TIDMEUZ
RNS Number : 6336N
Europa Metals Ltd
01 October 2021
1 October 2021
Europa Metals Ltd
("Europa Metals", the "Company" or the "Group") (AIM , AltX: EUZ
)
Updated Mineral Resource Estimate - 55% Increase in Indicated
Resource
for 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:
o 172 diamond drill holes (including wedges) and 4 reverse
circulation (RC) drill holes totalling 59,658.73 metres of drilling
(including environmental drillholes), and 19 underground channels
for 18.75 metres.
o 8 new parent mineral exploration drill holes TOD-028 to
TOD-035 and six new daughter drill holes
(metallurgical/geotechnical data), and one failed daughter
hole.
o Application of updated fault models.
o Application of new lithological facies domain models.
-- Indicated resource estimate of approximately 5.9Mt @ 7.1% Zn
Equivalent (including Pb credits) and 27g/t Ag, representing an
approximate:
o 55% increase in Indicated resource tonnes;
o 39 % increase in Indicated contained tonnes of zinc to
approximately 251,000 tonnes;
o 30% increase in Indicated contained tonnes of lead to
approximately 196,000 tonnes; and
o 40% increase in Indicated contained ounces of silver to
approximately 5.2 million ounces.
-- A total resource of approximately 20Mt @ 6.3% Zn Equivalent
(including Pb credits), 3.9% Zn, 2.7% Pb and 22 g/t Ag,
including:
o 790,000 tonnes of zinc, 550,000 tonnes of lead and 14 million
ounces of silver.
Outlook
The Company expects to integrate the updated resource estimate,
with the substantially increased indicated resource and grade
increase within the upper zones, with its ongoing engineering
analysis in order to assess the positive influence on the proposed
future mining and processing route for the Toral project.
The Company will also utilise the bulk sample obtained during
the recent drill programme to undertake a new phase of
metallurgical and waste testing via Wardell Armstrong
International. It is intended that ore sorting analysis will be
conducted on the large bulk sample within the upper zones to
complement its 2020 work. In addition, further ore sorting testwork
will be utilised to determine the potential recovery and
concentrate production levels from the lower, carbonate zones.
Laurence Read, CEO of Europa Metals, commented :
"With an approximate 55% increase in the Indicated category to
5.9Mt @ 7.1% Zinc Equivalent (including Pb credits), sitting within
a total resource, open at depth and to the East, of 20Mt @ 6.3%
Zinc Equivalent (including Pb credits), this independent resource
update represents a significant advance for the Toral lead, zinc
and silver project.
"By formulating and implementing a highly targeted drilling
campaign, our team has achieved this significant result in a highly
efficient manner, in an area of the resource that should directly
impact the early future production years of the Toral project. We
are now progressing to a new phase of metallurgical testing in
order to determine the most efficient production routes for the
upper zone including examination of ore sorting. The overall focus
continues to be on proving up our well established lead, zinc and
silver resource area and continuing to de-risk the development
profile."
Myles Campion, Executive Chairman of Europa Metals, further
commented :
"This is an excellent result for Europa Metals with the upper
siliceous zone returning better than expected grades and widths
which has enabled the reporting of a substantial increase in
Indicated tonnes from a concentrated drilling programme. The
deposit continues to deliver positive news and this boost to the
Indicated resource provides further certainty on tonnes and grade
profiles to assist with the assessment of mine life and future
production profile in further studies."
Overview
Europa Metals is pleased to announce the results of an
independent updated Mineral Resource Estimate, in accordance with
JORC (2012), for Toral pursuant to which there has been an
approximate 55% increase in the Indicated resource category to
approximately 5.9Mt at 7.1% Zinc Equivalent (including Pb credits)
and 27g/t Ag. The upgrade follows the analysis of assays returned
from the Company's 2021 diamond drilling campaign (involving, inter
alia, key new drill holes TOD-028 and TOD-035) and incorporation of
updated fault and new lithological facies domain models. The update
was commissioned from and prepared by Addison Mining Services
Limited ("AMS").
Figure 1 showing AMS' resource block model for Toral as a 3D
view looking north, by Zn Equivalent (PbAg)% grade:
http://www.rns-pdf.londonstockexchange.com/rns/6336N_1-2021-9-30.pdf
Figure 2a: showing AMS' resource block model for Toral as a 3D
view looking north, by resource category:
http://www.rns-pdf.londonstockexchange.com/rns/6336N_1-2021-9-30.pdf
Figure 2b: AMS' resource block model for Toral 2D showing
increase in indicated area:
http://www.rns-pdf.londonstockexchange.com/rns/6336N_1-2021-9-30.pdf
This latest updated Mineral Resource Estimate, effective as of
14 September 2021 for the Toral deposit comprises:
-- An Indicated resource of approximately 5.9Mt @ 7.1% Zn
Equivalent (including Pb credits), 4.2% Zn, 3.3% Pb and 27g/t Ag,
including:
o 251,000 tonnes of zinc, 196,000 tonnes of lead and 5.2 million
ounces of silver.
