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JORC Mineral Resource Estimate Update, Toral Project, Spain
Europa Metals Ltd
(Formerly Ferrum Crescent Limited)
(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")
Updated JORC Mineral Resource Estimate for the Toral Project, Spain
Highlights:
- Updated JORC (2012) Mineral resource estimate obtained for Toral lead-zinc-silver project
- 19% increase in Zinc Equivalent Inferred resource to 19Mt (6.9% Zn equivalent with Pb credits and
24 g/t Ag)
- 7% increase in contained tonnes of Zinc to 720,000
- 6% increase in contained tonnes of Lead to 570,000
- 8% increase in contained ounces of Silver to 14 million ounces
Europa Metals, the European lead-zinc explorer, is pleased to announce, further to its recent re-logging
programme of certain historical core from its 100% owned Toral lead-zinc-silver project in northern Spain
(the “Toral Project”), undertaken at the National Litoteca in Andalucia, as referred to in the Company's
announcement of 28 August 2018, an updated independent Mineral Resource Estimate for the project
reporting increased tonnage and levels of contained metals. The update has been prepared in accordance
with JORC (2012 revision) resource estimate by Addison Mining Services Limited (“AMS”).
Revised inputs from relogging work and analysis
Re-logging of historic drill core held at the National Litoteca from the Toral Project resulted in significantly
higher bulk density measurements than those used for the Maiden resource estimate completed by AMS
between November 2017 and January 2018, as announced by the Company on 6 February 2018.
The increase in bulk density values applied to samples and their spatial distribution resulted in a material
change to the estimation of the resource. Ore tonnages are calculated by volume estimated from solid
models developed from mapping and drilling information multiplied by rock density.
The updated mineral resource estimate for the Toral lead-zinc-silver deposit comprises:
- 19Mt @ 6.9% Zn Equivalent (including Pb credits) and 24g/t Ag
- 720,000 tonnes of Zinc, 570,000 tonnes of Lead and 14 million ounces of Silver
This compares favourably with the maiden mineral resource estimate announced on 6 February 2018,
containing the following tonnes and grade:
- 16Mt @ 6.9% Zn Equivalent (including Pb credits) and 25g/t Ag
- 670,000 tonnes of Zinc, 540,000 tonnes of Lead and 13 million ounces of Silver
Laurence Read, Executive Director of Europa Metals, commented:
“The significant increases in estimated contained lead, zinc and silver within our Toral Project has been
delivered by the Europa Metals team through highly focussed and cost-effective work. A 19% increase in
zinc equivalent tonnes has been achieved and we have been particularly pleased that the new data sets
have integrated very well into our existing model. In addition to our ongoing scoping study work and drill
campaign at Toral, the team is continuing to analyse the recent information obtained from the historic core in
order to provide new insight into the structure of the deposit.”
Myles Campion, Executive/Technical Director of Europa Metals, further commented:
“Our team has done an excellent job in utilising the information obtained from examining the historic core
stored at the National Litoteca and extracting the most from it. Our concerted effort to re-log the core is
already showing significant results and I look forward to further geological interpretation over the coming
months as we integrate our various information sources.”
Updated JORC (2012) Inferred Mineral Resource Estimate
Further to our recent work at the National Litoteca in Andalucia involving the assessment of historical core
from Toral, lithological re-logging and the collection of bulk density measurements, conducted between June
2018 and August 2018, the Company commissioned an updated mineral resource estimate in September
2018 from Addison Mining Services Limited (“AMS”). The updated mineral resource estimate is based on all
the available historical data from three drill campaigns conducted on licence number15.199 (namely, the
1972 - 1984 Peñarroya-Adaro campaign, the 2006 - 2008 Lundin Mining campaign and the 2016 - 2017
Europa Metals campaign), along with underground channel sampling results from the numerous adits. The
update also takes into account new bulk density measurement data and information on weathering
boundaries captured during the Company's recent historical core re-logging exercise.
The updated mineral resource estimate has been reported in accordance with the guidelines of the Joint Ore
Reserve Committee (JORC) 2012 code.
A new block model has increased our overall level of understanding of the mineralogical and geological
controls at Toral. However, a review of the historic drill core revealed a considerable difference in the bulk
density results. The Company commissioned a re-logging programme (completed in August 2018) that
included the collection of an additional 1,002 bulk density measurements, structural and geotechnical
readings as well as weathering data to improve confidence in the oxide, transitional and fresh zones.
Block Model
The Inferred resource for the Pb-Zn-Ag mineralisation located on the Toral Projects licence area has been
estimated at various cut-offs (refer to Table 1 below). The Company reviewed the new block model along
with its appointed geological consultants, AMS, and concluded that a 4% cut-off was appropriate utilising
estimated mining parameters typical for similar types of projects and mineralogy, and an historical three-year
trailing average for metals prices, which, although conservative, was deemed appropriate at this stage in the
projects development.
Zn Price Used: US$2,500/t US$c/lb1.13
Pb Price Used: US$2,100/t US$c/lb0.95
Ag Price Used: US$17/oz
The resource update has identified potentially economic mineralisation ranging from surface to
approximately 1,100m below surface. The new block model currently extends for a strike length of 3,300m
and is still open to the east along strike and also at depth where it has not yet been closed off.
Contained Contained
Cut-Off Ag Troy
Tonnes Zn_Eq Zn Eq Ag Zn Pb
Zn Eq Density Zn % Pb % Oz
(Millions) (Pb)% (PbAg)% g/t Tonnes Tonnes
(PbAg)% (Millions)
(000s) (000s)
Total
6.0 10 2.8 8.7 9.3 4.8 4 30 490 420 10
5.0 14 2.8 7.7 8.3 4.4 3.5 26 620 490 12
4.0 19 2.8 6.9 7.4 3.9 3.1 24 720 570 14
3.0 23 2.8 6.2 6.7 3.5 2.8 22 800 630 16
Transitional Oxide Material
4 1.8 2.4 5 5.5 2.6 2.5 25 45 44 1.4
Unweathered Fresh Rock
4 17 2.8 7 7.6 4 3.1 23 680 530 13
Table 1: Summary of Inferred 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.
Shareholders are referred to the following website link in order to view the AMS resource block model for
Toral as a 3D view looking north is available at:
http://www.europametals.com/site/news-announcements/announcements
The results of the updated resource estimate are positive, with increases in both tonnage and the lead, zinc
and silver metal content, which compares favourably to the maiden resource estimate announced on 6
February 2018:
- Updated Inferred resources of 19Mt @ 6.9% Zn Equivalent (including Pb credits) and 24g/t Ag
have increased in terms of overall tonnage and the contained metal content compared to the
previous maiden estimate of 16Mt @ 6.9% Zn Equivalent (including Pb credits) and 25g/t Ag.
