Name of the Project
Toral zinc/lead/silver project.

Location
Castilla y León region, in north-west Spain.

Project Owner/s
Europa Metals.

Project Description
A scoping study has shown the project to have robust economics. The study is based on a previously announced Joint Ore Reserves Committee- (Jorc-) compliant resource estimate comprising 16-million tonnes in the inferred category at 7.5% zinc equivalent, 3.9% zinc, 3.1% lead and 24g/t silver equating to 640 000 t of zinc, 510 000 t of lead and 13-million ounces of silver.

Three conceptual underground mining development and production scenarios have been considered, resulting in Conceptual Scenario 2a being selected as the preferred scenario. The scoping study proposes a decline ramp access to the north of the deposit, targeting mine production within the higher-grade core towards the centre of the planned mining blocks. This plan focuses on the higher-grade blocks for the whole 15-year production plan, with lower-grade material (albeit still above cut-off grade) being mined later in the life-of-mine.

The conceptual scenario proposes:

• a mechanised cut-and-fill mining method;
• entry to mine through a principal decline reaching various levels;
• a series of internal mining-inclined ramps built to access levels;
• a ventilation raise that will be drilled (raise-bored) to provide adequate ambient conditions underground, and a second, emergency means of access/egress into the mine;
• the transportation of ore to a flotation pro­cess plant by conveyor or haul truck from the mine and crushed to a suitable product for milling;
• milled ore floated using standard flotation technology to provide lead and zinc concentrate, with silver probably reporting to the lead concentrate for sale as a combined product;
• a 4 m × 4 m mine standard development size; and
• a 4% zinc equivalent cutoff used with the potential for mine life extension.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Using conservative parameters, the scoping study estimates a net present value, at an 8% discount rate, of $110-million and an internal rate of return of 24.4%, with a payback of four years from first production for the Conceptual Scenario 2a.

Capital Expenditure
Capital expenditure is estimated $110-million.

Planned Start/End Date
Not stated.

Latest Developments
Europa Metals has announced an indicated resource of about 2.7-million tonnes at 8.9% zinc-equivalent for its Toral project, as well as a 12% increase in the total resource to about 18-million tonnes.

The resource update is a significant step for the overall project programme, from the initial conceptual scoping study based on Europa’s work conducted at Toral in 2017/18 and the previous inferred-only resource estimate announced at the end of 2018.

Europa has noted that the size and grade of the indicated resource exceeds management expectations and that it forms a significant cornerstone from which to progress towards a prefeasibility study (PFS), with further mine planning work to incorporate the indicated resource, metallurgical testwork and new engineering components.

The update has also seen a significant reinterpretation of the resource and subsurface conditions at Toral, the company has said, adding that new drilling targets within the updated resource area are being generated.

The project now has contained metal estimates of 830 000 t of zinc, 570 000 t of lead and 14-million ounces of silver, while maintaining highly robust mineable grade.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Europa Metals, tel +61 8 9486 4036 or email info@europametals.com.