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EUROPA METALS LIMITED - Drilling Mobilisation and Operational Update, Toral Zn, Pb & Ag Project, Spain

Release Date: 15/11/2019 09:00
Code(s): EUZ     PDF:  
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Drilling Mobilisation and Operational Update, Toral Zn, Pb & Ag 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")

Drilling Mobilisation and Operational Update, Toral Zn, Pb & Ag Project, Spain

Europa Metals, the European focused lead, zinc and silver developer, is pleased to announce that it has
commenced mobilisation activities for a further diamond drilling campaign and initiated geotechnical and
hydrogeological work programmes at the Company’s 100% owned Toral lead, zinc and silver project (the “Toral
Project”) in the region of Castilla y León, north west Spain. These workstreams have been instigated following
an extensive review of the project by the Company, incorporating the recent JORC (2012) resource update
which provided a first Indicated mineral resource estimate, as announced on 29 October 2019.

Diamond Drilling Campaign
The new diamond drilling campaign will initially focus on a target area to the west of the current Indicated
resource area within the existing Inferred zone (which is illustrated in Figure 1, accessible via the link below).
The overall objective of the drill programme will be to seek to increase confidence levels in the resource within
the central, proposed future mining area of the Toral Project as set out in the 2018 December Scoping Study.
Figure 1:

Geotechnical and Hydrogeological programmes
The geotechnical programme will seek to ascertain the sub surface conditions of the defined resource area in
order to advance the mine design work and associated sequencing. Surveying of historical adits has
commenced in order to log rock conditions, along with the completion of a series of four geomechanic stations
and a geochemical logging exercise.

The hydrogeological programme has commenced with piezometers being inserted into historic drill holes,
which will be utilised to begin the assessment of water conditions within the defined resource area.
Following completion of such preliminary geotechnical and hydrogeological work, geotechnical and
hydrogeological drilling is scheduled to begin in Q1 2020. This planned further drilling will enable the Company
to further enhance and assess the potential economic mine design for the Toral Project and assist in making
more accurate decisions as to water conditions within the mineralisation.

Update on Metallurgical Testwork
The metallurgical testwork being conducted by Wardell Armstrong LLP remains on schedule for completion in
Q4 2019 with the following items now successfully completed:

    •   Grind calibration tests to assess the bond abrasion, rod millwork index and uniaxial compressive
    •   First open flotation tests, optimisation of grind size, float cleaning tests and rougher regrind testing;
    •   Petrographic/mineralogical and scanning electron microscope (SEM) work.
With the majority of the intended metallurgical testwork completed, the programme is now entering its final
phase, being the locked cycle testwork, which is expected to culminate in initial results demonstrating the
potential recovery and grade of concentrate obtainable from the Toral Project. The Company believes that
completion of such metallurgical testwork will be a significant step forward in de-risking and optimising its
understanding of the Toral Project and provide a solid foundation from which it can progress the elements
required to proceed towards a potential mine development application.

Laurence Read, Executive Director of Europa Metals, commented:
“A targeted additional drilling programme will shortly commence assessing at an area to the immediate west
of the current Indicated part of the defined resource estimate at the Toral Project, which is host to a large
amount of historical drilling. Whilst we look forward to the results from such further drilling campaign, the
geotechnical and hydrogeological work programme, combined with the forthcoming metallurgical results, are
both fundamental next steps for de-risking the mine development pathway for the Toral Project. In a modern
day mining context, accurate assessment of hydrogeological issues are crucial from the standpoint of both
best practice sustainability and operational viability. The metallurgical testwork is progressing well and once
completed, and the results analysed, we shall use the findings to begin optimising what we believe to be a low
capex project with potentially highly attractive operating margins and a significant silver component.”
For further information on the Company, please visit 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 (Joint Broker)
Andy Thacker / Zoe Alexander
T: +44 (0)20 3657 0050

Brandon Hill Capital (Joint Broker)
Jonathan Evans / Oliver Stansfield
T: +44 (0)20 3463 5000

Sasfin Capital Proprietary Limited (a member of the Sasfin group)
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
15 November 2019

Date: 15/11/2019 09:00:00
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