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Updated Mineral Resource Estimate - 55% Increase in Indicated Resource, 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
(“Europa Metals” or "the Company")
Updated Mineral Resource Estimate - 55% Increase in Indicated Resource, Toral Pb,
Zn & Ag Project, Spain
Europa Metals, the European focused lead, zinc and silver developer, is pleased to announce the
results of an updated independent Mineral Resource Estimate, reported in accordance with JORC
(2012), in respect of its wholly owned Toral lead-zinc-silver project located in northern Spain (“Toral”
or the “Toral Project”).
Highlights:
• Updated independent Indicated and Inferred Mineral Resource Estimate for Toral, reported
in accordance with JORC (2012). The input database for the estimate, included:
- 172 diamond drill holes (including wedges) and 4 reverse circulation (RC) drill holes
totalling 59,658.73 metres of drilling (including environmental drillholes), and 19
underground channels for 18.75 metres.
- 8 new parent mineral exploration drill holes TOD-028 to TOD-035 and six new
daughter drill holes (metallurgical/geotechnical data), and one failed daughter hole
- Application of updated fault models.
- Application of new lithological facies domain models.
• Indicated resource estimate of approximately 5.9Mt @ 7.1% Zn Equivalent (including Pb
credits) and 27g/t Ag, representing an approximate:
- 55% increase in Indicated resource tonnes;
- 39% increase in Indicated contained tonnes of zinc to approximately 251,000 tonnes;
- 30% increase in Indicated contained tonnes of lead to approximately 196,000 tonnes;
and
- 40% increase in Indicated contained ounces of silver to approximately 5.2 million
ounces.
• A total resource of approximately 20Mt @ 6.3% Zn Equivalent (including Pb credits), 3.9%
Zn, 2.7% Pb and 22 g/t Ag, including:
- 790,000 tonnes of zinc, 550,000 tonnes of lead and 14 million ounces of silver.
Outlook
The Company expects to integrate the updated resource estimate, with the substantially increased
indicated resource and grade increase within the upper zones, with its ongoing engineering analysis
in order to assess the positive influence on the proposed future mining and processing route for the
Toral project.
The Company will also utilise the bulk sample obtained during the recent drill programme to
undertake a new phase of metallurgical and waste testing via Wardell Armstrong International. It is
intended that ore sorting analysis will be conducted on the large bulk sample within the upper zones
to complement its 2020 work. In addition, further ore sorting testwork will be utilised to determine the
potential recovery and concentrate production levels from the lower, carbonate zones.
Laurence Read, CEO of Europa Metals, commented:
“With an approximate 55% increase in the Indicated category to 5.9Mt @ 7.1% Zinc Equivalent
(including Pb credits), sitting within a total resource, open at depth and to the East, of 20Mt @ 6.3%
Zinc Equivalent (including Pb credits), this independent resource update represents a significant
advance for the Toral lead, zinc and silver project.
“By formulating and implementing a highly targeted drilling campaign, our team has achieved this
significant result in a highly efficient manner, in an area of the resource that should directly impact
the early future production years of the Toral project. We are now progressing to a new phase of
metallurgical testing in order to determine the most efficient production routes for the upper zone
including examination of ore sorting. The overall focus continues to be on proving up our well
established lead, zinc and silver resource area and continuing to de-risk the development profile.”
Myles Campion, Executive Chairman of Europa Metals, further commented:
“This is an excellent result for Europa Metals with the upper siliceous zone returning better than
expected grades and widths which has enabled the reporting of a substantial increase in Indicated
tonnes from a concentrated drilling programme. The deposit continues to deliver positive news and
this boost to the Indicated resource provides further certainty on tonnes and grade profiles to assist
with the assessment of mine life and future production profile in further studies.”
Overview
Europa Metals is pleased to announce the results of an independent updated Mineral Resource
Estimate, in accordance with JORC (2012), for Toral pursuant to which there has been an
approximate 55% increase in the Indicated resource category to approximately 5.9Mt at 7.1% Zinc
Equivalent (including Pb credits) and 27g/t Ag. The upgrade follows the analysis of assays returned
from the Company’s 2021 diamond drilling campaign (involving, inter alia, key new drill holes TOD-
028 and TOD-035) and incorporation of updated fault and new lithological facies domain models.
The update was commissioned from and prepared by Addison Mining Services Limited (“AMS”).
Figure 1 showing AMS’ resource block model for Toral as a 3D view looking north, by Zn Equivalent
(PbAg)% grade can be viewed at the following link:
http://www.rns-pdf.londonstockexchange.com/rns/6336N_1-2021-9-30.pdf
Figure 2a: showing AMS’ resource block model for Toral as a 3D view looking north, by resource
category can be viewed at the following link:
http://www.rns-pdf.londonstockexchange.com/rns/6336N_1-2021-9-30.pdf:
Figure 2b: AMS’ resource block model for Toral 2D showing increase in indicated area can be viewed
at the following link:
http://www.rns-pdf.londonstockexchange.com/rns/6336N_1-2021-9-30.pdf:
This latest updated Mineral Resource Estimate, effective as of 14 September 2021 for the Toral
deposit comprises:
• An Indicated resource of approximately 5.9Mt @ 7.1% Zn Equivalent (including Pb credits),
4.2% Zn, 3.3% Pb and 27g/t Ag, including:
- 251,000 tonnes of zinc, 196,000 tonnes of lead and 5.2 million ounces of silver.
• An Inferred resource of approximately 14Mt @ 6% Zn Equivalent (including Pb credits), 3.8%
Zn, 2.5% Pb and 20 g/t Ag, including:
- 540,000 tonnes of zinc, 350,000 tonnes of lead and 9 million ounces of silver.
• A total resource of approximately 20Mt @ 6.3% Zn Equivalent (including Pb credits), 3.9%
Zn, 2.7% Pb and 22 g/t Ag, including:
- 790,000 tonnes of zinc, 550,000 tonnes of lead and 14 million ounces of silver.
The Company’s Board believes the results of this update compare very favourably with the
previously reported Mineral Resource Estimate, announced on 14 August 2020 and effective as of
12 August 2020, which comprised the following tonnages and grade:
• An Indicated resource of approximately 3.8Mt @ 8.3% Zn Equivalent (including Pb credits),
4.7% Zn, 3.9% Pb and 30g/t Ag, including:
- 180,000 tonnes of zinc, 150,000 tonnes of lead and 3.7 million ounces of silver.
• An Inferred resource of approximately 14Mt @ 6.5% Zn Equivalent (including Pb credits), 4%
Zn, 2.7% Pb and 23 g/t Ag, including:
- 540,000 tonnes of zinc, 360,000 tonnes of lead and 10 million ounces of silver.
• A total resource of approximately 17Mt @ 6.9% Zn Equivalent (including Pb credits), 4.1%
Zn, 2.9% Pb and 24 g/t Ag, including:
- 720,000 tonnes of zinc, 510,000 tonnes of lead and 14 million ounces of silver.
* 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*0.867 + Ag*0.027). 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$2,516/t, Pb price of US$1,961/t and Ag price of US$19.4/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.
Implications of the resource update and updated resource model for the Toral Project
The significant increase in size and contained metal of the Indicated resource exceeded
management’s expectations and forms a significant cornerstone from which to further de-risk and
optimise the future production profile and economics of the Toral project. By utilising the updated
resource model in addition to the new geotechnical and metallurgical data recovered from the 2021
drill campaign, the Company can now analyse how the early years production design might best be
developed, in particular complementing the 2020 ore sorting work conducted on the lower, carbonate
zones, to determine how ore sorting in the upper zone could increase production efficiencies. Given
the levels of grade now established in the upper zone and the physical location of the mineralisation,
further work on the decline design can also be advanced.
At this time, no copper has been brought into the resource as only limited intersections have
occurred. Equally, the resource expansion is predominantly occurring within the upper boundaries
of the pre-existing resource with no further exploration yet being made below the resource cut-off at
the base or to the East.
Revised inputs
The geological team at Europa Metals has completed several important workstreams and internal
projects over the last five years to improve our geological understanding of the Toral deposit.
