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EUROPA METALS LIMITED – EUZ : Geotechnical Study Completed, Toral Zn, Pb & Ag Project, Spain: were utilised and tested at four different laboratories across Spain and the UK. Surface geotechnical


                            

EUZ : Geotechnical Study Completed, Toral Zn, Pb & Ag Project, Spain: were utilised and tested at four different laboratories across Spain and the UK. Surface geotechnical
data stations were identified to gather data spatially across the Toral deposit, both at surface and
underground adits. A total of nine stations were analysed.

The study considered the five main rock units at Toral:
* Orebody
* Limestone
* Carbonaceous Limestone
* Silicified Limestone
* Slate

Two mining methods were considered for analysis: cut and fill (identified as the preferred method in
the scoping study) and sub-level stoping. The main objective has been to test the robustness of the
mining method selection used in the scoping study and to determine if sub-level stoping offered any
benefits above the cut and fill method.

A total of 27 combinations were analysed under finite elements in 2D under the following
conditions:

* Mining block area: 40m, 35m, 30m
* Different combination of rock types
* Average depth studied: 600m

Geotechnical conclusions and recommendations

The geotechnical study recommends that the already selected cut and fill mining method, as
presented in the scoping study, in comparison with other methods, would be the best option at this
time.

Mining in the slate footwall is anticipated to be the only area that would require systematic sustaining
support, with the limestones in the mining hanging wall, requiring less support dependent on the
level and type of alteration within the limestone.

The orebody is not highly altered, therefore backfill in these areas would not need to have a cement
component as the required conditions for the backfill are not considered too demanding due to the
presence of a competent crown pillar.

Utilising a cut and fill method, artificial support would be less systematic and less expensive, mining
blocks would be higher and therefore a better recovery ratio obtainable. The size of the mining block
would be around 40m, although it is possible to achieve 50m.

Stope height has been estimated based on depth due to the change in tensional rock status with
depth:

Up to 600m depth:

– Stopes can achieve 6m to 4m height
– Support system: 10m length in systematic slates (1m grid) and 2-4m occasional in limestone

Deeper than 600 m:

– Stopes will be in the range of 3m height
– Support system: 12-15m length in slates systematic (1m grid) and 4m occasional in limestone
Decline reinforcement has been calculated for each rock type and estimation of associated costs
can now be calculated using the new rock mass data. More generally, the study has provided the
information required to develop cost estimation at PFS level.

Laurence Read, Executive Director of Europa Metals, commented:
‘The completion of the geotechnical study for Toral continues to demonstrate the potential for a new
mine located in an established mining region within Europe. Work progresses well across all of our
other workstreams and we look forward to announcing a further operational update in due course.’

Myles Campion, Technical Director of Europa Metals, further commented: ‘The new information
from the geotechnical report will now be incorporated into our ongoing studies on the Toral deposit.
The study has been completed to a PFS standard so we can now start to refine our cost parameters
further. We look forward to updating the market on other works and results as they are received.’

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, Executive Director (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/Zoe Alexander
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.

Appendix: Further information on the Toral Project

JORC (2012) Mineral Resource Estimate

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 by the Company in 2018 provided improved geological, structure, alteration and
weathering/oxidation information, which was incorporated into the interpreted geological and mineralised models for the
current JORC (2012) mineral resource estimate. Surface mapping and remote data interpretation by Europa Metals has
enabled the development of an interpreted fault model, also incorporated into the aforementioned updated geological and
mineralised models used in the mineral resource estimate.
The latest mineral resource estimate (as of 25 October 2019) for the Toral deposit comprised, at a 4% cut-off:

* An Indicated resource of approximately 2.7Mt @ 8.9% Zn Equivalent (including Pb credits), 5% Zn, 4.2% Pb and
32g/t Ag
o Including 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
22g/t Ag
o Including 690,000 tonnes of zinc, 450,000 tonnes of lead and 11 million ounces of silver
* Total Resources of approximately 18Mt @ 7.4% Zn Equivalent (including Pb credits), 4.5% Zn, 3.1% Pb and 24g/t
Ag
o Including 830,000 tonnes of zinc, 570,000 tonnes of lead and 14 million ounces of silver

The latest resource update identified potentially economic mineralisation ranging from surface to approximately 1,100m
below surface. The 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.

Contained
Cut-Off Contained Ag Troy
Tonnes Zn Eq Zn Eq Zn Pb Ag Pb
Zn Eq Density Zn Tonnes Oz
(Millions) (Pb)% (PbAg)% % % g/t Tonnes
(PbAg)% (000s) (Millions)
(000s)
Indicated
6 2.1 3 10 11 6 4.7 35 120 100 2.4
5 2.3 2.9 9.6 10 5 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 5 3.9 31 140 120 2.9
Inferred
6 11 2.9 8.4 8.9 5 3.5 26 550 360 8.8
5 12 2.9 7.9 8.4 5 3.2 24 610 400 9.7
4 16 2.9 7.2 7.6 5 2.9 22 690 450 11
3 18 2.9 6.7 7.1 4 2.7 21 740 480 12
Total
6 13 2.9 8.7 9.2 5 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 5 3.1 24 830 570 14
3 21 2.9 6.9 7.3 4 2.9 22 880 600 15
Transitional Oxide Material Total
4 3 2.9 5.8 6.3 3 3.2 27 87 97 2.6
Unweathered Fresh Rock Total
4 15 2.9 7.8 8.2 5 3.1 23 740 470 11

Table 2: Summary of 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.