-- An Inferred resource of approximately 14Mt @ 6% Zn Equivalent
(including Pb credits), 3.8% Zn, 2.5% Pb and 20 g/t Ag,
including:
o 540,000 tonnes of zinc, 350,000 tonnes of lead and 9 million
ounces of silver.
-- A total resource of approximately 20Mt @ 6.3% Zn Equivalent
(including Pb credits), 3.9% Zn, 2.7% Pb and 22 g/t Ag,
including:
o 790,000 tonnes of zinc, 550,000 tonnes of lead and 14 million
ounces of silver.
The Company's Board believes the results of this update compare
very favourably with the previously reported Mineral Resource
Estimate, announced on 14 August 2020 and effective as of 12 August
2020, which comprised the following tonnages and grade:
-- 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:
o 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:
o 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:
o 720,000 tonnes of zinc, 510,000 tonnes of lead and 14 million
ounces of silver.
* 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*0.867 + Ag*0.027). 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$2,516/t, Pb price of US$1,961/t and Ag price
of US$19.4/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.
Implications of the resource update and updated resource model
for the Toral Project
The significant increase in size and contained metal of the
Indicated resource exceeded management's expectations and forms a
significant cornerstone from which to further de-risk and optimise
the future production profile and economics of the Toral project.
By utilising the updated resource model in addition to the new
geotechnical and metallurgical data recovered from the 2021 drill
campaign, the Company can now analyse how the early years
production design might best be developed, in particular
complementing the 2020 ore sorting work conducted on the lower,
carbonate zones, to determine how ore sorting in the upper zone
could increase production efficiencies. Given the levels of grade
now established in the upper zone and the physical location of the
mineralisation, further work on the decline design can also be
advanced.
At this time, no copper has been brought into the resource as
only limited intersections have occurred. Equally, the resource
expansion is predominantly occurring within the upper boundaries of
the pre-existing resource with no further exploration yet being
made below the resource cut-off at the base or to the East.
Revised inputs
The geological team at Europa Metals has completed several
important workstreams and internal projects over the last five
years to improve our geological understanding of the Toral
deposit.
The 2018 re-logging exercise of the historic Peñarroya core at
the Instituto Geolo gico y Minero de Espan a (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 from such work have 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.
Europa Metals completed eight parent diamond drill holes
(TOD-028 to TOD-035) and seven daughter wedge holes in the last
drilling campaign for total drilling of 5,183.90 metres (including
failed hole TOD-035F). The objective of the 2021 drill campaign was
to test up dip extensions to the high-grade zone and increase the
Indicated resource, within predominantly siliceous lithofacies
material for ore sorting and metallurgical tests. All drilling was
planned to cut the deposit above elevation 190mRl (approximately
300 to 500 metres below surface) to extend the Indicated resource
zone above that delineated in the 2020 mineral resource
estimate.
Competent Person's Updated Inferred and Indicated Mineral
Resource Estimate, Reported in Accordance with the JORC Code (2012
edition)
Further to the diamond drilling conducted in 2021, the Company
commissioned AMS to complete an independent updated Mineral
Resource Estimate. The updated Mineral Resource Estimate is based
on all the available historical data from six 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, November 2019 to
January 2020 diamond drilling and January to June 2021 diamond
drilling), along with historic 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 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.
Figure 3: AMS' East West 2D Toral block model by grade:
http://www.rns-pdf.londonstockexchange.com/rns/6336N_1-2021-9-30.pdf
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% Zn Equivalent cut-off
grade was appropriate utilising estimated mining parameters
established during the 2020 scoping study and mineralogy and using
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$ 2,516/t US$ 1.14/lb
Pb Price Used: US$ 1,961/t US$ 0.90/lb
Ag Price Used: US$ 19.4/oz
Table 1: Summary of 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
estimations.
Cut-Off Tonnes Density Zn Eq Zn Eq Zn % Pb % Ag g/t Contained Contained Ag Troy Oz
Zn Eq (Millions) (Pb)% (PbAg)% Zn Tonnes Pb Tonnes (Millions)
(PbAg)% (000s) (000s)
Indicated
----------------------------------------------------------------------------------------------------------
6.0 3.9 2.93 8.5 9.3 5.1 3.9 30 200 152 3.8
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
5.0 4.8 2.92 7.8 8.6 4.7 3.6 29 226 173 4.4
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
4.0 5.9 2.90 7.1 7.8 4.2 3.3 27 251 196 5.2
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
3.5 6.2 2.90 7.0 7.7 4.1 3.3 27 255 200 5.3
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
Inferred
----------------------------------------------------------------------------------------------------------
6.0 8 2.90 7.3 7.9 4.9 2.8 22 370 210 5.4
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
5.0 10 2.90 6.7 7.2 4.4 2.7 21 450 280 7.0
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
4.0 14 2.90 6.0 6.5 3.8 2.5 20 540 350 9.0
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
3.5 16 2.90 5.6 6.2 3.6 2.4 19 580 390 10.0
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
Total
----------------------------------------------------------------------------------------------------------
6.0 12 2.90 7.7 8.4 4.9 3.2 25 570 370 9
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
5.0 15 2.90 7.0 7.7 4.5 3.0 23 680 450 11
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
4.0 20 2.90 6.3 6.9 3.9 2.7 22 790 550 14
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
3.5 22 2.90 6.0 6.6 3.7 2.6 21 830 590 15
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
Partially Weathered Material
----------------------------------------------------------------------------------------------------------
6.0 12 2.90 7.7 8.4 4.9 3.2 25 570 370 9
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
Unweathered Fresh Rock
----------------------------------------------------------------------------------------------------------
4.0 16 2.90 6.7 7.2 4.3 2.7 21 710 440 11
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
Notes:
1. No mineral reserve calculations have been undertaken. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability.
2. Numbers are rounded to reflect the fact that an Estimate of
Resources is being reported. 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$2,516/t, Pb price of US$1,961/t and Ag price of US$19.4/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*0.867 + Ag*0.027).
5. Zn Eq is the calculated Zn equivalent using lead credits and
does not include silver credits (Zn Eq = Zn + Pb*0.867).
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 14
September 2021. 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 20deg 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 a Median Indicator Kriging.
7. No Top Cuts were applied to the 2m downhole composite data used for grade estimation.
8. The Indicated and Inferred mineral resource category for the
Toral lead-zinc-silver project set out in the table above (at
cut-off grades >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 3.5% 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, set out 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 provided
improved geological, structure, alteration and weathering/oxidation
information, incorporated into 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
into 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 from the surface, with the majority
of the country rock being un-weathered or showing only fractured
controlled weathering and oxidation in the form of iron oxide joint
tarnishing and fracture infill. Weathering and oxidation are 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 weathered - partially
weathered and fracture-controlled 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 and further work is required to increase the
understanding of the boundary and its effects on the deposit.
Bulk density
The resource database contains 3,012 bulk density measurements,
with a total of 234 within the mineralised wireframe, with a mean
value of 2.84 g/cm(3) .
A broad linear relationship between Pb+Zn grade and Bulk Density
was identified from scattergrams and the formula 2.7 + 0.02(Pb+Zn%)
used to estimate block density in relation to block grade within
the block model, density was capped at 3.5 g/cm(3) .
Drilling techniques and hole spacing
The updated Mineral Resource Estimate includes new information
from eight parent diamond drill holes (TOD-028 to TOD-035) and six
successful daughter wedge holes from the last drilling campaign for
total drilling of 3,368 metres (including failed hole TOD-035F),
all collared from surface.
A total of 172 diamond drill holes (including wedges) and 4
reverse circulation (RC) drill holes totalling 59,658.73 metres of
drilling, and 19 underground channels for 18.75 metres were used as
the input database for geological modelling and resource
estimation. Note that this drillhole database includes
environmental monitoring drillholes.
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.
-- 2018-2021 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 14,706 core recovery measurements exist in the
database for the drilling with average core recovery of 79%. 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
derived from the 2020 scoping study and 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 14 September 2021
for Toral comprises:
-- An Indicated resource of approximately 5.9Mt @ 7.1% Zn
Equivalent (including Pb credits), 4.2% Zn, 3.3% Pb and 27g/t Ag,
including:
o 251,000 tonnes of zinc, 196,000 tonnes of lead and 5.2 million
ounces of silver.
-- An Inferred resource of approximately 14Mt @ 6% Zn Equivalent
(including Pb credits), 3.8% Zn, 2.5% Pb and 20 g/t Ag,
including:
o 540,000 tonnes of zinc, 350,000 tonnes of lead and 9 million
ounces of silver.
-- A total resource of approximately 20Mt @ 6.3% Zn Equivalent
(including Pb credits), 3.9% Zn, 2.7% Pb and 22 g/t Ag,
including:
o 790,000 tonnes of zinc, 550,000 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 2021 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, 2019, 2020) 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 northwest the resource is truncated by the licence
boundary and extended approximately 10m past the south easterly
most drillhole which was mineralised but contained sub-economic
grades (3m at 2.4% ZnEq). The total strike length of the modelled
mineralisation within the licence is approximately 3.1km. The
structure remains open to the southeast. Down dip the model was
extrapolated approximately 50-200m below the deepest sample in the
northwest and central parts of the deposit, and approximately
250-280m below the deepest sample in the southeast with
consideration of depths tested along strike to the northwest. The
models extent is from surface to a range of approximately 800 -
1,150m below the surface. 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 20deg 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
110deg 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. Median Indicator
Kriging was used, where each cut-off bin in the indicator
interpolation process uses the same median indicator variogram for
each element. Indicator bins were selected based on dices plus
incremental percentiles in the tail of the distribution.
During block model interpolation, the influence of some isolated
high-grade values was found to be sufficiently localised and did
not have undue influence on the estimates of grade. It was decided
that there was no requirement for top cutting.
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
sub level open stope mining is the intended mining methodology with
froth floatation for recovery.
