Wrap Text
100% Zn, Pb & Ag mineralization Intersected in all RC Extension drill holes, Toral Project, Spain
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")
Zn, Pb and Ag mineralisation intersected in all RC Extension drill holes, Toral
Project, Spain
Highlights:
Resource expansion potential identified at the Company’s wholly owned Toral lead-zinc-silver
project, northern Spain (“Toral” or the “Toral Project”)
Four hole extension drilling campaign extends the boundaries of the mineralisation 200 metres
to the east of the pre-existing defined JORC (2012) mineral resource estimate
Structural continuity confirmed to the east of the pre-existing resource area, with every Reverse
Circulation (“RC”) drill hole encountering limestone/slate contact containing Zn, Pb and Ag
mineralisation
Drill hole TOR-14 assayed unexpectedly high-grade results near to surface
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
Europa Metals, the European lead-zinc explorer, is pleased to announce assay results from its
recently completed Phase 1 drilling campaign at its wholly owned Toral Project. The RC drilling
programme intersected Zn, Pb & Ag mineralisation in all 4 holes drilled, targeting to a depth within
300 metres of the topographic surface. This campaign is the first by Europa Metals’ geological team
in Spain outside of the pre-existing defined JORC (2012) resource area for the Toral Project and
extends the presence of known mineralisation 200 metres east of the current block model. As
announced on 20 September 2018, the Toral Project has an existing JORC (2012) Inferred mineral
resource estimate of 19Mt@6.9% Zn Equivalent (including Pb credits) and 24g/t Ag.
All objectives of the RC drilling programme were met following the identification of the mineralised
contact zone along the Toral Licence area. Europa Metal’s geological team is also considering the
results of the TOR-14 drill hole that returned 2 metres at 11.72% zinc equivalent from 251-253 metres.
This level of grade was not anticipated within 300 metres of surface and the Company is analysing
how this assay result impacts its understanding of the new Eastern Extension of the mineralised
zone. The RC drilling campaign further demonstrates the prospectivity of the project’s licence area
and of the potential for hosting a future sustainable zinc, lead and silver mining operation.
Phase 1 RC Drilling
As announced on 4 October 2018, Europa Metals completed a limited RC drilling programme at the
eastern end of the Toral deposit, with two objectives:
1. To investigate the possibility of an extension of the known contact zone of limestone/slate
which hosts the mineralisation at the Toral Project outside of the current block model limits
(Holes TOR-14 and TOR-15); and
2. To gain further insight into the positioning of the contact zone within the eastern end of the
current block model (Holes TOR-16 and TOR-17).
The Phase I drilling has successfully confirmed both the extension of the deposit and the continuity
of the mineralised structure at the eastern margin of the resource.
Set out in Table 1 below are the significant intersections returned from each of the four RC drill holes:
RL Depth Width Pb Zn Ag Zn Equiv
Hole ID Northing Easting Azi Dip From To
(m) (m) (m)* % % (ppm) (PbAg)%
TOR-14 4708695 683496 530 29 -45 290 251 253 2 2.39 8.66 34.9 11.72
TOR-15 4708701 683643 532 25 -44 242 220 221 1 1.06 2.95 7.4 4.13
TOR-16 4709127 683390 664 208 -47 310 278 279 1 1.3 0.28 4.3 1.62
TOR-17 4709146 683299 649 209 -45 267 249 250 1 0.39 1.12 9.3 1.69
Table 1: Significant intercepts from Phase I RC drill campaign. For Zn Equivalent calculation, see appendix.
*True thickness is approximately 90% of the drill thickness.
Notes:
1. Zn equivalent calculations were based on 3-year trailing average price statistics obtained from the London Metal
Exchange and London Bullion Market Association resulting in an average Zn price of US$2500/t, Pb price of
US$2100/t and Ag price of US$17/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 ultimately recovered and sold in the future.
2. 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 to be used for the future reporting of resources (Zn Eq (PbAg)% = Zn + Pb*0.96 +
Ag*0.022).
Myles Campion, Executive/Technical Director of Europa Metals, commented:
“Our RC drilling programme has efficiently and effectively increased the footprint of the Toral Project
by an additional 200m to the east and has further delineated the contact zone in an under drilled
area. The programme has also been a very useful exercise in bedding down and refining operating
procedures and systems as we proceed with our Phase II diamond drilling programme.
“This new assay data and geological data will add to our growing geological understanding of the
deposit, and when combined with our recent re-logging exercise and ongoing mapping, will further
direct our focus on maximising value for our promising Toral Project.”
