measures taken to ensure that the sampling is * Field duplicate scattergram analysis of the samples
representative of the in situ material collected, shows a good correlation between the original and
including for instance results for field duplicate samples.
duplicate/second-half sampling.
------------------------------------------------------------ -----------------------------------------------------------------
* Whether sample sizes are appropriate to the grain * Statistical analysis shows that samples are
size of the material being sampled. appropriate to the grain size of the material being
sampled.
------------------------------------------------------------ -----------------------------------------------------------------
Quality
of assay * The nature, quality and appropriateness of the * Historical Peñarroya assaying and laboratory
data and assaying and laboratory procedures used and whether procedures are unknown.
laboratory the technique is considered partial or total.
tests
* Commercial laboratories ALS Chemex Vancouver and ALS
Seville (ISO9001:2008) were used for Lundin and
Europa Metals' drill core respectively and Europa
Metals' underground channel sample analysis.
* Multi-element analysis, including Pb, Zn, Cu, Ag by
ICP-MS were completed on all samples.
* Over limits samples were re-analysed using ore grade
methods of determination.
* Sample analytical techniques are considered in line
with industry standard for this style of
mineralisation.
* Given the expected grades, lithology and deposit type,
the laboratory procedures are considered appropriate
for this level of classification.
------------------------------------------------------------ -----------------------------------------------------------------
* For geophysical tools, spectrometers, handheld XRF * No geophysical tools, spectrometers or handheld XRF
instruments, etc, the parameters used in determining instruments were used in the exploration and resource
the analysis including instrument make and model, work.
reading times, calibrations factors applied and their
derivation, etc.
------------------------------------------------------------ -----------------------------------------------------------------
* Nature of quality control procedures adopted (e.g. * QC sample insertion procedures were not employed
standards, blanks, duplicates, external laboratory during the historical Peñarroya drill campaigns.
checks) and whether acceptable levels of accuracy However, Lundin re-analysis of Peñarroya drill
(i.e. lack of bias) and precision have been core pulp rejects does allow for comparison of
established. original and pulp duplicate analysis results for
verification purposes.
* Lundin Mining completed limited quarter core field
duplicate insertion and pulp reject re-analysis. No
external standards.
* Europa Metals conducted a QC programme of inserting
quarter core field duplicates, course blank and pulp
blank material, standards, selection of pulp repeats
and submission of pulp rejects for umpire lab
re-analysis.
* ALS Chemex and ALS Seville internal QC exists for the
Peñarroya Lundin re-analysis, Lundin core and
Europa Metals core and channel sample batches.
* No significant issues were identified in the QC data.
* The nature and quantity of QC data, procedures
employed, level of accuracy and precision are
considered acceptable for the assigned resource
classification. The quality of assay data and
laboratory tests is acceptable for the resource
classification for this deposit.
* Shewhart Plots of the QC samples showed no sample
bias and CRMS returned within acceptable limits.
* Nelson rules of monitoring were applied.
* The nature and quantity of QC data for the channel
sampling, procedures employed, level of accuracy and
precision are considered acceptable for the assigned
resource classification.
------------------------------------------------------------ -----------------------------------------------------------------
Verification
of sampling * The verification of significant intersections by * Drill core has been routinely verified by AMS
and assaying either independent or alternative company personnel. geologists throughout the various recent drilling
programmes.
* 27 verification samples have been taken.
* Geological data from gallery is observed and reported
by geologists and mining engineers.
* Paper recorded drill hole logging data is transferred
to Access, imported into Micromine 3D geological
modelling software for validation.
* No significant issues in the drill logging were
observed. The logging is accurate and suitable.
============= ------------------------------------------------------------ -----------------------------------------------------------------
* The use of twinned holes. * There has been no verification twin drilling carried
out.
============= ============================================================ =================================================================
* Documentation of primary data, data entry procedures, * DGPS collar and survey excel data, and lab analytical
data verification, data storage (physical and data transferred from lab.csv, to Excel and imported
electronic) protocols. to Micromine 3D geological modelling software.
* All analytical data generated from Lundin re-analysis
and Lundin core samples, Europa Metals' core and
channel samples for use as input to estimation have
been verified by cross reference against lab assay
certificates, re-import and re-building of the
project analytical database.
* 2018-2020 lab certificates were verified and checked
against database assays.
