Wrap Text
Updated JORC Resource Estimate
Europa Metals Ltd
(Formerly Ferrum Crescent Limited)
(Incorporated and registered in Australia
and registered as an external company in
the Republic of South Africa)
(Registration number 4459850)
(External company registration number 2011/116305/10)
Share code on the ASX: EUZ
Share code on AIM: EUZ
Share code on the JSE: EUZ
ISIN: AU0000014342
("the Company")
Updated Resource Estimate - 40% Increase in Indicated Resource, Toral Pb, Zn & Ag
Project, Spain
Europa Metals, the European focused lead-zinc and silver developer, is pleased to announce the
results of an updated independent Mineral Resource Estimate, reported in accordance with JORC
(2012), in respect of its wholly owned Toral lead-zinc-silver project located in northern Spain (“Toral”
or the “Toral Project”).
Highlights:
• Updated independent Indicated and Inferred Mineral Resource Estimate for Toral, reported
in accordance with JORC (2012). The input database for the estimate, included:
- 113 diamond (including wedges) and 4 reverse circulation (RC) drill holes totalling
60,915.65 metres, and 19 underground channels for 18.75 metres.
- Drill holes TOD-024 and TOD-025 and updated fault models for the first time.
• Indicated resource estimate of approximately 3.8Mt @ 8.3% Zn Equivalent (including Pb
credits) and 30g/t Ag, representing an approximate:
- 40% increase in Indicated resource tonnes;
- 38% increase in Indicated contained tonnes of zinc to approximately 180,000 tonnes;
- 36% increase in Indicated contained tonnes of lead to approximately 150,000 tonnes;
and
- 32% increase in Indicated contained ounces of silver to approximately 3.7 million
ounces.
• A total resource of approximately 17Mt @ 6.9% Zn Equivalent (including Pb credits), 4.1%
Zn, 2.9% Pb and 24 g/t Ag, including:
- 720,000 tonnes of zinc, 510,000 tonnes of lead and 14 million ounces of silver.
Outlook
The Company expects to utilise the updated resource model, together with ongoing engineering
analysis and the upcoming third phase metallurgical results, for assimilation into updated preliminary
economic parameters, to be conducted by Bara Consulting, ahead of a Pre-Feasibility Study. The
revised economics will represent an update to those derived from the 2018 Scoping Study, bringing
the significant amounts of work completed, and data obtained, over the last two years into the
operating and financial model for Toral. Prior to establishing the revised economic parameters, the
Company intends to announce updates in respect of the third phase metallurgical test work and ore
sorting.
Laurence Read, CEO of Europa Metals, commented:
“In commissioning this updated Mineral Resource Estimate in respect of Toral, our key objective was
to include, in the resource model, the successful results from the Company’s last drilling campaign,
which saw not only high grade intersections but, due to the location of the drill holes, also enabled
us to tie together two areas of the mineable lead, zinc and silver deposit into a continuous Indicated
resource zone.
“Concentrated around the initial mineable area of the Toral Project, we have achieved an
approximate 40% increase in the Indicated resource at an average grade of 8.3% zinc equivalent
(including Pb credits) and a significant average grade above cut-off that should have a bearing on
the overall mining profile once the effects of ore sorting are fully assessed .
“With every stage of additional work over the last 12 months we have further identified Toral as
having significant potential to be a future high-grade producer of concentrates, located in an area
with first-rate infrastructure and benefitting from the support of the Junta of Castilla y Leon. Europa
Metals looks forward to releasing operational updates on metallurgy and ore sorting shortly, following
which revised, independent economic parameters shall be determined for Toral, effectively updating
the financial profile of the project to reflect the work accomplished since the 2018 Scoping Study.”
Myles Campion, Executive Chairman of Europa Metals, further commented:
“Increasing the level of confidence in the deposit is key for deriving reliable, quality data for use in
economic models. By drilling two key targeted holes in the last drilling campaign we have been able
to both increase Toral’s Indicated resource estimate by 40% and obtain sufficient samples for further
metallurgical analysis. The significant increase in the Indicated resource category achieved on the
back of the last drilling campaign reflects well on Europa Metals’ technical team.”
Overview
Europa Metals is pleased to announce the results of an independent updated Mineral Resource
Estimate, in accordance with JORC (2012), pursuant to which there has been an approximate 40%
increase in the Indicated resource category to approximately 3.8Mt at 8.3% Zinc Equivalent
(including Pb credits) and 30g/t Ag. The upgrade follows the processing of assays from the
Company’s 2020 diamond drilling campaign (involving key drill holes TOD-024 and TOD-025) and
incorporation of updated fault models. The update has been prepared by Addison Mining Services
Limited (“AMS”) and Bara Consulting.
Figure 1 showing AMS’ resource block model for Toral as a 3D view looking north, by Zn Equivalent
grade is available for viewing on the following link:
http://www.rns-pdf.londonstockexchange.com/rns/1248W_1-2020-8-13.pdf
Figure 2: showing AMS’ resource block model for Toral as a 3D view looking north, by resource
category is available for viewing on the following link:
http://www.rns-pdf.londonstockexchange.com/rns/1248W_1-2020-8-13.pdf
This latest updated Mineral Resource Estimate, effective as of 12 August 2020 for the Toral deposit
comprises:
• An Indicated resource of approximately 3.8Mt @ 8.3% Zn Equivalent (including Pb credits),
4.7% Zn, 3.9% Pb and 30g/t Ag, including:
- 180,000 tonnes of zinc, 150,000 tonnes of lead and 3.7 million ounces of silver.
• An Inferred resource of approximately 14Mt @ 6.5% Zn Equivalent (including Pb credits), 4%
Zn, 2.7% Pb and 23 g/t Ag, including:
- 540,000 tonnes of zinc, 360,000 tonnes of lead and 10 million ounces of silver.
• A total resource of approximately 17Mt @ 6.9% Zn Equivalent (including Pb credits), 4.1%
Zn, 2.9% Pb and 24 g/t Ag, including:
- 720,000 tonnes of zinc, 510,000 tonnes of lead and 14 million ounces of silver.
The Company’s Board believes the results of this update compare favourably with the previously
reported Mineral Resource Estimate, announced on 29 October 2019, comprising the following
tonnages and grade:
• An Indicated resource of approximately 2.7Mt @ 8.9% Zn Equivalent (including Pb credits),
5% Zn, 4.2% Pb and 32 g/t Ag, including:
- 130,000 tonnes of zinc, 110,000 tonnes of lead and 2.8 million ounces of silver.
• An Inferred resource of approximately 16Mt @ 7.2% Zn Equivalent (including Pb credits),
4.5% Zn, 2.9% Pb and 22 g/t Ag, including:
- 690,000 tonnes of zinc, 450,000 tonnes of lead and 11 million ounces of silver.
• A total resource of approximately 18Mt @ 7.4% Zn Equivalent (including Pb credits), 4.5%
Zn, 3.1% Pb and 24 g/t Ag, including:
- 830,000 tonnes of zinc, 570,000 tonnes of lead and 14 million ounces of silver.
*Zn Eq % is the calculated Zn equivalent incorporating lead credits; (Zn Eq (Pb)% = Zn + Pb*0.926). Zn Eq (PbAg)% is the
calculated Zn equivalent incorporating silver credits as well as lead; (Zn Eq (PbAg)% = Zn + Pb*0.926 + Ag*0.019). Zn
equivalent calculations were 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.
Implications of the resource update and updated resource model for the Toral Project
The increased size and contained metal of the Indicated resource exceeded management’s
expectations and forms a significant cornerstone from which to establish the preliminary economic
parameters for an eventual Pre-Feasibility Study, which will utilise the data sets compiled and work
programmes completed since the publication of the 2018 Scoping Study.
The independent economic study, which will be conducted by Bara Consulting, will incorporate, inter
alia, a mine schedule, mine plan, third phase metallurgical testwork (currently in progress), this latest
resource update, updated commodity prices, ore sorting analysis (currently in progress), new
engineering components and an infrastructure layout.
Revised inputs
The geological team at Europa Metals has completed several important workstreams and internal
projects over the last four years to improve the geological understanding of the Toral deposit.
The 2018 re-logging exercise of the historic Peñarroya core at the IGME facilities, proved to be
beneficial as it assisted in increasing the Company’s understanding of the geological environment
and controls on mineralisation. In addition, it provided basic structural data and, importantly,
increased the quantity and quality of bulk density measurements.
The completion of detailed surface geological mapping in 2019 led to the 2020 updated structural
database to provide further data and guidance on structural influences within the confines of the
Toral deposit.
The findings of such ongoing work has been incorporated into the updated resource model, thereby
providing better delineated geological boundaries, and utilised for updating the structural framework
which has been integral in establishing the updated resource model (which can be viewed in Figures
3 and 4)
Figure 3: Mineralisation wireframes, looking north is available for viewing on the following link:
http://www.rns-pdf.londonstockexchange.com/rns/1248W_1-2020-8-13.pdf
Figure 4: Mineralisation wireframes with major fault surfaces is available for viewing on the following
link:
http://www.rns-pdf.londonstockexchange.com/rns/1248W_1-2020-8-13.pdf
Europa Metals completed two diamond drill holes (TOD-024 and TOD-025) (and one 53 m wedge,
TOD-025D) in the last drilling campaign for total drilling of 852.6 metres. Holes TOD-024 and TOD-
025 targeted the vein at approximately 300 and 500 metres below surface, respectively, as well as
targeting the high-grade areas in the block model with a view to increasing the confidence level and
the resource category of that area.