The 2018 re-logging exercise of the historic Peñarroya core at the Instituto Geolongico y Minero de
Espanna (IGME) facilities, proved to be beneficial as it assisted in increasing the Company’s
understanding of the geological environment and controls on mineralisation. In addition, it provided
basic structural data and, importantly, increased the quantity and quality of bulk density
measurements.
The completion of detailed surface geological mapping in 2019 led to the 2020 updated structural
database to provide further data and guidance on structural influences within the confines of the
Toral deposit.
The findings from such work have been incorporated into the updated resource model, thereby
providing better delineated geological boundaries, and utilised for updating the structural framework
which has been integral in establishing the updated resource model.
Europa Metals completed eight parent diamond drill holes (TOD-028 to TOD-035) and seven
daughter wedge holes in the last drilling campaign for total drilling of 5,183.90 metres (including
failed hole TOD-035F). The objective of the 2021 drill campaign was to test up dip extensions to the
high-grade zone and increase the Indicated resource, within predominantly siliceous lithofacies
material for ore sorting and metallurgical tests. All drilling was planned to cut the deposit above
elevation 190mRl (approximately 300 to 500 metres below surface) to extend the Indicated resource
zone above that delineated in the 2020 mineral resource estimate.
Competent Person’s Updated Inferred and Indicated Mineral Resource Estimate, Reported in
Accordance with the JORC Code (2012 edition)
Further to the diamond drilling conducted in 2021, the Company commissioned AMS to complete an
independent updated Mineral Resource Estimate. The updated Mineral Resource Estimate is based
on all the available historical data from six drilling campaigns conducted on licence number 15.199
(namely, the 1972 - 1984 Peñarroya-Adaro campaign, the 2006 - 2008 Lundin Mining campaign, the
2016 - 2017 Europa Metals’ campaign and the Company’s September 2018 to August 2019 RC and
diamond drilling, November 2019 to January 2020 diamond drilling and January to June 2021
diamond drilling), along with historic underground channel sampling results from numerous old adits.
The updated Mineral Resource Estimate has been reported in accordance with the Joint Ore
Reserve Committee (JORC) code, 2012 edition.
Block Model
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
3,600m and is still open to the east and west along strike and also at depth where it has not yet been
closed off.
Figure 3: AMS’ East West 2D Toral block model by grade can be viewed at the following link:
http://www.rns-pdf.londonstockexchange.com/rns/6336N_1-2021-9-30.pdf:
The Inferred and Indicated resource for the Zn-Pb-Ag mineralisation located on the Toral Project’s
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%
Zn Equivalent cut-off grade was appropriate utilising estimated mining parameters established
during the 2020 scoping study and mineralogy and using an historical three-year trailing average for
metals prices, which, although conservative, was deemed appropriate at this stage in the project’s
development.
Zn Price Used: US$ 2,516/t US$ 1.14/lb
Pb Price Used: US$ 1,961/t US$ 0.90/lb
Ag Price Used: US$ 19.4/oz
Table 1: 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 estimations.
Cut-Off Zn Contained Contained
Tonnes Zn Eq Zn Eq Zn Pb Ag Ag Troy Oz
Eq Density Zn Tonnes Pb Tonnes
(Millions) (Pb)% (PbAg)% % % g/t (Millions)
(PbAg)% (000s) (000s)
Indicated
6.0 3.9 2.93 8.5 9.3 5.1 3.9 30 200 152 3.8
5.0 4.8 2.92 7.8 8.6 4.7 3.6 29 226 173 4.4
4.0 5.9 2.90 7.1 7.8 4.2 3.3 27 251 196 5.2
3.5 6.2 2.90 7.0 7.7 4.1 3.3 27 255 200 5.3
Inferred
6.0 8 2.90 7.3 7.9 4.9 2.8 22 370 210 5.4
5.0 10 2.90 6.7 7.2 4.4 2.7 21 450 280 7.0
4.0 14 2.90 6.0 6.5 3.8 2.5 20 540 350 9.0
3.5 16 2.90 5.6 6.2 3.6 2.4 19 580 390 10.0
Total
6.0 12 2.90 7.7 8.4 4.9 3.2 25 570 370 9
5.0 15 2.90 7.0 7.7 4.5 3.0 23 680 450 11
4.0 20 2.90 6.3 6.9 3.9 2.7 22 790 550 14
3.5 22 2.90 6.0 6.6 3.7 2.6 21 830 590 15
Partially Weathered Material
6.0 12 2.90 7.7 8.4 4.9 3.2 25 570 370 9
Unweathered Fresh Rock
4.0 16 2.90 6.7 7.2 4.3 2.7 21 710 440 11
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 is being reported. 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$2,516/t, Pb price of US$1,961/t and Ag price of US$19.4/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*0.867 + Ag*0.027).
5. Zn Eq is the calculated Zn equivalent using lead credits and does not include silver credits (Zn Eq = Zn + Pb*0.867).
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 14 September
2021. The block model used uniform cell size of 25x10x25m to best suit the orientation of the mineralisation and sample spacing. The
block model was rotated by 20degrees 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 a
Median Indicator Kriging.
7. No Top Cuts were applied to the 2m downhole composite data used for grade estimation.
8. The Indicated and Inferred mineral resource category for the Toral lead-zinc-silver project set out in the table above (at cut-off grades
less than 4% Zn Equivalent) comply with the resource definitions as described in the Australasian Code for 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 3.5% 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.
Summary of Updated Resource Estimate and Reporting Criteria
In accordance with JORC (2012) reporting guidelines, a summary of the material information used
to estimate the updated Mineral Resource Estimate is set out below (for further detail please refer to
the JORC (2012) Table 1, set out in 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 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 in 2018 provided improved geological, structure, alteration
and weathering/oxidation information, incorporated into the interpreted geological and mineralised
models for the updated resource estimate. Surface mapping and remote data interpretation by
Europa Metals has enabled the development of an interpreted fault model, also incorporated in to
the updated geological and mineralised models used in the updated mineral resource estimate.
Weathering
The weathering profile was observed throughout the drill holes and historic shallowly emplaced
horizontal adits. In general, observations on weathering and oxidation at Toral suggests a poorly
developed or truncated profile overall, with minimal oxidation developed much below 30 metres from
the surface, with the majority of the country rock being un-weathered or showing only fractured
controlled weathering and oxidation in the form of iron oxide joint tarnishing and fracture infill.
Weathering and oxidation are deeper within the main parts of the mineralised structure, and is
interpreted as partial, being fracture controlled with less than 10% weatherable minerals weathered
and/or oxidised. A weathering surface was interpreted at the moderately weathered - partially
weathered and fracture-controlled boundary to sub-divide the moderately oxidised ‘transitional’ zone
material and ~10% weathered ‘fresh’ material below.
Due to the strong lithological and structure control, an observed trough is developed at the
transitional-fresh boundary along the main structure, interpreted through the drill hole logging of
weathering. The accuracy of the surface at this stage is suitable for application and use in the
reporting of Inferred and Indicated resources and further work is required to increase the
understanding of the boundary and its effects on the deposit.
Bulk density
The resource database contains 3,012 bulk density measurements, with a total of 234 within the
mineralised wireframe, with a mean value of 2.84 g/cm3.
A broad linear relationship between Pb+Zn grade and Bulk Density was identified from scattergrams
and the formula 2.7 + 0.02(Pb+Zn%) used to estimate block density in relation to block grade within
the block model, density was capped at 3.5 g/cm3.
Drilling techniques and hole spacing
The updated Mineral Resource Estimate includes new information from eight parent diamond drill
holes (TOD-028 to TOD-035) and six successful daughter wedge holes from the last drilling
campaign for total drilling of 3,368 metres (including failed hole TOD-035F), all collared from surface.
A total of 172 diamond drill holes (including wedges) and 4 reverse circulation (RC) drill holes totalling
59,658.73 metres of drilling, and 19 underground channels for 18.75 metres were used as the input
database for geological modelling and resource estimation. Note that this drillhole database includes
environmental monitoring drillholes.
