(Alliance News) - Europa Metals Ltd on Tuesday hailed a "significant" new resource estimate at its Toral lead and zinc project in Spain.
The Johannesburg- and London-listed firm said the new resource estimate shows a 30% increase in contained tonnes of zinc to roughly 830,000 tonnes and a 12% boost to contained tonnes of lead to about 570,000 tonnes. In silver, there was an 8% increase in contained ounces to roughly 14 million.
Europa said: "The board views this resource update as being a significant step forwards for the overall project programme from the initial conceptual scoping study based on Europa Metals’ work conducted at Toral in 2017-2018 and the previous inferred-only resource estimate announced on December 10, 2018.
"The upgraded resource estimate follows the processing of assays from the company’s 2018 and 2019 diamond drilling campaigns into a new resource model. It also reflects the findings from a 2018 surface mapping programme, analysis of faulting structures and increase in bulk density measurements, and incorporated data obtained from the 2018 and 2019 reverse circulation and diamond drilling campaigns, combined with the historic core re-logging."
Executive Director Laurence Read added: "Today’s resource update containing approximately 2.7 million tonnes of Iindicated resource at 8.9% zinc equivalent (including lead credits) and a 12% increase in the total resource to 18 million tonnes at 7.4%, using a 4% cut-off, is, in our view, the most significant development for the Toral Project to date.
"The results will form a major part of a first mining plan for a pre-feasibility study but will also, importantly, inform our approach to enhancing the current mineable area and selectively assessing new prospective areas for future resource upgrade and expansion."
Europa shares were untraded early in Johannesburg on Tuesday, last quoted at ZAR0.01 each. In London on Monday, they closed 11% higher at 0.035 pence each.
By Eric Cunha; ericcunha@alliancenews.com
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Europa Metals (EUZ)