------------------------------------------------------------ -----------------------------------------------------------------
* Discuss any adjustment to assay data. * No adjustment to the analytical data was considered
necessary, other than conversion to zinc equivalents
for reporting purposes, following industry best
practice. Raw analytical data remained unchanged.
============= ============================================================ =================================================================
Location
of data * Accuracy and quality of surveys used to locate drill * Peñarroya drill hole collar locations were
points holes (collar and down-hole surveys), trenches, mine measured off plans and sections, located on the
workings and other locations used in Mineral Resource ground and picked up using Geomax 35 high-precision
estimation. DGPS device. Accuracy +/-5 m. Peñarroya drill
hole dip and azimuth measured from historical plans,
cross sections and longitudinal section. Accuracy
+/-5 m.
* Europa Metals' drill collar locations were surveyed
using a Geomax Zenith 35 DGPS device with
sub-centimetre accuracy. Both RC and diamond downhole
surveys were competed at 5-10 m regular intervals
using a REFLEX GYRO(TM) tool.
* Old workings were surveyed using Lieca Disto tmx310
survey device.
------------------------------------------------------------ -----------------------------------------------------------------
* Specification of the grid system used. * Data was captured and located using a Universal
Transverse Mercator (UTM). The geographic coordinate
reference system used by the client was European
Terrestrial Reference System 1989 UTM Zone 29
('ETRS89 / UTM29N').
* Elevations are reported in metres above sea level.
============================================================ =================================================================
* Quality and adequacy of topographic control. * Topographic DTM taken from 5m resolution Lidar data
MDT05-Lidar, from government mapping and survey
association Plan Nacional de Ortofotografía
Aérea (PNOA).
* Topographic control is sufficient for level of
resource category.
------------------------------------------------------------ -----------------------------------------------------------------
Data spacing
and * Data spacing for reporting of Exploration Results. * Drill and UG channel sample data spacing across the
distribution current resource area ranges from approximately
50-100mx50-100m centres within the most densely
tested area towards the NW, stepping out to
approximately 200mx200m within the mid-section, and
100-200x500m in the SE.
------------------------------------------------------------ -----------------------------------------------------------------
* Whether the data spacing and distribution is * The distribution of drillholes and UG channel
sufficient to establish the degree of geological and sampling is sufficient to establish the degree of
grade continuity appropriate for the Mineral Resource geological and grade continuity appropriate for JORC
and Ore Reserve estimation procedure(s) and (2012) Inferred classification of resources.
classifications applied.
------------------------------------------------------------ -----------------------------------------------------------------
* Whether sample compositing has been applied. * Length weighted averages including internal waste
were applied for reporting of exploration results.
* The details are shown with the accompanying tables.
------------------------------------------------------------ -----------------------------------------------------------------
Orientation
of data * Whether the orientation of sampling achieves unbiased * Drilling and underground sampling is angled to
in relation sampling of possible structures and the extent to intercept mineralised structures at high angle, as
to which this is known, considering the deposit type. close to perpendicular to dip and strike as
geological practicable.
structure
* 3D review of sections shows that there appears to be
no sample bias introduced by drilling orientation.
* True thicknesses are reported in the accompanying
tables.
============= ------------------------------------------------------------ -----------------------------------------------------------------
* If the relationship between the drilling orientation * The mineralisation is a steeply dipping vein and
and the orientation of key mineralised structures is sampling tries to reduce the bias by sampling on a
considered to have introduced a sampling bias, this perpendicular plane where possible.
should be assessed and reported if material.
* Review of drilling and channel sections with the
lithological unit appear to show no obvious bias.
============= ============================================================ =================================================================
Sample
security * The measures taken to ensure sample security. * Historical Peñarroya sample security protocols
are not available.
* Lundin/Europa Metals' drill core is transported from
site to logging facility in securely covered core
boxes by the Lundin/Europa Metals' geologists.
* Core logged and sampled in secure facility.
* Samples are bagged in plastic bags and labelled with
individual sample numbers, sample name and sample
location. Each bag is sealed to avoid tampering and
contamination.
* Plastic bags are placed in dry weave bags.
* Samples are delivered to laboratory by courier in
secured boxes/bags.
* Couriers transported the samples to ALS. The couriers
were then responsible for the chain of custody.
* The samples arrive in good condition at ALS Seville.
