In its final year results for the year ended 30 June 2020, Europa Metals (AIM:EUZ) said it had acclimatised to ‘the new and challenging global environment’ due to COVID-19.
It said procedures were implemented at the onset of the pandemic to mitigate its effects on workplaces and activities which the group said resulted in ‘significant progress’ at all levels.
By carrying out operations in the reporting period, the group incurred a loss after income tax for the period from 1 July 2019 to 30 June 2020 of $2,36m (FY19: loss of $2,39m).
As at 20 June 2020, the Group had net assets of $2,50m (FY19: $2,71m).
The European-focused lead-zinc and silver developer said it had spent the year continuing to advance its wholly owned Toral lead, zinc and silver project in north west Spain. 
(Source: Company)
‘Our efficient and cost-effective approach to exploration and development has included the successful prosecution of several drilling campaigns designed to extract maximum value and information from each drill hole,’ the Company highlighted in this morning’s statement.
It said this approach has also seen the Company successfully complete several phases of exciting metallurgical test work and oversee an increasing level of confidence in the pre-existing mineral resource estimate via the commissioning of regular independent updates.
In recent months, the Company reported positive results in an updated resource model at the Toral project which further identified the project as a potentially high-grade producer.
The diagram below presents a grade contour section of one of the high-grade zones at the Toral Project. Hole TOD023 sits within a zone of >8% ZnEq (PbAg) and supports the premise that the main corridor of mineralisation is continuous.
(Source: Company)
The group expects to utilise, together with engineering analysis and third phase metallurgical results, into updated preliminary economic parameters ahead of a Pre-Feasibility Study.
The updated model indicated an around 40% increase in the Indicated resource at an average grade of 8.3% zinc equivalent (including Pb credits) and 30g per tonne of silver.
Europa said the achievement of such a milestone is important to future development as more financing options become available on the back of ‘increasing confidence levels’ in the deposit.
Outlook
Europa said it will progress through the next 12 month period with its planned activities that have been financed by the recent post year end fundraising of £2m announced in August.
The group said it is planning for further drilling and metallurgical work which it said will feed into an updated production flow sheet as well as key components of a pre-feasibility study.
It said drilling should enable the Company to grow the size of the current indicated resource estimate which will in turn feed into updated economic parameters for the Toral Project.
The group said that with the retention of third-party marketers, it is able to engage in preliminary marketing discussions with potential third-party concentrate buyers.
For more news and updates on Europa Metals: