Member Info for Shedulike

Yes CHRI5P the geotechnical drilling was always a PFS work stream. I assume that doesn't change because we can't currently finance its completion. The question is whether we plan to offload Toral short of PFS, likely at a massive discount, or can we bring someone in to help us get there?

I think there were 'several' options Mm's and they'll pick the most suitable location after analysing the geotech. Suppose we'll know when they've finished as soon as the rig moves onto the resource drilling but you're right you don't spend money on this without it having serious development potential otherwise they would throw everything at the more headline grabbing resource holes (IMO).

A bit of local press today, nothing new though.
"In troubled times in which raw materials take on special value, the project of the Europa Metals company continues in El Bierzo, which is being designed to open a lead, zinc and silver mine on land in the municipal districts of Toral de the Fords. Borrenes and Carucedo. The company has announced that it will resume drilling for its mine this March, in a place close to the location of the future extraction plant".

Thanks CJ, I know they strongly refuted any suggestion that Lundin could get this "By the back door" and I don't have any evidence that they are being guided by Lundin. I just think it's logical that a major who were once interested in this asset might have it on there radar given a stated strategy to increase zinc exposure. I'm just floating Lundin as a possibility, do you remember what I said about Tomra?

Evening Mm's when they announced the work programme I always thought it was interesting that the Geotechnical holes were coming before the resource drilling. The Geo holes aren't going to set the world alight but it shows that this is for real, someone needs to know where the optimum site for plant can be constructed. For me that's equally as meaningful as potential resource upgrades.

Evening Bricks, thanks hope my thoughts make sense to most. On the mets / by-products / deleterious elements I'm a bit uncertain what we'll get. It's an area that has always interested me and I've always pushed for more info. All I know assuming the questions weren't batted away with convenient answers is that we don't have marketable by-products and that you can't quantify the impact of he deleterious elements until you have smelter compatibility. It has concerned me that they must have identified all the impurities by now so why have they only told us about the ones ruled out. Bit of a worry that Cadmium and Mercury haven't been crossed off as these were present at Rubiales though I seem to remember being told that doesn't make them an inevitability at Toral. Guess it's a question of quantity and how any smelter penalties impact the economics, I wonder does anyone know if this is a prerequisite of a PFS or is this one of the final step ups from PFS to BFS?

Hopefully the ore sorting results will give this a kick soon. I'm expecting the early mineable area to become significantly more economic on the back of them which should bring the break even forward. We already know the grades in the early years are better than anticipated in the PEA, ore sorting will enhance that further if successful plus make throughputs more efficient and reduce the processing plant size. I suspect it's a bit of a stretch to see the CAPEX coming down as pushing the other way are spiralling construction costs but Toral looks an increasingly attractive proposition to me. I noticed in a Lundin presentation they are looking to increase their 'zinc profile', could they come back into the fray? Would seem the most seamless solution with their royalty rights but Myles did say we're too small for them, I guess that's part of the problem, we just don't know how big Toral could be, there's a good chance that after 12 years it's also a copper mine but we currently can't afford to prove it sadly.

Evening Mm's I thought that was interesting when I first noticed it on Linkedin, important that we show what we can do for Spain. It's not difficult to find information about unemployment in Leon particularly amongst youth and the flight of young people from the region. On metal prices I guess we need to be realistic about where prices will settle in the event of peace and when there is the earliest possible production (I'm assuming two - three years) but the trend was upwards before this conflict and it will take a long time for relations to normalise with Russia even assuming that will be possible. Nickel markets tell a troubling story. My tongue in cheek post earlier was in response to a barmy day where we witnessed insanely risky positions being taken in Russian stocks while a solid asset with a critical metal in a supportive region hardly attracted a trade, that's us by the way.

As long as you ignore the frenzy of activity on Aquis.

....... not one sell :)

Okay I'll try another one - anybody know if the current geotechnical drilling and imminent resource drilling is enough to constitute the "Stage 2 work" which will free up the final CDTI tranche of €145,000?

Nice one Mm's - I'm particularly glad they rate our star project as Toral (just as well really.....). Cant remember if it came up at the time but when I was looking at the resource figures earlier I noticed that we have 14m/oz silver in JORC of summer 2020 and 14m/oz in the JORC autumn 2021 even though the lead resource went up which the silver reports to. Just wondered why we didn't book any more silver? Maybe the lead ore in the upper siliceous zone just bears less silver than the Cambrian and it wasn't sufficient to move the figures.