------------------------------------------------------------ -----------------------------------------------------------------
Audits
or reviews * The results of any audits or reviews of sampling * Numerous site visits have been conducted to the Toral
techniques and data. Project and core processing facility in Ponferrada
(licence number 15.199), the latest between 25(th)
and 27(th) March 2019 by Mr. James Hogg (CP), and
12th and 15th of August 2019 by Mr Lewis Harvey
(Senior Consultant - Addison Mining Services).
* Data has also been reviewed on multiple occasions by
AMS staff as it is received from the laboratory and
on submission of databases from Europa Metals.
* Findings were satisfactory.
------------------------------------------------------------ -----------------------------------------------------------------
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this
section.)
Criteria JORC Code explanation AMS Comments
Mineral
tenement * Type, reference name/number, location and ownership * Toral exploration permit number 15.199 (also referred
and land including agreements or material issues with third to as Permiso de Investigacion), is located
tenure status parties such as joint ventures, partnerships, approximately 400km northwest of Madrid, within the
overriding royalties, native title interests, Province of León, Autonomous Community of
historical sites, wilderness or national park and Castile and Le n.
environmental settings.
* Licence 15.199 covers an area of 20.29km(2).
* Exploration licence 15.199 is owned by Europa Metals
Iberia., a wholly owned subsidiary of Europa Metals
Ltd. The licence was renewed on 14(th) November 2017
for a period of 3 years. A new renewal was submitted
5 June 2020 for 3 additional years
--------------------------------------------------------------- ---------------------------------------------------------------
* The security of the tenure held at the time of * All tenements are in good standing.
reporting along with any known impediments to
obtaining a licence to operate in the area.
* AMS are unaware of any impediments that may affect
the licences.
--------------------------------------------------------------- ---------------------------------------------------------------
Exploration
done by * Acknowledgment and appraisal of exploration by other * 1972-1984 - Peñarroya-Adaro. 58 drill holes, 32
other parties parties. wedge drill holes.
* 1992-1995 - Geominera. Data re-evaluation.
* 2005-2008 - Lundin Mining. 7 drill holes.
* 2009-2011 - Goldquest Mining. Soil and rock
geochemistry. Historic gallery mapping. Data
evaluation. NI43-101 Mineral Resource Estimate
* 2012-2015 - Portex Mining Corporation. Geological
mapping. Data re-evaluation.
* 2015-2016 - Goldquest Iberica S.L. Soil and rock
geochemistry. Geological mapping.
* 2016-2017 - Goldquest Iberica S.L. (Europa Metals
Limited). 6 drill holes. Historic gallery mapping and
sampling. Data re-evaluation and interpretation.
--------------------------------------------------------------- ---------------------------------------------------------------
Geology
* Deposit type, geological setting and style of * The Toral project is located in the Southwestern part
mineralisation of the regional West Asturian Leonese Zone (WALZ), a
major tectono-stratigraphic unit of the Hercynian
Orogeny.
* The mineralisation at Toral is considered as
structurally controlled carbonate hosted Pb-Zn type.
Shear and thrust fault controlled mineralisation
within favourable carbonate lithology and favourable
contrasting contacts between carbonates and shales.
* Styles of mineralisation are boudinage drusy quartz
vein, replacement breccia, disseminated clots
associated with silica, carbonate and chlorite
alteration.
* Main metallic minerals are Sphalerite, Galena, Pyrite,
Chalcopyrite and silver.
--------------------------------------------------------------- ---------------------------------------------------------------
Drill hole
Information * A summary of all information material to the * Topographic DTM taken from 5m resolution Lidar data
understanding of the exploration results including a MDT05-Lidar, from government mapping and survey
tabulation of the following information for all association Plan Nacional de Ortofotografía
Material drill holes: Aérea (PNOA).
o easting and northing * Drilling:
of the drill hole
collar
o elevation or RL o Number of drillholes used: 113
(Reduced Level - elevation o Collar East: 679962mE - 684690mE
above sea level in o Collar North: 47086534mN - 4710598mN
metres) of the drill o Collar RL: 410mRL - 754.13mRL
hole collar o Azimuth: 000deg - 354deg
o dip and azimuth o Dip: -90deg - -40deg
of the hole o Length: 35.40m - 1285.3m
o down hole length o Interception depth: 580mRL - -407mRL
and interception depth o 1344 Pb and Zn assay values
o hole length. o 1199 Ag assay values
* UG Channels:
o Number of channels: 27
o Collar East: 680917mE - 682607mE
o Collar North: 4709161mN - 4709996mN
o Collar RL: 447mRL - 693mRL
o Azimuth: 010deg - 313deg
o Dip: -24deg - 19deg
o Length: 0.25m - 4.25m
=============== --------------------------------------------------------------- ---------------------------------------------------------------
* No data is being excluded.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
=============== =============================================================== ===============================================================
Data
aggregation * In reporting Exploration Results, weighting averaging * No top cuts were applied to the Zn and Pb data for
methods techniques, maximum and/or minimum grade truncations reporting of exploration results. However, Lundin and
(e.g. cutting of high grades) and cut-off grades are Europa Metals samples were limited to analytical
usually Material and should be stated. method upper detection limits of 30% for Zn, Pb.