Comparison with Previous Mineral Resource Estimate
The updated Mineral Resource Estimate compares favourably with
the previously reported Indicated and Inferred Mineral Resource
Estimate announced on 14 August 2020 and effective as of 12 August
2020.
Previous Mineral Resource Estimate Announced in August 2020
Table 2: Summary of 2020 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
estimations.
Cut-Off Tonnes Density Zn_Eq Zn Eq Zn % Pb % Ag g/t Contained Contained Ag Troy Oz
Zn Eq (Millions) (Pb)% (PbAg)% Zn Tonnes Pb Tonnes (Millions)
(PbAg)% (000s) (000s)
Indicated
6 2.8 2.9 9.5 10.0 5.3 4.5 34 150 130 3.1
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
5 3.3 2.9 8.9 9.5 5.0 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 3.0 26 450 310 8.6
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
4 14 2.9 6.5 6.9 4.0 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 3.0 24 650 430 11
----------- -------- ----------- ---------- ----- ----- ------- ---------- ---------- -----------
Notes:
1. No mineral reserve calculations have been undertaken. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability.
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 20deg 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 the above table (at
cut-off grades >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
The updated Mineral Resource Estimate is therefore positive in
terms of increased Indicated resource tonnes and contained
metal.
-- Indicated resource estimate of approximately 5.9Mt @ 7.1% Zn
Equivalent (including Pb credits) and 27g/t Ag, representing an
approximate:
o 55% increase in Indicated resource tonnes;
o 39 % increase in Indicated contained tonnes of zinc to
approximately 251,000 tonnes;
o 30% increase in Indicated contained tonnes of lead to
approximately 196,000 tonnes; and
o 40% increase in Indicated contained ounces of silver to
approximately 5.2 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
Linkedin: Europa Metals ltd
Twitter: @ltdeuropa
Vox: Europametals
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler
T: +44 (0)20 7409 3494
Turner Pope Investments (TPI) Limited (Broker)
Andy Thacker/James Pope
T: +44 (0)20 3657 0050
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 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018.
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.
APPIX : 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
Sampling
techniques * Nature and quality of sampling (e.g. cut channels, * Historic and recent diamond drill core and
random chips, or specific specialised industry underground cut channel sampling has been completed
standard measurement tools appropriate to the over three main phases of exploration drilling and
minerals under investigation, such as down hole gamma sampling:
sondes, or handheld XRF instruments, etc). These
examples should not be taken as limiting the broad
meaning of sampling. o 1972 - 1984 Peñarroya - Adaro.
Diamond drill core method was used to
obtain samples for geological logging
and sampling.
o 2006 - 2008 Lundin Mining. Diamond
drill core method was used. Core logging
completed on paper.
o Europa Metals. Diamond drill core,
RC chips and underground cut channel
sampling methods used to obtain samples
for geological logging and sampling.
* Drill core samples were half core with an average
length of 1m.
* No handheld XRF instruments were used.
------------------------------------------------------------ -----------------------------------------------------------------
* Include reference to measures taken to ensure sample * Channel sampling was supervised by a Europa Metals'
representivity and the appropriate calibration of any geologist and samples that did not cross lithological
measurement tools or systems used boundaries were possible.
* The measures for sample representivity are unknown
for the historical drilling.
* Efforts to ensure sample representativity for the
Europa Metals' drilling include:
o Constant review of recovery data with
drill crews,
o Review of downhole survey data while
drilling in progress to ensure the piece
points are being intercepted,
o Always sampling the same side of the
core, while leaving the orientation line
in place.
------------------------------------------------------------ -----------------------------------------------------------------
* Aspects of the determination of mineralisation that * 2006 - 2008 Lundin Mining sent half core samples for
are Material to the Public Report. multi-element analysis of available Peñarroya
DDH samples completed at ALS Chemex Vancouver using
ICP.
* Lundin sent their core samples to ALS Chemex
Vancouver for ICP analysis .
* 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.
------------------------------------------------------------ -----------------------------------------------------------------
* In cases where 'industry standard' work has been done * Historic and recent diamond drill core methods are
this would be relatively simple (e.g. 'reverse discussed below:
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 o
explanation may be required, such as where there is 1972
coarse gold that has inherent sampling problems. -
Unusual commodities or mineralisation types (e.g. 1984
submarine nodules) may warrant disclosure of detailed Peñarroya
information. -
Adaro.
Geological
and
analytical
data
is
recorded
on
hardcopy.
Selective
sampling
method
was
employed
around
areas
of
interest.
Sampling
intervals
measure
approx.
1m,
half
core
sent
for
analysis,
with
half
core
retained
for
reference.
Exact
details
on
core
processing,
sampling
techniques
and
analytical
methods
are
unclear.
o
2006
-
2008
Lundin
Mining.
Diamond
drill
core
method
was
used.
Core
logging
completed
on
paper.
Selective
sampling
method
was
employed
around
areas
of
interest.
Sampling
intervals
measure
approx.
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
Switzerland,
then
shipped
to
ALS
Chemex
Vancouver
for
multi-element
analysis
by
ICP.
o
Europa
Metals.