Laurence Read, Executive Director of Europa Metals, commented:
“The first full drill campaign to be undertaken by the Company’s new geological team outside of the
pre-existing defined resource area has successfully achieved a 100% strike rate for lead, zinc and
silver mineralisation at the Toral Project confirming continuity of prospective metal along strike. The
drilling conducted outside of the known pre-existing JORC (2012) resource area demonstrates that
the future potential for the project is not just in relation to its comparatively high grade (6.9% zinc
equivalent), currently defined across the 19Mt inferred resource estimate, but also in respect of the
on-going delineation of an underlying ore body present within the licence area.”
Competent Person’s statement
The existing Toral Project 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 qualified person under the AIM guidance note for mining and oil & gas companies. The 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 existing mineral resource estimate
and this announcement, including all analytical data, diamond and RC 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 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.
Glossary of technical terms:
“Ag” silver;
“g” grammes;
“g/t” grammes per tonne;
“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;
“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 Appendix 5A ASX Listing Rules (JORC 2012)
Section 1 Sampling techniques and data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary related to the Toral Project
Sampling Nature and quality of sampling (e.g. cut channels, 2018 RC drilling by Europa Metals.
techniques random chips, or specific specialised industry
standard measurement tools appropriate to the RC drill chips and splitting were used for geological logging and sampling. Geological and analytical data is recorded on
minerals under investigation, such as down hole hardcopy. Selective sampling method was employed around areas of interest.
gamma sondes, or handheld XRF instruments, etc).
These examples should not be taken as limiting the RC drill samples are collected and split over 1m intervals on site using a three tier riffle splitter to provide an approximate
broad meaning of sampling. 3-5kg sample. Samples are further split in the core shed using a scoop such that 0.7-1kg and sent to the preparation
Include reference to measures taken to ensure laboratories of ALS (Seville, Spain) and analytical laboratory of ALS (Loughrea, Ireland). Samples are dried, fine crushed
sample representivity and the appropriate calibration down to 70% below 2mm, split to obtain 250g and pulverised with at least 85% of the sample passing75µm.
of any measurement tools or systems used.
Aspects of the determination of mineralisation that
are Material to the Public Report.
In cases where ‘industry standard’ work has been
done this would be relatively simple (e.g. ‘reverse
circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30 g
charge for fire assay’). In other cases more
explanation may be required, such as where there is
coarse gold that has inherent sampling problems.
Unusual commodities or mineralisation types (e.g.
submarine nodules) may warrant disclosure of
detailed information.
Drilling Drill type (e.g. core, reverse circulation, open-hole Four drill holes for 1109 metres
techniques hammer, rotary air blast, auger, Bangka, sonic, etc)
and details (e.g. core diameter, triple or standard RC method using a 140 mm diameter hammer. No orientation has been done on drill core.
tube, depth of diamond tails, face-sampling bit or
other type, whether core is oriented and if so, by
what method, etc).
Drill sample Method of recording and assessing core and chip Recovery data was recorded for the RC holes by weight.
recovery sample recoveries and results assessed.
Measures taken to maximise sample recovery and Recovery measurements were recorded, and the recovery data is satisfactory.
ensure representative nature of the samples.
Whether a relationship exists between sample
Criteria JORC Code explanation Commentary related to the Toral Project
recovery and grade and whether sample bias may Limited samples are currently inconclusive and additional recovery data and investigation is required to draw
have occurred due to preferential loss/gain of conclusions.
fine/coarse material.
Logging Whether core and chip samples have been RC chips were logged on paper logs and transferred to an Access database.
geologically and geotechnically logged to a level of
detail to support appropriate Mineral Resource Geological logging of RC chip samples includes recording descriptions of lithology, weathering, alteration and
estimation, mining studies and metallurgical studies. mineralisation.
Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc) photography. Summary interval information was input to the database, comprising codes to describe logged lithology, alteration,
The total length and percentage of the relevant mineralisation and major structure for the interval.
intersections logged.
RC chips were routinely photographed.
Logging is considered satisfactory.
Sub- If core, whether cut or sawn and whether quarter, Sample collection, sample size, preparation and analysis are considered appropriate for the mineralogy and deposit type.
sampling half or all core taken.
techniques If non-core, whether riffled, tube sampled, rotary Samples are considered representative of the in-situ material collected.
and sample split, etc and whether sampled wet or dry.
preparation For all sample types, the nature, quality and Previous field tests have determined that the sample size and method of sampling produce representative RC samples.
appropriateness of the sample preparation QA/QC procedures involve the use of standards, duplicates and blanks which are inserted into sample batches at a
technique. frequency of approximately 15- 20%.
Quality control procedures adopted for all sub-
sampling stages to maximise representivity of Duplicate splits of RC samples are taken every 10m down hole within the sampled intervals.
samples.
Measures taken to ensure that the sampling is
representative of the in situ material collected,
including for instance results for field
duplicate/second-half sampling.