Notes:
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 was 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 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 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 20 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 lead-zinc-silver project set out in Table 2 (at cut-off grades less than4%
Zn Equivalent) comply with the resource definitions as described in the Australasian Code for the 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.

Bulk density

The resource database contains 2,373 bulk density measurements, with a total of 177 within the mineralised wireframe.

The mean for the mineralised domain transitional zone is 2.75 g/cm 3 and the mean for the mineralised domain fresh
material is 2.85 g/cm3. 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 within the block model.

Preliminary independent metallurgical test results from Wardell Armstrong International (‘WAI’) (December 2019).

Overview of sample and metallurgical testwork carried out by WAI:
* Grind calibration tests to assess the Bond Abrasion, Rod and Ball work indices and uniaxial compressive strength;
* First open flotation tests, optimisation of grind size, float cleaning tests and rougher regrind testing;
* Petrographic/mineralogical and scanning electron microscope (SEM) work;
* First/single locked cycle testing; and
* A series of comminution tests were undertaken to investigate the crushing and grinding characteristics of the
sample. The testing conducted investigated conventional crushing technologies, the results of which are
summarised in the following table:

Comminution Testwork Results
Comminution Test Units Value
Unconfined Compressive Strength (UCS) MPa 51.8
Bond Abrasion Index – 0.5227
Bond Rod Mill Work Index kWh/t 12.69
Bond Ball Mill Work Index kWh/t 9.83
Flotation Testwork
A series of tests were undertaken to investigate the recovery of lead and zinc to separate concentrates by means of froth
flotation. The testing conducted consisted of: eight rougher flotation tests, four first-stage cleaner flotation tests, six three-
stage cleaner flotation tests and a single locked cycle flotation test.

The results of the locked cycle test are summarised below.

Table 3: Locked cycle flotation test results

Assay Recovery (%)

Product Mass (%) Pb (%) Zn (%) Ag (ppm) Pb Zn Ag

Pb Cl 3 2.5 57.47 10.06 1,457 84.30 9.65 90.35
Conc

Zn Cl 3 3.4 1.16 55.78 38.6 2.25 70.71 3.17
Conc

Zn Cl 1 5.3 1.74 2.89 28.8 5.36 5.82 3.76
Scav
Tailings
Zn Ro 88.8 0.16 0.41 1.3 8.09 13.82 2.73
Tailings

Feed 100.0 1.73 2.65 40.9 100.00 100.00 100.00

The locked cycle test achieved a lead recovery of 84.3% to a concentrate grading 57.5% Pb and a zinc recovery of 70.7%
to a concentrate grading 55.8% Zn. 90.3% of the silver was also recovered to the lead concentrate at a grade of 1,457ppm
Ag.

Economic highlights from the Company’s selected development scenario

Estimated economic forecasts for the Toral Project based on the current level of work (+/-30%) from the Scoping Study
(December 2018) comprise:
* US$110 million net present value (NPV) using a discount rate of 8%;
* 24.4% internal rate of return (IRR);
* Estimated US$33 million CAPEX for a proposed 450ktpa design capacity plant, including associated auxiliary costs,
with infrastructure being situated near portal entrance on the north side of the deposit;
* Estimated total CAPEX of US$110 million;
* US$25 per tonne indicative OPEX processing cost at steady state conditions;
* US$36 per tonne indicative OPEX mining cost utilising mechanised cut and fill; and
* 15-year production plan, with significant potential for extension.

Basis for announcing economics

The factors that lead the Company to believe that it has a reasonable basis for announcing a production target and forecast
financial information are detailed in the Scoping Study and can be summarised as follows:

Three conceptual underground mining development and production scenarios were considered and developed throughout
the Scoping Study, resulting in the identification of a preferred scenario, highlights from which are set out below:
* decline ramp access to the north of the deposit, targeting mine production within the higher-grade core towards the
centre of the planned mining blocks;
* entry to mine via a principal decline reaching various levels;
* series of internal mining inclined ramps constructed to access levels;
* mechanised cut and fill (MCAF) mining method proposed;
* 4×4 metre mine standard development size;
* a ventilation raise would be drilled (raise-bored) to provide both adequate ambient conditions underground and a
second, emergency means of access/egress into the mine;
* ore transported to a flotation process plant by conveyor or haul truck from the mine and crushed to a suitable product
for milling;
* milled ore floated by standard flotation technology to provide lead and zinc concentrate, with silver probably reporting
to the lead concentrate for sale as a combined product; and
* 4% Zn Eq cut-off used with potential for mine life extension.

United Kingdom
24 February 2020

Sponsor: Sasfin Capital Proprietary Limited (a member of the Sasfin group)

Date: 14-02-2020 09:00:00
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