CJ I did do a calculation a while back working off the simple breakdown of LOM total revenue of each metal in the PEA then factoring in the increase of total resource since plus metal price increases. TP did something similar in their last flash note but without the upgraded JORC but I'm not sure what metric they used to reflect the increase in indicated. I seem to remember getting around $1.5B total revenue, that will have gone up since and with a successful campaigning up we should go through $2B before a (hopefully) PFS particularly as the next drills target the high grade zone, and we still are yet to hear about the impact of ore sorting in the upper siliceous zone which was once thought of as uneconomic.

Bricks I remember reading somewhere that the level of regional devolvement in Spain is second only to the system in Germany so the Junta have a big influence but I don't know if the final sign off would still have to be made at national level. I guess that would be logical.

I know the prices are going crazy CJ but I guess we have to factor in where they will settle when the geo-political situation hopefully resolves. The fact that the trend was up before this tragic invasion suggests that the long term cycle was going that way anyway. A buyer or partner would be hugely welcome but for now I'd settle for any mechanism that gets us to a FS without sacrificing too much of the asset. Didn't you say that there was talk of positive discussions with the banks at the AGM?

Highside calm down, I agree that in the long term it's obvious we will need the sort of figures you quote if we are to develop the project I have read the PEA and I know what the CAPEX is. For now the mid term priority is to produce a PFS and I don't think the shortfall is that great. I think you would find more accord on this board if you didn't exaggerate the position - you want "hard fact, figures, costings and analysis", well do you completely dismiss the PEA as "Fingers crossed"material? The Bara report was a landmark that required all those things for an independent recommendation to progress to a PFS which is of course a higher standard of de-risking. Be negative by all means - there's plenty of material for you after all, but I would just keep the hyperbole in check because it undermines your posts. We do have rigorous facts, data, reports call it what you will and there is precedence for investment prior to PFS's.

What? DB invested even before we had a PEA and Bennelong have invested before we have a PFS. As everyone knows the PFS will greatly strengthen our hand and as yet we don't know how to close the funding gap but your sweeping statement isn't true - we don't have to look far for an example of an investor providing funding specifically for the delivery of a PFS. Take GGP "This Loan Agreement will be used to fund Greatland's share of early works and growth drilling activities up to the completion of a Pre-Feasibility Study and, thereafter, its joint venture expenditure requirements towards the completion of a Feasibility Study".

Logically we must be attracting interest. As I said last week unless there is something in the metallurgy that to date hasn't been made public which radically alters the economics, I just can't imagine why a significant Zn - Pb/Ag resource in a safe jurisdiction wouldn't attract an investor or perhaps buyer, particularly in the current climate where the significance of commodity security is perhaps at it's highest for 75 years. At this market cap I believe Toral is almost risk free for new money, LTH's have a tougher game to play. My main concern about continuing to average down is that LR grew into a steady hand on the operational tiller and we don't know why he left, as things stand we can't afford to miss with this next set of resource drilling and I sometimes think as EUZ shareholders we have become complacent about operational success when so much of our grievances are on the corporate front. LR & MC along with the Spanish team have moved the de-risking ball forward admirably which for me is the only reason there is still hope here, the problem is we have little cash and despite the morale lift that Bennelong coming onto the register gave us with promises that they won't be passive investors we still don't know what that means practically. I sense it's going to get interesting.

Evening CHRI5P also lead, our least sexy metal has been steadily improving, and silver I believe could go nuts. The mystery for me is why we're still alone in this venture. Have they stubbornly preserved 100% ownership in the face of pernicious deals on the table or have there been no credible offers? Given the current climate holding out might turn out to have been wise but the only thing that is not in doubt is that we need help.

Mm's yes I guess the Covid dip will put a bit of a dent in the three year trailing average but it's still going to be pretty healthy compared to the PEA. Unless there's an issue that we don't know about I can't think why Toral wouldn't be an opportunity for a partner, so much of the ground work has been done there's minimal financing needed to get to the PFS level. One thing I don't know is whether you need evidence of smelter compatibility to complete a PFS because it's only then I believe we will get a full understanding of by products and impurities. What is involved in getting that rubber stamped and what it might cost is also an unknown so it's difficult to judge how significantly a deal will impact our share of the asset if that's the way it's going.