Wrap Text
Quarterly Activities and Cashflow Report For the period ended 30 September 2018
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")
Quarterly Activities and Cashflow Report For the period ended 30 September
2018
Highlights:
- Increase in JORC (2012) inferred resource estimate for the Company’s wholly owned Toral
lead-zinc-silver project (the “Toral Project”) from 16 million tonnes (“Mt”) at 6.9% Zn
Equivalent (including Pb credits) and 25 g/t Ag to 19Mt at 6.9% Zn Equivalent (including
Pb credits) and 24 g/t Ag, representing a 19% increase in the overall tonnage.
- Successful mobilisation of a Reverse Circulation (“RC”) and Diamond drilling rig (the
“Combination rig”) to the Toral Project site.
- Re-logging of historical core from the Toral Project, stored at the National Litoteca in
Andalucia, Spain, conducted by the Company’s geological team. The re-logging exercise
and associated specific gravity testing generated valuable additional data, including:
- weathering profiles;
- detailed lithology;
- structural controls; and
- a refined understanding of specific gravity within the mineralised envelope.
- The Company’s initial scoping study on the Toral Project, being prepared under the guidance
of UK based Addison Mining Services Limited (“AMS”), is ongoing and remains on schedule.
Fundraising of £563,516 (approximately A$0.98m) (before expenses), through the issue of
727,118,650 new ordinary shares of no par value each in the capital of the Company at an issue
price of 0.0775 pence per share.
Operational - Toral Project, Spain
On 16 July 2018, the Company announced that it had secured a Combination rig for mobilisation
to its Toral Project site located in the Province of Leon, northern Spain, during August 2018.
The Combination rig and associated operating crew was to be supplied by Sondeos y
Perforaciones Industriales de Bierzo SA (“SPI”) and overseen by the Company’s on-site
exploration team. The rig is one of only a few of its type in Spain and such rigs are used
extensively on Australian drilling programmes.
On 28 August 2018, the Company announced that the abovementioned Combination rig had
been successfully mobilised to site with drilling to initially ascertain the potential continuation of
the mineralised structure outside of the project’s current defined JORC (2012) resource area.
With a significant inferred resource estimate already established for the main Toral Project area,
the extension drilling to the east will seek to identify the presence of further
mineralisation/hosting structures. Subsequent to completion of the extension drilling, the
Company was to concentrate on drilling within the upper zone of the identified JORC (2012)
resource area, before moving on to a Phase II programme, targeting key areas within the high
grade zone of the inferred resource in order to increase resource confidence levels. In addition,
the Company announced that, further to an intensive 6 week process, its new geological team
had successfully re-logged all priority intersections from the historical drill core from the Toral
Project stored at the National Litoteca, located in Andalucia, Spain.
On 13 September 2018, the Company announced that the Board had decided to initiate the
Change of Land Use processes needed for the potential full future development of a mine at its
Toral Project and had engaged a specialist consultancy, MAGMA Soluciones Ambientales SL,
to initiate and progress the requisite applications across the three distinct municipalities
overlapping the project’s licence area. The process was estimated to take approximately 18
months.
On 20 September 2018, the Company announced an updated JORC (2012) mineral resource
estimate for its Toral Project. The abovementioned re-logging of historic drill core held at the
National Litoteca from the Toral Project had resulted in significantly higher bulk density
measurements than those used for the Maiden resource estimate completed by AMS between
November 2017 and January 2018, as announced by the Company on 6 February 2018.
Accordingly, the updated mineral resource estimate for the Toral lead-zinc-silver deposit
comprised:
- 19Mt @ 6.9% Zn Equivalent (including Pb credits) and 24g/t Ag
- 720,000 tonnes of Zinc, 570,000 tonnes of Lead and 14 million ounces of Silver
Corporate
On 30 July 2018, the Company announced the expiry of 205,949,134 unlisted options
exercisable at £0.003 per share on or before 29 July 2018.
On 10 August 2018, and further to its previous announcement of 27 July 2018, the Company
announced that it had raised approximately £563,516 (approximately A$0.98m) (before
expenses), through the placement of 727,118,650 new ordinary shares of no par value each in
the capital of the Company at an issue price of 0.0775 pence per share. The new ordinary
shares were issued under the Company’s existing placement capacity under ASX Listing Rule
7.1. The net proceeds from the fundraising are to be utilised towards funding the Phase II work
programme at the Toral Project, as well as providing additional general working capital for the
Group.
Post Period end
On 4 October 2018, the Company announced, that following the successful mobilisation to site
of the Combination rig, all of the planned Phase I RC drilling on its Toral Project had been
completed with samples being sent to external laboratories for independent assay. The RC
extension drilling was designed to identify new areas of mineralisation stepping out from the
existing defined JORC (2012) resource area at the project. In addition, a diamond drilling
programme has commenced targeting key areas situated within the existing resource area.
