REG - Europa Metals Ltd - Drilling Results and Mining Licence Update

Europa MetalsAnnouncement

04/08/2023 07:00

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RNS Number : 2793I  Europa Metals Ltd  04 August 2023

4 August 2023

Europa Metals Ltd

("Europa Metals", the "Company" or the "Group") (AIM, AltX: EUZ)

Further Drilling Results from Ongoing Validation and Infill Drill Programme

and Mining Licence Application Update

Europa Metals, the European focused lead, zinc and silver developer, is
pleased to announce the latest assay results from its ongoing validation and
infill diamond drilling programme, being conducted by Explomin Perforaciones
UE S.L. ("Explomin"), at the Company's 100% owned Toral Pb, Zn & Ag
project ("Toral" or the "Toral Project") in northwest Spain. This drilling
programme forms part of the 2023 exploration campaign agreed between the
Company and Denarius Metals Corp (TSXV:DSLV; OTCQX: DNSRF) ("Denarius")
pursuant to the definitive option agreement dated 22 November 2022, further
details of which are set out in the Company's announcement of 23 November
2022.

 

In addition, detailed environmental studies are now nearing completion which
are required to finalise the formal submission of the Company's mining licence
application to the Mines Department of Castilla y León.

 

Highlights:

·    Assays received in respect of seven drill holes at Toral each
reporting significant mineralisation

·    Significant intersection from drillhole TOD-044 of 7.95m@4.46%
ZnEq(PbAg)*, including:

o  4.25m@6.17% ZnEq(PbAg)*; and

o  1.55m@11.40% ZnEq(PbAg)*

·    Significant intersection from drillhole TOD-045 of 4.95m@22.71%
ZnEq(PbAg)*

·    Significant intersection from drillhole TOD-046 of 1.50m@11.64%
ZnEq(PbAg)*, including:

o  1.00m@15.84% ZnEq(PbAg)*

·    Two significant intersections from drillhole TOD-047 of 0.6m@18.34%
ZnEq(PbAg)* and 2.4m@3.72% ZnEq(PbAg)*

·    Significant intersections from drillhole TOD-048 of 4.7m@6.68%
ZnEq(PbAg)*, including:

o  1.65m@14.41% ZnEq(PbAg)*

·    A further significant intersection from drillhole TOD-048 of
6.65m@8.12% ZnEq(PbAg)*, including:

o  3.80m@12.58% ZnEq(PbAg)*

·    Significant intersection from drillhole TOD-049 of 5.00m@6.91%
ZnEq(PbAg)*, including:

o  1.25m@20.93% ZnEq(PbAg)*

·    Significant intersections from drillhole TOD-050 of 3.90m@10.30%
ZnEq(PbAg)*, including:

o  1.45m@20.69% ZnEq(PbAg)*

·    A further significant intersection from drillhole TOD-050 of
2.4m@4.98% ZnEq(PbAg)*

·    Holes TOD-045 and TOD-046 have both been completed and reliability of
the assay results received re-confirmed:

o  High values of silver were identified in one of the holes and in line with
the Company's standard operating procedures (SOP), we re-submitted the sample
for re-testing to confirm its veracity and also confirmed the accuracy of
results for control samples

·    All holes to date have been successful in intersecting mineralisation
adjacent to an existing, previously reported, high grade intersection within
the project's Indicated Resource block

·    Hole TOD-051 is currently nearing completion and comprises the final
drillhole for this campaign

·    Detailed environmental work is nearing completion in connection with
the Company's forthcoming mining licence application ("MLA") for Toral.

 

 

Commenting today, Myles Campion, Executive Chairman and acting CEO of Europa
Metals said:

 

"The current drill campaign is nearing its close and pleasingly all holes have
intersected mineralisation as expected, with assays now received for all of
the completed holes. The intersections reported to date have correlated well
with the known existing resource.

Preparation of our mining licence application has progressed well with one
remaining requisite environmental report due for completion later this month.
We look forward to providing a further update in due course."

Additional information

 

The current drilling campaign for a total of up to 7,000m, is focused on a
combination of confirmatory and infill drilling within the project's known
indicated resource area outlined to date, of approximately 7Mt @ 8.1% Zn
Equivalent (including Pb credits), 5% Zn, 3.7% Pb and 29g/t Ag.

