REG - Europa Metals Ltd - Updated Mineral Resource Estimate

Europa MetalsAnnouncement

30/11/2022 07:00

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RNS Number : 9890H  Europa Metals Ltd  30 November 2022

30 November 2022

Europa Metals Ltd

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

Updated Mineral Resource Estimate - Indicated Resource increase and
substantial grade increase for Toral Pb, Zn & Ag Project, Spain

Europa Metals, the European focused lead, zinc and silver developer, is
pleased to announce, following its highly successful 2022 drilling campaign, a
19% increase to the Indicated Mineral resource and a 14% increase in grade, in
respect of an updated independent Mineral Resource Estimate ("MRE") for the
Company's 100% owned Toral Pb, Zn & Ag project ("Toral" or the "Toral
Project") in the Castilla y León region, northern Spain.

Highlights:

Updated independent Indicated and Inferred resource estimates reported by
Addison Mining Services Limited ("AMS"), in accordance with JORC (2012)
comprise:

·    An Indicated Mineral Resource of approximately 7Mt @ 8.1% Zn
Equivalent (including Pb credits), 5% Zn, 3.7% Pb and 29g/t Ag, containing:

o  349,000 tonnes of zinc, 260,000 tonnes of lead and 6.6 million ounces of
silver.

·    An Inferred Mineral Resource of approximately 13Mt @ 6% Zn Equivalent
(including Pb credits), 4.1% Zn, 2.3% Pb and 19 g/t Ag, containing:

o  540,000 tonnes of zinc, 300,000 tonnes of lead and 8 million ounces of
silver.

·    A total Mineral Resource of approximately 20Mt @ 6.8% Zn Equivalent
(including Pb credits), 4.4% Zn, 2.8% Pb and 23 g/t Ag, containing:

o  890,000 tonnes of zinc, 560,000 tonnes of lead and 15 million ounces of
silver.

·    A total of 61,545m of drilling is now included in the drillhole
database for the Toral Project. This includes environmental monitoring
drillholes, 174 diamond drillholes (including wedges) and 4 reverse
circulation (RC) drillholes.

The Board of Europa Metals believes that the results of this latest update
compare very favourably with the Company's previously reported Mineral
Resource Estimate, announced on 1 October 2021, as it represents a:

·    19% increase in Indicated Mineral Resource tonnes;

·    39% increase in Indicated contained tonnes of zinc to approximately
349,000 tonnes;

·    33% increase in Indicated contained tonnes of lead to approximately
260,000 tonnes; and

·    27% increase in Indicated contained ounces of silver to approximately
6.6 million ounces.

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

"Toral's latest resource upgrade is a great achievement for the Europa Metals'
team. We have now delineated 7Mt of Indicated resources at a much improved
overall grade (approximately 14% increase) following the recently reported
success of holes TOD-041 and TOD-042. This will enable the project team to now
utilise a substantial tonnage of independently reported Indicated Mineral
Resources in the mine plan for the upcoming mining licence application
scheduled to be delivered by 31 July 2023 to the Junta of Castilla y León".

 

JORC (2012) Mineral Resource Estimate - November 2022

 

This latest updated independent MRE, effective as of 5 November 2022, for the
Toral deposit is set out in the table below. It is reported at a cut-off grade
of 3.5% Zn (PbAg) equivalent, to encapsulate resources that are considered to
have a reasonable prospect of eventual economic extraction, however a cut-off
grade of 4% Zn (PbAg) is to be taken forward as the base case for resource
reporting.

This MRE complies with the resource definitions as set out 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).

Image 1: 3-D Block Model looking North

Table 1: Summary of JORC (2012) Mineral Resources for the Toral Project
reported using a Zn equivalent cut-off grade (including Pb and Ag credits).

 Cut-Off Zn Eq (PbAg)%  Tonnes (Millions)  Density  Zn Eq (Pb)%  Zn Eq (PbAg)%  Zn %  Pb %  Ag g/t  Contained Zn Tonnes (000s)  Contained Pb Tonnes (000s)  Ag Troy oz (Millions)
 Indicated
 6                      5.0                2.95     9.5          10             5.9   4.3   33      296                         215                         5.4
 5                      6.2                2.93     8.6          9.4            5.3   3.9   31      331                         244                         6.1
 4                      7.0                2.92     8.1          8.9            5.0   3.7   29      349                         260                         6.6
 3.5                    7.2                2.92     8.0          8.8            4.9   3.7   29      352                         263                         6.8
 Inferred
 6                      6                  2.90     7.9          8.5            5.7   2.6   22      340                         160                         4.3
 5                      9                  2.90     7.0          7.5            4.9   2.4   21      440                         220                         6.0
 4                      13                 2.90     6.0          6.5            4.1   2.3   19      540                         300                         8.0
 3.5                    15                 2.90     5.7          6.2            3.9   2.2   18      590                         330                         9.0
 Total
 6                      11                 2.90     8.6          9.3            5.8   3.4   27      640                         370                         10
 5                      15                 2.90     7.6          8.3            5.1   3     25      770                         460                         12
 4                      20                 2.90     6.8          7.3            4.4   2.8   23      890                         560                         15
 3.5                    22                 2.90     6.4          7.0            4.2   2.7   22      940                         600                         16

 

Notes relating to the Mineral Resource Estimate:

 

1.   The independent Competent Person for the Mineral Resource Estimate, as
defined by the JORC Code (2012 edition), is Mr Richard Siddle, MSc, MAIG, an
employee of AMS since November 2014. The effective date of the Mineral
Resource Estimate is 5 November 2022. Mr Siddle completed a site visit from 1
- 4 November 2022.

