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EUROPA METALS LIMITED - PFS Update: Commencement of Drilling Campaign at the Toral Pb, Zn & Ag Project, Spain

Release Date: 19/01/2021 13:12
Code(s): EUZ     PDF:  
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PFS Update: Commencement of Drilling Campaign at the Toral Pb, Zn & Ag Project, Spain

Europa Metals Ltd
(Incorporated and registered in Australia
and registered as an external company in
the Republic of South Africa)
(Registration number 4459850)
(External company registration number 2011/116305/10)
Share code on the ASX: EUZ
Share code on AIM: EUZ
Share code on the JSE: EUZ
ISIN: AU0000014342
("the Company")




PFS Update: Commencement of Drilling Campaign at the Toral Pb, Zn
& Ag Project, Spain

Europa Metals, the European focused lead-zinc and silver developer, is pleased to
announce that, further to the mobilisation of a diamond drill rig to site by Sondeos y
Perforaciones Industriales de Bierzo SA (“SPI”), drilling has now commenced at the
Company’s wholly owned, Toral lead, zinc and silver project (“Toral” or the “Toral
Project”) situated in the region of Castilla y Leon, north-west Spain.

Objectives of the drilling campaign
This latest drilling campaign forms part of the Group’s Pre-Feasibility Study (“PFS”)
workstreams initiated at the Toral Project. The first phase of the drill programme will
target areas above the 600m level, concentrating on increasing Europa Metals’
understanding of the initial four years of potential future production at Toral and thereby
building on the results of the independent preliminary economic study announced in
November 2020. Core to be recovered and analysed from the drill campaign is expected
to contribute to the following specific workstreams:
-   Increasing resource delineation to JORC standards - looking to ‘fill-in’ gaps from
    historical drills holes within the upper siliceous zone.
-   Performing further metallurgical testwork including additional ore sorting analysis
    within the upper siliceous zone that has demonstrated potential, before utilisation in
    the mining schedule.
-   Advancing geotechnical studies around areas of potential future mine development.

In addition, further to the Company’s announcement of 19 October 2020, the current drill
programme forms part of the Innovation Partnership with the University of Salamanca
and SPI (the “Partnership”), which helped secure the grant award of €466,801.50 to the
Company from the Centre for the Development of Industrial Technology (CDTI).

Data from the drilling campaign will be recovered and processed by the Partnership in
order to progress the development of a software package that can correct or reduce
deviation within diamond drilling operations. Europa Metals looks forward to updating the
market on the results from such work to be conducted by the Partnership as algorithm
development progresses.

Drilling operations have commenced to schedule but, in light of the worldwide
Coronavirus health emergency and the need to prioritise the health and safety of the
Group’s employees and consultants, no specific commitments will be made at this time
regarding the duration of ongoing and planned additional fieldwork. Europa Metals will
announce material work/progress on the achievement of milestones and findings on a
timely basis, as appropriate, and looks forward to updating shareholders on other
workstreams during the course of 2021.

Commenting today, Laurence Read, CEO of Europa Metals, said:
“Today’s drilling campaign will build on the operational work completed over the last two
years that has seen significant advances in the potential production rate and overall
estimated economics for Toral. This initial phase will concentrate on the upper zone of
Toral in order to focus on refining the planned design and economics for the early years
of the project, which have become an attractive feature of the recent preliminary
economic study as a result of a comparatively low level of capex, early mining and
breakeven within four years.”


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
Toral flythrough: https://youtu.be/qLbiyfItXbY
Presentation with commentary: http://www.europametals.com/site/content/

Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler
T: +44 (0)20 7409 3494

Tavistock (PR and IR)
Emily Moss /Oliver Lamb
T: +44 (0)20 7920 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

19 January 2021

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.



Toral flythrough: https://youtu.be/qLbiyfItXbY
Toral Pb, Zn & Ag Project, Spain: Comparison of 2020 and 2018 Scoping Study Key
Parameters

                                        2020                2018
 Resource     Indicated Tonnes          3.8m                -
              Inferred Tonnes           13m                 16m
              Total Tonnes              17m                 16m
              Av. ZnEq.%                7.3                 7.5
              Av. Zn%                   4.2                 3.9
              Av. Pb%                   3                   3.1
              Av. Ag g/t                24                  24
 Mining       Rate tpa                  700,000             450,000
              Grade ZnEq%               7.6%                7.5%
              Method                    SLOS                Cut&Fill
              Approach                  Contractor          Owner
              Cost                      US$36/t             US$36/t
              LOM                       12 years            15 years
 Metallurgy   Process                   Sorting+Flotation   Flotation
              Recovery (Average)        85% Zn, 87% Pb,     93% Zn, 89% Pb, 80% Ag
                                        86% Ag
              Cost                      US$22/t             US$25/t
 Capex        Mine                      US$86m              US$46m
              Plant                     US$30m              US$33m
              Infrastructure            US$4m               US$5m
              Other                     US$11m              -
              LOM Capex                 US$131m (Y1-12)     US$159m (Y1-15)
              Upfront (to production)   US$79m              US$94m
 Financials   NPV                       US$156m             US$110m
              IRR                       31.3%               24.4%
              Payback Year              4                   6

Date: 19-01-2021 01:12:00
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