The objective of the Phase II diamond infill drill programme is to increase and enhance the
Company’s understanding and confidence in the existing resource in areas that currently
contain inferred mineralisation as defined under the JORC (2012) code. Infill drilling will
ultimately seek to upgrade the existing inferred resources to indicated and will form a key
component of a planned future full feasibility study.
The Company also provided an update on the initial scoping study being undertaken by AMS.
Following sustained work on the scoping study, the following elements had been identified and
established as development options for a potential future mining operation at the Toral site:
- adoption of a cut and fill method of mining in order to reduce waste and footwall
dilution;
- decline entry followed by a raised bore production shaft (reduced shaft cost and
expenditure on raised bore commenced only at a time nearer to future production);
- standard two-stage flotation process - depressing the zinc and floating the lead;
- fully mechanised utilising an appropriate level of technology for a project of Toral’s
size; and
- requisite permitting and environmental pathways determined and/or underway.
The Company is now working closely with AMS to incorporate the new data from its recent
JORC (2012) resource update and other workflows in order to complete the scoping study and
a further update will be provided in due course.
The Company today announces that Turner Pope Investments (TPI) Limited has assumed the
role of sole broker to the Company with immediate effect.
In addition, Europa Metals today announces that the Company has relinquished all rights to the
Lago lead-zinc licences located in the province of Galicia, Spain. The Company continues to
believe that the area is highly prospective for lead-zinc but both the size and location of the
Lago licence areas does not justify and support incurring maintenance and exploration
expenditure at this time. The Company has received confirmation of this relinquishment and
remains in dialogue with the Junta de Galicia to determine opportunities for future exploration
to define potential underground mines in the region. Accordingly, all of the Company’s active
operational expenditure will continue to be focused on its Toral Project.
The Company further announced today that its abovementioned RC extension drilling campaign
had intersected lead, zinc and silver mineralisation in each of the four holes drilled to the east
of the existing resource.
Accordingly, structural continuity has been confirmed to the east of the existing defined resource
area, with each RC drill hole encountering limestone/slate contact containing mineralisation,
and drill hole TOR-14, in particular, assayed unexpectedly high-grade results near to surface.
The cost effective RC drilling programme targeted areas all within 300 metres of surface. The
current Phase II Diamond Drilling programme is being conducted within the pre-existing defined
resource area, with the first holes of infill drilling completed on budget and to schedule .
Additional Information
Corporate Changes
On 24 September 2018, the Company announced a change in its registered office address to
c/- Minerva Corporate Pty Limited, Level 8, 99 St Georges Terrace, Perth WA 6000.
Laurence Read, Executive Director of Europa Metals, today commented:
“The third quarter of 2018 and subsequent period to date, has seen the Company achieve an
increase in the Toral Project’s inferred resource estimate, completion of the Phase I RC drilling
programme and commencement of a Phase II diamond infill drill programme, a successful re-
logging exercise of historic core to provide valuable additional data and sustained progress on
the preparation of the initial scoping study. I commend the exploration team for its hard work
and we remain committed to proving-up the potential of the Company’s promising Toral asset.”
Exploration Interests
The following listing of permits held by the Company is provided in accordance with ASX Listing
Rule 5.3 for the quarter ended 30 September 2018:
Project Location Right Number Right Status Holder Percentage
Interest
Toral Leon Province, 15.199 Investigation GoldQuest 100%
Spain Permit Iberica, S.L.
Lago Galicia Province, Lago II 6.056 Exploration GoldQuest 100%*
Spain Permit in Iberica, S.L.
progress
Lago III 6.058 Investigation
Permit in
progress
Note:
* - The two Lago permits were relinquished post the quarter end.