Whether sample sizes are appropriate to the grain
size of the material being sampled.
Quality of The nature, quality and appropriateness of the Commercial laboratories ALS Chemex Loughrea and ALS Seville (ISO9001:2008) were used for sample analysis.
assay data assaying and laboratory procedures used and
and whether the technique is considered partial or total. Multi-element analysis, including Pb, Zn, Cu, Ag by ICP-MS were completed on all samples.
laboratory For geophysical tools, spectrometres, handheld XRF
tests instruments, etc, the parametres used in determining Over limits samples were re-analysed using ore grade methods of determination.
the analysis including instrument make and model,
reading times, calibrations factors applied and their Sample analytical techniques are considered in line with industry standard for this style of mineralisation.
derivation, etc.
Nature of quality control procedures adopted (e.g. Europa Metals conducted a QC programme of inserting quarter core field duplicates, course blank and pulp blank
standards, blanks, duplicates, external laboratory material, standards, selection of pulp repeats and submission of pulp rejects for umpire lab re-analysis.
checks) and whether acceptable levels of accuracy
(i.e. lack of bias) and precision have been
No significant issues or fatal flaws were identified from the assessment of QA data.
established.
Criteria JORC Code explanation Commentary related to the Toral Project
The nature and quantity of QA/QC data, procedures employed, level of accuracy and precision are considered
acceptable for the assigned resource classification. The quality of assay data and laboratory tests is acceptable for this
deposit.
No geophysical tools, spectrometers or handheld XRF instruments were used in the exploration work.
Verification The verification of significant intersections by either Paper recorded drill hole logging data is transferred to Excel, imported into Micromine 3D geological modelling software
of sampling independent or alternative company personnel. for validation.
and The use of twinned holes.
assaying Documentation of primary data, data entry DGPS collar and survey excel data, and lab analytical data transferred from lab.csv, to Excel and imported to Micromine
procedures, data verification, data storage (physical 3D geological modelling software.
and electronic) protocols.
Discuss any adjustment to assay data. RC chips have not been verified against lab assay certificates by AMS.
No adjustment to the analytical data was considered necessary, other than conversion to zinc equivalents for reporting
purposes, following industry best practice. Raw analytical data remained unchanged.
Location of Accuracy and quality of surveys used to locate drill Europa Metals RC collars were surveyed using a Geomax 35 high-precision DGPS device Accuracy +/-3cm. Downhole
data points holes (collar and down-hole surveys), trenches, mine survey measurements taken using Reflex Gyro downhole survey tool.
workings and other locations used in Mineral
Resource estimation. Co-ordinate grid system used is European Terrestrial Reference System 1989 UTM Zone 29.
Specification of the grid system used.
Quality and adequacy of topographic control. Topographic DTM taken from 5 m resolution Lidar data MDT05-Lidar, from government mapping and survey association
Plan Nacional de Ortofotografía Aérea (PNOA).
Data Data spacing for reporting of Exploration Results. The exploration RC holes are on approximate grid of 100 metres.
spacing and Whether the data spacing and distribution is
distribution sufficient to establish the degree of geological and The distribution of drillholes is sufficient to establish continuity of the structure for exploration purposes
grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s) Intervals were not composited at the sampling stage.
and classifications applied.
Whether sample compositing has been applied.
Orientation Whether the orientation of sampling achieves Drilling is angled to intercept mineralised structures at high angle, as close to perpendicular to dip and strike as
of data in unbiased sampling of possible structures and the practicable.
relation to extent to which this is known, considering the
geological deposit type. No sample bias is introduced by drilling orientation.
structure If the relationship between the drilling orientation and
the orientation of key mineralised structures is
considered to have introduced a sampling bias, this
should be assessed and reported if material.
Sample The measures taken to ensure sample security. Chips logged and sampled in secure facility.
security
Samples are bagged in plastic bags and labelled with individual sample numbers, sample name and sample location.
Each bag is sealed to avoid loss and contamination. Plastic bags are placed in dry weave bags.
Criteria JORC Code explanation Commentary related to the Toral Project
Samples are delivered to laboratory by courier in secured boxes.
Audits or The results of any audits or reviews of sampling A Competent Person has reviewed and discussed RC sampling techniques and findings were satisfactory.
reviews techniques and data.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral tenement Type, reference name/number, location and Toral exploration permit number 15.199 (also referred to as Permiso de Investigacion), is located approximately 400 km
and land tenure ownership including agreements or material northwest of Madrid, within the Province of León, Autonomous Community of Castile and Leon.
status issues with third parties such as joint
ventures, partnerships, overriding royalties, Licence 15.199 covers an area of 24 km².
native title interests, historical sites,
wilderness or national park and Exploration licence 15.199 is owned by Goldquest Iberica, S.L., a wholly owned subsidiary of Europa Metals Limited. The
environmental settings. licence was renewed on 14 November 2017 for a period of 3 years.