 

Drilling results

The drilling parameters for the assay results reported for each hole are
presented in the table below:

 HOLE_ID  EASTING  NORTHING  ELEVATION (m)  LENGTH (m)  COOR_SYS
 TOD-044  681197   4710037   531.65         509         ETRS89utm29
 TOD-045  681412   4710025   542.29         610.3       ETRS89utm29
 TOD-046  681684   4709858   660.80         866.5       ETRS89utm29
 TOD-047  681686   4709856   660.88         460.6       ETRS89utm29
 TOD-048  681408   4710024   542.29         529         ETRS89utm29
 TOD-049  681685   4709857   660.80         763         ETRS89utm29
 TOD-050  681916   4709571   634.10         701.3       ETRS89utm29

 

All holes were drilled to PQ-HQ-NQ diameter, with half of the core being sent
for independent analysis at ALS Laboratories. The assay results received are
set out in the table below:

 Hole ID              From    To      Interval (m)  Zn_%   Pb_%   Ag_ppm  Cu_%  ZnEq(PbAg)%*
 TOD-044              490.85  498.80  7.95          2.56   1.73   14.65   0.04  4.46
 TOD-044 (including)  490.85  495.10  4.25          3.93   2.06   16.79   0.04  6.17
 TOD-044 (including)  492.65  494.20  1.55          8.35   2.76   24.31   0.05  11.40
 TOD-045              592.00  596.95  4.95          7.31   12.77  160.52  0.10  22.71
 TOD-046              845.50  847.00  1.50          8.30   3.45   12.80   0.04  11.64
 TOD-046 (including)  845.50  846.50  1.00          11.08  4.91   18.75   0.06  15.84
 TOD-047              442.00  442.60  0.60          15.20  3.30   10.50   0.17  18.34
 TOD-047              453.10  455.50  2.40          1.61   1.57   27.69   0.20  3.72
 TOD-048              505.25  509.95  4.70          3.53   2.81   26.34   0.31  6.68
 TOD-048 (including)  508.30  509.95  1.65          7.94   5.78   53.95   0.51  14.41
 TOD-048              513.05  519.70  6.65          4.01   2.75   63.60   0.31  8.12
 TOD-048 (including)  515.90  519.70  3.80          6.35   4.14   97.92   0.44  12.58
 TOD-049              745.00  750.00  5.00          1.17   6.14   15.63   0.07  6.91
 TOD-049 (including)  745.85  747.10  1.25          2.01   20.45  43.96   0.23  20.93
 TOD-050              675.00  678.90  3.90          2.24   8.05   40.24   0.03  10.30
 TOD-050 (including)  677.45  678.9   1.45          5.76   14.39  91.04   0.07  20.69
 TOD-050              680.10  682.50  2.40          1.71   2.67   35.44   0.01  4.98

 

* - ZnEq(PbAg)% is the calculated Zn equivalent incorporating lead and silver
credits; (ZnEq(PbAg)% = Zn + Pb*0.926 + Ag*0.019). 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.
Significant ZnEq intercepts were generated using a 1% ZnEq trigger value,
minimum width of 1m, maximum consecutive waste interval of 1m and minimum
average ZnEq grade of >1%.

 

Image 1: Hole positions

Drilling operations remain ongoing, in line with the Company's objective set
out above, and further assay results will be announced once processed and
received.

The Company had been awaiting re-assays and re-confirmation of the results for
several samples, sent to the laboratory over the past several months, prior to
releasing this announcement. In particular, one of the holes reported an
abnormally high silver value (hole TOD-045, average grade of 160.52 Ag g/t)
and as part of the Company's standard operating procedures (SOP) when we
receive abnormally high results for either zinc, lead or silver, we re-submit
the relevant sample for re-testing in order to confirm its veracity. We have
now confirmed this value.

In addition, as part of our SOP we regularly insert control samples into the
batches that are submitted to the laboratory, the results of which form part
of our statistical analysis to confirm the reliability and consistency of the
results received. We have now received confirmation of these results over
several holes and can confirm their accuracy.

Mining Licence Application

The Company's mining licence application process has been progressing well
with 95% of the requisite reports completed and submitted to the Regional
Mining Authority, with currently only one environmental report outstanding
that is in the course of being finalised. The Company and Denarius will seek
to complete this detailed submission process over the coming weeks.

Competent Person's Statement

The exploration results and activity reported in this announcement have been
compiled and reviewed by Mr Luis J. Pérez who is a Member of the Australian
Institute of Geoscientists (AIG) and a European Geologist (EurGeol). Mr Pérez
has sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the December 2012
edition of the "Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves" ('JORC Code'). Mr Pérez consents to the
inclusion in this announcement of the matters based on his information in the
form and context in which it appears.

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

Myles Campion, Executive Chairman and acting CEO (UK)

T: +44 (0)20 3289 9923

 

Strand Hanson Limited (Nominated Adviser)

Rory Murphy/Matthew Chandler/Abigail Wennington

T: +44 (0)20 7409 3494

 

WH Ireland Limited (Broker)

Harry Ansell/Dan Bristowe/Katy Mitchell/Sarah Mather

T: +44 (0)20 7220 1666

Questco Corporate Advisory Proprietary Limited (JSE Sponsor)

Danielle Christodoulou

T: +27 (11) 011 9216

 

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, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.

 

 

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