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10,
01/05/13, 01/09/16
Name of entity
Europa Metals Ltd
ABN Quarter ended (“current quarter”)
58 097 532 137 30 September 2018
Consolidated statement of cash flows Current quarter Year to date (3
$A’000 months)
$A’000
1. Cash flows from operating activities
1.1 Receipts from customers
1.2 Payments for
(a) exploration & evaluation (364) (364)
(b) development
(c) production
(d) staff costs
(e) administration and corporate costs (384) (384)
1.3 Dividends received (see note 3)
1.4 Interest received
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Research and development refunds
1.8 Other (provide details if material) 38 38
1.9 Net cash from / (used in) operating (710) (710)
activities
2. Cash flows from investing activities
2.1 Payments to acquire:
(a) property, plant and equipment
(b) tenements (see item 10)
(c) investments
(d) other non-current assets
2.2 Proceeds from the disposal of:
(a) property, plant and equipment
(b) tenements (see item 10)
(c) investments
(d) other non-current assets
2.3 Cash flows from loans to other entities
2.4 Dividends received (see note 3)
2.5 Other (provide details if material)
2.6 Net cash from / (used in) investing - -
activities
Consolidated statement of cash flows Current quarter Year to date (3
$A’000 months)
$A’000
3. Cash flows from financing activities
3.1 Proceeds from issues of shares 987 987
3.2 Proceeds from issue of convertible notes
3.3 Proceeds from exercise of share options
3.4 Transaction costs related to issues of (59) (59)
shares, convertible notes or options
3.5 Proceeds from borrowings
3.6 Repayment of borrowings
3.7 Transaction costs related to loans and
borrowings
3.8 Dividends paid
3.9 Other (provide details if material)
3.10 Net cash from / (used in) financing 928 928
activities
4. Net increase / (decrease) in cash and
cash equivalents for the period
4.1 Cash and cash equivalents at beginning of
period 1,272 1,272
4.2 Net cash from / (used in) operating (710) (710)
activities (item 1.9 above)
4.3 Net cash from / (used in) investing activities - -
(item 2.6 above)
4.4 Net cash from / (used in) financing activities 928 928
(item 3.10 above)
4.5 Effect of movement in exchange rates on (11) (11)
cash held
4.6 Cash and cash equivalents at end of 1,479 1,479
period
5. Reconciliation of cash and cash Current quarter Previous quarter
equivalents $A’000 $A’000
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
5.1 Bank balances 1,479 1,272
5.2 Call deposits
5.3 Bank overdrafts
5.4 Other (provide details)
5.5 Cash and cash equivalents at end of 1,479 1,272
quarter (should equal item 4.6 above)
6. Payments to directors of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to these parties included in item 1.2 96
6.2 Aggregate amount of cash flow from loans to these parties included
in item 2.3
6.3 Include below any explanation necessary to understand the transactions included in
items 6.1 and 6.2
Directors Fees $75,000, Company Secretarial and Accounting $21,000
7. Payments to related entities of the entity and their Current quarter
associates $A'000
7.1 Aggregate amount of payments to these parties included in item 1.2
7.2 Aggregate amount of cash flow from loans to these parties included
in item 2.3
7.3 Include below any explanation necessary to understand the transactions included in
items 7.1 and 7.2
8. Financing facilities available Total facility amount Amount drawn at
Add notes as necessary for an at quarter end quarter end
understanding of the position $A’000 $A’000
8.1 Loan facilities
8.2 Credit standby arrangements
8.3 Other (please specify)
8.4 Include below a description of each facility above, including the lender, interest rate and
whether it is secured or unsecured. If any additional facilities have been entered into or are
proposed to be entered into after quarter end, include details of those facilities as well.
9. Estimated cash outflows for next quarter $A’000
9.1 Exploration and evaluation 700
9.2 Development
9.3 Production
9.4 Staff costs
9.5 Administration and corporate costs 460
9.6 Other (provide details if material)
9.7 Total estimated cash outflows 1,160
10. Changes in Tenement reference and Nature of Interest Interest
tenements location interest at at end
(items 2.1(b) and beginnin of
2.2(b) above) g of quarter
quarter
10.1 Interests in mining
tenements and
petroleum
tenements lapsed,
relinquished or
reduced
10.2 Interests in mining
tenements and
petroleum
tenements acquired
or increased
Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which
comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Sign here: Lodged electronically
Date: 31 October 2018
Print name:
Daniel Smith
Company Secretary
Notes
1. The quarterly report provides a basis for informing the market how the entity’s activities have been
financed for the past quarter and the effect on its cash position. An entity that wishes to disclose
additional information is encouraged to do so, in a note or notes included in or attached to this
report.
2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the
definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared
in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A,
the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows
from investing activities, depending on the accounting policy of the entity.
Competent Person’s statement
The updated Toral inferred resource estimate was prepared by Mr J.N. Hogg, MSc. MAIG Principal
Geologist for Addison Mining Services Limited (“AMS”), an independent Competent Person within the
meaning of the JORC (2012) code and a qualified person under the AIM guidance note for mining and oil
& gas companies. The updated inferred resource estimate was aided by Mr R.J. Siddle, MSc, MAIG
Senior Resource Geologist for AMS, under the guidance of the 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, including all analytical data, diamond drill hole logs, QA/QC data,
density measurements, and sampling, diamond 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 the entity is not aware of any new 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, Executive Director (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 3621 4120
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.
Perth
31 October 2018
Date: 31/10/2018 08:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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