The increase in tonnage and contained metal content is due to new and increased bulk density
measurement values used in the updated resource estimate.
Summary of updated resource estimate and reporting criteria
In accordance with ASX Listing Rule 5.8 and the JORC (2012) reporting guidelines, a summary of the
material information used to estimate the Mineral Resource is set out below (for further detail please refer to
the Appendix to this announcement).
Geology and geological interpretation
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 thrust fault-controlled contact, vein, carbonate replacement and breccia styles of
mineralisation situated close to the boundary between footwall slates and hangingwall limestones and
dolomites, and wholly within the hangingwall limestones and dolomites.
Weathering
A weathering surface was interpreted at the partially weathered-joint boundary to sub-divide transitional
material and fresh material. As is common and expected in a litho-boundary/structurally controlled deposit an
observed oxidation trough has developed along the main structure. The accuracy of the surface at this stage
is suitable for application and use in the reporting of Inferred resources.
Bulk density
The original resource database contained 190 bulk density measurements. As part of the re-logging
programme, an additional 1,002 measurements were recorded throughout the deposit for a total of 1,192
measurements. 105 measurements occured within the mineralised wireframe. The mean of all bulk density
readings within the mineralised zone wireframe is 2.75 g/cm squared compared with the previous mean for
all readings within the mineralised domain of 2.46 g/cmv squared thereby representing a significant increase
in the mean density of the mineralised domain.
The mean for the mineralised domain oxide/transitional zone is 2.4 g/cm squared and the mean for
mineralised domain fresh material is 2.8 g/cm squared.
Drilling techniques and hole spacing
A total of 92 diamond drill holes (including wedges) totaling 45,000 metres and 19 underground channels for
18.75 metres were used as the input database for geological modelling and resource estimation.
Drill core diameter was PQ, HQ and NQ depending upon depth. Tube type is unknown for the historic
Peñarroya drilling, whilst the triple tube method was used for the historic Lundin Mining and Europa Metals
campaigns.
No orientation has been performed on the drill core.
Drill and UG channel sample data spacing across the currect resource area ranges from approximately 50-
100m x 50-100m centres within the most densely tested area towards the NW, stepping out to approximately
200m x 200m within the mid-section and 100-200m x 500m in the SE.
The distribution of drillholes and UG channel sampling, supported by surface and underground mapping, is
sufficient to establish the degree of geological and grade continuity appropriate for a JORC (2012) Inferred
classification of resources.
Sampling and sub-sampling techniques
The three main phases of historic exploration drilling and sampling are:
- 1972-1984 Peñarroya-Adaro: diamond drill core method was used to obtain samples for geological
logging and sampling. Geological and analytical data is recorded on hardcopy. Selective sampling
method was employed around areas of interest. Sampling intervals measure approximately 1m, half
core sent for analysis, with half core retained for reference. Exact details on core processing,
sampling techniques and analytical methods are unclear, however subsequent explorers Lundin
Mining sent the majority of the Peñarroya core pulp reject samples to ALS Chemex for multi element
re-analysis by ICP.
- 2006-2008 Lundin Mining: diamond drill core method was used. Core logging completed on
hardcopy. Selective sampling method was employed around areas of interest. Sampling intervals
measure approximately 1m, half core sent for analysis, with half core retained for reference.
Samples typically 1m half core, with samples prepared at the then Lundin Laboratory in Suecia, then
shipped to ALS Chemex Vancouver for multi-element analysis by ICP. Half core samples reduced to
-400 microns and 100g sub-sample taken for analysis. Multi-element re-analysis of available
Peñarroya ddh pulp reject samples completed at ALS Chemex Vancouver using ICP.
- 2016-2017 Europa Metals: diamond drill core and underground cut channel sampling methods used
to obtain samples for geological logging and sampling. Geological and analytical data is recorded on
hardcopy. Selective sampling method was employed around areas of interest. Sampling intervals
measure approximately 1m, half core sent for analysis, with half core retained for reference.
Samples sent to ALS Seville for preparation and multi-element analysis by ICP. Half core samples
reduced to -400 microns and 100g sub-sample taken for analysis.
Sampling analysis method
Recovery data was recorded for selected intervals in 23 drillholes (11 Peñarroya, 6 Lundin and 6 Europa
Metals). A total of 332 core recovery measurements exist in the database with average recovery of 83%. 109
core recovery measurements occur within the interpreted mineralised zone. Core recovery was measured
over lengths often corresponding to sample length.
Cut-off grades
The Inferred resource for the Pb-Zn-Ag mineralisation located on the Toral property, licence number 15.199,
has been estimated at various cut-offs. For the Toral deposit resource, the economic cut-off was determined
by calculation of block revenue factors based on Zn equivalent calculations derived from an historical three-
year trailing average for Zn, Pb and Ag prices. Indicative mining and processing costs typical of the region
and deposit type were applied along with typical mining recovery and dilution factors and metallurgical
recovery factors identified by laboratory studies and production at comparable deposits and accepted by
AMS.
For reporting in compliance with JORC (2012) an economic cut-off grade of 4% Zn equivalent (including Pb
and Ag credits) was selected taking into account the factors mentioned above and allowing for some
increase in commodity prices to define resources with reasonable prospect of eventual economic extraction
now or in the near future. Resources are reported as follows:
The reported total Inferred Resource Estimate is approximately 19 million tonnes at 6.9% Zn Equivalent
(including Pb credits) and 24 g/t Ag. Individual zinc and lead grades are 3.9% Zn and 3.1% Pb, with an
estimated metal content of 720,000 tonnes of zinc, 570,000 tonnes of lead and 14 million troy ounces of
silver.
Estimation methodology
AMS verified primary analytical data via cross reference against original lab certificates and the re-input of all
assays for the project for use in geological modelling and estimation. The database for use as input for
mineral resource modelling and estimation has also been validated and verified by AMS and the Competent
Person. Micromine 3D geological modelling and estimation software was used for import, validation and
QA/QC verification assessment, 3D solid modelling, geostatistics and block model grade interpolation
estimation. Data checks include checks for overlapping and missing intervals, dh trace errors, missing survey
data, litho and collars.