Competent Person’s Documentation: Updated Inferred and Indicated Mineral Resource
Estimate, Reported in Accordance with the JORC code (2012 edition).
Further to the recent diamond drilling conducted between November 2019 and January 2020, the
Company recently commissioned AMS to complete an updated Mineral Resource Estimate. The
updated Mineral Resource Estimate is based on all the available historical data from five drilling
campaigns conducted on licence number 15.199 (namely, the 1972 - 1984 Peñarroya-Adaro
campaign, the 2006 - 2008 Lundin Mining campaign, the 2016 - 2017 Europa Metals’ campaign and
the Company’s September 2018 to August 2019 RC and diamond drilling and November 2019 to
January 2020 diamond drilling), along with underground channel sampling results from numerous
old adits.
The updated Mineral Resource Estimate has been reported in accordance with the Joint Ore
Reserve Committee (JORC) code, 2012 edition.
Block Model
The Inferred and Indicated resource for the Zn-Pb-Ag mineralisation located on the Toral Project’s
licence area has been estimated at various cut-offs (refer to Table 1 below). The Company reviewed
the new block model along with its appointed geological consultants, AMS, and concluded that a 4%
cut-off was appropriate utilising estimated mining parameters typical for similar types of projects and
mineralogy, and an historical three-year trailing average for metals prices, which, although
conservative, was deemed appropriate at this stage in the project’s development.
Zn Price Used: US$2,680/t US$c/lb1.215
Pb Price Used: US$2,100/t US$c/lb0.952
Ag Price Used: US$16.2/oz
The resource update has identified potentially economic mineralisation ranging from surface to
approximately 1,100m below surface. The new block model currently extends for a strike length of
3,600m and is still open to the east and west along strike and also at depth where it has not yet been
closed off.
Table 1: Summary of Indicated and Inferred mineral resources for the Toral property reported at a 4.0% Zn equivalent cut-off grade
(including Pb and Ag credits) and estimated grade and tonnages at the various cut-off grades. Figures are rounded to reflect the accuracy
of the estimate and, as such, totals may not calculate exactly.
Contained Contained
Cut-Off Ag Troy
Tonnes Zn_Eq Zn Eq Zn Pb Ag Zn Pb
Zn Eq Density Oz
(Millions) (Pb)% (PbAg)% % % g/t Tonnes Tonnes
(PbAg)% (Millions)
(000s) (000s)
Indicated
6 2.8 2.9 9.5 10 5.3 4.5 34 150 130 3.1
5 3.3 2.9 8.9 9.5 5 4.2 32 170 140 3.4
4 3.8 2.9 8.3 8.9 4.7 3.9 30 180 150 3.7
3 4.1 2.9 7.9 8.5 4.4 3.7 29 180 150 3.8
Inferred
6 8 2.9 7.8 8.3 4.7 3.4 28 370 270 7.2
5 10 2.9 7.2 7.7 4.4 3 26 450 310 8.6
4 14 2.9 6.5 6.9 4 2.7 23 540 360 10
3 17 2.9 5.9 6.3 3.7 2.4 20 610 400 11
Total
6 11 2.9 8.2 8.8 4.8 3.7 30 520 390 10
5 14 2.9 7.6 8.1 4.5 3.3 27 620 450 12
4 17 2.9 6.9 7.3 4.1 2.9 24 720 510 14
3 21 2.9 6.3 6.7 3.8 2.7 22 790 560 15
Transitional Oxide Material
4 3 2.9 5.2 5.7 2.6 2.9 27 75 83 2.5
Unweathered Fresh Rock
4 14 2.9 7.2 7.7 4.5 3 24 650 430 11
1. No mineral reserve calculations have been undertaken. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. See “Cautionary Note Concerning Reserve and Resource Estimates”.
2. Numbers are rounded to reflect the fact that an Estimate of Resources is being reported as stipulated by JORC 2012.
Rounding of numbers may result in differences in calculated totals and averages. All tonnes are metric tonnes.
3. Zn equivalent calculations were 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. Recovery and selling factors were incorporated into the calculation of Zn Eq values. It
is the Company’s opinion that all the elements included in the metal equivalents calculation (zinc, lead and silver)
have a reasonable potential to be recovered and sold.
4. Zn Eq (PbAg)% is the calculated Zn equivalent incorporating silver credits as well as lead and is the parameter used
to define the cut-off grade used for reporting resources (Zn Eq (PbAg)% = Zn + Pb*0.926 + Ag*0.019).
5. Zn Eq is the calculated Zn equivalent using lead credits and does not include silver credits (Zn Eq = Zn + Pb*0.926).
6. The Mineral Resource Estimate set out above for the zinc, lead and silver mineralisation in the Toral project area is
based on a 3D geologic model and wireframe restricted block model that integrated the exploration work on the Toral
project up to 21 January 2020. The block model used uniform cell size of 25x10x25m to best suit the orientation of
the mineralisation and sample spacing. The block model was rotated by 20° in plan view to best match the trend of
mineralisation. Sub cells were applied to better fit the wireframe solid models and preserve accurate volume as much
as possible. Cells were interpolated at the parent block scale using an Ordinary Kriging.
7. Following statistical analysis and assessment of the updated assay composite database top cuts of 125g/t Ag were
applied to the data. No top cuts were applied for Zn or Pb.
8. The Indicated and Inferred mineral resource category for the Toral zinc-lead-silver project set out in Table 1 (at cut-
off grades less than 4% Zn Equivalent) comply with the resource definitions as described in the Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The JORC Code, 2012 Edition. Prepared
by: The Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of
Geoscientists and Minerals Council of Australia (JORC).
9. The tonnes and grades reported at a cut-off grade of 3% Zn equivalent are below the economic cut-off grade of 4%
and as such should not be considered mineral resources, they are shown here for comparison purposes only.
Summary of updated Resource Estimate and reporting criteria
In accordance with JORC (2012) reporting guidelines, a summary of the material information used
to estimate the updated Mineral Resource Estimate is set out below (for further detail please refer to
the JORC (2012) Table 1, located in the Appendix to this announcement).
Geology and geological interpretation
The Toral Project is a traditional polymetallic (lead-zinc-silver) deposit, which is hosted over 6km of
strike length of the prospective Lower Cambrian Vegadeo Limestone formation, that is regionally
mineralised along more than 40km of its extent. The deposit represents a carbonate hosted,
structurally controlled deposit type, demonstrating fault-controlled contact, vein, carbonate
replacement and breccia styles of mineralisation situated close to and along the boundary between
footwall slates and hanging wall limestones and dolomites. Sub-ordinate lead-zinc-silver
mineralisation also occurs wholly within the hanging wall limestones and dolomites, approaching the
contact with the slates.
Historic drill hole re-logging undertaken in 2018 has provided improved geological, structure,
alteration and weathering/oxidation information, incorporated in to the interpreted geological and
mineralised models for the updated resource estimate. Surface mapping and remote data
interpretation by Europa Metals has enabled the development of an interpreted fault model, also
incorporated in to the updated geological and mineralised models used in the updated mineral
resource estimate.
Weathering
The weathering profile was observed throughout the drill holes and historic shallowly emplaced
horizontal adits. In general, observations on weathering and oxidation at Toral suggests a poorly
developed or truncated profile overall, with minimal oxidation developed much below 30 metres
below surface, with the majority of the country rock being un-weathered or showing only fractured
controlled weathering and oxidation in the form of Fe oxide joint tarnishing and fracture infill.
Weathering and oxidation is deeper within the main parts of the mineralised structure, and is
interpreted as partial, being fracture controlled with less than 10% weatherable minerals weathered
and/or oxidised. A weathering surface was interpreted at the moderately oxidised-partially
weathered/fracture controlled weathered boundary to sub-divide the moderately oxidised
‘transitional’ zone material and -10% weathered ‘fresh’ material below. Due to the strong lithological
and structure control, an observed trough is developed at the transitional-fresh boundary along the
main structure, interpreted through the drill hole logging of weathering. The accuracy of the surface
at this stage is suitable for application and use in the reporting of Inferred and Indicated resources.
Bulk density
The resource database contains 2,405 bulk density measurements, with a total of 193 within the
mineralised wireframe.
The mean for the mineralised domain transitional zone is 2.75 g/cm3 and the mean for mineralised
domain fresh material is 2.85 g/cm3. A broad linear relationship between Pb+Zn grade and Bulk
Density was identified from scattergrams and the formula 2.75 + 0.02(Pb+Zn%) used to estimate
block density in relation to block grade within the block model.
Drilling techniques and hole spacing
The updated Mineral Resource Estimate includes new information from two surface collared
diamond holes and one wedge hole.
A total of 113 diamond (including wedges) and 4 RC drill holes totalling 60,915.65 metres, and 19
underground channels for 18.75 metres were used as the input database for geological modelling
and resource estimation.
Drill core diameter was PQ, HQ, NQ2, NQ and BQ depending upon depth. Tube type is unknown for
the historic Peñarroya drilling, whilst the triple tube method was used for the historic Lundin and
Europa Metals’ drilling campaigns.
The recent diamond core has been orientated. No orientation has been performed on the historic
drill core.
Drill and UG channel sample data spacing across the current resource area ranges from
approximately 50-100m x 50-100m centres within the most densely tested area situated in the NW,
stepping out to approximately 200m x 200m within the mid-section and 100-200m x 500m in the SE.
The distribution of drill holes and UG channel sampling, supported by surface and underground
mapping, is sufficient to establish the degree of geological and grade continuity appropriate for a
JORC (2012) Inferred and Indicated classification of resources.
