RE: RNS5 Sep 2022 09:49
FIRST LIGHT Europa Metals (EUZ) – Corporate – High-grade drill from Toral zinc-lead-(silver) deposit in Spain Market Cap £2.5m Share Price 3.1p Europa today reports on its latest drill hole deep into its 100% owned Toral zinc-lead(silver) deposit in Spain. The drill hole reveals very high-grade intersections crucially in part of the model where these grades were expected but which lie outside of the current Indicated resource – in our opinion this bodes well for an increase in resource and we are impressed that these high-grades are still open at depth; the Toral deposit still has much to offer in our view. The drill hole (TOD-041) drilled an intersection of 3.2m grading 9.4% zinc, 5.1% lead and 48g/t silver from a depth of 799m which equates to 15.2% zinc equivalent*. Within this was a higher-grade zone of 1.1m grading 19.8% zinc, 10.8% lead and 108g/t silver for a zinc equivalent grade of 32.0%. This is a high grade intersection by any standards and shows the potential to increase the resource size significantly at depth. We anticipate that from this one drill hole alone Europa will be able to increase the size of its Indicated resource. Europa continues to drill at Toral with the hole “TOD-042” well underway. WHI View: Todays news just confirms that the large Toral project could get bigger – with it already one of the largest, highest grade undeveloped zinc-lead projects in Europe. The project already benefits from its location with available infrastructure and its position close to one of the biggest zinc processing complexes in the world at Glencore’s San Juan de Nieva. We recently (25.07.2022) initiated on Europa seeing fair value at 11.7p/sh, today’s news confirms our understanding that Toral is a robust resource and that it is conservatively priced against its European peers. * Europa calculates zinc equivalent grade as Zn + Pb*0.926 + Ag*0.019). Zn equivalent calculations are 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. Paul Smith Analyst paul.smith@whirelandcm.com 0113 394 6609 David Seers Analyst david.seers@whirelandcm.com 0113 394 6610
WH Ireland very positive