Diamond
drill
core,
RC
chips
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
approx.
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
and
RC
samples
reduced
to
-400
microns
and
100g
sub-sample
taken
for
analysis.
------------------------------------------------------------ -----------------------------------------------------------------
Drilling
techniques * Drill type (e.g. core, reverse circulation, open-hole * A total of 172 diamond and RC drill holes (including
hammer, rotary air blast, auger, Bangka, sonic, etc) wedges) totalling 59,658.73 metres, and 19
and details (e.g. core diameter, triple or standard underground channels for 18.75 metres were used as
tube, depth of diamond tails, face-sampling bit or the input database for geological modelling and
other type, whether core is oriented and if so, by resource estimation. These holes include
what method, etc). environmental monitoring holes.
* Drill core diameter was PQ, HQ, NQ, NQ2 and BQ
depending upon depth. Standard tube was used for
Peñarroya drilling. Triple tube method was used
for Lundin and Europa Metals' campaigns.
* Europa Metals' diamond core was orientated using the
reflex ACT III.
------------------------------------------------------------ -----------------------------------------------------------------
Drill
sample * Method of recording and assessing core and chip * Total core recovery, solid core recovery, Rock
recovery sample recoveries and results assessed. Quality Designation (RQD) and fracture frequency were
recorded on hardcopy tables for the diamond drilling.
* A total of 14,706 core recovery measurements exists
in the database for the drilling with average
recovery of 79%. The average for the Europa Metals'
diamond drilling is 96%. Core recovery is measured
over run lengths.
------------------------------------------------------------ -----------------------------------------------------------------
* Measures taken to maximise sample recovery and ensure * The drilling procedures for the historical works have
representative nature of the samples. not been reviewed and as such, the measures taken for
sample recovery and to ensure representativity cannot
be commented on.
* Efforts to maximise sample recovery for the Europa
Metals' drilling include:
o
Constant
review
of
recovery
data
with
drill
crews,
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 between sample recovery * The resource database contains 3,012 bulk density
and grade and whether sample bias may have occurred measurements, with a total of 234 within the
due to preferential loss/gain of fine/coarse mineralised wireframe, with a mean value of 2.84
material. g/cm(3) .
* A broad linear relationship between Pb+Zn grade and
Bulk Density was identified from scattergrams and the
formula 2.7 + 0.02(Pb+Zn%) used to estimate block
density in relation to block grade within the block
model, density was capped the 3.5 g/cm(3) .
------------------------------------------------------------ -----------------------------------------------------------------
Logging
* Whether core and chip samples have been geologically * Selected intervals representing areas of interest
and geotechnically logged to a level of detail to were logged in the Peñarroya drill holes. All
support appropriate Mineral Resource estimation, Lundin and Europa Metals holes were logged in their
mining studies and metallurgical studies. entirety. The historical Peñarroya core was
re-logged by Europa Metals geologists in 2018 in its
entirety where the core was available.
* Core logging was recorded on paper logs, using a
combination of printed graphic log templates
(Peñarroya, Lundin), and paper (Europa Metals).
* Logging records lithology, textures, mineralisation,
weathering, alteration and veining where appropriate.
* 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.
------------------------------------------------------------ -----------------------------------------------------------------
* Whether logging is qualitative or quantitative in * Drill core was qualitative and quantitative in
nature. Core (or costean, channel, etc) photography. nature.
* DH lithology, alteration, mineralisation and
structural observations were recorded by variable
interval based on characteristic similarities and
change boundaries.
* Summary interval information was inputted to Excel,
comprising single code field and codes to describe
logged lithology, alteration, mineralisation and
major 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 percentage of the relevant * All drill core and RC chips were logged in their
intersections logged. entirety.
* Channel samples were logged in their entirety.
* Graphic and schematic logs were produced for all
drilling.
------------------------------------------------------------ -----------------------------------------------------------------
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * The sub-sampling techniques and sample preparation
and sample half or all core taken. details are not known for the Peñarroya drill
preparation core.
* Lundin and Europa Metals' core was cut in half using
a core saw. Sampling was supervised by the geologist.
* 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, tube sampled, rotary * Channel samples were not split. They were sent to ALS
split, etc and whether sampled wet or dry. as bulk 2-3kg samples.
* RC samples were riffled at the rig and were generally
dry when split.
------------------------------------------------------------ -----------------------------------------------------------------
* For all sample types, the nature, quality and * The drilling procedures for the historical works have
appropriateness of the sample preparation technique. not been reviewed and as such, the appropriateness
cannot be commented upon. However, the lithology and
assay determinations are sufficient for an Inferred
category.
* Channel sample collection and Europa Metals' drilling
procedures, sample size, preparation and analysis are
considered appropriate for the mineralogy and deposit
type.
------------------------------------------------------------ -----------------------------------------------------------------
* Quality control procedures adopted for all * The drilling procedures for the historical works have
sub-sampling stages to maximise representivity of not been reviewed and as such, the QC procedures
samples. cannot be commented upon.
* All half core was taken on the left side.
* Samples were constrained by lithology but were 1m in
length where possible or divided equally where
necessary.