Sampling and sub-sampling techniques
The four main phases of historic exploration drilling and sampling are:
• 1972-1984 Peñarroya-Adaro: diamond drill core method was used to obtain samples for
geological logging and sampling. Geological and analytical data is recorded on hardcopy.
Selective sampling method was employed around areas of interest. Sampling intervals
measure approximately 1m, half core sent for analysis, with half core retained for reference.
Exact details on core processing, sampling techniques and analytical methods are unclear,
however subsequent explorers Lundin Mining sent the majority of the Peñarroya core pulp
reject samples to ALS Chemex for multi element re-analysis by ICP.
• 2006-2008 Lundin Mining: diamond drill core method was used. Core logging completed on
hardcopy. Selective sampling method was employed around areas of interest. Sampling
intervals measure approximately 1m, half core sent for analysis, with half core retained for
reference. Samples typically 1m half core, with samples prepared at the then Lundin
Laboratory in Suecia, then shipped to ALS Chemex Vancouver for multi-element analysis by
ICP. Half core samples reduced to -400 microns and 100g sub-samples taken for analysis.
Multi-element re-analysis of available Peñarroya diamond drill hole pulp reject samples
completed at ALS Chemex Vancouver using ICP.
• 2016-2017 Europa Metals: diamond drill core and underground cut channel sampling
methods used to obtain samples for geological logging and sampling. Geological and
analytical data is recorded on hardcopy. Selective sampling method was employed around
areas of interest. Sampling intervals measure approximately 1m, half core sent for analysis,
with half core retained for reference. Samples sent to ALS Seville for preparation and multi-
element analysis by ICP. Half core samples reduced to -400 microns and 100g sub-samples
taken for analysis.
• 2018-2020 Europa Metals: diamond drill core and RC chips used to obtain samples for
geological logging and sampling. Geological and analytical data is recorded on paper and
later digitised. Selective sampling method was employed around areas of interest. Sampling
intervals measure approximately 1m, half core and RC riffle splits sent for analysis, weighing
approximately 2-3kg, with half core and chip sub-samples retained for reference. Samples
were sent to ALS Seville for preparation and multi-element analysis by ICP. Half core and
RC samples were reduced to -400 microns and 100g sub-samples taken for analysis.
Diamond Core Recovery
A total of 12,207 core recovery measurements exist in the database for the drilling with average core
recovery of 81%. The average for the Europa Metals diamond drilling is 96%. Core recovery is
measured over run lengths.
Cut-off grades
The Inferred and Indicated resource for the Pb-Zn-Ag mineralisation located on the Toral property,
licence number 15.199, has been estimated at various cut-offs. For the Toral deposit resource, the
economic cut-off was determined by calculation of block revenue factors based on Zn equivalent
calculations derived from an historical three-year trailing average for Zn, Pb and Ag prices. Indicative
mining and processing costs typical of the region and deposit type were applied along with typical
mining recovery and dilution factors and metallurgical recovery factors identified by laboratory
studies and production at comparable deposits and accepted by AMS.
For reporting in compliance with JORC (2012), an economic cut-off grade of 4% Zn equivalent
(including Pb and Ag credits) was selected considering the aforementioned factors and allowing for
some increase in commodity prices to define resources with a reasonable prospect of eventual
economic extraction now or in the near future. Resources are reported as follows:
The updated mineral resource estimate as of 12 August 2020 for Toral comprises:
• An Indicated resource of approximately 3.8Mt @ 8.3% Zn Equivalent (including Pb credits),
4.7% Zn, 3.9% Pb and 30 g/t Ag, including:
- 180,000 tonnes of zinc, 150,000 tonnes of lead and 3.7 million ounces of silver.
• An Inferred resource of approximately 14Mt @ 6.5% Zn Equivalent (including Pb credits), 4%
Zn, 2.7% Pb and 23 g/t Ag, including:
- 540,000 tonnes of zinc, 360,000 tonnes of lead and 10 million ounces of silver.
• A total resource of approximately 17Mt @ 6.9% Zn Equivalent (including Pb credits), 4.1%
Zn, 2.9% Pb and 24 g/t Ag, including:
- 720,000 tonnes of zinc, 510,000 tonnes of lead and 14 million ounces of silver.
Estimation methodology
AMS verified new primary analytical data via cross reference against original laboratory certificates.
The database for use as input for mineral resource modelling and estimation has also been validated
and verified by AMS. Micromine 2020 3D geological modelling and estimation software was used for
import, validation and QC verification assessment, 3D solid modelling, geostatistics and block model
grade estimation and block model reporting. Data checks include checks for overlapping and missing
intervals, drill hole trace errors, missing survey data, lithology and collars.
As with previous resource estimates completed by AMS (2017, 2018 and 2019) wireframe solid
models were created for each domain based on a mineralisation threshold of approximately 0.2%
for Zn and Pb (approximately 0.4% Zn+Pb). Analysis of Zn and Pb grades in cross section and in
scatter plots showed a strong relationship and no requirement to model Zn and Pb separately was
identified. Ag showed a strong correlation with Pb and was estimated within the Zn/Pb mineralised
domain.
The updated wireframes were generated using Micromine’s implicit vein modelling functionality and
incorporated major fault boundaries to better honour offsets in the structure and preserve
thicknesses between intercepts. Interpretation of the mineralised domains was guided by geological
interpretation of the deposit incorporating structural and lithological boundaries and surface
expression in topographical data and outcrop mapping.
To the north west the mineralised models are truncated by the licence boundary and are extended
approximately 10m past the most south easterly drill hole which was mineralised but contained sub-
economic grades (3m at 2.4% ZnEq). The structure remains open to the south east. Down dip the
model was extrapolated approximately 50-200m below the deepest sample in the north west and
central zones, and approximately 400m below the deepest sample in the SE zone with consideration
of depths tested along strike to the NW. Extents of extrapolation are considered appropriate for the
level of information, deposit type, strike and depth extents tested, observed and geostatistical grade
continuity and the assigned resource classification.
A uniform cell block model of 25 mE, 10 mN, 25 mZ was restricted to the wireframes using block
factors. The block model was rotated by 20° in plan view to best match the trend of mineralisation.
The uniform model and 2m sample composites for the mineralised domain were then flattened to a
constant vertical plane striking 110° to account for fault offsets, improve variography and grade
mapping. Thickness was preserved in the flattening process and no lateral stretching was applied.
Block model interpolation and extrapolation for Zn, Pb and Ag was completed using directional
variograms for each element in the flattened space at the uniform block scale. Ordinary kriging was
used, and a multiple pass kriging neighbourhood used at increasing radii to prevent smearing of high
grades. The block model was then sub blocked to the mineralised wireframes in real space to best
honour thickness and volume.
Top cuts were applied to the composite assay grades for 125 g/t Ag, any value above the top cut
value was reduced to that grade. Top cuts were not deemed necessary for Zn and Pb data and
therefore no top cuts applied to Zn and Pb values used in block model grade interpolation.
Figures 5 and 6 showing grade tonnage curves, tonnage based on Zn equivalent with Pb and Ag
credits, are available at the following links:
Figure 5: Grade Tonnage Curves Inferred, tonnage based on Zn equivalent with Pb and Ag credits
is available for viewing on the following link:
http://www.rns-pdf.londonstockexchange.com/rns/1248W_1-2020-8-13.pdf
Figure 6: Grade Tonnage Curves Indicated Resources, tonnage based on Zn equivalent with Pb and
Ag credits is available for viewing on the following link:
http://www.rns-pdf.londonstockexchange.com/rns/1248W_1-2020-8-13.pdf
Classification criteria
The portion of the Toral deposit defined by drilling, underground development and channel sampling,
has been classified as an Inferred and Indicated mineral resource in accordance with JORC (2012)
based on a combination of drill spacing, geological confidence, grade continuity, previous mining
and the quality control standards achieved.
Mining and metallurgical methods and parameters
Based on the orientations, thickness and depths to which the ore body has been modelled, as well
as the estimated grade, underground mining is the intended mining methodology with froth floatation
for recovery.
Comparison with Previous Mineral Resource Estimate
The updated Mineral Resource Estimaten compares favourably with the previously reported
Indicated and Inferred Mineral Resource Estimate announced on 29 October 2019. The decrease in
total contained metal and tonnes is considered by AMS to be within estimation error and is accounted
for through updates to the mineralisation and fault models resulting in different sample configurations
and deposit geometry.
Previous Mineral Resource Estimate Announced in October 2019
Cut-Off Contained Contained Ag Troy
Tonnes Zn_Eq Zn Eq Zn Pb Ag
Zn Eq Density Zn Tonnes Pb Tonnes Oz
(Millions) (Pb)% (PbAg)% % % g/t
(PbAg)% (000s) (000s) (Millions)
Indicated
6 2.1 3 10 11 5.6 4.7 35 120 100 2.4
5 2.3 2.9 9.6 10 5.4 4.5 34 130 100 2.6
4 2.7 2.9 8.9 9.5 5 4.2 32 130 110 2.8
3 3.0 2.9 8.3 8.9 4.7 3.9 31 140 120 2.9
Inferred
6 11 2.9 8.4 8.9 5.2 3.5 26 550 360 8.8
5 12 2.9 7.9 8.4 4.9 3.2 24 610 400 9.7
4 16 2.9 7.2 7.6 4.5 2.9 22 690 450 11
3 18 2.9 6.7 7.1 4.1 2.7 21 740 480 12
Total
6 13 2.9 8.7 9.2 5.3 3.7 28 670 460 11
5 15 2.9 8.2 8.6 5 3.4 26 740 510 12
4 18 2.9 7.4 7.9 4.5 3.1 24 830 570 14
3 21 2.9 6.9 7.3 4.2 2.9 22 880 600 15
Transitional Oxide Material Total
4 3 2.9 5.8 6.3 2.8 3.2 27 87 97 2.6
Unweathered Fresh Rock Total
4 15 2.9 7.8 8.2 4.9 3.1 23 740 470 11
Table 2: October 2019 summary of Indicated and Inferred mineral resources for the Toral property reported at a 4.0% Zn equivalent cut-
off grade (including Pb and Ag credits) and estimated grade and tonnages at the various cut-off grades. Figures are rounded to reflect the
accuracy of the estimate and as such totals may not cast.