--------------------------------------------------------------- ---------------------------------------------------------------
* Where aggregate intercepts incorporate short lengths * Data aggregation or Grade Compositing rules for the
of high grade results and longer lengths of low grade reporting of exploration drill and channel
results, the procedure used for such aggregation significant results were minimum width 1m, minimum
should be stated and some typical examples of such average grade 0.5% ZnEq, maximum allowable internal
aggregations should be shown in detail. waste of 2m.
=============================================================== ===============================================================
* The assumptions used for any reporting of metal * Zn equivalent calculations were based on 3 year
equivalent values should be clearly stated. 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.
--------------------------------------------------------------- ---------------------------------------------------------------
Relationship
between * These relationships are particularly important in the * Mineralisation is interpreted as sub-vertical to
mineralisation reporting of Exploration Results. steeply dipping to the NE.
widths and
intercept
lengths * Drilling and underground sampling considered the
nature of the mineralisation prior to commencement of
exploration.
--------------------------------------------------------------- ---------------------------------------------------------------
* If the geometry of the mineralisation with respect to * Angled drilling is sub-perpendicular to +/- 20
the drill hole angle is known, its nature should be oblique to mineralisation.
reported.
* Review of drilling and channel sections with the
lithological unit appear to show no obvious bias.
--------------------------------------------------------------- ---------------------------------------------------------------
* If it is not known and only the down hole lengths are * True thickness of mineralisation ranges from
reported, there should be a clear statement to this approximately 90%-60% downhole interval length.
effect (e.g. 'down hole length, true width not
known').
* True lengths are reported in the tables, as
calculated by Micromine.
--------------------------------------------------------------- ---------------------------------------------------------------
Diagrams
* Appropriate maps and sections (with scales) and * Appropriate scaled diagrams are included within the
tabulations of intercepts should be included for any AMS Toral JORC (2012) Resource Statement and
significant discovery being reported. These should Technical Report.
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views. * Tables of intercepts are included in the relevant
sections.
--------------------------------------------------------------- ---------------------------------------------------------------
Balanced
reporting * Where comprehensive reporting of all Exploration * All available exploration data for the Toral deposit
Results is not practicable, representative reporting area has been collected and reported.
of both low and high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results. * Representative data from all drilling and underground
channel sampling has been reported.
--------------------------------------------------------------- ---------------------------------------------------------------
Other
substantive * Other exploration data, if meaningful and material, * No geophysical works have been completed.
exploration should be reported including (but not limited to):
data geological observations; geophysical survey results;
geochemical survey results; bulk samples - size and * Geological mapping and solid geology map generation
method of treatment; metallurgical test results; bulk completed.
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances. * Structural interpretation and 3D modelling completed.
* Soil geochemical surveys demonstrate strong coherent
Zn in soil anomalism coincident with interpreted
controlling structures.
* Geotechnical tests have been carried out on 84
samples chosen by Europa Metals in different
lithologies. Data have been compiled from 48 samples
tested for geotechnical studies from old reports from
Peñarroya.
* Metallurgical testing at Wardell Armstrong's
laboratory was carried out. The results of testwork
are pending.
--------------------------------------------------------------- ---------------------------------------------------------------
Further
work * The nature and scale of planned further work (e.g. * Surface drilling and trenching works testing open
tests for lateral extensions or depth extensions or strike extent to the SE and NW and infill drilling
large-scale step-out drilling). within current resource limits to increase confidence
and resource class.
* Increased metallurgical and recovery test work.
--------------------------------------------------------------- ---------------------------------------------------------------
* Diagrams clearly highlighting the areas of possible * Appropriate scaled diagrams and maps are included
extensions, including the main geological within the AMS Toral JORC (2012) Resource Statement
interpretations and future drilling areas, provided and Technical Report.
this information is not commercially sensitive
--------------------------------------------------------------- ---------------------------------------------------------------
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2,
also apply to this section.)
