REG - Europa Metals Ltd - Toral Mining Licence Application process completed

Europa MetalsAnnouncement

23/10/2023 07:15

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RNS Number : 8803Q  Europa Metals Ltd  23 October 2023

23 October 2023

Europa Metals Ltd

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

Toral Mining Licence Application process completed

Europa Metals, the European focused lead, zinc and silver developer, is
pleased to announce the formal application for a mining licence has been
completed over the Company's 100% owned Toral Pb, Zn & Ag project ("Toral"
or the "Toral Project").

This application forms part of the 2023 exploration campaign agreed by Europa
Metals Ltd ("Europa Metals" or 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.

 Highlights:

·    Submission to the "Junta of Castilla and Leon" completed.

·    All necessary documentation covering the exploitation, restoration
and environmental impact study were submitted.

·    The submission envisages a life of mine of 15 years, mining on
average 700,000t of ore per year from underground.

·    Including pre-production and closure plans, Toral's 18 year
operations will create over 360 direct local employment opportunities and
approximately 1,400 indirect jobs in the region.

·    This submission has been based on the deposit whose technical,
economic and environmental feasibility is in accordance with the laws and
regulations of the region of Castilla y Leon.

·    Such project assessment will be formally reported on in the expected
preliminary economic assessment in accordance with the Canadian Institute of
Mining Metallurgy and Petroleum ("CIM") Definition Standards incorporated by
reference in National Instrument 43-101 expected to be prepared in 2024.

 

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

 

"Following the completion of our last report, we are now very pleased to
announce that we have completed the formal submission of the Mining Licence
Application to the Junta of Castille and Leon. This milestone for the Toral
project has been achieved over the last 3-4 years with the application of
dedicated teamwork through the process of exploration, evaluation and the
prosecution of planning.

 

The Company has overcome a few hurdles during this period, Covid being one of
them, but all thanks goes to the team on the ground in Spain in being flexible
and adapting to both physical and financial constraints and being able to
achieve this milestone.

 

We now look forward to continuing our work with Denarius over the coming
years; 2024 will see the recommencement of drilling and work commence on a
preliminary economic assessment."

 

Mining Licence Application

Formal application for a mining licence has been completed over the Company's
100% owned Toral Pb, Zn & Ag project. All necessary studies have now been
completed and lodged with the relevant authorities and departments within the
Castille and Leon regional government. Along with the application, the
following documents were submitted:

Exploitation Plan

Due to the subvertical geometry of the Toral deposit and its combination of
depth and thickness, underground mining is considered to be the most
technically, economically, and environmentally viable development option.

See pdf at the following link for figure 1

http://www.rns-pdf.londonstockexchange.com/rns/8803Q_1-2023-10-21.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8803Q_1-2023-10-21.pdf)

Figure 1 General on surface facilities layout distribution

The basis for the development plan utilised the existing JORC resource from
November 2022; since the beginning of 2023 the Company's Spanish engineering
group, Mining Sense, has applied many factors to this Resource such as
commodity pricing, base load power costs, dilution factors and tradeoff
studies with the objective of reviewing various development scenarios. Based
on the work carried out, it was determined that the extension, volume and ore
grades have been duly estimated to define a mineable deposit whose technical,
economic and environmental feasibility is supported by the documentation and
in accordance with the laws and regulations of the region of Castille y Leon.
Such project assessment will be formally reported on in the expected
preliminary economic assessment to national Instrument standards 43-101
expected to be published in 2024.

See pdf at the following link for figure 2

http://www.rns-pdf.londonstockexchange.com/rns/8803Q_1-2023-10-21.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8803Q_1-2023-10-21.pdf)

Figure 2 Underground mine 3D view

This initial assessment, submitted together with the request for Certified
Engineer ("CE") approval, would generate zinc and lead/silver concentrates
over the mine's 15 years of production.

The mining project is composed of three phases:

1.   Construction phase, in which the construction of the main facilities
such as road access, treatment plant and offices will be carried out, in
addition to starting with the development of the access ramp for mine
exploitation. This stage will have a duration of one and a half years;

2.   Exploitation phase, once the construction of the main facilities has
been completed and the first production level has been reached, the
exploitation of the ore will begin. This stage will last 15 years until the
exhaustion of the current delineated mineralisation; and

3.   Restoration phase, once the exploitation is completed, the area
comprising the facilities will be restored with the dismantling of the
buildings, as well as the mine tailings dump.

The mining method selected is a combination of mechanised cut and fill (MCAF),
in the upper narrower zone, with sublevel mining method with backfill in the
deeper and wider zone. The backfilling of the void created by the mining of
the ore will use part of the tailings obtained in the mine and the process
tailings combined to form a paste fill. This will have a very positive effect
from an environmental point of view by reducing the amount of waste to be
deposited outside.

The ore will be treated by a first stage of ore sorting following by
conventional flotation of lead and zinc, producing the corresponding
concentrates that carry other elements with economic value such as silver in
the lead concentrate. The ore treatment plant recirculates almost all its
process water.

See pdf at the following link for figure 3

http://www.rns-pdf.londonstockexchange.com/rns/8803Q_1-2023-10-21.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8803Q_1-2023-10-21.pdf)

Figure 3 Process plant and administration buildings

It is estimated that the Toral project will generate approximately 360 direct
jobs and approximately 1,400 indirect jobs.

Restoration Plan

The total area occupied by the project facilities is 33.2 hectares measured in
plan, of which about 7 hectares are currently the disused limestone quarry, La
Estrella, which as part of Toral's restoration plan is to be rehabilitated by
back filling with waste rock from the mine.

This is a focus and main objective of the rehabilitation plan, the existing
quarry has a surface footprint of 7 Ha, with the plan to restore the quarry to
13.7 hectares utilising the waste rock from underground mining to back fill
and rehabilitate the old quarry. This will not only remove an eyesore on the
landscape but also provide new viewpoints for El Bierzo landscape.

See pdf at the following link for figure 4

http://www.rns-pdf.londonstockexchange.com/rns/8803Q_1-2023-10-21.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8803Q_1-2023-10-21.pdf)

Figure 4 Existing quarry and waste dump limits

The final topography of the backfilled quarry recovers the continuity of the
trend of hills in the area.

See pdf at the following link for figure 5

http://www.rns-pdf.londonstockexchange.com/rns/8803Q_1-2023-10-21.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8803Q_1-2023-10-21.pdf)

Figure 5 3D view of the backfilled quarry.

 

Environmental Impact Study ("EIS")

The EIS includes a detailed characterisation of the area where the project
will be developed. Specific studies have been carried out, including:

 

·    Perceptual physical media:

o  Atmospheric dispersion study

o  Pre-operational acoustic study

o  Hydrological-hydrogeological study

o  Landscape integration study

 

·    Natural media:

o  Vegetation and community interest habitats study & survey

o  Aquatic animal species study & survey

o  Reptiles and amphibious study & survey

o  Birds study & survey

o  Mammals study & survey

o  Specific study and survey on bats

 

·    Social and economical study

 

·    Traffic on public roads study

 

·    Inventory of territory, spatial and urban planning and the cultural
environment

 

The EIS includes the summary of the project, the alternatives considered
before selecting the final project, a detailed flora and fauna
characterisation of the project, the envisaged impacts on the project and
measures put in place for protection, surveillance and monitoring the ongoing
environmental program.

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

 

Beaumont Cornish (Nominated Adviser/Broker)

James Biddle/ Felicity Geidt

T: +44 (0)20 7628 3396

 

Questco Corporate Advisory Proprietary Limited (JSE Sponsor)

Danielle Christodoulou

T: +27 (11) 011 9212

 

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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