1. No mineral reserve calculations have been undertaken. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. See “Cautionary Note Concerning Reserve and Resource Estimates”.
2. Numbers are rounded to reflect the fact that an Estimate of Resources is being reported as stipulated by JORC 2012.
Rounding of numbers may result in differences in calculated totals and averages. All tonnes are metric tonnes.
3. Zn equivalent calculations were 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$2,780/t, Pb price of US$2,200/t
and Ag price of US$16.4/oz. Recovery and selling factors were incorporated into the calculation of Zn Eq values. It
is the Company’s opinion that all the elements included in the metal equivalents calculation (Zinc, Lead and Silver)
have a reasonable potential to be recovered and sold.
4. Zn Eq (PbAg)% is the calculated Zn equivalent incorporating silver credits as well as lead and is the parameter used
to define the cut-off grade used for reporting resources (Zn Eq (PbAg)% = Zn + Pb*0.935 + Ag*0.018).
5. Zn Eq is the calculated Zn equivalent using lead credits and does not include silver credits (Zn Eq = Zn + Pb*0.935).
6. The mineral resource estimate set out above for the zinc, lead and silver mineralization in the Toral project area is
based on a 3D geologic model and wireframe restricted block model that integrated the exploration work on the Toral
project up to 30 September 2019. The block model used uniform cell size of 50x4x50m to best suit the orientation of
the mineralisation and sample spacing. The block model was rotated by 20° in plan view to best match the trend of
mineralisation. Sub cells were applied to better fit the wireframe solid models and preserve accurate volume as much
as possible. Cells were interpolated at the parent block scale using an Ordinary Kriging.
7. Top cuts were applied to the composite assay grades for 20% Zn, 17% Pb and 125 g/t Ag, any value above the top
cut value was reduced to that grade.
8. The Indicated and Inferred mineral resource category for the Toral zinc-lead-silver project set out in the above table
(at cut-off grades less than 4% Zn Equivalent) comply with the resource definitions as described in Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The JORC Code, 2012 Edition. Prepared
by: The Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of
Geoscientists and Minerals Council of Australia (JORC)
9. The tonnes and grades reported at a cut-off grade of 3% Zn equivalent are below the economic cut-off grade of 4%
and as such should not be considered mineral resources, they are shown here for comparison purposes only.
The updated Mineral Resource Estimate is therefore positive in terms of increased Indicated
resource tonnes and contained metal.
• Indicated resource estimate of approximately 3.8Mt @ 8.3% Zn Equivalent (including Pb
credits) and 30g/t Ag;
• 40% increase in Indicated resource tonnes;
• 38% increase in Indicated contained tonnes of Zinc to approximately 180,000 tonnes;
• 36% increase in Indicated contained tonnes of Lead to approximately 150,000 tonnes; and
• 32% increase in Indicated contained ounces of Silver to approximately 3.7 million ounces.
Competent Person’s statement
The updated Toral resource estimate was prepared by Mr J.N. Hogg, MSc. MAIG Principal Geologist
for AMS, an independent Competent Person within the meaning of the JORC (2012) code and a
Competent Person under the AIM guidance note for mining and oil & gas companies. The updated
resource estimate was completed by Mr R. J. Siddle, MSc, MAIG Senior Resource Geologist for
AMS and Competent Person. Mr Hogg has reviewed and verified the technical information that forms
the basis of, and has been used in the preparation of, the updated Mineral Resource Estimate and
this announcement, including all analytical data, diamond drill hole logs, QA/QC data, density
measurements, and sampling, diamond and RC drilling and analytical techniques. Mr Hogg consents
to the inclusion in this announcement of the matters based on the information, in the form and context
in which it appears. Mr Hogg has also reviewed and approved the technical information in his
capacity as a Qualified Person under the AIM Rules for Companies.
Additionally, Mr Hogg confirms that AMS is not aware of any information or data that materially
affects the information contained within the Company’s previous announcements referred to herein.
For further information on the Company, please visit www.europametals.com or contact:
Europa Metals Ltd
Dan Smith, Non-Executive Director and Company Secretary (Australia)
T: +61 417 978 955
Laurence Read, CEO (UK)
T: +44 (0)20 3289 9923
Strand Hanson Limited (Nominated Adviser)
Rory Murphy / Matthew Chandler
T: +44 (0)20 7409 3494
Turner Pope Investments (TPI) Limited (Broker)
Andy Thacker
T: +44 (0)20 3657 0050
Sasfin Capital Proprietary Limited (a member of the Sasfin group) (JSE Sponsor)
Sharon Owens
T (direct): +27 11 809 7762
The information contained within this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.
United Kingdom
14 August 2020
Glossary of technical terms:
“Ag” silver;
“g” grammes;
“g/t” grammes per tonne;
“ICP” inductively coupled plasma;
“Inferred resource” that part of a Mineral Resource for which quantity and grade (or quality) are
estimated on the basis of limited geological evidence and sampling. Geological
evidence is sufficient to imply but not verify geological and grade (or quality)
continuity. It is based on exploration, sampling and testing information gathered
through appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes;
“Indicated resource that part of a Mineral Resource for which quantity, grade (or quality), densities,
shape and physical characteristics are estimated with sufficient confidence to
allow the application of Modifying Factors in sufficient detail to support mine
planning and evaluation of the economic viability of the deposit.
“JORC” the Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves, as published by the Joint Ore Reserves Committee of The
Australasian Institute of Mining and Metallurgy, Australian Institute of
Geoscientists and Minerals Council of Australia;
“JORC (2012)” the 2012 edition of the JORC code;
“m” metre;
“Mineral Resource” a concentration or occurrence of material of economic interest in or on the earth's
crust in such form and quantity that there are reasonable and realistic prospects
for eventual economic extraction. The location, quantity, grade, continuity, and
other geological characteristics of a Mineral Resource are known, estimated from
specific geological evidence and knowledge, or interpreted from a well-
constrained and portrayed geological model;
“Mt” million tonnes;
“oz” troy ounce;
“Pb” lead;
“QA/QC” quality assurance/quality control; and
“Zn” zinc.
APPENDIX: Table 1 (JORC 2012)
Section 1 Sampling techniques and data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation AMS Commentary
• Nature and quality of sampling • Historic and recent diamond drill core and underground cut channel sampling has
(e.g. cut channels, random been completed over three main phases of exploration drilling and sampling:
chips, or specific specialised o 1972 - 1984 Peñarroya – Adaro. Diamond drill core method was used to
industry standard
obtain samples for geological logging and sampling.
measurement tools
o 2006 - 2008 Lundin Mining. Diamond drill core method was used. Core
appropriate to the minerals
logging completed on paper.
under investigation, such as
down hole gamma sondes, or o Europa Metals. Diamond drill core, RC chips and underground cut
handheld XRF instruments, channel sampling methods used to obtain samples for geological
etc). These examples should logging and sampling.
not be taken as limiting the • Drill core samples were half core with an average length of 1m.
broad meaning of sampling. • No handheld XRF instruments were used.
• Channel sampling was supervised by a Europa Metals’ geologist and
samples that did not cross lithological boundaries were possible.
• The measures for sample representivity are unknown for the historical
• Include reference to measures
drilling.
taken to ensure sample
• Efforts to ensure sample representativity for the Europa Metals’ drilling
representivity and the
include:
appropriate calibration of any
o Constant review of recovery data with drill crews,
measurement tools or systems
o Review of downhole survey data while drilling in progress to ensure
used
the piece points are being intercepted,
o Always sampling the same side of the core, while leaving the
orientation line in place.
• 2006 - 2008 Lundin Mining sent half core samples for multi-element
analysis of available Peñarroya DDH samples completed at ALS Chemex
Sampling • Aspects of the determination Vancouver using ICP.
techniques of mineralisation that are • Lundin sent their core samples to ALS Chemex Vancouver for ICP analysis.
Material to the Public Report. • Europa Metals sent all samples to ALS Seville for preparation and multi-
element analysis by ICP.
• ALS Seville is accredited and conforms with ISO9001:2008.
• Historic and recent diamond drill core methods are discussed below:
o 1972 - 1984 Peñarroya – Adaro. Geological and analytical data is recorded
on hardcopy. Selective sampling method was employed around areas of
• In cases where ‘industry interest. Sampling intervals measure approx. 1m, half core sent for
standard’ work has been done analysis, with half core retained for reference. Exact details on core
this would be relatively simple processing, sampling techniques and analytical methods are unclear.