Drill core diameter was PQ, HQ, NQ2, NQ and BQ depending upon depth. Tube type is unknown for
the historic Peñarroya drilling, whilst the triple tube method was used for the historic Lundin and
Europa Metals’ drilling campaigns.
The recent diamond core has been orientated. No orientation has been performed on the historic
drill core.
Drill and UG channel sample data spacing across the current resource area ranges from
approximately 50-100m x 50-100m centres within the most densely tested area situated in the NW,
stepping out to approximately 200m x 200m within the mid-section and 100-200m x 500m in the SE.
The distribution of drill holes 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 and Indicated classification of resources.
Sampling and sub-sampling techniques
The four 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-samples taken for analysis. Multi-element re-analysis of
available Peñarroya diamond drill hole 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-samples taken for analysis.
• 2018-2021 Europa Metals: diamond drill core and RC chips used to obtain samples for geological
logging and sampling. Geological and analytical data is recorded on paper and later digitised.
Selective sampling method was employed around areas of interest. Sampling intervals measure
approximately 1m, half core and RC riffle splits sent for analysis, weighing approximately 2-3kg,
with half core and chip sub-samples retained for reference. Samples were sent to ALS Seville for
preparation and multi-element analysis by ICP. Half core and RC samples were reduced to -400
microns and 100g sub-samples taken for analysis.
Diamond Core Recovery
A total of 14,706 core recovery measurements exists in the database for the drilling with average
core recovery of 79%. The average for the Europa Metals diamond drilling is 96%. Core recovery is
measured over run lengths.
Cut-off grades
The Inferred and Indicated 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 derived from the 2020 scoping study and 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 considering the aforementioned factors
and allowing for some increase in commodity prices to define resources with a reasonable prospect
of eventual economic extraction now or in the near future. Resources are reported as follows:
The updated mineral resource estimate as of 14 September 2021 for Toral comprises:
• An Indicated resource of approximately 5.9Mt @ 7.1% Zn Equivalent (including Pb credits),
4.2% Zn, 3.3% Pb and 27g/t Ag, including:
- 251,000 tonnes of zinc, 196,000 tonnes of lead and 5.2 million ounces of silver.
• An Inferred resource of approximately 14Mt @ 6% Zn Equivalent (including Pb credits), 3.8%
Zn, 2.5% Pb and 20 g/t Ag, including:
- 540,000 tonnes of zinc, 350,000 tonnes of lead and 9 million ounces of silver.
• A total resource of approximately 20Mt @ 6.3% Zn Equivalent (including Pb credits), 3.9%
Zn, 2.7% Pb and 22 g/t Ag, including:
- 790,000 tonnes of zinc, 550,000 tonnes of lead and 14 million ounces of silver.
Estimation methodology
AMS verified new primary analytical data via cross reference against original laboratory certificates.
The database for use as input for mineral resource modelling and estimation has also been validated
and verified by AMS. Micromine 2021 3D geological modelling and estimation software was used for
import, validation and QC verification assessment, 3D solid modelling, geostatistics and block model
grade estimation and block model reporting. Data checks include checks for overlapping and missing
intervals, drill hole trace errors, missing survey data, lithology and collars.
As with previous resource estimates completed by AMS (2017, 2018, 2019, 2020) 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.
The updated wireframes were generated using Micromine’s implicit vein modelling functionality and
incorporated major fault boundaries to better honour offsets in the structure and preserve
thicknesses between intercepts. Interpretation of the mineralised domains was guided by geological
interpretation of the deposit incorporating structural and lithological boundaries and surface
expression in topographical data and outcrop mapping.
To the northwest the resource is truncated by the licence boundary and extended approximately
10m past the south easterly most drillhole which was mineralised but contained sub-economic
grades (3m at 2.4% ZnEq). The total strike length of the modelled mineralisation within the licence
is approximately 3.1km. The structure remains open to the southeast. Down dip the model was
extrapolated approximately 50-200m below the deepest sample in the northwest and central parts
of the deposit, and approximately 250-280m below the deepest sample in the southeast with
consideration of depths tested along strike to the northwest. The models extent from surface to a
range of approximately 800 - 1,150m below the surface. Extents of extrapolation are considered
appropriate for the level of information, deposit type, strike and depth extents tested, observed and
geostatistical grade continuity and the assigned resource classification.
A uniform cell block model of 25 mE, 10 mN, 25 mZ was restricted to the wireframes using block
factors. The block model was rotated by 20degrees in plain view to best match the trend of
mineralisation. The uniform model and 2m sample composites for the mineralised domain were then
flattened to a constant vertical plane striking 110degrees to account for fault offsets, improve
variography and grade mapping. Thickness was preserved in the flattening process and no lateral
stretching was applied.
Block model interpolation and extrapolation for Zn, Pb and Ag was completed using directional
variograms for each element in the flattened space at the uniform block scale. Median Indicator
Kriging was used, where each cut-off bin in the indicator interpolation process uses the same median
indicator variogram for each element. Indicator bins were selected based on dices plus incremental
percentiles in the tail of the distribution.
During block model interpolation, the influence of some isolated high-grade values was found to be
sufficiently localized and did not have undue influence on the estimates of grade. It was decided that
there was no requirement for top cutting.
Classification criteria
The portion of the Toral deposit defined by drilling, underground development and channel sampling,
has been classified as an Inferred and Indicated mineral resource in accordance with JORC (2012)
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 sub level open stope mining is the intended mining
methodology with froth floatation for recovery.
Comparison with Previous Mineral Resource Estimate
The updated Mineral Resource Estimate compares favourably with the previously reported Indicated
and Inferred Mineral Resource Estimate announced on 14 August 2020 and effective as of 12 August
2020.
Previous Mineral Resource Estimate Announced in August 2020
Table 2: Summary of 2020 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 estimations.
Contained Contained
Cut-Off Ag Troy
Tonnes Zn_Eq Zn Eq Zn Pb Ag Zn Pb
Zn Eq Density Oz
(Millions) (Pb)% (PbAg)% % % g/t Tonnes Tonnes
(PbAg)% (Millions)
(000s) (000s)
Indicated
6 2.8 2.9 9.5 10.0 5.3 4.5 34 150 130 3.1
5 3.3 2.9 8.9 9.5 5.0 4.2 32 170 140 3.4
4 3.8 2.9 8.3 8.9 4.7 3.9 30 180 150 3.7
3 4.1 2.9 7.9 8.5 4.4 3.7 29 180 150 3.8
Inferred
6 8 2.9 7.8 8.3 4.7 3.4 28 370 270 7.2
5 10 2.9 7.2 7.7 4.4 3.0 26 450 310 8.6
4 14 2.9 6.5 6.9 4.0 2.7 23 540 360 10
3 17 2.9 5.9 6.3 3.7 2.4 20 610 400 11
Total
6 11 2.9 8.2 8.8 4.8 3.7 30 520 390 10
5 14 2.9 7.6 8.1 4.5 3.3 27 620 450 12
4 17 2.9 6.9 7.3 4.1 2.9 24 720 510 14
3 21 2.9 6.3 6.7 3.8 2.7 22 790 560 15
Transitional Oxide Material
4 3 2.9 5.2 5.7 2.6 2.9 27 75 83 2.5
Unweathered Fresh Rock
4 14 2.9 7.2 7.7 4.5 3.0 24 650 430 11
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 is being 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$2,680/t, Pb price of US$2,100/t and Ag price of US$16.2/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*0.926 + Ag*0.019).
5. Zn Eq is the calculated Zn equivalent using lead credits and does not include silver credits (Zn Eq = Zn + Pb*0.926).
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 21 January
2020. The block model used uniform cell size of 25x10x25m to best suit the orientation of the mineralisation and sample spacing.
The block model was rotated by 20degrees 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. Following statistical analysis and assessment of the updated assay composite database top cuts of 125g/t Ag were applied to the
data. No top cuts were applied for Zn or Pb.
8. The Indicated and Inferred mineral resource category for the Toral zinc-lead-silver project set out in above (at cut-off grades less
than 4% Zn Equivalent) comply with the resource definitions as described in the Australasian Code for 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).
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
The updated Mineral Resource Estimate is therefore positive in terms of increased Indicated
resource tonnes and contained metal.