Wireframe solid models were created for each domain based on a mineralisation threshold of approximately
0.2% for Zn and Pb (approximately 0.4% Zn+Pb). Analysis of Zn and Pb grades in cross section and in
scatter plots showed a strong relationship and no requirement to model Zn and Pb separately was identified.
Ag showed a strong correlation with Pb and was estimated within the Zn/Pb mineralised domain.
Interpretation of the mineralised domains was guided by geological interpretation of the deposit incorporating
structural and lithological boundaries.
Extrapolation of the Zn-Pb mineralised domain equals approximately 50m along strike in the NW direction,
approximately 50-80m below the deepest sample in the NW and central zones, and approximately 200m
below the deepest sample in the SE zone. Mineralisation is extrapolated approximately 60m along strike to
the SE. Extents of extrapolation are considered appropriate for the level of information, deposit type, strike
and depth extents tested, observed and geostatistical continuity and the assigned resource class.
All samples contained within the mineralised wireframe were composited to a standard length for
geostatistical analysis and interpolation. Variography was performed on the assay data within the primary
mineralised wireframe to generate a series of directional semi-variograms for Zn, Pb and Ag. These
variograms were used in the Ordinary Kriging process where Zn, Pb and Ag were interpolated and
extrapolated using the corresponding variograms on a domain by domain basis. A single pass search was
applied to minimise conditional bias, and the number of input data in each block estimate were restricted to
prevent over smoothing of the estimates.
The block model used uniform cell size of 50x2x50m 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 Kriged interpolation technique
with a single search ellipsoid orientated to the interpreted strike, dip and pitch of mineralisation.
Shareholders are referred to the website link below in order to view the grade tonnage Curves, tonnage
based on Zn equivalent with Pb and Ag credits, is available at:
http://www.europametals.com/site/news-announcements/announcements
Classification criteria
The portion of the Toral deposit defined by drilling, underground development and channel sampling, has
been classified as an Inferred Mineral Resource in accordance with the JORC Code (2012) guidelines based
on a combination of drill spacing, geological confidence, grade continuity, previous mining and the quality
control standards achieved.
Mining and metallurgical methods and parameters
Based on the orientations, thickness and depths to which the ore body has been modelled, as well as the
estimated grade, underground mining is the intended mining methodology.
Competent Person’s statement
The updated Toral resource estimate was prepared by Mr J.N. Hogg, MSc. MAIG Principal Geologist for
AMS, an independent Competent Person within the meaning of the JORC (2012) code and qualified person
under the AIM guidance note for mining and oil & gas companies. The resource estimate was aided by Mr R.
J. Siddle, MSc, MAIG Senior Resource Geologist for AMS, under the guidance of the competent person. Mr
Hogg has reviewed and verified the technical information that forms the basis of, and has been used in the
preparation of, the updated mineral resource estimate and this announcement, including all analytical data,
diamond drill hole logs, QA/QC data, density measurements, and sampling, diamond drilling and analytical
techniques. Mr Hogg consents to the inclusion in this announcement of the matters based on the
information, in the form and context in which it appears. Mr Hogg has also reviewed and approved the
technical information in his capacity as a qualified person under the AIM Rules for Companies.
Additionally, Mr Hogg confirms that the entity is not aware of any nw information or data that materially
affects the information contained within the Company’s previous announcements referred to herein.
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 (Joint Broker)
Andy Thacker
T: +44 (0)20 3621 4120
Peterhouse Corporate Finance Limited (Joint Broker)
Lucy Williams / Duncan Vasey / Heena Karani
T: +44 (0)20 7469 0930
Sasfin Capital Proprietary Limited (a member of the Sasfin group) (JSE Sponsor)
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.
Perth
20 September 2018
Glossary of technical terms:
“Ag” silver;
“g” grammes;
“g/t” grammes per tonne;
“Inferred Resource” that part of a Mineral Resource for which quantity and grade (or quality) are
estimated on the basis of limited geological evidence and sampling. Geological
evidence is sufficient to imply but not verify geological and grade (or quality)
continuity. It is based on exploration, sampling and testing information gathered
through appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes;
“JORC” the Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves, as published by the Joint Ore Reserves Committee of The
Australasian Institute of Mining and Metallurgy, Australian Institute of
Geoscientists and Minerals Council of Australia;
“JORC (2012)” the 2012 edition of the JORC code;
“m” metre;
“Mineral Resource” a concentration or occurrence of material of economic interest in or on the
earth's crust in such form and quantity that there are reasonable and realistic
prospects for eventual economic extraction. The location, quantity, grade,
continuity, and other geological characteristics of a Mineral Resource are known,
estimated from specific geological evidence and knowledge, or interpreted from
a well-constrained and portrayed geological model;
“Mt” million tonnes;
“oz” troy ounce;
“Pb” lead;
“QA/QC” quality assurance/quality control;
“Zn” zinc.
APPENDIX: Table 1 Appendix 5A ASX Listing Rules (JORC 2012)
Section 1 Sampling techniques and data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary related to the Toral Project
Sampling - Nature and quality of sampling (e.g. Historic and recent diamond drill core and
techniques cut channels, random chips, or specific underground cut channel sampling. Three main
specialised industry standard phases of exploration drilling and sampling:
measurement tools appropriate to the 1972 - 1984 Peñarroya – Adaro. Diamond drill
minerals under investigation, such as core method was used to obtain samples for
down hole gamma sondes, or geological logging and sampling. Geological and
handheld XRF instruments, etc). analytical data is recorded on hardcopy. Selective
These examples should not be taken sampling method was employed around areas of
as limiting the broad meaning of interest. Sampling intervals measure approx. 1m,
sampling. half core sent for analysis, with half core retained
- Include reference to measures taken for reference. Exact details on core processing,
to ensure sample representivity and sampling techniques and analytical methods are
the appropriate calibration of any unclear, however subsequent explorers Lundin
measurement tools or systems used. Mining sent the majority of the Peñarroya core
- Aspects of the determination of pulp reject samples to ALS Chemex for multi
mineralisation that are Material to the element re-analysis by ICP.