(e.g. ‘reverse circulation
o 2006 - 2008 Lundin Mining. Diamond drill core method was used. Core
drilling was used to obtain 1 m
logging completed on paper. Selective sampling method was employed
samples from which 3 kg was
pulverised to produce a 30 g around areas of interest. Sampling intervals measure approx. 1m, half core
charge for fire assay’). In other sent for analysis, with half core retained for reference. Samples typically
cases more explanation may 1m half core, with samples prepared at the then Lundin Laboratory in
be required, such as where Switzerland, then shipped to ALS Chemex Vancouver for multi-element
there is coarse gold that has analysis by ICP.
inherent sampling problems. o Europa Metals. Diamond drill core, RC chips and underground cut
Unusual commodities or channel sampling methods used to obtain samples for geological
mineralisation types (e.g. logging and sampling. Geological and analytical data is recorded on
submarine nodules) may hardcopy. Selective sampling method was employed around areas
warrant disclosure of detailed of interest. Sampling intervals measure approx. 1m, half core sent
information. for analysis, with half core retained for reference. Samples sent to
ALS Seville for preparation and multi-element analysis by ICP. Half
core and RC samples reduced to -400 microns and 100g sub-
sample taken for analysis.
• Drill type (e.g. core, reverse
circulation, open-hole hammer, • A total of 113 diamond (including wedges) and 4 RC drill holes totalling 60,915.65
rotary air blast, auger, Bangka, metres, and 19 underground channels for 18.75 metres were used as the input
sonic, etc) and details (e.g. database for geological modelling and resource estimation.
Drilling
core diameter, triple or
techniques • Drill core diameter was PQ, HQ, NQ, NQ2 and BQ depending upon depth.
standard tube, depth of
Standard tube was used for Peñarroya drilling, double tube method was used for
diamond tails, face-sampling
bit or other type, whether core Lundin and diamond Europa Metals’ campaigns.
is oriented and if so, by what • Europa Metals’ diamond core was orientated using the reflex ACT III.
method, etc).
Criteria JORC Code explanation AMS Commentary
• Total core recovery, solid core recovery, Rock Quality Designation (RQD)
and fracture frequency were recorded on hardcopy tables for the diamond
• Method of recording and
drilling.
assessing core and chip
• A total of 12,207 core recovery measurements exist in the database for the
sample recoveries and results
drilling with average recovery of 81%. The average for the Europa Metals’
assessed.
diamond drilling is 96%. Core recovery is measured over run lengths
• The drilling procedures for the historical works have not been reviewed
and as such, the measures taken for sample recovery and to ensure
Drill
sample • Measures taken to maximise representativity cannot be commented on.
sample recovery and ensure • Effortsto maximise sample recovery for the Europa Metals’ drilling include:
recovery
representative nature of the o Constant review of recovery data with drill crews,
samples. o Slowing drill rate in areas of broken ground,
o Reducing run lengths in areas of broken ground.
o Use of specific drilling fluids (stabilised slurries) in broken ground areas.
• Whether a relationship exists
• There are 319 recovery measurements within the mineralised wireframes
between sample recovery and
and statistical assessment suggests a possible slight negative bias exists
grade and whether sample
between recovery and grades, with higher recovery returning slightly lower
bias may have occurred due to
average grades
preferential loss/gain of
fine/coarse material.
• Selected intervals representing areas of interest were logged in the Peñarroya
drill holes. All Lundin and Europa Metals holes were logged in their entirety. The
• Whether core and chip historical Peñarroya core was re-logged by Europa Metals geologists in 2018 in its
samples have been entirety where the core was available.
geologically and
• Core logging was recorded on paper logs, using a combination of printed graphic
geotechnically logged to a
log templates (Peñarroya, Lundin), and paper (Europa Metals).
level of detail to support
appropriate Mineral Resource • Logging records lithology, textures, mineralisation, weathering, alteration and
estimation, mining studies and veining where appropriate.
metallurgical studies. • The core and channel logging has been completed to a sufficient level of
detail to support appropriate Mineral Resource Estimations.
• Geotechnical data for the drill holes has been reviewed.
Logging • Drill core was qualitative and quantitative in nature.
• DH lithology, alteration, mineralisation and structural observations were
recorded by variable interval based on characteristical similarities and change
• Whether logging is qualitative boundaries.
or quantitative in nature. Core • Summary interval information was inputted to Excel, comprising single code field
(or costean, channel, etc) and codes to describe logged lithology, alteration, mineralisation and major
photography. structure for the interval.
• Lundin and Europa Metals core is routinely photographed. Historical
Peñarroya core was photographed during the re-logging in 2018.
• Channel sample logging was quantitative in nature and not photographed.
• The total length and • All drill core and RC chips were logged in their entirety.
percentage of the relevant • Channel samples were logged in their entirety.
intersections logged. • Graphic and schematic logs were produced for all drilling.
• The sub-sampling techniques and sample preparation details are not
known for the Peñarroya drill core.
• If core, whether cut or sawn • Lundin and Europa Metals’ core was cut in half using a core saw.
and whether quarter, half or all Sampling was supervised by the geologist.
core taken. • Europa Metals’ field duplicates are quarter core.
• Underground channels were cut by angle grinder/circular saw. A channel
approximately 7 cm wide and 5 cm deep to obtain 2-3 kg sample.
• If non-core, whether riffled,
• Channel samples were not split. They were sent to ALS as bulk 2-3kg
tube sampled, rotary split, etc
Sub- samples.
and whether sampled wet or
sampling • RC samples were riffled at the rig and were generally dry when split.
dry.
techniques
and sample • The drilling procedures for the historical works have not been reviewed
and as such, the appropriateness cannot be commented upon. However,
preparation • For all sample types, the
the lithology and assay determinations are sufficient for an Inferred
nature, quality and
category.
appropriateness of the sample
• Channel sample collection and Europa Metals’ drilling procedures, sample
preparation technique.
size, preparation and analysis are considered appropriate for the
mineralogy and deposit type.
• The drilling procedures for the historical works have not been reviewed
• Quality control procedures
and as such, the QC procedures cannot be commented upon.
adopted for all sub-sampling
• All half core was taken on the left side.
stages to maximise
• Samples were constrained by lithology but were 1m in length where
representivity of samples.
possible or divided equally where necessary.
Criteria JORC Code explanation AMS Commentary
• Measures taken to ensure that
the sampling is representative
of the in situ material collected, • Field duplicate scattergram analysis of the samples shows a good
including for instance results correlation between the original and duplicate samples.
for field duplicate/second-half
sampling.
• Whether sample sizes are
• Statistical analysis shows that samples are appropriate to the grain size of
appropriate to the grain size of
the material being sampled.
the material being sampled.
• Historical Peñarroya assaying and laboratory procedures are unknown.
• Commercial laboratories ALS Chemex Vancouver and ALS Seville (ISO9001:2008)
were used for Lundin and Europa Metals’ drill core respectively and Europa
• The nature, quality and Metals’ underground channel sample analysis.
appropriateness of the • Multi-element analysis, including Pb, Zn, Cu, Ag by ICP-MS were completed on all
assaying and laboratory samples.
procedures used and whether • Over limits samples were re-analysed using ore grade methods of determination.
the technique is considered • Sample analytical techniques are considered in line with industry standard for
partial or total. this style of mineralisation.
• Given the expected grades, lithology and deposit type, the laboratory procedures
are considered appropriate for this level of classification.
• For geophysical tools,
spectrometers, handheld XRF
instruments, etc, the
parameters used in
• No geophysical tools, spectrometers or handheld XRF instruments were
determining the analysis
used in the exploration and resource work.
including instrument make and
model, reading times,
Quality of calibrations factors applied
assay data and their derivation, etc.
and
laboratory • QC sample insertion procedures were not employed during the historical
tests Peñarroya drill campaigns. However, Lundin re-analysis of Peñarroya drill core
pulp rejects does allow for comparison of original and pulp duplicate analysis
results for verification purposes.
• Lundin Mining completed limited quarter core field duplicate insertion and pulp
reject re-analysis. No external standards.
• Europa Metals conducted a QC programme of inserting quarter core field
• Nature of quality control duplicates, course blank and pulp blank material, standards, selection of pulp
procedures adopted (e.g. repeats and submission of pulp rejects for umpire lab re-analysis.
standards, blanks, duplicates,
• ALS Chemex and ALS Seville internal QC exists for the Peñarroya Lundin re-
external laboratory checks)
and whether acceptable levels analysis, Lundin core and Europa Metals core and channel sample batches.
of accuracy (i.e. lack of bias) • No significant issues were identified in the QC data.
and precision have been • The nature and quantity of QC data, procedures employed, level of accuracy and
established. precision are considered acceptable for the assigned resource classification. The
quality of assay data and laboratory tests is acceptable for the resource
classification for this deposit.
• Shewhart Plots of the QC samples showed no sample bias and CRMS
returned within acceptable limits.
• Nelson rules of monitoring were applied.
• The nature and quantity of QC data for the channel sampling, procedures
employed, level of accuracy and precision are considered acceptable for
the assigned resource classification.
• Drill core has been routinely verified by AMS geologists throughout the
various recent drilling programmes.
• 27 verification samples have been taken.
• The verification of significant
• Geological data from gallery is observed and reported by geologists and
intersections by either
mining engineers.
Verification independent or alternative
• Paper recorded drill hole logging data is transferred to Access, imported
of sampling company personnel.
into Micromine 3D geological modelling software for validation.
and
• No significant issues in the drill logging were observed. The logging is
assaying
accurate and suitable.
• The use of twinned holes. • There has been no verification twin drilling carried out.