• Indicated resource estimate of approximately 5.9Mt @ 7.1% Zn Equivalent (including Pb
credits) and 27g/t Ag, representing an approximate:
- 55% increase in Indicated resource tonnes;
- 39% increase in Indicated contained tonnes of zinc to approximately 251,000 tonnes;
- 30% increase in Indicated contained tonnes of lead to approximately 196,000 tonnes;
and
- 40% increase in Indicated contained ounces of silver to approximately 5.2 million
ounces.
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 a Competent Person under the AIM guidance note for mining and oil & gas companies. The
updated resource estimate was completed by Mr R. J. Siddle, MSc, MAIG Senior Resource
Geologist for AMS and 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 and RC 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 AMS is not aware of any information or data that materially
affects the information contained within the Company’s previous announcements referred to herein.
United Kingdom
1 October 2021
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
Vox: Europametals
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler
T: +44 (0)20 7409 3494
Turner Pope Investments (TPI) Limited (Broker)
Andy Thacker/James Pope
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 as it forms part of United
Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018.
Glossary of technical terms:
“Ag” silver;
“g” grammes;
“g/t” grammes per tonne;
“ICP” inductively coupled plasma;
“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;
“Indicated resource” that part of a Mineral Resource for which quantity, grade (or quality), densities,
shape and physical characteristics are estimated with sufficient confidence to allow
the application of Modifying Factors in sufficient detail to support mine planning and
evaluation of the economic viability of the deposit.
“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; and
“Zn” zinc.
APPENDIX: Table 1 (JORC 2012)
Section 1 Sampling techniques and data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation AMS Commentary
• Nature and quality of sampling • Historic and recent diamond drill core and underground cut channel
(e.g. cut channels, random sampling has been completed over three main phases of exploration
chips, or specific specialised drilling and sampling:
industry standard - 1972 - 1984 Peñarroya – Adaro. Diamond drill core method was
measurement tools used to obtain samples for geological logging and sampling.
appropriate to the minerals - 2006 - 2008 Lundin Mining. Diamond drill core method was used.
under investigation, such as Core logging completed on paper.
down hole gamma sondes, or - Europa Metals. Diamond drill core, RC chips and underground cut
handheld XRF instruments, channel sampling methods used to obtain samples for geological
etc). These examples should logging and sampling.
not be taken as limiting the • Drill core samples were half core with an average length of 1m.
broad meaning of sampling. • No handheld XRF instruments were used.
• Channel sampling was supervised by a Europa Metals’ geologist and
samples that did not cross lithological boundaries were possible.
• The measures for sample representivity are unknown for the historical
• Include reference to measures
drilling.
taken to ensure sample
• Efforts to ensure sample representativity for the Europa Metals’ drilling
representivity and the
appropriate calibration of any include:
- Constant review of recovery data with drill crews,
measurement tools or systems
- Review of downhole survey data while drilling in progress to ensure
used
the piece points are being intercepted,
- Always sampling the same side of the core, while leaving the
orientation line in place.
• 2006 - 2008 Lundin Mining sent half core samples for multi-element
Sampling analysis of available Peñarroya DDH samples completed at ALS Chemex
techniques Vancouver using ICP.
• Aspects of the determination
• Lundin sent their core samples to ALS Chemex Vancouver for ICP
of mineralisation that are
analysis.
Material to the Public Report.
• Europa Metals sent all samples to ALS Seville for preparation and multi-
element analysis by ICP.
• ALS Seville is accredited and conforms with ISO9001:2008.
• Historic and recent diamond drill core methods are discussed below:
• In cases where ‘industry - 1972 - 1984 Peñarroya – Adaro. Geological and analytical data is
standard’ work has been done recorded on hardcopy. Selective sampling method was employed
this would be relatively simple around areas of interest. Sampling intervals measure approx. 1m,
(e.g. ‘reverse circulation half core sent for analysis, with half core retained for reference.
drilling was used to obtain 1 m Exact details on core processing, sampling techniques and
samples from which 3 kg was analytical methods are unclear.
pulverised to produce a 30 g - 2006 - 2008 Lundin Mining. Diamond drill core method was used.
charge for fire assay’). In other Core logging completed on paper. Selective sampling method was
cases more explanation may employed around areas of interest. Sampling intervals measure
be required, such as where approx. 1m, half core sent for analysis, with half core retained for
there is coarse gold that has reference. Samples typically 1m half core, with samples prepared at
inherent sampling problems. the then Lundin Laboratory in Switzerland, then shipped to ALS
Unusual commodities or Chemex Vancouver for multi-element analysis by ICP.
mineralisation types (e.g. - Europa Metals. Diamond drill core, RC chips and underground cut
submarine nodules) may channel sampling methods used to obtain samples for geological
warrant disclosure of detailed logging and sampling. Geological and analytical data is recorded on
information. hardcopy. Selective sampling method was employed around areas
of interest. Sampling intervals measure approx. 1m, half core sent
Criteria JORC Code explanation AMS Commentary
for analysis, with half core retained for reference. Samples sent to
ALS Seville for preparation and multi-element analysis by ICP. Half
core and RC samples reduced to -400 microns and 100g sub-
sample taken for analysis.
• Drill type (e.g. core, reverse
circulation, open-hole hammer, • A total of 172 diamond and RC drill holes (including wedges) totalling
rotary air blast, auger, Bangka, 59,658.73 metres, and 19 underground channels for 18.75 metres were
sonic, etc) and details (e.g. used as the input database for geological modelling and resource
Drilling
core diameter, triple or estimation. These holes include environmental monitoring holes.
techniques
standard tube, depth of • Drill core diameter was PQ, HQ, NQ, NQ2 and BQ depending upon depth.
diamond tails, face-sampling Standard tube was used for Peñarroya drilling. Tripple tube method was
bit or other type, whether core used for Lundin and Europa Metals’ campaigns.
is oriented and if so, by what • Europa Metals’ diamond core was orientated using the reflex ACT III.
method, etc).
• Total core recovery, solid core recovery, Rock Quality Designation (RQD)
and fracture frequency were recorded on hardcopy tables for the diamond
• Method of recording and
drilling.
assessing core and chip
• A total of 14,706 core recovery measurements exists in the database for
sample recoveries and results
the drilling with average recovery of 79%. The average for the Europa
assessed.
Metals’ diamond drilling is 96%. Core recovery is measured over run
lengths.
• The drilling procedures for the historical works have not been reviewed
and as such, the measures taken for sample recovery and to ensure
representativity cannot be commented on.
• Measures taken to maximise
Drill • Efforts to maximise sample recovery for the Europa Metals’ drilling include:
sample recovery and ensure
sample - Constant review of recovery data with drill crews,
representative nature of the
recovery - Slowing drill rate in areas of broken ground,
samples.
- Reducing run lengths in areas of broken ground.
o Use of specific drilling fluids (stabilised slurries) in broken ground
areas.
• The resource database contains 3,012 bulk density measurements, with a
• Whether a relationship exists total of 234 within the mineralised wireframe, with a mean value of 2.84
between sample recovery and g/cm3.
grade and whether sample • A broad linear relationship between Pb+Zn grade and Bulk Density was
bias may have occurred due to identified from scattergrams and the formula 2.7 + 0.02(Pb+Zn%) used to
preferential loss/gain of estimate block density in relation to block grade within the block model,
fine/coarse material. density was capped the 3.5 g/cm3.
• Selected intervals representing areas of interest were logged in the
Peñarroya drill holes. All Lundin and Europa Metals holes were logged in
• Whether core and chip their entirety. The historical Peñarroya core was re-logged by Europa
samples have been Metals geologists in 2018 in its entirety where the core was available.
geologically and • Core logging was recorded on paper logs, using a combination of printed
geotechnically logged to a
graphic log templates (Peñarroya, Lundin), and paper (Europa Metals).
level of detail to support
• Logging records lithology, textures, mineralisation, weathering, alteration
appropriate Mineral Resource
and veining where appropriate.
estimation, mining studies and
• The core and channel logging has been completed to a sufficient level of
metallurgical studies.
detail to support appropriate Mineral Resource Estimations.