Public Report. 2006 - 2008 Lundin Mining. Diamond drill core
- In cases where ‘industry standard’ method was used. Core logging completed on
work has been done this would be paper. Selective sampling method was employed
relatively simple (e.g. ‘reverse around areas of interest. Sampling intervals
circulation drilling was used to obtain 1 measure approx. 1m, half core sent for analysis,
m samples from which 3 kg was with half core retained for reference. Samples
pulverised to produce a 30 g charge typically 1m half core, with samples prepared at
for fire assay’). In other cases more the then Lundin Laboratory in Suecia, then
explanation may be required, such as shipped to ALS Chemex Vancouver for multi-
where there is coarse gold that has element analysis by ICP. Half core samples
inherent sampling problems. Unusual reduced to -400 microns and 100g sub-sample
commodities or mineralisation types taken for analysis. Multi-element re-analysis of
(e.g. submarine nodules) may warrant available Peñarroya ddh pulp reject samples
disclosure of detailed information. completed at ALS Chemex Vancouver using ICP.
2016 - 2017 Europa Metals. Diamond drill core
and underground cut channel sampling methods
used to obtain samples for geological logging and
sampling. Geological and analytical data is
recorded on hardcopy. Selective sampling
method was employed around areas of interest.
Sampling intervals measure approx. 1m, half core
sent for analysis, with half core retained for
reference. Samples sent to ALS Seville for
preparation and multi-element analysis by ICP.
Half core samples reduced to -400 microns and
100 g sub-sample taken for analysis.
Drilling - Drill type (e.g. core, reverse A total of 92 diamond drill holes (inc. wedges) for
techniques circulation, open-hole hammer, rotary 45,000 metres, and 19 underground channels for
air blast, auger, Bangka, sonic, etc) 18.75 metres were used as the input database for
and details (e.g. core diameter, triple geological modelling and resource estimation.
or standard tube, depth of diamond Drill core diameter was PQ, HQ and NQ
tails, face-sampling bit or other type, depending upon depth. Tube type is unknown for
whether core is oriented and if so, by Peñarroya driling, triple tube method was used for
what method, etc). Lundin and Europa Metals campaigns.
No orientation has been done on drill core.
Drill sample - Method of recording and assessing Recovery data was recorded for selected intervals
Criteria JORC Code explanation Commentary related to the Toral Project
recovery core and chip sample recoveries and in 23 drillholes (11 Peñarroya, 6 Lundin and 6
results assessed. Europa Metals).
- Measures taken to maximise sample A total of 332 core recovery measurements exist
recovery and ensure representative in the database with average recovery of 83%.
nature of the samples. 109 core recovery measurements occur within the
- Whether a relationship exists between interpreted mineralised zone.
sample recovery and grade and Core recovery was measured over lengths often
whether sample bias may have corresponding to sample length.
occurred due to preferential loss/gain Recoveries average 80% within the mineralised
of fine/coarse material. zone, ranging from 100% down to 19% within
areas of broken ground conditions, intense
fracturing and alteration.
Statistical assessment suggests a possible slight
bias exists between recovery and grades, with
higher recovery returning slightly higher average
grades. However, due to limited samples findings
are currently inconclusive and additional recovery
data and investigatioin is required to draw
conclusions.
Logging - Whether core and chip samples have In 2018, all drill core was relogged on paper logs
been geologically and geotechnically and transferred to an Access database.
logged to a level of detail to support DH lithology, alteration, mineralisation and
appropriate Mineral Resource structural observations were recorded by variable
estimation, mining studies and interval based on charactristical similarities and
metallurgical studies. change boundaries.
- Whether logging is qualitative or Summary interval information was input to the
quantitative in nature. Core (or database, comprising codes to describe logged
costean, channel, etc) photography. lithology, alteration, mineralisation and major
- The total length and percentage of the structure for the interval.
relevant intersections logged. Graphic and schematic logs were produced for all
drilling.
Lundin and Europa Metals core was routinely
photographed.
Drill core logging is considered satisfactory for the
level of study and resource class.
Sub-sampling - If core, whether cut or sawn and The sub-sampling techniques and sample
techniques whether quarter, half or all core taken. preparation details are not known for the
and sample - If non-core, whether riffled, tube Peñarroya drill core.
preparation sampled, rotary split, etc and whether Lundin and Europa Metals core was cut by core
sampled wet or dry. saw and half core submitted for analysis.
- For all sample types, the nature, Underground channels were cut by angle
quality and appropriateness of the grinder/circular saw. A channel approximately 7
sample preparation technique. cm wide and 5 cm deep to obtain 2-3 kg sample.
- Quality control procedures adopted for Sample collection, sample size, preparation and
all sub-sampling stages to maximise analysis are considered appropriate for the
representivity of samples. mineralogy and deposit type.
- Measures taken to ensure that the Samples are considered representative of the in-
sampling is representative of the in situ situ material collected.
material collected, including for QAQC sample insertion procedures were not
instance results for field employed during the historical Peñarroya drill
duplicate/second-half sampling. campaigns.
- Whether sample sizes are appropriate Lundin Mining completed limited quarter core field
to the grain size of the material being duplicate insertion and selected pulp re-assay by
sampled. external lab.
Europa Metals conducted a QC program of
inserting quarter core field duplicates, course
blank and pulp blank material, external standards,
selected pulp repeats and submission of pulp
rejects for umpire lab analysis.
Criteria JORC Code explanation Commentary related to the Toral Project
ALS internal QC exists for Peñarroya re-analysis,
Lundin and Europa Metals sample batches.
Quality of - The nature, quality and Historical Peñarroya assaying and laboratory
assay data appropriateness of the assaying and procedures are unknown.
and laboratory procedures used and Commercial laboratories ALS Chemex Vancouver
laboratory whether the technique is considered and ALS Seville (ISO9001:2008) were used for
tests partial or total. Lundin and Europa Metals drill core respectively
- For geophysical tools, spectrometers, and Europa Metals underground channel sample
handheld XRF instruments, etc, the analysis.
parameters used in determining the Multi-element analysis, including Pb, Zn, Cu, Ag
analysis including instrument make by ICP-MS were completed on all samples.
and model, reading times, calibrations Over limits samples were re-analysed using ore
factors applied and their derivation, grade methods of determination.
etc. Sample analytical techniques are considered in
- Nature of quality control procedures line with industry standard for this style of
adopted (e.g. standards, blanks, mineralisation.
duplicates, external laboratory checks) QAQC sample insertion procedures were not
and whether acceptable levels of employed during the historical Peñarroya drill
accuracy (i.e. lack of bias) and campaigns. However, Lundin re-analysis of
precision have been established. Peñarroya drill core pulp rejects does allow for
comparison of original and pulp duplicate analysis
results for verification purposes.
Lundin Mining completed limited quarter core field
duplicate insertion and pulp reject re-analysis. No
external standards.
EUZ conducted a QC programme of inserting
quarter core field duplicates, course blank and
pulp blank material, standards, selection of pulp
repeats and submission of pulp rejects for umpire
lab re-analysis.