Criteria JORC Code explanation AMS Commentary
• DGPS collar and survey excel data, and lab analytical data transferred from
• Documentation of primary lab.csv, to Excel and imported to Micromine 3D geological modelling software.
data, data entry procedures, • All analytical data generated from Lundin re-analysis and Lundin core samples,
data verification, data storage Europa Metals’ core and channel samples for use as input to estimation have
(physical and electronic) been verified by cross reference against lab assay certificates, re-import and re-
protocols. building of the project analytical database.
• 2018-2020 lab certificates were verified and checked against database assays.
• No adjustment to the analytical data was considered necessary, other than
• Discuss any adjustment to
conversion to zinc equivalents for reporting purposes, following industry
assay data.
best practice. Raw analytical data remained unchanged.
• Peñarroya drill hole collar locations were measured off plans and sections,
• Accuracy and quality of located on the ground and picked up using Geomax 35 high-precision DGPS
surveys used to locate drill device. Accuracy +/-5 m. Peñarroya drill hole dip and azimuth measured from
holes (collar and down-hole historical plans, cross sections and longitudinal section. Accuracy +/-5 m.
surveys), trenches, mine
• Europa Metals’ drill collar locations were surveyed using a Geomax Zenith 35
workings and other locations
DGPS device with sub-centimetre accuracy. Both RC and diamond downhole
used in Mineral Resource
estimation. surveys were competed at 5-10 m regular intervals using a REFLEX GYRO™ tool.
• Old workings were surveyed using Lieca Disto tmx310 survey device.
Location of • Data was captured and located using a Universal Transverse Mercator (UTM). The
data points • Specification of the grid geographic coordinate reference system used by the client was European
system used. Terrestrial Reference System 1989 UTM Zone 29 (‘ETRS89 / UTM29N’).
• Elevations are reported in metres above sea level.
• Topographic DTM taken from 5m resolution Lidar data MDT05-Lidar, from
• Quality and adequacy of government mapping and survey association Plan Nacional de
topographic control. Ortofotografía Aérea (PNOA).
• Topographic control is sufficient for level of resource category.
• Drill and UG channel sample data spacing across the current resource
• Data spacing for reporting of area ranges from approximately 50-100mx50-100m centres within the
Exploration Results. most densely tested area towards the NW, stepping out to approximately
200mx200m within the mid-section, and 100-200x500m in the SE.
• Whether the data spacing and
distribution is sufficient to
Data establish the degree of
spacing geological and grade • The distribution of drillholes and UG channel sampling is sufficient to
and continuity appropriate for the establish the degree of geological and grade continuity appropriate for
distribution Mineral Resource and Ore JORC (2012) Inferred classification of resources.
Reserve estimation
procedure(s) and
classifications applied.
• Length weighted averages including internal waste were applied for
• Whether sample compositing
reporting of exploration results.
has been applied.
• The details are shown with the accompanying tables.
• Whether the orientation of • Drilling and underground sampling is angled to intercept mineralised structures
sampling achieves unbiased at high angle, as close to perpendicular to dip and strike as practicable.
sampling of possible structures
• 3D review of sections shows that there appears to be no sample bias introduced
and the extent to which this is
Orientation by drilling orientation.
known, considering the deposit
of data in
type. • True thicknesses are reported in the accompanying tables.
relation to
geological • If the relationship between the
drilling orientation and the
structure • The mineralisation is a steeply dipping vein and sampling tries to reduce
orientation of key mineralised
the bias by sampling on a perpendicular plane where possible.
structures is considered to
• Review of drilling and channel sections with the lithological unit appear to
have introduced a sampling
show no obvious bias.
bias, this should be assessed
and reported if material.
Criteria JORC Code explanation AMS Commentary
• Historical Peñarroya sample security protocols are not available.
• Lundin/Europa Metals’ drill core is transported from site to logging facility in
securely covered core boxes by the Lundin/Europa Metals’ geologists.
• Core logged and sampled in secure facility.
• Samples are bagged in plastic bags and labelled with individual sample numbers,
Sample
security • The measures taken to ensure sample name and sample location. Each bag is sealed to avoid tampering and
sample security. contamination.
• Plastic bags are placed in dry weave bags.
• Samples are delivered to laboratory by courier in secured boxes/bags.
• Couriers transported the samples to ALS. The couriers were then
responsible for the chain of custody.
• The samples arrive in good condition at ALS Seville.
• Numerous site visits have been conducted to the Toral Project and core
processing facility in Ponferrada (licence number 15.199), the latest between 25th
Audits or • The results of any audits or and 27th March 2019 by Mr. James Hogg (CP), and 12th and 15th of August 2019
reviews reviews of sampling by Mr Lewis Harvey (Senior Consultant - Addison Mining Services).
techniques and data. • Data has also been reviewed on multiple occasions by AMS staff as it is received
from the laboratory and on submission of databases from Europa Metals.
• Findings were satisfactory.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation AMS Comments
• Type, reference name/number, • Toral exploration permit number 15.199 (also referred to as Permiso de
location and ownership including Investigacion), is located approximately 400km northwest of Madrid,
agreements or material issues within the Province of León, Autonomous Community of Castile and
with third parties such as joint Leon.
ventures, partnerships, overriding
• Licence 15.199 covers an area of 20.29km².
Mineral royalties, native title interests,
historical sites, wilderness or • Exploration licence 15.199 is owned by Europa Metals Iberia., a wholly
tenement and owned subsidiary of Europa Metals Ltd. The licence was renewed on
land tenure national park and environmental
settings. 14th November 2017 for a period of 3 years. A new renewal was
status
submitted 5 June 2020 for 3 additional years
• The security of the tenure held at
the time of reporting along with
• All tenements are in good standing.
any known impediments to
• AMS are unaware of any impediments that may affect the licences.
obtaining a licence to operate in
the area.
• 1972-1984 – Peñarroya-Adaro. 58 drill holes, 32 wedge drill holes.
• 1992-1995 – Geominera. Data re-evaluation.
• 2005-2008 – Lundin Mining. 7 drill holes.
• 2009-2011 – Goldquest Mining. Soil and rock geochemistry. Historic
gallery mapping. Data evaluation. NI43-101 Mineral Resource Estimate
Exploration
• 2012-2015 – Portex Mining Corporation. Geological mapping. Data re-
done by other • Acknowledgment and appraisal of
parties evaluation.
exploration by other parties.
• 2015-2016 – Goldquest Iberica S.L. Soil and rock geochemistry.
Geological mapping.
• 2016-2017 – Goldquest Iberica S.L. (Europa Metals Limited). 6 drill holes.
Historic gallery mapping and sampling. Data re-evaluation and
interpretation.
• The Toral project is located in the Southwestern part of the regional
West Asturian Leonese Zone (WALZ), a major tectono-stratigraphic unit
of the Hercynian Orogeny.
• The mineralisation at Toral is considered as structurally controlled
carbonate hosted Pb-Zn type. Shear and thrust fault controlled
Geology • Deposit type, geological setting mineralisation within favourable carbonate lithology and favourable
and style of mineralisation contrasting contacts between carbonates and shales.
• Styles of mineralisation are boudinage drusy quartz vein, replacement
breccia, disseminated clots associated with silica, carbonate and chlorite
alteration.
• Main metallic minerals are Sphalerite, Galena, Pyrite, Chalcopyrite and
silver.
• Topographic DTM taken from 5m resolution Lidar data MDT05-Lidar,
from government mapping and survey association Plan Nacional de
Ortofotografía Aérea (PNOA).
• Drilling:
• A summary of all information
material to the understanding of o Number of drillholes used: 113
the exploration results including a o Collar East: 679962mE - 684690mE
tabulation of the following o Collar North: 47086534mN - 4710598mN
information for all Material drill o Collar RL: 410mRL – 754.13mRL
holes: o Azimuth: 000° - 354°
o easting and northing of the o Dip: -90° - -40°
Drill hole
drill hole collar o Length: 35.40m – 1285.3m
Information
o elevation or RL (Reduced o Interception depth: 580mRL – -407mRL
Level – elevation above sea o 1344 Pb and Zn assay values
level in metres) of the drill o 1199 Ag assay values
hole collar • UG Channels:
o dip and azimuth of the hole o Number of channels: 27
o down hole length and o Collar East: 680917mE – 682607mE
interception depth o Collar North: 4709161mN – 4709996mN
o hole length.
o Collar RL: 447mRL – 693mRL
o Azimuth: 010° - 313°
o Dip: -24° - 19°
o Length: 0.25m – 4.25m
Criteria JORC Code explanation AMS Comments
• If the exclusion of this information
is justified on the basis that the
information is not Material and
this exclusion does not detract
• No data is being excluded.
from the understanding of the
report, the Competent Person
should clearly explain why this is
the case.
• In reporting Exploration Results,
weighting averaging techniques,
• No top cuts were applied to the Zn and Pb data for reporting of
maximum and/or minimum grade
exploration results. However, Lundin and Europa Metals samples
truncations (e.g. cutting of high
were limited to analytical method upper detection limits of 30% for
grades) and cut-off grades are
Zn, Pb.
usually Material and should be
stated.
• Where aggregate intercepts
incorporate short lengths of high
grade results and longer lengths
• Data aggregation or Grade Compositing rules for the reporting of
of low grade results, the
Data exploration drill and channel significant results were minimum
procedure used for such
aggregation width 1m, minimum average grade 0.5% ZnEq, maximum
aggregation should be stated and
methods allowable internal waste of 2m.
some typical examples of such
aggregations should be shown in
detail.