• Geotechnical data for the drill holes has been reviewed.
Logging • Drill core was qualitative and quantitative in nature.
• DH lithology, alteration, mineralisation and structural observations were
recorded by variable interval based on characteristic similarities and
• Whether logging is qualitative change boundaries.
or quantitative in nature. Core • Summary interval information was inputted to Excel, comprising single
(or costean, channel, etc) code field and codes to describe logged lithology, alteration, mineralisation
photography. and major structure for the interval.
• Lundin and Europa Metals core is routinely photographed. Historical
Peñarroya core was photographed during the re-logging in 2018.
• Channel sample logging was quantitative in nature and not photographed.
• The total length and • All drill core and RC chips were logged in their entirety.
percentage of the relevant • Channel samples were logged in their entirety.
intersections logged. • Graphic and schematic logs were produced for all drilling.
• The sub-sampling techniques and sample preparation details are not
Sub-
known for the Peñarroya drill core.
sampling
• If core, whether cut or sawn • Lundin and Europa Metals’ core was cut in half using a core saw.
techniques
and whether quarter, half or all Sampling was supervised by the geologist.
and sample
core taken. • Europa Metals’ field duplicates are quarter core.
preparation
• Underground channels were cut by angle grinder/circular saw. A channel
approximately 7 cm wide and 5 cm deep to obtain 2-3 kg sample.
Criteria JORC Code explanation AMS Commentary
• If non-core, whether riffled,
• Channel samples were not split. They were sent to ALS as bulk 2-3kg
tube sampled, rotary split, etc
samples.
and whether sampled wet or
• RC samples were riffled at the rig and were generally dry when split.
dry.
• The drilling procedures for the historical works have not been reviewed
and as such, the appropriateness cannot be commented upon. However,
• For all sample types, the
the lithology and assay determinations are sufficient for an Inferred
nature, quality and
category.
appropriateness of the sample
• Channel sample collection and Europa Metals’ drilling procedures, sample
preparation technique.
size, preparation and analysis are considered appropriate for the
mineralogy and deposit type.
• The drilling procedures for the historical works have not been reviewed
• Quality control procedures
and as such, the QC procedures cannot be commented upon.
adopted for all sub-sampling
• All half core was taken on the left side.
stages to maximise
• Samples were constrained by lithology but were 1m in length where
representivity of samples.
possible or divided equally where necessary.
• Measures taken to ensure that
the sampling is representative
of the in situ material collected, • Field duplicate scattergram analysis of the samples shows a good
including for instance results correlation between the original and duplicate samples.
for field duplicate/second-half
sampling.
• Whether sample sizes are
• Statistical analysis shows that samples are appropriate to the grain size of
appropriate to the grain size of
the material being sampled.
the material being sampled.
• Historical Peñarroya assaying and laboratory procedures are unknown.
• Commercial laboratories ALS Chemex Vancouver and ALS Seville
(ISO9001:2008) were used for Lundin and Europa Metals’ drill core
respectively and Europa Metals’ underground channel sample analysis.
• The nature, quality and
• Multi-element analysis, including Pb, Zn, Cu, Ag by ICP-MS were
appropriateness of the
completed on all samples.
assaying and laboratory
• Over limits samples were re-analysed using ore grade methods of
procedures used and whether
determination.
the technique is considered
partial or total. • Sample analytical techniques are considered in line with industry standard
for this style of mineralisation.
• Given the expected grades, lithology and deposit type, the laboratory
procedures are considered appropriate for this level of classification.
• For geophysical tools,
spectrometers, handheld XRF
instruments, etc, the
parameters used in
• No geophysical tools, spectrometers or handheld XRF instruments were
determining the analysis
used in the exploration and resource work.
including instrument make and
model, reading times,
Quality of
calibrations factors applied
assay data
and their derivation, etc.
and
laboratory • QC sample insertion procedures were not employed during the historical
tests Peñarroya drill campaigns. However, Lundin re-analysis of 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.
• Europa Metals conducted a QC programme of inserting quarter core field
• Nature of quality control duplicates, course blank and pulp blank material, standards, selection of
procedures adopted (e.g. pulp repeats and submission of pulp rejects for umpire lab re-analysis.
standards, blanks, duplicates, • ALS Chemex and ALS Seville internal QC exists for the Peñarroya Lundin
external laboratory checks) re-analysis, Lundin core and Europa Metals core and channel sample
and whether acceptable levels batches.
of accuracy (i.e. lack of bias) • No significant issues were identified in the QC data.
and precision have been • The nature and quantity of QC data, procedures employed, level of
established. 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.
• Shewhart Plots of the QC samples showed no sample bias and CRMS
returned within acceptable limits.
• Nelson rules of monitoring were applied.
• The nature and quantity of QC data for the channel sampling, procedures
employed, level of accuracy and precision are considered acceptable for
the assigned resource classification.
Criteria JORC Code explanation AMS Commentary
• Drill core has been routinely verified by AMS geologists throughout the
various recent drilling programmes.
• 27 verification samples have been taken.
• The verification of significant
• Geological data from gallery is observed and reported by geologists and
intersections by either
mining engineers.
independent or alternative
• Paper recorded drill hole logging data is transferred to Access, imported
company personnel.
into Micromine 3D geological modelling software for validation.
• No significant issues in the drill logging were observed. The logging is
accurate and suitable.
• The use of twinned holes. • There has been no verification twin drilling carried out.
Verification
of sampling
and
assaying • DGPS collar and survey excel data, and lab analytical data transferred
from lab.csv, to Excel and imported to Micromine 3D geological modelling
• Documentation of primary software.
data, data entry procedures, • All analytical data generated from Lundin re-analysis and Lundin core
data verification, data storage samples, Europa Metals’ core and channel samples for use as input to
(physical and electronic) estimation have been verified by cross reference against lab assay
protocols. certificates, re-import and re-building of the project analytical database.
• 2018-2020 lab certificates were verified and checked against database
assays.
• No adjustment to the analytical data was considered necessary, other than
• Discuss any adjustment to
conversion to zinc equivalents for reporting purposes, following industry
assay data.
best practice. Raw analytical data remained unchanged.
• Peñarroya drill hole collar locations were measured off plans and sections,
located on the ground and picked up using Geomax 35 high-precision
• Accuracy and quality of
DGPS device. Accuracy +/-5 m. Peñarroya drill hole dip and azimuth
surveys used to locate drill
measured from historical plans, cross sections and longitudinal section.
holes (collar and down-hole
Accuracy +/-5 m.
surveys), trenches, mine
• Europa Metals’ drill collar locations were surveyed using a Geomax Zenith
workings and other locations
35 DGPS device with sub-centimetre accuracy. Both RC and diamond
used in Mineral Resource
downhole surveys were competed at 5-10 m regular intervals using a
estimation.
REFLEX GYRO™ tool.
• Old workings were surveyed using Lieca Disto tmx310 survey device.
Location of • Data was captured and located using a Universal Transverse Mercator
data points (UTM). The geographic coordinate reference system used by the client
• Specification of the grid
was European Terrestrial Reference System 1989 UTM Zone 29 (‘ETRS89
system used.
/ UTM29N’).
• Elevations are reported in metres above sea level.
• Topographic DTM taken from 5m resolution Lidar data MDT05-Lidar, from
• Quality and adequacy of government mapping and survey association Plan Nacional de
topographic control. Ortofotografía Aérea (PNOA).
• Topographic control is sufficient for level of resource category.
• Drill and UG channel sample data spacing across the current resource
• Data spacing for reporting of area ranges from approximately 50-100mx50-100m centres within the
Exploration Results. most densely tested area towards the NW, stepping out to approximately
200mx200m within the mid-section, and 100-200x500m in the SE.
Data
spacing • Whether the data spacing and
and distribution is sufficient to
distribution establish the degree of
geological and grade • The distribution of drillholes and UG channel sampling is sufficient to
continuity appropriate for the establish the degree of geological and grade continuity appropriate for
Mineral Resource and Ore JORC (2012) Indicated and Inferred classification of resources.