------------------------------------------------------------ -----------------------------------------------------------------
* Measures taken to ensure that the sampling is * Field duplicate scattergram analysis of the samples
representative of the in situ material collected, shows a good correlation between the original and
including for instance results for field duplicate samples.
duplicate/second-half sampling.
------------------------------------------------------------ -----------------------------------------------------------------
* Whether sample sizes are appropriate to the grain * Statistical analysis shows that samples are
size of the material being sampled. appropriate to the grain size of the material being
sampled.
------------------------------------------------------------ -----------------------------------------------------------------
Quality
of assay * The nature, quality and appropriateness of the * Historical Peñarroya assaying and laboratory
data and assaying and laboratory procedures used and whether procedures are unknown.
laboratory the technique is considered partial or total.
tests
* Commercial laboratories ALS Chemex Vancouver and ALS
Seville (ISO9001:2008) were used for Lundin and
Europa Metals' drill core respectively and Europa
Metals' underground channel sample analysis.
* Multi-element analysis, including Pb, Zn, Cu, Ag by
ICP-MS were completed on all samples.
* Over limits samples were re-analysed using ore grade
methods of determination.
* Sample analytical techniques are considered in line
with industry standard for 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 * No geophysical tools, spectrometers or handheld XRF
instruments, etc, the parameters used in determining instruments were used in the exploration and resource
the analysis including instrument make and model, work.
reading times, calibrations factors applied and their
derivation, etc.
------------------------------------------------------------ -----------------------------------------------------------------
* Nature of quality control procedures adopted (e.g. * QC sample insertion procedures were not employed
standards, blanks, duplicates, external laboratory during the historical Peñarroya drill campaigns.
checks) and whether acceptable levels of accuracy However, Lundin re-analysis of Peñarroya drill
(i.e. lack of bias) and precision have been core pulp rejects does allow for comparison of
established. 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 duplicates, course blank and pulp
blank material, standards, selection of pulp repeats
and submission of pulp rejects for umpire lab
re-analysis.
* ALS Chemex and ALS Seville internal QC exists for the
Peñarroya Lundin re-analysis, Lundin core and
Europa Metals core and channel sample batches.
* No significant issues were identified in the QC data.
* The nature and quantity of 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 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.
------------------------------------------------------------ -----------------------------------------------------------------
Verification
of sampling * The verification of significant intersections by * Drill core has been routinely verified by AMS
and assaying either independent or alternative company personnel. geologists throughout the various recent drilling
programmes.
* 27 verification samples have been taken.
* Geological data from gallery is observed and reported
by geologists and mining engineers.
* Paper recorded drill hole logging data is transferred
to Access, imported into Micromine 3D geological
modelling software for validation.
* No significant issues in the drill logging were
observed. The logging is accurate and suitable.
============= ------------------------------------------------------------ -----------------------------------------------------------------
* The use of twinned holes. * There has been no verification twin drilling carried
out.
============= ============================================================ =================================================================
* Documentation of primary data, data entry procedures, * DGPS collar and survey excel data, and lab analytical
data verification, data storage (physical and data transferred from lab.csv, to Excel and imported
electronic) protocols. to Micromine 3D geological modelling software.
* All analytical data generated from Lundin re-analysis
and Lundin core samples, Europa Metals' core and
channel samples for use as input to estimation have
been verified by cross reference against lab assay
certificates, re-import and re-building of the
project analytical database.
* 2018-2020 lab certificates were verified and checked
against database assays.
------------------------------------------------------------ -----------------------------------------------------------------
* Discuss any adjustment to assay data. * 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 data * Accuracy and quality of surveys used to locate drill * Peñarroya drill hole collar locations were
points holes (collar and down-hole surveys), trenches, mine measured off plans and sections, located on the
workings and other locations used in Mineral Resource ground and picked up using Geomax 35 high-precision
estimation. DGPS device. Accuracy +/-5 m. Peñarroya drill
hole dip and azimuth measured from historical plans,
cross sections and longitudinal section. Accuracy
+/-5 m.
* Europa Metals' drill collar locations were surveyed
using a Geomax Zenith 35 DGPS device with
sub-centimetre accuracy. Both RC and diamond downhole
surveys were competed at 5-10 m regular intervals
using a REFLEX GYRO(TM) tool.
* Old workings were surveyed using Lieca Disto tmx310
survey device.
------------------------------------------------------------ -----------------------------------------------------------------
* Specification of the grid system used. * Data was captured and located using a Universal
Transverse Mercator (UTM). The geographic coordinate
reference system used by the client was European
Terrestrial Reference System 1989 UTM Zone 29
('ETRS89 / UTM29N').
* Elevations are reported in metres above sea level.
============================================================ =================================================================
* Quality and adequacy of topographic control. * Topographic DTM taken from 5m resolution Lidar data
MDT05-Lidar, from government mapping and survey
association Plan Nacional de Ortofotografía
Aérea (PNOA).
* Topographic control is sufficient for level of
resource category.