ALS Chemex and ALS Seville internal QC exists
for the Peñarroya Lundin re-analysis, Lundin core
and Europa Metals core and channel sample
batches.
No significant issues or fatal flaws were identified
from the assessment of QA data.
The nature and quantity of QA/QC data,
procedures employed, level of accuracy and
precision are considered acceptable for the
assigned resource classification. The quality of
assay data and laboratory tests is acceptable for
the resource classification for this deposit.
No geophysical tools, spectrometers or handheld
XRF instruments were used in the exploration and
resource work.
Verification of - The verification of significant Paper recorded drill hole logging data is
sampling and intersections by either independent or transferred to Excel, imported in to Mapinfo for
assaying alternative company personnel. viewing and imported to Micromine 3D geological
- The use of twinned holes. modelling software for validation.
- Documentation of primary data, data DGPS collar and survey excel data, and lab
entry procedures, data verification, analytical data transferred from lab.csv, to Excel
data storage (physical and electronic) and imported to Micromine 3D geological
protocols. modelling software.
- Discuss any adjustment to assay data. Geological data from gallery is observed and
reported by geologists and mining engineers.
All analytical data generated from Lundin re-
analysis and Lundin core samples, Europa Metals
core and channel samples for use as input to
estimation have been verified by cross reference
Criteria JORC Code explanation Commentary related to the Toral Project
against lab assay certificates, re-import and re-
building of the project analytical database.
No adjustment to the analytical data was
considered necessary, other than conversion to
zinc equivalents for reporting purposes, following
industry best practice. Raw analytical data
remained unchanged.
Location of - Accuracy and quality of surveys used Lundin and Europa Metals drill collars were
data points to locate drill holes (collar and down- surveyed using a Geomax 35 high-precision
hole surveys), trenches, mine workings DGPS device Accuracy +/-3cm. Downhole survey
and other locations used in Mineral measurements taken using Reflex Maxibore
Resource estimation. downhole survey tool.
- Specification of the grid system used. Peñaroyya drill hole collar locations were
- Quality and adequacy of topographic measured off plans and sections, located on the
control. ground and picked up using Geomax 35 high-
precision DGPS device. Accuracy +/-5 m.
Peñarroya drill hole dip and azimuth measured
from historical plans, cross sections and
longitudinal section. Accuracy +/-5 m.
Old workings were surveyed using Leica Disto
tmx310 survey device.
Co-ordinate grid system used is European
Terrestrial Reference System 1989 UTM Zone 29.
Topographic DTM taken from 5 m resolution Lidar
data MDT05-Lidar, from government mapping and
survey association Plan Nacional de
Ortofotografía Aérea (PNOA).
Data spacing - Data spacing for reporting of Drill and UG channel sample data spacing across
and Exploration Results. the currect resource area ranges from
distribution - Whether the data spacing and approximately 50-100mx50-100m centres within
distribution is sufficient to establish the the most densely tested area towards the NW,
degree of geological and grade stepping out to approximately 200mx200m within
continuity appropriate for the Mineral the mid-section, and 100-200x500m in the SE.
Resource and Ore Reserve estimation Toral ZnEq block model and sample points are set
procedure(s) and classifications out in Figure 3 (see link:
applied. http://www.europametals.com/site/news-
- Whether sample compositing has been announcements/announcements).
applied. The distribution of drillholes, UG channel
sampling, supported by surface and underground
mapping is sufficient to establish the degree of
geological and grade continuity appropriate for a
JORC (2012) Inferred classification of resources.
Intervals were not composited at the sampling
stage. Grade compositing was done for domain
interpretation and modelling, and 2 m length
compositing done for grade interpolation.
Orientation of - Whether the orientation of sampling Drilling is angled to intercept mineralised
data in achieves unbiased sampling of structures at high angle, as close to perpendicular
relation to possible structures and the extent to to dip and strike as practicable.
geological which this is known, considering the No sample bias is introduced by drilling
structure deposit type. orientation.
- If the relationship between the drilling
orientation and the orientation of key
mineralised structures is considered to
have introduced a sampling bias, this
should be assessed and reported if
material.
Criteria JORC Code explanation Commentary related to the Toral Project
Sample - The measures taken to ensure sample Historical Peñarroya sample security protocols are
security security. not available.
Lundin/Europa Metals drill core is transported
from site to logging facility in securely covered
core boxes by the Lundin/Europa Metals
geologists.
Core logged and sampled in secure facility.
Samples are bagged in plastic bags and labelled
with individual sample numbers, sample name
and sample location. Each bag is sealed to avoid
loss and contamination. Plastic bags are placed
in dry weave bags.
Samples are delivered to laboratory by courier in
secured boxes.
Audits or - The results of any audits or Competent Persons review and discussion of
reviews reviews of sampling techniques sampling techniques and data took place prior to
and data. and during consultant site visit between 20-22
November 2017 and 23-26 July 2018. Findings
were satisfactory and considered appropriate for
the JORC (2012) resource classification.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral - Type, reference name/number, Toral exploration permit number 15.199 (also
tenement and location and ownership including referred to as Permiso de Investigacion), is
land tenure agreements or material issues located approximately 400 km northwest of
status with third parties such as joint Madrid, within the Province of León, Autonomous
ventures, partnerships, Community of Castile and Leon.
overriding royalties, native title Licence 15.199 covers an area of 24 km².
interests, historical sites, Exploration licence 15.199 is owned by Goldquest
wilderness or national park and Iberica, S.L., a wholly owned subsidiary of Europa
environmental settings. Metals Limited. The licence was renewed on 14
- The security of the tenure held November 2017 for a period of 3 years.
at the time of reporting along
with any known impediments to
obtaining a licence to operate in
the area.
Exploration - Acknowledgment and appraisal 1972-1984 – Peñarroya-Adaro. 55 drill holes, 36
done by other of exploration by other parties. wedge drill holes.
parties 1992-1995 – Geominera. Data re-evaluation.
2005-2008 – Lundin Mining. 7 drill holes.
2009-2011 – Goldquest Mining. Soil and rock
geochemistry. Historic gallery mapping. Data
evaluation. NI43-101 Mineral Resource Estimate.
2012-2015 – Portex Mining Corporation.
Geological mapping. Data re-evaluation.
2015-2016 – Goldquest Iberica S.L. Soil and rock
geochemistry. Geological mapping.