• Zn equivalent calculations were 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
• The assumptions used for any US$2,680/t, Pb price of US$2,100/t and Ag price of US$16.2/oz.
reporting of metal equivalent • Recovery and selling factors were incorporated into the calculation
values should be clearly stated. of Zn Eq values.
• It is the Company’s opinion that all the elements included in the
metal equivalents calculation (Zinc, Lead and Silver) have a
reasonable potential to be recovered and sold.
• Mineralisation is interpreted as sub-vertical to steeply dipping to
• These relationships are the NE.
particularly important in the • Drilling and underground sampling considered the nature of the
reporting of Exploration Results. mineralisation prior to commencement of exploration.
Relationship
between
mineralisation • If the geometry of the • Angled drilling is sub-perpendicular to +/- 20º oblique to mineralisation.
mineralisation with respect to the
widths and • Review of drilling and channel sections with the lithological unit appear
intercept drill hole angle is known, its
to show no obvious bias.
lengths nature should be reported.
• If it is not known and only the
• True thickness of mineralisation ranges from approximately 90%-
down hole lengths are reported,
60% downhole interval length.
there should be a clear statement
• True lengths are reported in the tables, as calculated by
to this effect (e.g. ‘down hole
Micromine.
length, true width not known’).
• Appropriate maps and sections
(with scales) and tabulations of
intercepts should be included for
• Appropriate scaled diagrams are included within the AMS Toral
Diagrams any significant discovery being
JORC (2012) Resource Statement and Technical Report.
reported. These should include,
• Tables of intercepts are included in the relevant sections.
but not be limited to a plan view
of drill hole collar locations and
appropriate sectional views.
• Where comprehensive reporting
of all Exploration Results is not • All available exploration data for the Toral deposit area has been
Balanced practicable, representative collected and reported.
reporting reporting of both low and high • Representative data from all drilling and underground channel
grades and/or widths should be sampling has been reported.
practiced to avoid misleading
reporting of Exploration Results.
• Other exploration data, if • No geophysical works have been completed.
meaningful and material, should • Geological mapping and solid geology map generation completed.
be reported including (but not • Structural interpretation and 3D modelling completed.
Other
limited to): geological • Soil geochemical surveys demonstrate strong coherent Zn in soil
substantive
exploration data
observations; geophysical survey anomalism coincident with interpreted controlling structures.
results; geochemical survey • Geotechnical tests have been carried out on 84 samples chosen by
results; bulk samples – size and Europa Metals in different lithologies. Data have been compiled from 48
method of treatment; samples tested for geotechnical studies from old reports from
metallurgical test results; bulk Peñarroya.
Criteria JORC Code explanation AMS Comments
density, groundwater, • Metallurgical testing at Wardell Armstrong’s laboratory was carried out.
geotechnical and rock The results of testwork are pending.
characteristics; potential
deleterious or contaminating
substances.
• The nature and scale of planned • Surface drilling and trenching works testing open strike extent to
further work (e.g. tests for lateral the SE and NW and infill drilling within current resource limits to
extensions or depth extensions or increase confidence and resource class.
large-scale step-out drilling). • Increased metallurgical and recovery test work.
Further work • Diagrams clearly highlighting the
areas of possible extensions,
• Appropriate scaled diagrams and maps are included within the
including the main geological
AMS Toral JORC (2012) Resource Statement and Technical
interpretations and future drilling
Report.
areas, provided this information is
not commercially sensitive
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)
Criteria JORC Code explanation AMS Comments
• Analytical data is pared by query with sampling data via sample number.
• Measures taken to ensure that • AMS has cross referenced the analytical database with laboratory
data has not been corrupted by, certificates.
for example, transcription or • Micromine 3D geological modelling and estimation software used for
keying errors, between its initial import, validation and QAQC verification assessment.
collection and its use for Mineral • Basic core and sample storage, handling, data capture and transfer
Database Resource estimation purposes. methodologies discussed and are considered satisfactory.
integrity • The database is suitable for use for use in Mineral Resource Estimates.
• Micromine 2020 software was used to validate the channel sampling
and drill hole databases.
• Data checks include overlapping and missing intervals, trace errors,
• Data validation procedures used. missing survey and coordinate data, lithology, consistency of sample
lengths interval files. Checks for out of range values were also made.
• No significant errors were found within the database. Some minor
typographical errors were identified and fixed.
• The Competent Person for the resource estimation is Mr. James Hogg.
Mr Hogg’s, last site visit was completed between the 4th and 5th of
• Comment on any site visits December 2019.
undertaken by the Competent
• The last site visit by AMS was completed between the 12th and 15th of
Person and the outcome of those
August 2019 by Mr Lewis Harvey (Senior Consultant - Addison Mining
Site visits visits.
Services).
• Site visits have not identified any issues relating to the reporting of
mineral resources.
• If no site visits have been • Site visits have been undertaken.
undertaken indicate why this is
the case.
• Based upon the level of available information, geological and
• Confidence in (or conversely, the deposit complexity, interpretation of the main lithological
uncertainty of) the geological boundaries and controls to mineralisation are considered
interpretation of the mineral satisfactory and appropriate for the assigned resource class.
deposit. • Fault modelling is simplified, and further refinement will improve
the models accuracy moving forward.
• Drillhole lithological and analytical information, prospect scale surface
geological mapping, underground mapping and sampling, location of
Geological underground workings were used in geological interpretation.
interpretation • Nature of the data used and of
• Mineralisation is modelled as a continuous unit within the major fault
any assumptions made.
units, however it is anticipated some smaller scale faulting and offset
post mineralisation will be present which is not accounted for in
modelling.
• Alternative interpretations infer potential thrust repeats and
• The effect, if any, of alternative potential for additional parallel mineralised zones. However, at the
interpretations on Mineral level of information this interpretation remains unsupported by drill
Resource estimation. data and conceptual in nature.
Criteria JORC Code explanation AMS Comments
• Drillhole lithological and analytical information and underground
channel mapping and sampling were used in geological
• The use of geology in guiding and interpretation.
controlling Mineral Resource • The geological model was used to guide the interpretation and
estimation. continuity of Zn-Pb mineralised domains.
• Post mineralisation transfer faults are interpreted to affect continuity by
minor offset.
• Grade continuity is currently interpreted to be slightly greater down dip
forming “shoots”. Faulting effects geological continuity on a local scale
• The factors affecting continuity
both of grade and geology. (50-100 m) perpendicular to the strike on mineralisation.
• The extent and variability of the • Mineralisation is encountered at surface and based on current testing,
Mineral Resource expressed as extends to approximately 1,100m below the surface. Mineralisation is
Dimensions length (along strike or otherwise), currently tested across a 3,600m strike length, the orientation of
plan width, and depth below mineralisation zone is approximately 110 degrees, averaging
surface to the upper and lower approximately 3.5m in thickness and ranging from ~2m to ~5.5m.
limits of the Mineral Resource. • Mineralisation is encountered at surface as a process of the incisions.
• Wireframe restricted block models were interpolated by ordinary kriging
and are considered by the competent person to be appropriate for the
resource estimate.
• To the north west the mineralised models are truncated by the licence
boundary and are extended approximately 10m past the south easterly
most drillhole which was mineralized but contained sub-economic
grades (3m at 2.4% ZnEq). The structure remains open to the south east.
Down dip the model was extrapolated approximately 50-200m below
the deepest sample in the north west and central zones, and
approximately 400m below the deepest sample in the SE zone with
• The nature and appropriateness consideration of depths tested along strike to the NW. Extents of
of the estimation technique(s) extrapolation are considered appropriate for the level of information,
applied and key assumptions, deposit type, strike and depth extents tested, observed and
including treatment of extreme geostatistical grade continuity and the assigned resource classification.
grade values, domaining, • A uniform cell block model of 25 mE, 10 mN, 25mZ was restricted to the
interpolation parameters and wireframes using block factors. The block model was rotated by 20° in
maximum distance of plan view to best match the trend of mineralisation. The uniform model
extrapolation from data points. If and 2m sample composites for the mineralized domain were then
a computer assisted estimation flattened to a constant vertical plane striking 110° to account for fault
method was chosen include a offsets, improve variography and grade mapping. Thickness was
description of computer software preserved in the flattening process and no lateral stretching was applied.
and parameters used. • Block model interpolation and extrapolation for Zn, Pb and Ag was
Estimation and completed using directional variograms for each element in the
modelling flattened space at the uniform block scale. Ordinary Kriging was used,
techniques and a multiple pass kriging neighbourhood used at increasing radii to
prevent smearing of high grades. Search passes were 130 along strike
and 150 down dip with a minimum of 2 drillholes and a maximum of 8
composites, the same radii with 1 drillhole, then 300 x300 with
minimum 2 drillholes and a maximum of 16 composites and finally 450
x450 1 minimum drillhole and a maximum of 16 composites. The block
model was then sub blocked to the mineralized wireframes in real space
to best honour thickness and volume.
• The estimates have been reconciled against previous AMS
• The availability of check estimates.
estimates, previous estimates • The increases / decreases are related to data confidence and
and/or mine production records additional samples and updated fault models.
and whether the Mineral • A full description for the differences is described in the body text.
Resource estimate takes • There are no historical production records to validate against.
appropriate account of such data.
• It is the opinion of the Company that Ag will be recovered along
with Pb and Zn and a credit payed on refining.
• The assumptions made regarding
recovery of by-products.
Criteria JORC Code explanation AMS Comments
• No estimation of deleterious elements has been made at this time
and it is anticipated this will be conducted on completion of a block
• Estimation of deleterious model which is to be used for PFS.
elements or other non-grade
variables of economic
significance (e.g. sulphur for acid
mine drainage characterisation).
