Europa Metals (EUZ) reported positive results in an updated resource model at its Toral lead-zinc-silver project, further identifying the project as a potentially high-grade producer.
The European-focused group conduced an updated independent Mineral Resource Estimate which it 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 30 grams per tonne of silver.
The Indicated resource showed an increase of around 38% in zinc to around 180,000 tonnes, 36% in lead to around 150,000 tonnes and 32% in silver to around 3.7 million ounces.
Overall, Toral’s total resource now includes around 720,000 tonnes of zinc, 510,000 tonnes of lead and 14 million ounces of silver.
Commenting on the updated estimate, Chief Executive of Europa Metals, Laurence Read, said the results demonstrated 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.”
Europa said the revised economics will represent an update to those derived from its previous 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.
"Increasing the level of confidence in the deposit is key for deriving reliable, quality data for use in economic models,” said Myles Campion, Executive Chairman of Europa Metals.
Recently, silver prices have rallied, the price of zinc has returned to pre-pandemic levels while analysts have also stated that they believe the price of lead will be prevented from falling as low as other base metals due to increased demand from the battery market.
Shares in Europa Metals have climbed over the past month from 5p and closed at 16.25p on Thursday morning.
“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,” commented Read.
He said 12 months of work at Toral had further identified the project 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 said expects to release operational updates on metallurgy and ore sorting shortly, following which revised, independent economic parameters shall be determined for Toral.
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