2016-2017 – Goldquest Iberica S.L. (Europa
Metals Limited). 6 drill holes. Historic gallery
mapping and sampling. Data re-evaluation and
interpretation.
Geology - Deposit type, geological setting The Toral Project is located in the Southwestern
Criteria JORC Code explanation Commentary
and style of mineralisation. part of the regional West Asturian Leonese Zone
(WALZ), a major tectono-stratigraphic unit of the
Hercynian Orogeny.
The mineralisation at Toral is considered as
structurally controlled carbonate hosted Pb-Zn
type. Shear and thrust fault controlled
mineralisation within favourable carbonate
lithology and favourable contrasting contacts
between carbonates and shales.
Styles of mineralisation are boudinage drusy
quartz vein, replacement breccia, disseminated
clots associated with silica, carbonate and chlorite
alteration.
Main metallic minerals are Sphalerite, Galena,
Pyrite, Chalcopyrite and silver.
Drill hole - A summary of all information Drilling:
Information material to the Number of drillholes used: 92
understanding of the Collar East: 679962mE - 684702mE
exploration results including Collar North: 4708653mN - 4710598mN
a tabulation of the following Collar RL: 410mRL - 753mRL
information for all Material Azimuth: 007° - 345º
drill holes: Dip: -87° - -40°
- easting and northing of the Length: 82.3m – 1,285.3m
drill hole collar Interception depth: 578mRL – -405mRL
- elevation or RL (Reduced UG Channels:
Level – elevation above sea Number of channels: 19
level in metres) of the drill Collar East: 680917mE – 682607mE
hole collar Collar North: 4709161mN – 4709996mN
- dip and azimuth of the hole Collar RL: 447mRL – 693mRL
- down hole length and Azimuth: 010° - 313°
interception depth Dip: -24° - 19°
- hole length. Length: 0.25m – 4.25m
- If the exclusion of this
information is justified on the
basis that the information is
not Material and this
exclusion does not detract
from the understanding of
the report, the Competent
Person should clearly
explain why this is the case.
Data - In reporting Exploration No top cuts were applied to the Zn and Pb data.
aggregation Results, weighting However, Lundin and Europa Metals samples
methods averaging techniques, were limited to analytical method upper detection
maximum and/or minimum limits of 30% for Zn, Pb
grade truncations (e.g. A top cut of 200 ppm was applied to Ag assay
cutting of high grades) and data.
cut-off grades are usually Data aggregation or Grade Compositing rules for
Material and should be the reporting of exploration drill and channel
stated. significant results were minimum width 1m,
- Where aggregate intercepts minimum average grade 0.5% ZnEq, maximum
incorporate short lengths of allowable internal waste of 2m.
high grade results and Zn equivalent calculations were based on 3 year
longer lengths of low grade trailing average price statistics obtained from the
results, the procedure used London Metal Exchange and London Bullion
for such aggregation should Market Association giving an average Zn price of
be stated and some typical US$2,400/t, Pb price of US$2,000/t and Ag price
examples of such of US$17/Oz. Recovery and selling factors were
Criteria JORC Code explanation Commentary
aggregations should be incorporated into the calculation of Zn Eq values.
shown in detail. It is the Companys opinion that all the elements
- The assumptions used for included in the metal equivalents calculation (Zinc,
any reporting of metal Lead and Silver) have a reasonable potential to
equivalent values should be be recovered and sold.
clearly stated.
Relationship - These relationships are Mineralisation is interpreted as sub-vertical to
between particularly important in the steeply dipping to the NE.
mineralisation reporting of Exploration Angled drilling is sub-perpendicular to +/- 20º
widths and Results. oblique to mineralisation.
intercept - If the geometry of the True thickness of mineralisation ranges from
lengths mineralisation with respect approximately 90%-60% downhole interval length.
to the drill hole angle is
known, its nature should be
reported.
- If it is not known and only
the down hole lengths are
reported, there should be a
clear statement to this effect
(e.g. ‘down hole length, true
width not known’).
Diagrams - Appropriate maps and Appropriate scaled diagrams are included within
sections (with scales) and the AMS Toral JORC (2012) Resource Statement
tabulations of intercepts and Technical Report.
should be included for any
significant discovery being
reported. These should
include, but not be limited to
a plan view of drill hole
collar locations and
appropriate sectional views.
Balanced - Where comprehensive All available exploration data for the Toral deposit
reporting reporting of all Exploration area has been collected and reported.
Results is not practicable, Representative data from all drillings have been
representative reporting of reported.
both low and high grades
and/or widths should be
practiced to avoid
misleading reporting of
Exploration Results.
Other - Other exploration data, if No geophysical works have been completed.
substantive meaningful and material, Geological mapping and solid geology map
exploration should be reported including generation completed.
data (but not limited to): Structural interpretation and 3D modelling
geological observations; completed.
geophysical survey results; Soil geochemical surveys demonstrate strong
geochemical survey results; coherent Zn in soil anomalism coincident with
bulk samples – size and interpreted controlling structures.
method of treatment; No geotechnical, metallurgical or bulk sample test
metallurgical test results; work completed to date.
bulk density, groundwater,
geotechnical and rock
characteristics; potential
deleterious or contaminating
substances.
Criteria JORC Code explanation Commentary
Further work - The nature and scale of Surface drilling and trenching works testing open
planned further work (e.g. strike extent to the SE and infill drilling within
tests for lateral extensions current resource limits to increase confidence and
or depth extensions or resource class.
large-scale step-out drilling). Underground cut-channel sampling and mapping.
- Diagrams clearly Systematic bulk density measurement work.
highlighting the areas of Preliminary metallurgical testwork.
possible extensions,
including the main
geological interpretations
and future drilling areas,
provided this information is
not commercially sensitive.
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)
Criteria JORC Code explanation Commentary related to the Toral Project
Database - Measures taken to ensure The databases (geological and analytical) are
integrity that data has not been maintained by the geologist.
corrupted by, for example, The database for use as input to mineral resource
transcription or keying modelling and estimation has been validated and
errors, between its initial verified by AMS and the Competent Person.
collection and its use for Micromine 3D geological modelling and estimation
Mineral Resource estimation software used for import, validation and QAQC
purposes. verification assessment.
- Data validation procedures Data checks include checks for overlapping and
used. missing intervals, dh trace errors, missing survey
data, litho and collars.
