RE: Research note24 Mar 2022 10:08
"Europa Metals (EUZ) – Corporate - Positive Ore Sorting Results for the Toral Project in Spain Market Cap £3m Share Price 4p Europa Metals announced yesterday encouraging results following XRT testwork on samples from the polymetallic Toral Project in Spain. The XRT testwork is part of a wider metallurgical programme that includes locked cycle flotation testwork and tailings evaluation for backfill. Testwork was conducted on three samples, including; a composite of mineralised siliceous material and two mineralised carbonate samples. Highlights of the XRT testwork include: i) up to 47.7% mass rejection of waste and over 95% recovery of lead and zinc; ii) an enrichment ratio of between 1.7x and 1.9x for lead and 1.7x and 1.8x for zinc and; iii) a significant increase in the Zn equivalent grade of material sent for further processing. WHI View: These results are highly encouraging as they offer significant scope to further optimise the project as Europa Metals guides Toral through pre-feasibility studies. We note that testwork on carbonate samples, typical of mineralisation at Toral, returned the best results. In our view effective ore sorting opens the potential to grow the resource and incorporate lower grade, previously sub-economic, mineralisation into the mine plan. Ore sorting can also reduce the scale of processing facilities which can significantly reduce capital and operating costs going forward. All these aspects can positively impact on the project economics. "