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 24 g/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 Conceptual Scenario 2a.

Capital Expenditure
Capital expenditure is estimated $110-million.

Planned Start/End Date
Not stated.

Latest Developments
Europa Metals is starting a further diamond drilling campaign at the Toral project, focusing on a target area to the west of the current indicated resource within the existing inferred zone.

The drilling programme, along with geotechnical and hydrogeological work programmes, have been instigated following an extensive review of the project, incorporating the recent Joint Ore Reserve Committee-compliant resource update, which provided a first indicated mineral resource estimate.

The overall objective of the drill programme is to increase confidence levels in the resource within the central, proposed future mining area of the project.

The geotechnical programme aims to ascertain the subsurface conditions of the defined resource area to advance the mine design work and associated sequencing.

The hydrogeological programme has started, with piezometers being inserted into the historical drill holes, which will be used to begin the assessment of water conditions within the defined resource area.

Following the completion of the preliminary geotechnical and hydrogeological work, geotechnical and hydrogeological drilling will start in the first quarter of next year.

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.