(Alliance News) - Europa Metals Ltd on Wednesday reported results from an independent preliminary economic study in respect of its wholly owned Toral lead, zinc and silver project, located in the region of Castilla y Leon, north-west Spain.
The Australian mining assets developer said the study has updated the economics from the previous scoping study undertaken by Addison Mining Services Ltd in late 2018. This study also incorporated the positive findings generated from the workstreams conducted by Europa Metals and its consultants over the last 12 to 18 months.
The company explained that the economic report proposed a significantly expanded potential mining operation at the Toral lead, zinc and silver project with a 700,000 tonnes per annum production rate over a 12-year mine life.
With a mining grade of 7.6% zinc equivalent and as a potential high-margin operation, the Toral project has the scope to generate over USD470 million earnings before interest, tax, depreciation and amortization and USD963 million of revenue over the life of mine, Europa Metals said.
"With work towards a pre-feasibility study for Toral now underway, we look forward to updating the market in due course on our hydrogeology programme, planned resource and metallurgical drilling and geotechnical work," said Chief Executive Laurence Read.
Europa Metals shares were trading 7.7% higher in London on Wednesday at 11.58 pence each, while in Johannebsurg, the stock was up 0.9% at ZAR2.25 a share.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Europa Metals (EUZ)