Toral is demonstrating itself to be a highly robust lead, zinc and silver project located in a first world jurisdiction.
Laurence Read, chief executive
How it's doing
Europa Metals Limited's (LON:EUZ) scoping study projected an internal rate of return (IRR) of 24.4% with total capital expenditure put at US$110mln.
The study was based on a previous JORC compliant resource estimate comprising 16 million tonnes in the Inferred category, equating to 640,000 tonnes of zinc, 510,000 tonnes of lead and 13 million ounces of silver.
This was upgraded in November to 2.7mln tonnes grading 8.9% zinc equivalent in the indicated category with the overall resource now approximately 18mln tonnes at 7.4% zinc equivalent.
In December, Europa added that visible sulphide mineralisation has been noted in the first hole of a new programme at Toral.
The AIM-listed miner said the TOD-024 hole had been drilled to 302.4 metres with a second drill hole, TOD-025, underway.
In January, Europa said it would step back from further drilling at Toral for the time being and analyse the data accumulated from recent exploration.
Once assays from the final two holes in the current drill programme come back, Europa will work on metallurgical testing, hydrology and geotechnical modelling.
A focus on these elements of the project will help move it forward in a cost-effective and optimal manner said the statement.
What the boss says: Laurence Read, director
“Europa Metals has generated significant amounts of data on its Toral Project over the last two years and, in light of the prevailing challenging market conditions, we believe that further resource delineation drilling will not generate significant incremental value for shareholders at the current time.”
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- Resource definition drilling to identify characteristics of metals in the concentrate
- Drilling in high-grade areas alongside metallurgical work to upgrade resource to indicated status
- Changes to regulations governing the use of land for mining in north-west Spain’s Castilla y Leon region can give a boost to Toral
- Recently shifted primary listing to AIM from ASX to reflect focus on Europe and where shareholders are largely based.