Criteria JORC Code explanation AMS Comments
Database
integrity * Measures taken to ensure that data has not been * Analytical data is pared by query with sampling data
corrupted by, for example, transcription or keying via sample number.
errors, between its initial collection and its use
for Mineral Resource estimation purposes.
* AMS has cross referenced the analytical database with
laboratory certificates.
* Micromine 3D geological modelling and estimation
software used for import, validation and QAQC
verification assessment.
* Basic core and sample storage, handling, data capture
and transfer methodologies discussed and are
considered satisfactory.
* The database is suitable for use for use in Mineral
Resource Estimates.
------------------------------------------------------------ -------------------------------------------------------------
* Data validation procedures used. * Micromine 2020 software was used to validate the
channel sampling and drill hole databases.
* Data checks include overlapping and missing intervals,
trace errors, missing survey and coordinate data,
lithology, consistency of sample lengths interval
files. Checks for out of range values were also made.
* No significant errors were found within the database.
Some minor typographical errors were identified and
fixed.
------------------------------------------------------------ -------------------------------------------------------------
Site visits
* Comment on any site visits undertaken by the * The Competent Person for the resource estimation is
Competent Person and the outcome of those visits. Mr. James Hogg. Mr Hogg's, last site visit was
completed between the 4th and 5th of December 2019.
* The last site visit by AMS was completed between the
12th and 15th of August 2019 by Mr Lewis Harvey
(Senior Consultant - Addison Mining Services).
* Site visits have not identified any issues relating
to the reporting of mineral resources.
------------------------------------------------------------ -------------------------------------------------------------
* Site visits have been undertaken.
* If no site visits have been undertaken indicate why
this is the case.
------------------------------------------------------------ -------------------------------------------------------------
Geological
interpretation * Confidence in (or conversely, the uncertainty of) the * Based upon the level of available information,
geological interpretation of the mineral deposit. geological and deposit complexity, interpretation of
the main lithological boundaries and controls to
mineralisation are considered satisfactory and
appropriate for the assigned resource class.
* Fault modelling is simplified, and further refinement
will improve the models accuracy moving forward.
------------------------------------------------------------ -------------------------------------------------------------
* Nature of the data used and of any assumptions made. * Drillhole lithological and analytical information,
prospect scale surface geological mapping,
underground mapping and sampling, location of
underground workings were used in geological
interpretation.
* Mineralisation is modelled as a continuous unit
within the major fault units, however it is
anticipated some smaller scale faulting and offset
post mineralisation will be present which is not
accounted for in modelling.
------------------------------------------------------------ -------------------------------------------------------------
* The effect, if any, of alternative interpretations on * Alternative interpretations infer potential thrust
Mineral Resource estimation. repeats and potential for additional parallel
mineralised zones. However, at the level of
information this interpretation remains unsupported
by drill data and conceptual in nature.
------------------------------------------------------------ -------------------------------------------------------------
* The use of geology in guiding and controlling Mineral * Drillhole lithological and analytical information and
Resource estimation. underground channel mapping and sampling were used in
geological interpretation.
* The geological model was used to guide the
interpretation and continuity of Zn-Pb mineralised
domains.
* Post mineralisation transfer faults are interpreted
to affect continuity by minor offset.
------------------------------------------------------------ -------------------------------------------------------------
* The factors affecting continuity both of grade and * Grade continuity is currently interpreted to be
geology. slightly greater down dip forming "shoots". Faulting
effects geological continuity on a local scale
(50-100 m) perpendicular to the strike on
mineralisation.
------------------------------------------------------------ -------------------------------------------------------------
Dimensions
* The extent and variability of the Mineral Resource * Mineralisation is encountered at surface and based on
expressed as length (along strike or otherwise), plan current testing, extends to approximately 1,100m
width, and depth below surface to the upper and lower below the surface. Mineralisation is currently tested
limits of the Mineral Resource. across a 3,600m strike length, the orientation of
mineralisation zone is approximately 110 degrees,
averaging approximately 3.5m in thickness and ranging
from 2m to 5.5m.
* Mineralisation is encountered at surface as a process
of the incisions.