Reserve estimation
procedure(s) and
classifications applied.
Criteria JORC Code explanation AMS Commentary
• Length weighted averages including internal waste were applied for
• Whether sample compositing
reporting of exploration results.
has been applied.
• The details are shown with the accompanying tables.
• Whether the orientation of • Drilling and underground sampling is angled to intercept mineralised
sampling achieves unbiased structures at high angle, as close to perpendicular to dip and strike as
sampling of possible structures practicable.
and the extent to which this is • 3D review of sections shows that there appears to be no sample bias
Orientation
known, considering the deposit introduced by drilling orientation.
of data in
type. • True thicknesses are reported in the accompanying tables.
relation to
geological • If the relationship between the
drilling orientation and the
structure • The mineralisation is a steeply dipping vein and sampling tries to reduce
orientation of key mineralised
the bias by sampling on a perpendicular plane where possible.
structures is considered to
• Review of drilling and channel sections with the lithological unit appear to
have introduced a sampling
show no obvious bias.
bias, this should be assessed
and reported if material.
• Historical Peñarroya sample security protocols are 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
Sample
• The measures taken to ensure numbers, sample name and sample location. Each bag is sealed to avoid
security
sample security. tampering and contamination.
• Plastic bags are placed in dry weave bags.
• Samples are delivered to laboratory by courier in secured boxes/bags.
• Couriers transported the samples to ALS. The couriers were then
responsible for the chain of custody.
• The samples arrive in good condition at ALS Seville.
• Numerous site visits have been conducted to the Toral Project and core
processing facility in Ponferrada (licence number 15.199), the latest on the
Audits or • The results of any audits or 29 August 2021 by Mr. James Hogg (CP).
reviews reviews of sampling • Data has also been reviewed regularly by AMS staff as it is received from
techniques and data. the laboratory and on submission of databases from Europa Metals.
• Findings were satisfactory and suitable for use in mineral resource
estimation.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation AMS Comments
• Type, reference name/number,
location and ownership including • Toral exploration permit number 15.199 (also referred to as
agreements or material issues Permiso de Investigacion), is located approximately 400km
with third parties such as joint northwest of Madrid, within the Province of León, Autonomous
ventures, partnerships, overriding Community of Castile and Leon.
Mineral royalties, native title interests, • Licence 15.199 covers an area of 20.29km².
tenement and historical sites, wilderness or • Exploration licence 15.199 is owned by Europa Metals Iberia., a
land tenure national park and environmental wholly owned subsidiary of Europa Metals Ltd. The licence was
status settings. renewed on 15 November 2020 for a further period of 3 years.
• The security of the tenure held at
the time of reporting along with
• All tenements are in good standing.
any known impediments to
• AMS are unaware of any impediments that may affect the licences.
obtaining a licence to operate in
the area.
• 1972-1984 – Peñarroya-Adaro. 58 drill holes, 32 wedge drill holes.
• 1992-1995 – Geominera. Data re-evaluation.
Exploration
• 2005-2008 – Lundin Mining. 7 drill holes.
done by other • Acknowledgment and appraisal of
parties • 2009-2011 – Goldquest Mining. Soil and rock geochemistry.
exploration by other parties.
Historic gallery mapping. Data evaluation. NI43-101 Mineral
Resource Estimate
• 2012-2015 – Portex Mining Corporation. Geological mapping.
Criteria JORC Code explanation AMS Comments
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.
• The Toral project is located in the Southwestern 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
Geology • Deposit type, geological setting mineralisation within favourable carbonate lithology and favourable
and style of mineralisation 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.
• Topographic DTM taken from 5m resolution Lidar data MDT05-
Lidar, from government mapping and survey association Plan
Nacional de Ortofotografía Aérea (PNOA).
• A summary of all information • Drilling:
material to the understanding of - Number of drillholes used: 172
the exploration results including a - Collar East: 679962 mE – 684690 mE
tabulation of the following - Collar North: 4708653 mN – 4710598 mN
information for all Material drill - Collar RL: 411 mRL – 754 mRL
holes: - Azimuth: 000degrees - 354degrees
o easting and northing of the - Dip: -90degrees - -40degrees
drill hole collar - Length: 35.40m – 1285.3m
o elevation or RL (Reduced - Interception depth: 588 mRL – -398 mRL
Level – elevation above sea - 1,615 Pb and Zn assay values (from 115 drillholes)
level in metres) of the drill - 1,454 Ag assay values (from 101 drillholes)
Drill hole hole collar • UG Channels:
Information o dip and azimuth of the hole - Number of channels: 19
o down hole length and - Collar East: 680917mE – 682607mE
interception depth - Collar North: 4709161mN – 4709996mN
o hole length. - Collar RL: 447mRL – 693mRL
- Azimuth: 010degrees - 313degrees
- Dip: -24degrees - 19degrees
- 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
• No data is being excluded.
from the understanding of the
report, the Competent Person
should clearly explain why this is
the case.
• In reporting Exploration Results,
weighting averaging techniques,
• During block model interpolation, the influence of some isolated
maximum and/or minimum grade
high-grade values was found to be sufficiently localised and did not
truncations (e.g. cutting of high
have undue influence on the estimates of grade. It was decided
grades) and cut-off grades are
that no need for top cutting was required.
usually Material and should be
stated.
• Where aggregate intercepts
incorporate short lengths of high
grade results and longer lengths
Data • Data aggregation or Grade Compositing rules for the reporting of
aggregation of low grade results, the
exploration drill and channel significant results were minimum
methods procedure used for such
width 1m, minimum average grade 0.5% ZnEq, maximum
aggregation should be stated and
allowable internal waste of 2m.
some typical examples of such
aggregations should be shown in
detail.
• Zn equivalent calculations were based on 3 year trailing average
price statistics obtained from the London Metal Exchange and
• The assumptions used for any
London Bullion Market Association giving an average Zn price of
reporting of metal equivalent
US$2,516/t, Pb price of US$1,961/t and Ag price of US$19.4/oz.
values should be clearly stated.
• Recovery and selling factors were incorporated into the calculation
of Zn Eq values.
Criteria JORC Code explanation AMS Comments
• 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.
• Mineralisation is interpreted as sub-vertical to steeply dipping to
• These relationships are the NE.
particularly important in the • Drilling and underground sampling considered the nature of the
reporting of Exploration Results. mineralisation prior to commencement of exploration.
Relationship
between
• If the geometry of the • Angled drilling is sub-perpendicular to +/- 20º oblique to
mineralisation
mineralisation with respect to the mineralisation.
widths and
intercept
drill hole angle is known, its • Review of drilling and channel sections with the lithological unit
nature should be reported. appear to show no obvious bias.
lengths
• If it is not known and only the
• True thickness of mineralisation ranges from approximately 90%-
down hole lengths are reported,
60% downhole interval length.
there should be a clear statement
• True lengths are reported in the tables, as calculated by
to this effect (e.g. ‘down hole
Micromine.
length, true width not known’).
• Appropriate maps and sections
(with scales) and tabulations of
intercepts should be included for
• Appropriate scaled diagrams are included within the AMS Toral
Diagrams any significant discovery being
JORC (2012) Resource Statement and Technical Report.
reported. These should include,
• Tables of intercepts are included in the relevant sections.
but not be limited to a plan view
of drill hole collar locations and
appropriate sectional views.
• Where comprehensive reporting
of all Exploration Results is not • All available exploration data for the Toral deposit area has been
Balanced practicable, representative collected and reported.
reporting reporting of both low and high • Representative data from all drilling and underground channel
grades and/or widths should be sampling has been reported.
practiced to avoid misleading
reporting of Exploration Results.
• Other exploration data, if • No geophysical works have been completed.
meaningful and material, should • Geological mapping and solid geology map generation completed.
be reported including (but not
• Structural interpretation and 3D modelling completed.
limited to): geological
• Soil geochemical surveys demonstrate strong coherent Zn in soil
observations; geophysical survey
anomalism coincident with interpreted controlling structures.
