TIDMEUZ
RNS Number : 3977C
Europa Metals Ltd
19 October 2020
19 October 2020
Europa Metals Ltd
("Europa Metals", the "Company" or the "Group") (AIM, AltX:
EUZ)
EUR466,801.50 Grant Awarded by the CDTI Towards Exploration Work
at the
Toral Pb, Zn & Ag Project, Spain
Europa Metals, the European focused lead-zinc and silver
developer, is pleased to announce that, following an extensive
submission process, an interest -free loan by way of a grant of
EUR466,801.50 (the "Grant") has been awarded to the Company by the
Centre for the Development of Industrial Technology (CDTI) for use
towards research and development ("R&D") at the Company's
wholly owned Toral lead, zinc and silver project ("Toral" or the
"Toral Project") situated in the region of Castilla y León,
north-west Spain.
The CDTI is a Public Business Entity in Spain, under the
auspices of the Ministry of Science and Innovation, which fosters
the technological development and innovation of Spanish companies.
The Grant is categorised as a partly refundable loan (with a nil
per cent. interest rate) with the funds received to be allocated
towards the development of R&D technologies relating to the
recording and correction of drillhole deviation at the Toral
Project. Application for the Grant was made further to ongoing work
by Europa Metals and the AIR Institute, linked to the Salamanca
University, and drilling contractors Sondeos y Perforaciones
Industriales de Bierzo SA ("SPI").
Europa Metals will draw the Grant monies down in up to three
tranches, with the prior agreement of the CDTI, with the initial
tranche, comprising an amount of EUR163,380, to be received by the
Company imminently. The second and third tranches are scheduled to
be drawn down over the next 18 months subject to certain, defined,
operational milestones. The core objectives of the Innovation
Programme are to retrieve and process data from the Toral drilling
campaign in order to develop algorithmic software for use in
exploration campaigns to correct drilling deviation. Biannual
repayments of EUR21,822 begin in 2024, running for 7 years until
2031, with a fixed interest rate being set by the currently
prevailing Euribor rate of nil per cent.
Europa Metals anticipates that the Grant will enable the Company
to apply for reductions in taxes payable relating mainly to labour
costs and is satisfied that the terms of the Grant will not prevent
the Company from participating in other grant application processes
save where there is a specific technological overlap.
Once the funds have demonstrably been spent on appropriate
R&D exploration activity at the Toral Project by the Company,
70 per cent. of the total Grant will be repayable with the
balancing 30 per cent. then not required to be repaid.
Toral Project Update
At Toral, the Company is working towards finalisation of a new,
independent, economic report on the project, currently being
undertaken by Bara Consulting. Certain elements of a
Pre-Feasibility Study for the Toral Project are also underway with
the bore hole for hydrogeological testing now complete, which will
enable monitoring to commence. The Company looks forward to
updating the market, as appropriate, on anticipated further
operational progress in due course, including the expected renewal
of its three-year Investigation Permit for the Toral Project.
Laurence Read, CEO of Europa Metals, commented :
"Following our recent successful GBP2 million equity raise, I am
pleased to announce the awarding of this EUR466,801.50 Grant by the
Spanish Governmental agency, CDTI . This interest free loan is a
huge testament to the operational work performed at the Toral
Project and our team's ability to establish innovative partnerships
with local contractors and leading higher education establishments.
For some time, we have been progressing our work with the
University of Salamanca and SPI to assess how the development of
Toral could be utilised to assist the Castilla y León and Spain
with innovation in the field of exploration. Using Toral as a real
time project our partnership with the AIR Institute and SPI shall
field-test data collection and processing systems from the
exploration drill rigs once Europa Metals begins its
Pre-Feasibility Study drilling campaign, following completion of
the current ongoing economic study .