------------------------------------------------------------ -------------------------------------------------------------
Estimation
and modelling * The nature and appropriateness of the estimation * Wireframe restricted block models were interpolated
techniques technique(s) applied and key assumptions, including by ordinary kriging and are considered by the
treatment of extreme grade values, domaining, competent person to be appropriate for the resource
interpolation parameters and maximum distance of estimate.
extrapolation from data points. If a computer
assisted estimation method was chosen include a
description of computer software and parameters used. * To the north west the mineralised models are
truncated by the licence boundary and are extended
approximately 10m past the south easterly most
drillhole which was mineralized but contained
sub-economic grades (3m at 2.4% ZnEq). The structure
remains open to the south east. Down dip the model
was extrapolated approximately 50-200m below the
deepest sample in the north west and central zones,
and approximately 400m below the deepest sample in
the SE zone with consideration of depths tested along
strike to the NW. 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.
* A uniform cell block model of 25 mE, 10 mN, 25mZ was
restricted to the wireframes using block factors. The
block model was rotated by 20deg in plan view to best
match the trend of mineralisation. The uniform model
and 2m sample composites for the mineralized domain
were then flattened to a constant vertical plane
striking 110deg to account for fault offsets, improve
variography and grade mapping. Thickness was
preserved in the flattening process and no lateral
stretching was applied.
* Block model interpolation and extrapolation for Zn,
Pb and Ag was completed using directional variograms
for each element in the flattened space at the
uniform block scale. Ordinary Kriging was used, and a
multiple pass kriging neighbourhood used at
increasing radii to prevent smearing of high grades.
Search passes were 130 along strike and 150 down dip
with a minimum of 2 drillholes and a maximum of 8
composites, the same radii with 1 drillhole, then 300
x300 with minimum 2 drillholes and a maximum of 16
composites and finally 450 x450 1 minimum drillhole
and a maximum of 16 composites. The block model was
then sub blocked to the mineralized wireframes in
real space to best honour thickness and volume.
------------------------------------------------------------ -------------------------------------------------------------
* The availability of check estimates, previous * The estimates have been reconciled against previous
estimates and/or mine production records and whether AMS estimates.
the Mineral Resource estimate takes appropriate
account of such data.
* The increases / decreases are related to data
confidence and additional samples and updated fault
models.
* A full description for the differences is described
in the body text.
* There are no historical production records to
validate against.
------------------------------------------------------------ -------------------------------------------------------------
* The assumptions made regarding recovery of * It is the opinion of the Company that Ag will be
by-products. recovered along with Pb and Zn and a credit payed on
refining.
------------------------------------------------------------ -------------------------------------------------------------
* Estimation of deleterious elements or other non-grade * No estimation of deleterious elements has been made
variables of economic significance (e.g. sulphur for at this time and it is anticipated this will be
acid mine drainage characterisation). conducted on completion of a block model which is to
be used for PFS.
------------------------------------------------------------ -------------------------------------------------------------
* In the case of block model interpolation, the block * The block size of 25 m is typically 1/3 to 1/5 of the
size in relation to the average sample spacing and drill spacing with greater and lesser spacing in
the search employed. areas of more sparse and more dense drilling. The 25
m block size was chosen to better map variability
within the area of indicated resources.
------------------------------------------------------------ -------------------------------------------------------------
* Any assumptions behind modelling of selective mining * Wireframe models included minimum anticipated mining
units. width of 2m.
------------------------------------------------------------ -------------------------------------------------------------
* Any assumptions about correlation between variables. * As with previous resource estimates completed by AMS
(2017, 2018) wireframe solid models were created for
each domain based on a mineralisation threshold of
approximately 0.2% for Zn and Pb (approximately 0.4%
Zn+Pb).
* Analysis of Zn and Pb grades in cross section and in
scatter plots showed a strong relationship and no
requirement to model Zn and Pb separately was
identified. Ag showed a strong correlation with Pb
and was estimated within the Zn/Pb mineralised
domain.
------------------------------------------------------------ -------------------------------------------------------------
* Description of how the geological interpretation was * The updated wireframes were generated using
used to control the resource estimates. Micromine's implicit vein modelling functionality and
incorporated major fault boundaries as inclined and
vertical planes. Interpretation of the mineralised
domains was guided by geological interpretation of
the deposit incorporating structural and lithological
boundaries such as footwall slate contacts and
surface expression in topographical data and outcrop
mapping.