Site visits - Comment on any site visits Competent Person for structurally controlled
undertaken by the carbonate hosted Pb-Zn resource estimation is
Competent Person and the Mr. James Hogg who has a Master Degree of
outcome of those visits. Science in Mineral Exploration and is a member of
- If no site visits have been the Australian Institute of Geoscientists.
undertaken indicate why this Site visits were completed between 20-
is the case. 22November 2017 and again between 23-26 July
2018.
Geological - Confidence in (or Based upon the level of available information,
interpretation conversely, the uncertainty geological and deposit complexity, interpretation
of) the geological of the main lithological boundaries and controls to
interpretation of the mineral mineralisation are considered satisfactory and
deposit. appropriate for the assigned resource class.
- Nature of the data used and Drillhole lithological and analytical information,
of any assumptions made. prospect scale surface geological mapping,
- The effect, if any, of underground mapping and sampling, location of
alternative interpretations on underground workings were used in geological
Mineral Resource interpretation.
estimation. Alternative interpretations infer potential thrust
- The use of geology in repeats and potential for additional parallel
guiding and controlling mineralised zones. However, at the level of
Mineral Resource information this interpretation remains
estimation. unsupported by drill data and conceptual in
- The factors affecting nature.
continuity both of grade and Geological model was used to guide the
geology. interpretation and continuity of Zn-Pb mineralised
domains.
Criteria JORC Code explanation Commentary related to the Toral Project
Post mineralisation transfer faults are interpreted
to affect continuity by minor offset.
A transitional oxide material surface was modelled
from the logging of the drill core.
Dimensions - The extent and variability of Mineralisation is encountered at surface and
the Mineral Resource based on current testing, extends to
expressed as length (along approximately 1,100 m below the surface.
strike or otherwise), plan Mineralisation is currently tested across a 3,300 m
width, and depth below strike length, the orientation of mineralisation zone
surface to the upper and is approximately 110 degrees, averaging
lower limits of the Mineral approximately 3 m in thickness.
Resource.
Estimation - The nature and Wireframe solid models were created for each
and modelling appropriateness of the domain based on a mineralisation threshold of
techniques estimation technique(s) approximately 0.2% for Zn and Pb (approximately
applied and key 0.4% Zn+Pb). Analysis of Zn and Pb grades in
assumptions, including cross section and in scatter plots showed a strong
treatment of extreme grade relationship and no requirement to model Zn and
values, domaining, Pb separately was identified. Ag showed a strong
interpolation parameters correlation with Pb and was estimated within the
and maximum distance of Zn/Pb mineralised domain. Interpretation of the
extrapolation from data mineralised domains were guided by geological
points. If a computer interpretation of the deposit incorporating
assisted estimation method structural and lithological boundaries.
was chosen include a
Extrapolation of the Zn-Pb mineralised domain
description of computer
equals approximately 50m along strike in the NW
software and parameters
direction, approximately 50-80m below the
used.
deepest sample in the NW and central zones, and
- The availability of check
approximately 200m below the deepest sample in
estimates, previous
the SE zone. Mineralisation is extrapolated
estimates and/or mine
approximately 60m along strike to the SE.
production records and
Extents of extrapolation are considered
whether the Mineral
appropriate for the level of information, deposit
Resource estimate takes
type, strike and depth extents tested, observed
appropriate account of such
and geostatistical continuity and the assigned
data.
resource class of Inferred. Figures 4 and 5 (see
- The assumptions made
link: [NB: to be inserted when loading on RNS
regarding recovery of by-
system]) show the extrapolated zone of mineral
products.
domain block model (shown in grey).
- Estimation of deleterious
elements or other non-grade
variables of economic
significance (e.g. sulphur for All samples contained within the mineralised
acid mine drainage wireframe were composited to a standard length
characterisation). for geostatistical analysis and interpolation.
- In the case of block model Variography was performed on the assay data
interpolation, the block size within the primary mineralised wireframe to
in relation to the average generate a series of directional semi-variograms
sample spacing and the for Zn, Pb and Ag. These variograms were used
search employed. in the Ordinary Kriging process where Zn, Pb and
- Any assumptions behind Ag were interpolated and extrapolated using the
modelling of selective corresponding variograms on a domain by domain
mining units. basis. A single pass search was applied to
- Any assumptions about minimise conditional bias, the number of input
correlation between data in each block estimate were restricted to
variables. prevent over smoothing of the estimates.
- Description of how the The block model used uniform cell size of
geological interpretation was 50x2x50 m to best suit the orientation of the
Criteria JORC Code explanation Commentary related to the Toral Project
used to control the resource mineralisation and sample spacing. The block
estimates. model was rotated by 20° in plan view to best
- Discussion of basis for using match the trend of mineralisation. Sub cells were
or not using grade cutting or applied to better fit the wireframe solid models
capping. and preserve accurate volume as much as
- The process of validation, possible. Cells were interpolated at the parent
the checking process used, block scale using an Ordinary Kriged interpolation
the comparison of model technique with a single search ellipsoid orientated
data to drill hole data, and to the interpreted strike, dip and pitch of
use of reconciliation data if mineralisation.
available.
No top cutting was applied to Zn or Pb grades due
to the upper detection limit of the data being 30%.
High-grade outlier values for Ag were capped
(„top-cut") at 200 ppm (g/t) based on the data
distribution and statistics.
The current resource completed by AMS on the
Toral project compares well with the historic 2011
NI43-101 reported resource which stated
resources at 4% cut off of 18Mt @ 8.4% (Pb+Zn),
27g/t Ag. An AMS audit of the historic resource
has identified a number of errors and issues in
regard to input data, estimation methodology,
assumptions and reporting of metal equivalents,
and considers the historic resource inaccurate
and unreliable.
The data was continually validated throughout
drilling and at the resource stage. Data was
validated both visually and in Micromine. No
significant errors were detected and the data set
is considered robust and compliant with JORC
2012 reporting standards.
A comparison between the volume and tonnage of
the block model and the volume and tonnage of
the wireframe which represents all mineral
domains. The volumes of the wireframe and block
model agree within acceptable limits.
Moisture - Whether the tonnages are Tonnages are estimated on a dry basis.
estimated on a dry basis or
with natural moisture, and
the method of determination
of the moisture content.
Cut-off - The basis of the adopted Zn equivalent calculations were based on 3 year
parameters cut-off grade(s) or quality trailing average price statistics obtained from the
parameters applied. London Metal Exchange and London Bullion
Market Association giving an average Zn price of
US$2,400/t, Pb price of US$2,000/t and Ag price
of US$17/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.
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*0.96 + Ag*0.022).