------------------------------------------------------------ -----------------------------------------------------------------
Data spacing
and * Data spacing for reporting of Exploration Results. * Drill and UG channel sample data spacing across the
distribution current resource area ranges from approximately
50-100mx50-100m centres within the 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 * The distribution of drillholes and UG channel
sufficient to establish the degree of geological and sampling is sufficient to establish the degree of
grade continuity appropriate for the Mineral Resource geological and grade continuity appropriate for JORC
and Ore Reserve estimation procedure(s) and (2012) Indicated and Inferred classification of
classifications applied. resources.
------------------------------------------------------------ -----------------------------------------------------------------
* Whether sample compositing has been applied. * Length weighted averages including internal waste
were applied for reporting of exploration results.
* The details are shown with the accompanying tables.
------------------------------------------------------------ -----------------------------------------------------------------
Orientation
of data * Whether the orientation of sampling achieves unbiased * Drilling and underground sampling is angled to
in relation sampling of possible structures and the extent to intercept mineralised structures at high angle, as
to which this is known, considering the deposit type. close to perpendicular to dip and strike as
geological practicable.
structure
* 3D review of sections shows that there appears to be
no sample bias introduced by drilling orientation.
* True thicknesses are reported in the accompanying
tables.
============= ------------------------------------------------------------ -----------------------------------------------------------------
* If the relationship between the drilling orientation * The mineralisation is a steeply dipping vein and
and the orientation of key mineralised structures is sampling tries to reduce the bias by sampling on a
considered to have introduced a sampling bias, this perpendicular plane where possible.
should be assessed and reported if material.
* Review of drilling and channel sections with the
lithological unit appear to show no obvious bias.
============= ============================================================ =================================================================
Sample
security * The measures taken to ensure sample security. * 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 name and sample
location. Each bag is sealed to avoid tampering and
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.
------------------------------------------------------------ -----------------------------------------------------------------
Audits
or reviews * The results of any audits or reviews of sampling * Numerous site visits have been conducted to the Toral
techniques and data. Project and core processing facility in Ponferrada
(licence number 15.199), the latest on 29 August 2021
by Mr. James Hogg (CP).
* Data has also been reviewed regularly by AMS staff as
it is received from the laboratory and on submission
of databases from Europa Metals.
* Findings were satisfactory and suitable for use in
mineral resource estimation.
------------------------------------------------------------ -----------------------------------------------------------------
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this
section.)
Criteria JORC Code explanation AMS Comments
Mineral
tenement * Type, reference name/number, location and ownership * Toral exploration permit number 15.199 (also referred
and land including agreements or material issues with third to as Permiso de Investigacion), is located
tenure status parties such as joint ventures, partnerships, approximately 400km northwest of Madrid, within the
overriding royalties, native title interests, Province of León, Autonomous Community of
historical sites, wilderness or national park and Castile and Le n.
environmental settings.
* Licence 15.199 covers an area of 20.29km(2).
* Exploration licence 15.199 is owned by Europa Metals
Iberia., a wholly owned subsidiary of Europa Metals
Ltd. The licence was renewed on 15 November 2020 for
a further period of 3 years.
--------------------------------------------------------------- -----------------------------------------------------------------
* The security of the tenure held at the time of * All tenements are in good standing.
reporting along with any known impediments to
obtaining a licence to operate in the area.
* AMS are unaware of any impediments that may affect
the licences.
--------------------------------------------------------------- -----------------------------------------------------------------
Exploration
done by * Acknowledgment and appraisal of exploration by other * 1972-1984 - Peñarroya-Adaro. 58 drill holes, 32
other parties parties. 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
* 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
mineralisation 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 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
Information * A summary of all information material to the * Topographic DTM taken from 5m resolution Lidar data
understanding of the exploration results including a MDT05-Lidar, from government mapping and survey
tabulation of the following information for all association Plan Nacional de Ortofotografía
Material drill holes: Aérea (PNOA).
o easting and northing * Drilling:
of the drill hole
collar
o elevation or RL o Number of drillholes used: 172
(Reduced Level - elevation o Collar East: 679962 mE - 684690
above sea level in mE
metres) of the drill o Collar North: 4708653 mN - 4710598
hole collar mN
o dip and azimuth o Collar RL: 411 mRL - 754 mRL
of the hole o Azimuth: 000deg - 354deg
o down hole length o Dip: -90deg - -40deg
and interception depth o Length: 35.40m - 1285.3m
o hole length. o Interception depth: 588 mRL - -398
mRL
o 1,615 Pb and Zn assay values (from
115 drillholes)
o 1,454 Ag assay values (from 101
drillholes)
* UG Channels:
o Number of channels: 19
o Collar East: 680917mE - 682607mE
o Collar North: 4709161mN - 4709996mN
o Collar RL: 447mRL - 693mRL
o Azimuth: 010deg - 313deg
o Dip: -24deg - 19deg
o Length: 0.25m - 4.25m
=============== --------------------------------------------------------------- -----------------------------------------------------------------
* No data is being excluded.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
=============== =============================================================== =================================================================
Data
aggregation * In reporting Exploration Results, weighting averaging * During block model interpolation, the influence of
methods techniques, maximum and/or minimum grade truncations some isolated high-grade values was found to be
(e.g. cutting of high grades) and cut-off grades are sufficiently localised and did not have undue
usually Material and should be stated. influence on the estimates of grade. It was decided
that no need for top cutting was required.