------------------------------------------------------------ -------------------------------------------------------------
* Discussion of basis for using or not using grade * Top cutting was performed on Ag composite sample data
cutting or capping. due to a number of extreme outliers leading to a
skewed dataset.
* Top cuts were applied to the composite assay grades
for 125 g/t Ag, any value above the top cut value was
reduced to that grade.
* Capping was based on analysis of Histograms and
cumulative sums.
* Review of updated Zn and Pb composite sample data
indicates no top cuts were necessary.
------------------------------------------------------------ -------------------------------------------------------------
* The process of validation, the checking process used, * The block model was validated visually in long
the comparison of model data to drill hole data, and section and cross section to inspect assay grades vs
use of reconciliation data if available. block grades, particular attention was given to areas
of low grade that may be influenced by higher grade
samples within search radii. The mean values
including declustered mean of the input data were
compared against the output data along with
comparison of histograms. Several sensitivity checks
were completed using different kriging
neighbourhoods.
------------------------------------------------------------ -------------------------------------------------------------
Moisture
* Whether the tonnages are estimated on a dry basis or * Tonnages are estimated on a dry basis.
with natural moisture, and the method of
determination of the moisture content.
------------------------------------------------------------ -------------------------------------------------------------
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality * An economic cut off grade of 4% Zn equivalent
parameters applied. including Pb and Ag credits was used. (Zn Eq (PbAg)%
= Zn + Pb*0.926 + Ag*0.019). As determined in the AMS
scoping study 2018. Relative recoveries and selling
costs were taken into account.
* 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.
------------------------------------------------------------ -------------------------------------------------------------
Mining factors
or assumptions * Assumptions made regarding possible mining methods, * Assumed mining methods are based upon a review of
minimum mining dimensions and internal (or, if methods of extraction, cost and performance on
applicable, external) mining dilution. It is always similar type deposits. Summary of mining and
necessary as part of the process of determining processing costs used in determination of economic
reasonable prospects for eventual economic extraction cut off. Mechanised Cut and fill mining method
to consider potential mining methods, but the assumed.
assumptions made regarding mining methods and
parameters when estimating Mineral Resources may not
always be rigorous. Where this is the case, this * Total Mining Processing and Rehab cost estimated at
should be reported with an explanation of the basis US$68/t. Mining recovery and dilution assumed at 93%
of the mining assumptions made. and 5%.
------------------------------------------------------------ -------------------------------------------------------------
Metallurgical
factors * The basis for assumptions or predictions regarding * Assumed processing methods are based upon a review of
or assumptions metallurgical amenability. It is always necessary as methods of extraction, cost and performance of
part of the process of determining reasonable similar type deposits.
prospects for eventual economic extraction to
consider potential metallurgical methods, but the
assumptions regarding metallurgical treatment * Assumed metallurgical recoveries are Zn 87.5%, Pb
processes and parameters made when reporting Mineral 92.5% and 80% Ag.
Resources may not always be rigorous. Where this is
the case, this should be reported with an explanation
of the basis of the metallurgical assumptions made. * Assumed concentrate selling factors are Zn 85%, Pb
95%, Ag 90%
------------------------------------------------------------ -------------------------------------------------------------
Environmental
factors * Assumptions made regarding possible waste and process * No assumptions are made on environmental factors
or assumptions residue disposal options. It is always necessary as other than the cost to back fill waste tailings.
part of the process of determining reasonable
prospects for eventual economic extraction to
consider the potential environmental impacts of the * Flora and fauna studies were started in 2019 by the
mining and processing operation. While at this stage companies and institution of "Universidad de Leon"
the determination of potential environmental impacts, and "Mas que pájaros, biologia, ecoturismo y
particularly for a greenfields project, may not medioambiente S.L". Their report is pending.
always be well advanced, the status of early
consideration of these potential environmental
impacts should be reported. Where these aspects have * AMS has not reviewed any Environmental, Social and
not been considered this should be reported with an Permitting (ES&P) documents or licences.
explanation of the environmental assumptions made.
* AMS understands that there are no legal or project
permitting, environmental and social settings issues
or risks.
* No red flags were identified via the site visit or
study desk review.
------------------------------------------------------------ -------------------------------------------------------------
Bulk density
* Whether assumed or determined. If assumed, the basis * The bulk density was calculated using the Archimedes
for the assumptions. If determined, the method used, method weighting the samples in air and water using a
whether wet or dry, the frequency of the measurements Kern precision balance.