• The block size of 25 m is typically 1/3 to 1/5 of the drill spacing
with greater and lesser spacing in areas of more sparse and more
• In the case of block model dense drilling. The 25 m block size was chosen to better map
interpolation, the block size in variability within the area of indicated resources.
relation to the average sample
spacing and the search
employed.
• Wireframe models included minimum anticipated mining width of
~2m.
• Any assumptions behind
modelling of selective mining
units.
• As with previous resource estimates completed by AMS (2017,
2018) wireframe solid models were created for each domain based
on a mineralisation threshold of approximately 0.2% for Zn and Pb
• Any assumptions about (approximately 0.4% Zn+Pb).
correlation between variables. • Analysis of Zn and Pb grades in cross section and in scatter plots
showed a strong relationship and no requirement to model Zn and
Pb separately was identified. Ag showed a strong correlation with
Pb and was estimated within the Zn/Pb mineralised domain.
• The updated wireframes were generated using Micromine’s implicit vein
modelling functionality and incorporated major fault boundaries as
inclined and vertical planes. Interpretation of the mineralised domains
• Description of how the geological was guided by geological interpretation of the deposit incorporating
interpretation was used to control
structural and lithological boundaries such as footwall slate contacts and
the resource estimates.
surface expression in topographical data and outcrop mapping.
• Top cutting was performed on Ag composite sample data due to a
number of extreme outliers leading to a skewed dataset.
• Top cuts were applied to the composite assay grades for 125 g/t Ag, any
• Discussion of basis for using or value above the top cut value was reduced to that grade.
not using grade cutting or
• Capping was based on analysis of Histograms and cumulative sums.
capping.
• Review of updated Zn and Pb composite sample data indicates no top
cuts were necessary.
• The block model was validated visually in long section and cross
section to inspect assay grades vs block grades, particular
• The process of validation, the attention was given to areas of low grade that may be influenced
checking process used, the by higher grade samples within search radii. The mean values
comparison of model data to drill including declustered mean of the input data were compared
hole data, and use of against the output data along with comparison of histograms.
reconciliation data if available. Several sensitivity checks were completed using different kriging
neighbourhoods.
• Whether the tonnages are • Tonnages are estimated on a dry basis.
Moisture estimated on a dry basis or with
natural moisture, and the method
of determination of the moisture
content.
• An economic cut off grade of 4% Zn equivalent including Pb and Ag
credits was used. (Zn Eq (PbAg)% = Zn + Pb*0.926 + Ag*0.019). As
Cut-off • The basis of the adopted cut-off determined in the AMS scoping study 2018. Relative recoveries and
parameters grade(s) or quality parameters selling costs were taken into account.
applied. • Zn equivalent calculations were 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
Criteria JORC Code explanation AMS Comments
US$2,100/t and Ag price of US$16.2/oz.
• Assumptions made regarding • Assumed mining methods are based upon a review of methods of
possible mining methods, extraction, cost and performance on similar type deposits. Summary of
minimum mining dimensions and mining and processing costs used in determination of economic cut off.
internal (or, if applicable, external) Mechanised Cut and fill mining method assumed.
mining dilution. It is always • Total Mining Processing and Rehab cost estimated at US$68/t. Mining
necessary as part of the process recovery and dilution assumed at 93% and 5%.
of determining reasonable
prospects for eventual economic
Mining factors
extraction to consider potential
or assumptions
mining methods, but the
assumptions made regarding
mining methods and parameters
when estimating Mineral
Resources may not always be
rigorous. Where this is the case,
this should be reported with an
explanation of the basis of the
mining assumptions made.
• The basis for assumptions or • Assumed processing methods are based upon a review of methods of
predictions regarding extraction, cost and performance of similar type deposits.
metallurgical amenability. It is • Assumed metallurgical recoveries are Zn 87.5%, Pb 92.5% and 80% Ag.
always necessary as part of the • Assumed concentrate selling factors are Zn 85%, Pb 95%, Ag 90%
process of determining
reasonable prospects for eventual
Metallurgical economic extraction to consider
potential metallurgical methods,
factors or
but the assumptions regarding
assumptions
metallurgical treatment processes
and parameters made when
reporting Mineral Resources may
not always be rigorous. Where
this is the case, this should be
reported with an explanation of
the basis of the metallurgical
assumptions made.
• Assumptions made regarding • No assumptions are made on environmental factors other than the
possible waste and process cost to back fill waste tailings.
residue disposal options. It is • Flora and fauna studies were started in 2019 by the companies and
always necessary as part of the institution of “Universidad de Leon” and “Mas que pájaros, biologia,
process of determining ecoturismo y medioambiente S.L”. Their report is pending.
reasonable prospects for eventual • AMS has not reviewed any Environmental, Social and Permitting (ES&P)
economic extraction to consider documents or licences.
the potential environmental
• AMS understands that there are no legal or project permitting,
impacts of the mining and
Environmental environmental and social settings issues or risks.
processing operation. While at
factors or this stage the determination of • No red flags were identified via the site visit or study desk review.
assumptions potential environmental impacts,
particularly for a greenfields
project, may not always be well
advanced, the status of early
consideration of these potential
environmental impacts should be
reported. Where these aspects
have not been considered this
should be reported with an
explanation of the environmental
assumptions made.
• Whether assumed or determined. • The bulk density was calculated using the Archimedes method
If assumed, the basis for the weighting the samples in air and water using a Kern precision
assumptions. If determined, the balance.
method used, whether wet or dry, • Bulk density measurements were carried out on most of the
the frequency of the drillholes, in both mineralised and un-mineralised samples.
measurements, the nature, size • The resource database contains 2,405 bulk density
and representativeness of the measurements. There are 193 measurements within the
Bulk density
samples. mineralised wireframe.
• The bulk density for bulk material • No bulk material was measured.
must have been measured by
methods that adequately account
for void spaces (vugs, porosity,
etc), moisture and differences
between rock and alteration
zones within the deposit.
Criteria JORC Code explanation AMS Comments
• The mean for the mineralised domain transitional zone is 2.75
g/cm3 and the mean for mineralised domain fresh material is 2.85
• Discuss assumptions for bulk
g/cm3.
density estimates used in the
• A broad linear relationship between Pb+Zn grade and Bulk Density
evaluation process of the different
was identified from scattergrams and the formula 2.75 +
materials.
0.02(Pb+Zn%) used to estimate block density related to grade
within the block model.
• The classification of Indicated resources was based on
identification of blocks which had been interpolated during the first
kriging search with a minimum of 2 drillholes and radii 130 along
strike and 150 down dip. All blocks meeting this criteria were
• The basis for the classification of
considered but were reduced to a single area to avoid isolated
the Mineral Resources into
“spots” and to include the area with most recent an most reliable
varying confidence categories.
drilling and greatest kriging efficiencies over a consistent area. The
area was smoothed to make a consistent unit. Only material in the
fresh rock, unweathered domain was classified as indicated.
• All other blocks were classified as Inferred resources
• Whether appropriate account has • The assigned classification of Inferred and Indicated reflects the
been taken of all relevant factors Competent Persons’ assessment of the accuracy and confidence levels in
Classification (i.e. relative confidence in the input data and the resulting Mineral Resource Estimate.
tonnage/grade estimations,
reliability of input data, confidence
in continuity of geology and metal
values, quality, quantity and
distribution of the data).
• The result reflects the quality and quantity of data, geostatistical
analysis of correlation and relationship between mineralised
samples (semi-variography) and the Competent Person’s view of
• Whether the result appropriately
the deposit.
reflects the Competent Person’s
view of the deposit. • The semi-variography reflects the sample density.
• The 2020 Mineral Resource has been reviewed internally as part of
normal validation processes by AMS.
• The AMS 2020 resource estimate has not been audited or reviewed
Audits or • The results of any audits or externally at the time of writing.
reviews reviews of Mineral Resource
estimates.
• Where appropriate a statement of • It is the Competent Person’s opinion that the level of confidence is
the relative accuracy and consistent with the level of Inferred and Indicated categorised
confidence level in the Mineral mineral resources.
Resource estimate using an • Geostatistical assessment of confidence limits such as conditional
approach or procedure deemed simulation of grades has not been conducted at this time.
appropriate by the Competent • Interpretation of the thickness and therefore volume of the
Person. For example, the mineralisation along with bulk density have the greatest effect on the
application of statistical or contained metal.
geostatistical procedures to
• Kriging neighbourhood and the control of higher grade samples and
quantify the relative accuracy of
preventing them from over smoothing is also important in producing a
the resource within stated
Discussion of confidence limits, or, if such an realistic estimate.
relative approach is not deemed • It is the Competent Person ’s opinion that the level of confidence is
accuracy/ appropriate, a qualitative consistent with the level of Indicated and Inferred categorised
confidence discussion of the factors that mineral resources.
could affect the relative accuracy
and confidence of the estimate.
• The statement should specify • The estimate is a local estimate to the 25m block scale; however
whether it relates to global or the data density is too sparse to allow modelling of selective units
local estimates, and, if local, state inside of the 25m panel scale.
the relevant tonnages, which • As with all kriged estimates there is a degree of smoothing.
should be relevant to technical
and economic evaluation.
Documentation should include
assumptions made and the
procedures used.
Criteria JORC Code explanation AMS Comments
• There are no historical production records from the deposit.
• These statements of relative
accuracy and confidence of the
estimate should be compared
with production data, where
available.
Date: 14-08-2020 08:00:00
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