Criteria JORC Code explanation Commentary related to the Toral Project
Zn Eq (Pb)% is the calculated Zn equivalent using
lead credits and does not include silver credits. It
is displayed here for comparison purposes (Zn Eq
(Pb)% = Zn + Pb*0.96).
Mining factors - Assumptions made Assumed mining methods are based upon a
or regarding possible mining review of methods of extraction, cost and
assumptions methods, minimum mining performance on similar type deposits.
dimensions and internal (or,
if applicable, external) Summary of mining and processing costs used in
mining dilution. It is always determination of economic cut off: Assumed cut
necessary as part of the and fill/sub level open stoping, US$38/t, 7%
process of determining mining loss, 5% dilution. Processing US$25/t,
reasonable prospects for GNA US$8/t, tailing handling US$3, rehab, US$1/t
eventual economic Total US$75.
extraction to consider
potential mining methods,
but the assumptions made
regarding mining methods
and parameters when
estimating Mineral
Resources may not always
be rigorous. Where this is
the case, this should be
reported with an explanation
of the basis of the mining
assumptions made.
Metallurgical - The basis for assumptions Assumed processing methods are based upon a
factors or or predictions regarding review of methods of extraction, cost and
assumptions metallurgical amenability. It performance of similar type deposits.
is always necessary as part
of the process of Summary of recovery and selling factors used in
determining reasonable the determination of economic cut off and
prospects for eventual equivalents. Discounted factor for selling
economic extraction to concentrate product applied to metal prices. Metal
consider potential Recoveries and Concentrate Selling Factors are
metallurgical methods, but taken into account in Zn Eq calculation.
the assumptions regarding
metallurgical treatment Co
processes and parameters Zn nc
made when reporting % Mini Proc Sel
Mineral Resources may not Equi ng ess lin
Met
always be rigorous. Where vale Reco Reco g Metal
al
this is the case, this should nt very very Fa Contri
Metal pric
be reported with an Con Fact Fact cto bution
e
explanation of the basis of vers or or r Factor
US$
the metallurgical ion (MR (PRE (C
assumptions made. Fact ECF) CF) ON
or CF
)
250 0.8
Zn 1 0.88 0.9 0.53
0 /t 5
0.96
210 0.9
Pb (x % 0.88 0.95 0.40
0 /t 2
Pb)
0.02
17 2 0.9
Ag 0.88 0.80 0.07
/Oz (x 5
g/t
Criteria JORC Code explanation Commentary related to the Toral Project
Ag)
Zn Eq
0.8
Weight 0.88 0.95
84
ed
Environmenta - Assumptions made No assumptions are made on environmental
l factors or regarding possible waste factors other than the cost to back fill waste
assumptions and process residue tailings.
disposal options. It is always
necessary as part of the
process of determining
reasonable prospects for
eventual economic
extraction to consider the
potential environmental
impacts of the mining and
processing operation. While
at this stage the
determination of potential
environmental impacts,
particularly for a greenfields
project, may not always be
well advanced, the status of
early consideration of these
potential environmental
impacts should be reported.
Where these aspects have
not been considered this
should be reported with an
explanation of the
environmental assumptions
made.
Bulk density - Whether assumed or The bulk density was calculated using the
determined. If assumed, the Archimedes method weighting the samples in air
basis for the assumptions. If and water using a Kern precision balance.
determined, the method
used, whether wet or dry, 1,002 new bulk density measurements were
the frequency of the recorded, for a total of 1,192 readings. 105
measurements, the nature, occurring within the mineralisation. The mean for
size and representativeness the mineralised domain oxide/transitional zone is
3
of the samples. 2.4 g/cm and mean for mineralised domain fresh
3
- The bulk density for bulk material is 2.8 g/cm .
material must have been
measured by methods that
adequately account for void
spaces (vugs, porosity, etc),
moisture and differences
between rock and alteration
zones within the deposit.
- Discuss assumptions for
bulk density estimates used
in the evaluation process of
the different materials.
Classification - The basis for the The Inferred mineral resource category for the
classification of the Mineral Toral zinc-lead-silver project (at cut-off grades
Resources into varying >4% Zn Equivalent) comply with the resource
confidence categories. definitions as described in the Australasian Code
Criteria JORC Code explanation Commentary related to the Toral Project
- Whether appropriate for Reporting of Exploration Results, Mineral
account has been taken of Resources and Ore Reserves. The JORC Code,
all relevant factors (i.e. 2012 Edition. Prepared by: The Joint Ore
relative confidence in Reserves Committee of The Australasian Institute
tonnage/grade estimations, of Mining and Metallurgy, Australian Institute of
reliability of input data, Geoscientists and Minerals Council of Australia
confidence in continuity of (JORC).
geology and metal values,
quality, quantity and The result reflects the quality and quantity of data,
distribution of the data). geostatistical analysis of correlation and
- Whether the result relationship between mineralised samples (semi-
appropriately reflects the variography) and the Competent Persons view of
Competent Person’s view of the deposit. The semi-variography reflects the
the deposit. sample density.
Audits or - The results of any audits or There has been one historical resource estimate
reviews reviews of Mineral Resource performed on the deposit, completed in 2013 and
estimates. reported in compliance with NI43-101. A review
of the NI43-101 report and available models has
raised some concerns on the validity of input data
used, modelling and estimation methodologies
and resulting reliability of reported resources.
The AMS 2018 resource report has not been
audited.
Discussion of - Where appropriate a It is the CPs opinion that the resource model and
relative statement of the relative estimations are accurate given the quantity and
accuracy/ accuracy and confidence quality of data, and reported in accordance with
confidence level in the Mineral JORC (2012) guidelines.
Resource estimate using an
The level of confidence is consistent with the level
approach or procedure
of Inferred categorised mineral resource.
deemed appropriate by the
Competent Person. For There were sufficient statistical and geostatistical
example, the application of procedures to quantify the accuracy of the mineral
statistical or geostatistical resource.
procedures to quantify the
relative accuracy of the There are no historical production records from
resource within stated the deposit.
confidence limits, or, if such
an approach is not deemed
appropriate, a qualitative
discussion of the factors that
could affect the relative
accuracy and confidence of
the estimate.
- The statement should
specify whether it relates to
global or local estimates,
and, if local, state the
relevant tonnages, which
should be relevant to
technical and economic
evaluation. Documentation
should include assumptions
made and the procedures
used.
- These statements of relative
accuracy and confidence of
the estimate should be
Criteria JORC Code explanation Commentary related to the Toral Project
compared with production
data, where available.
Date: 20/09/2018 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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