2.   No mineral reserve calculations have been undertaken. Mineral resources
that are not mineral reserves do not have demonstrated economic viability. The
quantity and grade of reported Inferred Resources in this Mineral Resource
Estimate are uncertain in nature and there has been insufficient exploration
to define these Inferred Resources as Indicated or Measured, however it is
reasonably expected that the majority of Inferred Mineral Resources could be
upgraded to Indicated Mineral Resources with continued exploration.

3.   The Indicated and Inferred mineral resource categories for the Toral
lead-zinc-silver project set out in the table above (at cut-off grades
>3.5% Zn Equivalent) comply with the resource definitions as set out 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).

4.   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.

5.   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$2,865/t, Pb price of US$2,053/t
and Ag price of US$22.17/oz. Recovery and selling factors were incorporated
into the calculation of Zn Eq values. It is both the Company's and Competent
Persons' opinion that all the elements included in the metal equivalents
calculation (zinc, lead and silver) have a reasonable potential to be
recovered and sold.

6.   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
for reporting resources (Zn Eq (PbAg)% = Zn + Pb*0.842 + Ag*0.026).

7.   Zn Eq is the calculated Zn equivalent using lead credits and does not
include silver credits (Zn Eq = Zn + Pb*0.842).

8.   The tonnes and grades reported at a cut-off grade of 3.5% Zn (PbAg)
equivalent are considered to have a reasonable prospect of eventual economic
extraction, however a cut-off grade of 4% Zn (PbAg) is taken forward as the
base case for resource reporting.

9.   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 5 November 2022. The block model used a cell
size of 25m along strike (east) and down dip (vertical) in areas of more dense
sampling, a cell size of 50m was used elsewhere. A single cell dimension was
used over the width of the mineralised unit. The block model was rotated by
20° 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 method. The estimate was completed using Micromine
2022.5 software.

10. No Top Cuts were applied to the 2m downhole composite data used for grade
estimation. 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/cm(3).

11. The block model was restricted with wireframes representing the main
mineralised structure at Toral which is located along a Carbonate-Shale
contact, an approximate 0.4%Pb+Zn cut-off grade was used for modelling.
Wireframes were generated using Micromine's implicit vein modelling tool and
were restricted to the topography.

12. The updated Mineral Resource Estimate includes new data from drillholes
TOD-041 and TOD-042. A total of 61,545m of drilling is included in the
drillhole database for the Toral Project. This includes environmental
monitoring drillholes, 174 diamond drill holes (including wedges) and 4
reverse circulation (RC) drillholes in addition to 19 underground channel
samples for 18.75m. Average core recovery is approximately 80% and is in
excess of 95% for Europa Metals drilling.

13. 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.

14. To the northwest the resource is truncated by the licence boundary and
extends 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 area 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 model's extent is 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.

15. The updated MRE compares favourably to the previous MRE as of 14 September
2021 and represents an increase in Indicated Resources of 1.1 million tonnes,
from 5.9 million tonnes. The aggregated Inferred and Indicated tonnages remain
unchanged. Individual Lead, Zinc and Silver grades have also increased from
4.2%, 3.3% and 27 g/t to 5%, 3.7% and 29 g/t within the Indicated Resources.

 

Image 2: Block Model Long Section West-East orientation

 

Image 3: Long Section showing the area of Indicated Mineral Resources

 

Updated Investor Presentation

In addition, the Company is pleased to announce that an updated investor
presentation in respect of the recent farm-in/joint venture arrangement with
Denarius and this updated independent mineral resource estimate is available
to view on the Company's website at:
www.europametals.com/site/news-announcements/presentations

 

Competent Person's Statement

This updated Toral resource estimate was prepared by Mr R.J. Siddle, 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. Mr Siddle 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 drillhole logs, QA/QC
data, density measurements and sampling, diamond and RC drilling and
analytical techniques. Mr Siddle consents to the inclusion in this
announcement of the matters based on the information, in the form and context
in which it appears. Mr Siddle has also reviewed and approved the technical
information in his capacity as a Qualified Person under the AIM Rules for
Companies. Additionally, Mr Siddle 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.

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

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)

Sharon Owens

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.

 

Glossary of technical terms:

 

 "Ag"                  silver;
 "g"                   grammes;
 "g/t"                 grammes per tonne;
 "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.

 

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