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EUROPA METALS LIMITED - Infill Drilling Programme Commenced and Scoping Study Update - Toral Project, Spain

Release Date: 04/10/2018 09:00
Code(s): EUZ     PDF:  
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Infill Drilling Programme Commenced and Scoping Study 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”)




Infill Drilling Programme Commenced and Scoping Study Update - Toral
Project, Spain

Europa Metals, the European lead-zinc explorer, is pleased to announce that, further
to the Company’s announcement of 28 August 2018 regarding, inter alia, the
successful mobilisation to site of the combination drill rig, all of the planned Phase I
Reverse Circulation (“RC”) drilling on its wholly owned Toral project, northern Spain,
has now been completed with samples currently being sent to external laboratories
for independent assay. The RC extension drilling was designed to identify new areas
of mineralisation stepping out from the existing defined JORC (2012) resource area
at the project. A diamond drilling programme will now commence which will target
key areas situated within the existing resource area.

The objective of the Phase II diamond infill drill programme is to increase and
enhance the Company’s understanding and confidence in the existing resource in
areas that currently contain Inferred mineralisation as defined under the JORC
(2012) code. Infill drilling will ultimately seek to upgrade the existing Inferred
resources to Indicated and will form a key component of a planned future full
feasibility study.

Update regarding Scoping Study Progress
Following sustained work on an initial scoping study for the Toral project, being
undertaken by Addison Mining Services Limited (“AMS”), the following elements
have been identified and established as development options for a potential future
mining operation at the Toral site:
   adoption of a cut and fill method of mining in order to reduce waste and footwall
   dilution;

   decline entry followed by a raised bore production shaft (reduced shaft cost and
   expenditure on raised bore commenced only at a time nearer to future
   production);

   standard two-stage flotation process - depressing the zinc and floating the lead;
    fully mechanised utilising an appropriate level of technology for a project of
    Toral’s size; and

    requisite permitting and environmental pathways determined and/or underway.

The Company is now working closely with AMS to incorporate the new data from its
recent JORC (2012) resource update and other workflows in order to complete the
scoping study and a further update will be provided in due course.

Laurence Read, Executive Director of Europa Metals, commented:
“The planned RC drilling has now been completed and we have commenced the
next phase of our drill programme at the Toral project comprising infill diamond
drilling. The majority of the key elements of the proposed mine design have been
assessed and completed for a potential future mining operation at Toral and new
data sets are currently being inputted to enable AMS to complete its scoping study.”


Myles Campion, Executive/Technical Director of Europa Metals, further
commented:
“Progress on the scoping study to date is narrowing our focus at Toral and is
providing us the incentive to proceed, ahead of schedule, with our planned Phase II
work programme. Accordingly, we have decided to initiate the diamond infill drilling
work and activities which will provide the first geotechnical information at Toral.”


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.



General:
Toral Lead-zinc-silver project located in the region of Castila y León, northern Spain

Summary of updated JORC (2012) Inferred Mineral resource estimate announced on 20
September 2018:

    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
            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 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.

  Cut-Off                                                                        Contained   Contained    Ag Troy
              Tonnes                Zn_Eq     Zn Eq                        Ag
   Zn Eq                  Density                       Zn %     Pb %            Zn Tonnes   Pb Tonnes      Oz
             (Millions)             (Pb)%   (PbAg)%                        g/t
 (PbAg)%                                                                           (000s)      (000s)    (Millions)

                                                       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



Competent Person’s statement

The updated Toral inferred 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 a qualified person under the AIM guidance note for mining and oil &
gas companies. The updated inferred 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 new information or data that
materially affects the information contained within the Company’s previous announcements
referred to herein.

Perth

4 October 2018

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