Other results; geochemical survey
substantive results; bulk samples – size and • Geotechnical tests have been carried out on 84 samples chosen
exploration data method of treatment; by Europa Metals in different lithologies. Data have been compiled
metallurgical test results; bulk from 48 samples tested for geotechnical studies from old reports
density, groundwater, from Peñarroya.
geotechnical and rock • Metallurgical testing has been completed at Wardell Armstrong’s
characteristics; potential laboratory. The results of the testwork are discussed within the
deleterious or contaminating technical report.
substances.
• The nature and scale of planned • Surface drilling and trenching works testing open strike extent to
further work (e.g. tests for lateral the SE and NW and infill drilling within current resource limits to
extensions or depth extensions or increase confidence and resource class.
large-scale step-out drilling). • Increased metallurgical and recovery test work.
Further work • Diagrams clearly highlighting the
areas of possible extensions,
• Appropriate scaled diagrams and maps are included within the
including the main geological
AMS Toral JORC (2012) Resource Statement and Technical
interpretations and future drilling
Report.
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 AMS Comments
• Analytical data is pared by query with sampling data via sample
number.
• Measures taken to ensure that • AMS has cross referenced the analytical database with laboratory
data has not been corrupted by, certificates.
for example, transcription or • Micromine 3D geological modelling and estimation software used
keying errors, between its initial for import, validation and QAQC verification assessment.
collection and its use for Mineral • Basic core and sample storage, handling, data capture and
Resource estimation purposes. transfer methodologies discussed and are considered satisfactory.
Database
• The database is suitable for use for use in Mineral Resource
integrity
Estimates.
• Micromine 2021 software was used to validate the channel
sampling and drill hole databases.
• Data checks include overlapping and missing intervals, trace
errors, missing survey and coordinate data, lithology, consistency
• Data validation procedures used.
of sample lengths interval files. Checks for out of range values
were also made.
• No significant errors were found within the database. Some minor
typographical errors were identified and fixed.
• Comment on any site visits • The Competent Person for the resource estimation is Mr. James
undertaken by the Competent Hogg. Mr Hogg’s, last site visit was completed on the 29August
Person and the outcome of those 2021.
Site visits visits. • Site visits have not identified any issues relating to the reporting of
mineral resources.
• If no site visits have been • Site visits have been undertaken.
undertaken indicate why this is
the case.
• Based upon the level of available information, geological and
• Confidence in (or conversely, the deposit complexity, interpretation of the main lithological
uncertainty of) the geological boundaries and controls to mineralisation are considered
interpretation of the mineral satisfactory and appropriate for the assigned resource class.
deposit. • Fault modelling is simplified, and further refinement will improve
the models accuracy moving forward.
• Drillhole lithological and analytical information, prospect scale
surface geological mapping, underground mapping and sampling,
location of underground workings were used in geological
• Nature of the data used and of interpretation.
any assumptions made. • Mineralisation is modelled as a continuous unit within the major
fault units, however it is anticipated some smaller scale faulting
and offset post mineralisation will be present which is not
accounted for in modelling.
Geological • Alternative interpretations infer potential thrust repeats and
interpretation • The effect, if any, of alternative potential for additional parallel mineralised zones. However, at the
interpretations on Mineral level of information this interpretation remains unsupported by drill
Resource estimation. data and conceptual in nature.
• Drillhole lithological and analytical information and underground
channel mapping and sampling were used in geological
• The use of geology in guiding and interpretation.
controlling Mineral Resource • The geological model was used to guide the interpretation and
estimation. continuity of Zn-Pb mineralised domains.
• Post mineralisation transfer faults are interpreted to affect
continuity by minor offset.
• Grade continuity is currently interpreted to be slightly greater down
dip forming “shoots”. Faulting effects geological continuity on a
• The factors affecting continuity
local scale (50-100m) perpendicular to the strike on mineralisation.
both of grade and geology.
• Mineralisation is encountered at surface and based on current
• The extent and variability of the testing, extends to approximately 1,100m below the surface.
Mineral Resource expressed as Mineralisation is currently tested across a 3,600m strike length, the
Dimensions length (along strike or otherwise), orientation of mineralisation zone is approximately 110 degrees,
plan width, and depth below averaging approximately 3.5m in thickness and ranging from ~2m
surface to the upper and lower to ~5.5m.
limits of the Mineral Resource. • Mineralisation is encountered at surface as a process of the
incisions.
Criteria JORC Code explanation AMS Comments
• As with previous resource estimates completed by AMS (2017,
2018, 2019, 2020) 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.
• The updated wireframes were generated using Micromine’s
implicit vein modelling functionality and incorporated major fault
boundaries to better honour offsets in the structure and preserve
thicknesses between intercepts. Interpretation of the mineralised
domains was guided by geological interpretation of the deposit
incorporating structural and lithological boundaries and surface
expression in topographical data and outcrop mapping.
• A weathering surface which represents the approximate transition
• The nature and appropriateness
partially weathered material to material dominated by joint
of the estimation technique(s)
weathering and fresh rock was modelled manually in cross
applied and key assumptions,
section.
including treatment of extreme
• A main structure or vein (MV) was modelled and split into four
grade values, domaining,
fault units. Four subordinate structures accounting for less than
interpolation parameters and
maximum distance of 1% of the mineralised volume were modelled manually using
cross section string interpretation. Some drill holes are outside the
extrapolation from data points. If
licence to the northwest. The model included these drillholes, but
a computer assisted estimation
method was chosen include a the resultant block model was filtered to only include blocks within
the licence boundary.
description of computer software
and parameters used. • To the northwest the resource is truncated by the licence
boundary and are extended approximately 10m past the south
easterly most drillhole which was mineralised but contained sub-
economic grades (3 m at 2.4% ZnEq). The total strike length of
the modelled mineralisation within the licence is approximately 3.1
km. The structure remains open to the southeast. Down dip the
model was extrapolated approximately 50-200m below the
Estimation and
deepest sample in the northwest and central parts of the deposit,
modelling
and approximately 250-280m below the deepest sample in the
techniques
southeast with consideration of depths tested along strike to the
northwest. The models extent from surface to a range of
approximately 800 - 1150 m below the surface. Extents of
extrapolation are considered appropriate for the level of
information, deposit type, strike and depth extents tested,
observed and geostatistical grade continuity and the assigned
resource classification.
• The estimates have been reconciled against previous AMS
• The availability of check estimates.
estimates, previous estimates • The increases / decreases are related to data confidence and
and/or mine production records additional samples and updated models.
and whether the Mineral • A full description for the differences is described in the body text.
Resource estimate takes • There are no historical production records to validate against.
appropriate account of such data.
• It is the opinion of the Company that Ag will be recovered along
with Pb and Zn and a credit paid on refining.
• The assumptions made regarding
recovery of by-products.
• No estimation of deleterious elements has been made at this time
and it is anticipated this will be conducted on completion of a block
• Estimation of deleterious model which is to be used for PFS.
elements or other non-grade
variables of economic
significance (e.g. sulphur for acid
mine drainage characterisation).
Criteria JORC Code explanation AMS Comments
• A uniform cell block model of 25m E, 10 m N, 25m Z was restricted
to the wireframes using block factors. The block model was rotated
• In the case of block model by 20degrees in plain view to best match the trend of
interpolation, the block size in mineralisation. The uniform model and 2m sample composites for
relation to the average sample the mineralised domain were then flattened to a constant vertical
spacing and the search plane striking 110degrees to account for fault offsets, improve
employed. variography and grade mapping. Thickness was preserved in the
flattening process and no lateral stretching was applied.
• Any assumptions behind • Wireframe models included minimum anticipated mining width of
modelling of selective mining ~2m.
units.
• As with previous resource estimates completed by AMS (2017,
2018, 2019 and 2020) wireframe solid models were created for
each domain based on a mineralisation threshold of approximately
• Any assumptions about 0.2% for Zn and Pb (approximately 0.4% Zn+Pb).
correlation between variables. • 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.
• The updated wireframes were generated using Micromine’s implicit
vein modelling functionality and incorporated major fault
boundaries as inclined and vertical planes. Interpretation of the
• Description of how the geological mineralised domains was guided by geological interpretation of the
interpretation was used to control deposit incorporating structural and lithological boundaries such as
the resource estimates. footwall slate contacts and surface expression in topographical
data and outcrop mapping.