,
the nature, size and representativeness of the
samples. * Bulk density measurements were carried out on most of
the drillholes, in both mineralised and
un-mineralised samples.
* The resource database contains 2,405 bulk density
measurements. There are 193 measurements within the
mineralised wireframe.
------------------------------------------------------------ -------------------------------------------------------------
* No bulk material was measured.
* The bulk density for bulk material must have been
measured by methods that adequately account for void
spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within
the deposit.
------------------------------------------------------------ -------------------------------------------------------------
* Discuss assumptions for bulk density estimates used * The mean for the mineralised domain transitional zone
in the evaluation process of the different materials. is 2.75 g/cm(3) and the mean for mineralised domain
fresh material is 2.85 g/cm(3) .
* A broad linear relationship between Pb+Zn grade and
Bulk Density was identified from scattergrams and the
formula 2.75 + 0.02(Pb+Zn%) used to estimate block
density related to grade within the block model.
------------------------------------------------------------ -------------------------------------------------------------
Classification
* The basis for the classification of the Mineral * The classification of Indicated resources was based
Resources into varying confidence categories. on identification of blocks which had been
interpolated during the first kriging search with a
minimum of 2 drillholes and radii 130 along strike
and 150 down dip. All blocks meeting this criteria
were considered but were reduced to a single area to
avoid isolated "spots" and to include the area with
most recent an most reliable drilling and greatest
kriging efficiencies over a consistent area. The area
was smoothed to make a consistent unit. Only material
in the fresh rock, unweathered domain was classified
as indicated.
* All other blocks were classified as Inferred
resources
------------------------------------------------------------ -------------------------------------------------------------
* Whether appropriate account has been taken of all * The assigned classification of Inferred and Indicated
relevant factors (i.e. relative confidence in reflects the Competent Persons' assessment of the
tonnage/grade estimations, reliability of input data, accuracy and confidence levels in the input data and
confidence in continuity of geology and metal values, the resulting Mineral Resource Estimate.
quality, quantity and distribution of the data).
------------------------------------------------------------ -------------------------------------------------------------
* Whether the result appropriately reflects the * The result reflects the quality and quantity of data,
Competent Person's view of the deposit. geostatistical analysis of correlation and
relationship between mineralised samples
(semi-variography) and the Competent Person's view of
the deposit.
* The semi-variography reflects the sample density.
------------------------------------------------------------ -------------------------------------------------------------
Audits or
reviews * The results of any audits or reviews of Mineral * The 2020 Mineral Resource has been reviewed
Resource estimates. internally as part of normal validation processes by
AMS.
* The AMS 2020 resource estimate has not been audited
or reviewed externally at the time of writing.
------------------------------------------------------------ -------------------------------------------------------------
Discussion
of relative * Where appropriate a statement of the relative * It is the Competent Person's opinion that the level
accuracy/ accuracy and confidence level in the Mineral Resource of confidence is consistent with the level of
confidence estimate using an approach or procedure deemed Inferred and Indicated categorised mineral resources.
appropriate by the Competent Person. For example, the
application of statistical or geostatistical
procedures to quantify the relative accuracy of the * Geostatistical assessment of confidence limits such
resource within stated confidence limits, or, if such as conditional simulation of grades has not been
an approach is not deemed appropriate, a qualitative conducted at this time.
discussion of the factors that could affect the
relative accuracy and confidence of the estimate.
* Interpretation of the thickness and therefore volume
of the mineralisation along with bulk density have
the greatest effect on the contained metal.
* Kriging neighbourhood and the control of higher grade
samples and preventing them from over smoothing is
also important in producing a realistic estimate.
* It is the Competent Person 's opinion that the level
of confidence is consistent with the level of
Indicated and Inferred categorised mineral resources.
------------------------------------------------------------ -------------------------------------------------------------
* The statement should specify whether it relates to * The estimate is a local estimate to the 25m block
global or local estimates, and, if local, state the scale; however the data density is too sparse to
relevant tonnages, which should be relevant to allow modelling of selective units inside of the 25m
technical and economic evaluation. Documentation panel scale.
should include assumptions made and the procedures
used.
* As with all kriged estimates there is a degree of
smoothing.
------------------------------------------------------------ -------------------------------------------------------------
* These statements of relative accuracy and confidence * There are no historical production records from the
of the estimate should be compared with production deposit.
data, where available.
------------------------------------------------------------ -------------------------------------------------------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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