" Europa Metals is pursuing a number of grant initiatives and I
am pleased that the first successful application stems from the
Castilla y León itself. The Grant is on attractive terms and allows
money to be spent at the project level contributing to the R&D
aspects of the Company's Pre-Feasibility Study programme. I would
like to take this opportunity to thank the CDTI, for their backing
of our partnership , the Junta of Castilla y León for their ongoing
support and, of course, our colleagues who have once again
delivered on the Group's objectives ."
For further information on the Company, please visit
www.europametals.com or contact:
Europa Metals Ltd
Dan Smith, Non-Executive Director and Company Secretary
(Australia)
T: +61 417 978 955
Laurence Read, CEO (UK)
T: +44 (0)20 3289 9923
Linkedin: Europa Metals ltd
Twitter: @ltdeuropa
Vox: Europametals
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler
T: +44 (0)20 7409 3494
Tavistock (PR and IR)
Emily Fenton, Barney Hayward, Oliver Lamb
T: +44 (0) 207 920 3150 / EuropaMetals@Tavistock.co.uk
Turner Pope Investments (TPI) Limited (Broker)
Andy Thacker
T: +44 (0)20 3657 0050
Sasfin Capital Proprietary Limited (a member of the Sasfin
group)
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.
Notes to Editors
Appendix : Further information on the Toral Project
Mineral Resource Estimate
The latest Mineral Resource Estimate (August 2020) for the Toral
deposit reported in accordance with JORC (2012) at a 4% cut-off was
as follows :
-- 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.
Table 1 : Summary of Indicated and Inferred mineral resources
for the Toral property reported at a 4.0% Zn equivalent cut-off
grade (including Pb and Ag credits) and estimated grade and
tonnages at the various cut-off grades. Figures are rounded to
reflect the accuracy of the estimate and, as such, totals may not
cast .
Cut-Off 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
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
*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.
Notes for Table 1 in this appendix:
1. No mineral reserve calculations have been undertaken. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability.
2. Numbers are rounded to reflect the fact that an Estimate of
Resources is being reported as stipulated by JORC 2012. Rounding of
numbers may result in differences in calculated totals and
averages. All tonnes are metric tonnes.
3. Zn equivalent calculations were based on 3 year trailing
average price statistics obtained from the London Metal Exchange
and London Bullion Market Association giving an average Zn price of
US$2,680/t, Pb price of US$2,100/t and Ag price of US$16.2/Oz.
Recovery and selling factors were incorporated into the calculation
of Zn Eq values. It is the Company's opinion that all the elements
included in the metal equivalents calculation (zinc, lead and
silver) have a reasonable potential to be recovered and sold.
4. Zn Eq (PbAg)% is the calculated Zn equivalent incorporating
silver credits as well as lead and is the parameter used to define
the cut-off grade used for reporting resources (Zn Eq (PbAg)% = Zn
+ Pb*0.926 + Ag*0.019).
5. Zn Eq is the calculated Zn equivalent using lead credits and
does not include silver credits (Zn Eq = Zn + Pb*0.926).
6. The Mineral Resource Estimate set out above for the zinc,
lead and silver mineralisation in the Toral project area is based
on a 3D geologic model and wireframe restricted block model that
integrated the exploration work on the Toral project up to 21
January 2020. The block model used uniform cell size of 25x10x25m
to best suit the orientation of the mineralisation and sample
spacing. The block model was rotated by 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.
Metallurgical Results
High-grade recovery results from second phase metallurgical
testing conducted by Wardell Armstrong International (April
2020):
o 83.7% Pb recovery to a 60.0% Pb concentrate;
o 87.1% Ag recovery to 1,350ppm Ag within Pb concentrate;
and
o 77% Zn recovery to a 59.1% Zn concentrate.
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCZZMMGMNZGGZM
(END) Dow Jones Newswires
October 19, 2020 02:00 ET (06:00 GMT)
Europa Metals (LSE:EUZ)
Historical Stock Chart
From Mar 2024 to Apr 2024
Europa Metals (LSE:EUZ)
Historical Stock Chart
From Apr 2023 to Apr 2024