• During block model interpolation, the influence of some isolated
• Discussion of basis for using or
high-grade values was found to be sufficiently localized and did not
not using grade cutting or
have undue influence on the estimates of grade.
capping.
• It was decided that no need for top cutting was required.
• The block model was validated visually in long section and cross
section to inspect assay grades vs block grades, particular
• The process of validation, the attention was given to areas of low grade that may be influenced
checking process used, the by higher grade samples within search radii. The mean values
comparison of model data to drill including declustered mean of the input data were compared
hole data, and use of against the output data along with comparison of histograms.
reconciliation data if available. Several sensitivity checks were completed using different kriging
neighbourhoods.
• Whether the tonnages are • Tonnages are estimated on a dry basis.
estimated on a dry basis or with
Moisture
natural moisture, and the method
of determination of the moisture
content.
• For the purpose of reporting updated resources with reasonable
prospect of eventual economic extraction a cut-off grade of 4% Zn
equivalent was selected, based upon mining, processing, and
production rate parameters identified in the updated scoping study
(2020), using a three-year trailing average price for Zn, Pb and Ag.
Cut-off • The basis of the adopted cut-off • Zn equivalent calculations were based on 3 year trailing average
parameters grade(s) or quality parameters price statistics obtained from the London Metal Exchange and
applied. London Bullion Market Association giving an average Zn price of
US$2,516/t, Pb price of US$1,961/t and Ag price of US$19.4/oz.
• 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*0.867 + Ag*0.027).
• Assumptions made regarding • Assumed mining methods are based upon a review of methods of
possible mining methods, extraction, cost and performance on similar type deposits.
minimum mining dimensions and Summary of mining and processing costs used in determination of
internal (or, if applicable, external) economic cut off. Mechanised Cut and fill mining method
mining dilution. It is always assumed.
Mining factors necessary as part of the process • Total Mining Processing cost estimated at US$62.93/t. Dilution
or assumptions of determining reasonable assumed at 90% and 10%.
prospects for eventual economic
extraction to consider potential
mining methods, but the
assumptions made regarding
mining methods and parameters
when estimating Mineral
Criteria JORC Code explanation AMS Comments
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.
• The basis for assumptions or • Assumed processing methods are based upon a review of
predictions regarding methods of extraction, cost and performance of similar type
metallurgical amenability. It is deposits.
always necessary as part of the • Assumed metallurgical recoveries are Zn 85%, Pb 86% and 82%
process of determining Ag.
reasonable prospects for eventual • Assumed concentrate selling factors are Zn 85%, Pb 95%, Ag 89%
economic extraction to consider
Metallurgical
potential metallurgical methods,
factors or
but the assumptions regarding
assumptions
metallurgical treatment processes
and parameters made when
reporting Mineral Resources may
not always be rigorous. Where
this is the case, this should be
reported with an explanation of
the basis of the metallurgical
assumptions made.
• Assumptions made regarding • No assumptions are made on environmental factors other than the
possible waste and process cost to back fill waste tailings.
residue disposal options. It is • Flora and fauna studies were started in 2019 by the companies
always necessary as part of the and institution of “Universidad de Leon” and “Mas que pájaros,
process of determining biologia, ecoturismo y medioambiente S.L”. Their report is
reasonable prospects for eventual pending.
economic extraction to consider • AMS has not reviewed any Environmental, Social and Permitting
the potential environmental (ES&P) documents or licences.
impacts of the mining and • AMS understands that there are no legal or project permitting,
Environmental processing operation. While at environmental and social settings issues or risks.
factors or this stage the determination of • No red flags were identified via the site visit or study desk review.
assumptions 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.
• Whether assumed or determined. • The bulk density was calculated using the Archimedes method
If assumed, the basis for the weighting the samples in air and water using a Kern precision
assumptions. If determined, the balance.
method used, whether wet or dry, • Bulk density measurements were carried out on most of the
the frequency of the drillholes, in both mineralised and un-mineralised samples.
measurements, the nature, size • The resource database contains 3,012 bulk density
and representativeness of the measurements, with a total of 234 within the mineralised
samples. wireframe, with a mean value of 2.84 g/cm3.
• The bulk density for bulk material • No bulk material was measured.
must have been measured by
Bulk density methods that adequately account
for void spaces (vugs, porosity,
etc), moisture and differences
between rock and alteration
zones within the deposit.
• The resource database contains 3,012 bulk density
measurements, with a total of 234 within the mineralised
• Discuss assumptions for bulk
wireframe, with a mean value of 2.84 g/cm3.
density estimates used in the
• A broad linear relationship between Pb+Zn grade and Bulk
evaluation process of the different
Density was identified from scattergrams and the formula 2.7 +
materials.
0.02(Pb+Zn%) used to estimate block density in relation to block
grade within the block model, density was capped the 3.5 g/cm3.
Criteria JORC Code explanation AMS Comments
• In the updated resource estimation of the Toral property, the above
definitions have been taken into consideration when applying
resource classification. It was the opinion of the Competent Person
that within some areas of the deposit sample density, Quality
Control data, density determinations and drilling recoveries were
sufficient to allow classification of some additional Indicated
• The basis for the classification of
Resources versus the previous (2020) Resource Estimate.
the Mineral Resources into
• The area of the previous Indicated Resources was still found to be
varying confidence categories.
valid with the addition of some new drilling at higher elevations
which was considered suitable for inclusion in the Indicated
Resource. Within the indicated area the mean average distance of
composites is 95m and the mean closest distance 48m. The
remaining blocks within the block model were classified to the
Classification Inferred category.
• Whether appropriate account has • The assigned classification of Inferred and Indicated reflects the
been taken of all relevant factors Competent Persons’ assessment of the accuracy and confidence
(i.e. relative confidence in levels in the input data and the resulting Mineral Resource
tonnage/grade estimations, Estimate.
reliability of input data, confidence
in continuity of geology and metal
values, quality, quantity and
distribution of the data).
• The result reflects the quality and quantity of data, geostatistical
• Whether the result appropriately analysis of correlation and relationship between mineralised
reflects the Competent Person’s samples (semi-variography) and the Competent Person’s view of
view of the deposit. the deposit.
• The semi-variography reflects the sample density.
• The 2021 Mineral Resource has been reviewed internally as part
Audits or • The results of any audits or of normal validation processes by AMS.
reviews reviews of Mineral Resource • The AMS 2021 resource estimate has not been audited or
estimates. reviewed externally at the time of writing.
• Where appropriate a statement of • It is the Competent Person’s opinion that the level of confidence is
the relative accuracy and consistent with the level of Inferred and Indicated categorised
confidence level in the Mineral mineral resources.
Resource estimate using an • Geostatistical assessment of confidence limits such as conditional
approach or procedure deemed simulation of grades has not been conducted at this time.
appropriate by the Competent • Interpretation of the thickness and therefore volume of the
Person. For example, the mineralisation along with bulk density have the greatest effect on
application of statistical or the contained metal.
geostatistical procedures to • Kriging neighbourhood and the control of higher grade samples
quantify the relative accuracy of and preventing them from over smoothing is also important in
the resource within stated producing a realistic estimate.
confidence limits, or, if such an • It is the Competent Person ’s opinion that the level of confidence is
approach is not deemed consistent with the level of Indicated and Inferred categorised
appropriate, a qualitative mineral resources.
Discussion of
discussion of the factors that
relative
could affect the relative accuracy
accuracy/
and confidence of the estimate.
confidence
• The statement should specify • The estimate is a local estimate to the 25m block scale; however,
whether it relates to global or the data density is too sparse to allow modelling of selective units
local estimates, and, if local, state inside of the 25m panel scale.
the relevant tonnages, which • As with all kriged estimates there is a degree of smoothing.
should be relevant to technical
and economic evaluation.
Documentation should include
assumptions made and the
procedures used.
• These statements of relative • There are no historical production records from the deposit.
accuracy and confidence of the
estimate should be compared
with production data, where
available.
Date: 01-10-2021 09:00:00
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