The security of the tenure held at the time of
reporting along with any known impediments
to obtaining a licence to operate in the area.
Exploration done Acknowledgment and appraisal of exploration 1972-1984 – Peñarroya-Adaro. 55 drill holes, 36 wedge drill holes.
by other parties by other parties.
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.
2012-2015 – Portex Mining Corporation. Geological mapping. Data re-evaluation.
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.
Geology Deposit type, geological setting and style of The Toral Project is located in the Southwestern part of the regional West Asturian Leonese Zone (WALZ), a major
mineralisation. tectono-stratigraphic unit of the Hercynian Orogeny.
Criteria JORC Code explanation Commentary
The mineralisation at Toral is considered as structurally controlled carbonate hosted Pb-Zn type. Shear and thrust fault
controlled mineralisation within favourable carbonate lithology and favourable 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.
Drill hole A summary of all information material to the Drilling:
Information understanding of the exploration results
including a tabulation of the following Number of drillholes used: 4
information for all Material drill holes:
easting and northing of the drill hole collar Collar East: 683299mE - 683496mE
elevation or RL (Reduced Level –
elevation above sea level in metres) of Collar North: 4709149mN - 4708695mN
the drill hole collar
dip and azimuth of the hole Collar RL: 530mRL - 664mRL
down hole length and interception depth
hole length. Azimuth: 025° - 209º
If the exclusion of this information is justified
on the basis that the information is not
Dip: -44° - -47°
Material and this exclusion does not detract
from the understanding of the report, the
Competent Person should clearly explain why Length: 242 – 310m
this is the case.
DH Interception depth: 220m – 278mRL
Data aggregation In reporting Exploration Results, weighting No top cuts were applied to the data.
methods averaging techniques, maximum and/or
minimum grade truncations (e.g. cutting of Zn equivalent calculations were based on 3 year trailing average price statistics obtained from the London Metal Exchange
high grades) and cut-off grades are usually and London Bullion Market Association giving an average Zn price of US$2,500/t, Pb price of US$2,100/t and Ag price of
Material and should be stated. US$17/Oz. Recovery and selling factors were incorporated into the calculation of Zn Eq values. It is the Company’s opinion
Where aggregate intercepts incorporate short that all the elements included in the metal equivalents calculation (Zinc, Lead and Silver) have a reasonable potential to be
lengths of high grade results and longer ultimately recovered and sold in the future.
lengths of low grade results, the procedure
used for such aggregation should be stated
and some typical examples of such
aggregations should be shown in detail.
The assumptions used for any reporting of
metal equivalent values should be clearly
stated.
Relationship These relationships are particularly important Mineralisation is interpreted as sub-vertical to steeply dipping to the NE.
between in the reporting of Exploration Results.
mineralisation If the geometry of the mineralisation with Angled drilling is sub-perpendicular to +/- 20º oblique to mineralisation.
widths and respect to the drill hole angle is known, its
intercept lengths nature should be reported. True thickness of mineralisation ranges from approximately 90%-60% downhole interval length.
If it is not known and only the down hole
lengths are reported, there should be a clear
Criteria JORC Code explanation Commentary
statement to this effect (e.g. ‘down hole
length, true width not known’).
Diagrams Appropriate maps and sections (with scales) .
and tabulations of intercepts should be
included for any significant discovery being
reported. These should include, but not be
limited to a plan view of drill hole collar
locations and appropriate sectional views.
Balanced Where comprehensive reporting of all All available exploration data for the Toral deposit area has been collected and reported. Representative data from the RC
reporting Exploration Results is not practicable, drillings has been reported.
representative reporting of both low and high
grades and/or widths should be practiced to
avoid misleading reporting of Exploration
Results.
Other substantive Other exploration data, if meaningful and No geophysical works have been completed.
exploration data material, should be reported including (but not
limited to): geological observations; Geological mapping and solid geology map generation completed.
geophysical survey results; geochemical
survey results; bulk samples – size and
method of treatment; metallurgical test
results; bulk density, groundwater,
geotechnical and rock characteristics;
potential deleterious or contaminating
substances.
Further work The nature and scale of planned further work Surface drilling and trenching works testing open strike extent to the SE and infill drilling within current resource limits to
(e.g. tests for lateral extensions or depth increase confidence and resource class.
extensions or large-scale step-out drilling).
Diagrams clearly highlighting the areas of Preliminary metallurgical testwork.
possible extensions, including the main
geological interpretations and future drilling
areas, provided this information is not
commercially sensitive.
Perth
31 October 2018
Sponsor: Sasfin Capital (a member of the Sasfin group)
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