--------------------------------------------------------------- -----------------------------------------------------------------
* Where aggregate intercepts incorporate short lengths * Data aggregation or Grade Compositing rules for the
of high grade results and longer lengths of low grade reporting of exploration drill and channel
results, the procedure used for such aggregation significant results were minimum width 1m, minimum
should be stated and some typical examples of such average grade 0.5% ZnEq, maximum allowable internal
aggregations should be shown in detail. waste of 2m.
=============================================================== =================================================================
* The assumptions used for any reporting of metal * Zn equivalent calculations were based on 3 year
equivalent values should be clearly stated. trailing average price statistics obtained from the
London Metal Exchange and London Bullion Market
Association giving an average Zn price of US$2,516/t,
Pb price of US$1,961/t and Ag price of US$19.4/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.
--------------------------------------------------------------- -----------------------------------------------------------------
Relationship
between * These relationships are particularly important in the * Mineralisation is interpreted as sub-vertical to
mineralisation reporting of Exploration Results. steeply dipping to the NE.
widths and
intercept
lengths * Drilling and underground sampling considered the
nature of the mineralisation prior to commencement of
exploration.
--------------------------------------------------------------- -----------------------------------------------------------------
* If the geometry of the mineralisation with respect to * Angled drilling is sub-perpendicular to +/- 20
the drill hole angle is known, its nature should be oblique to mineralisation.
reported.
* Review of drilling and channel sections with the
lithological unit appear to show no obvious bias.
--------------------------------------------------------------- -----------------------------------------------------------------
* If it is not known and only the down hole lengths are * True thickness of mineralisation ranges from
reported, there should be a clear statement to this approximately 90%-60% downhole interval length.
effect (e.g. 'down hole length, true width not
known').
* True lengths are reported in the tables, as
calculated by Micromine.
--------------------------------------------------------------- -----------------------------------------------------------------
Diagrams
* Appropriate maps and sections (with scales) and * Appropriate scaled diagrams are included within the
tabulations of intercepts should be included for any AMS Toral JORC (2012) Resource Statement and
significant discovery being reported. These should Technical Report.
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views. * Tables of intercepts are included in the relevant
sections.
--------------------------------------------------------------- -----------------------------------------------------------------
Balanced
reporting * Where comprehensive reporting of all Exploration * All available exploration data for the Toral deposit
Results is not practicable, representative reporting area has been collected and reported.
of both low and high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results. * Representative data from all drilling and underground
channel sampling has been reported.
--------------------------------------------------------------- -----------------------------------------------------------------
Other
substantive * Other exploration data, if meaningful and material, * No geophysical works have been completed.
exploration should be reported including (but not limited to):
data geological observations; geophysical survey results;
geochemical survey results; bulk samples - size and * Geological mapping and solid geology map generation
method of treatment; metallurgical test results; bulk completed.
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances. * Structural interpretation and 3D modelling completed.
* Soil geochemical surveys demonstrate strong coherent
Zn in soil anomalism coincident with interpreted
controlling structures.
* Geotechnical tests have been carried out on 84
samples chosen by Europa Metals in different
lithologies. Data have been compiled from 48 samples
tested for geotechnical studies from old reports from
Peñarroya.
* Metallurgical testing has been completed at Wardell
Armstrong's laboratory. The results of the testwork
are discussed within the technical report.
--------------------------------------------------------------- -----------------------------------------------------------------
Further
work * The nature and scale of planned further work (e.g. * Surface drilling and trenching works testing open
tests for lateral extensions or depth extensions or strike extent to the SE and NW and infill drilling
large-scale step-out drilling). within current resource limits to increase confidence
and resource class.
* Increased metallurgical and recovery test work.
--------------------------------------------------------------- -----------------------------------------------------------------
* Diagrams clearly highlighting the areas of possible * Appropriate scaled diagrams and maps are included
extensions, including the main geological within the AMS Toral JORC (2012) Resource Statement
interpretations and future drilling areas, provided and Technical Report.
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
Database
integrity * Measures taken to ensure that data has not been * Analytical data is pared by query with sampling data
corrupted by, for example, transcription or keying via sample number.
errors, between its initial collection and its use
for Mineral Resource estimation purposes.
* AMS has cross referenced the analytical database with
laboratory certificates.
* Micromine 3D geological modelling and estimation
software used for import, validation and QAQC
verification assessment.
* Basic core and sample storage, handling, data capture
and transfer methodologies discussed and are
considered satisfactory.
* The database is suitable for use for use in Mineral
Resource Estimates.
------------------------------------------------------------ ---------------------------------------------------------------
* Data validation procedures used. * Micromine 2021 software was used to validate the
channel sampling and drill hole databases.
* Data checks include overlapping and missing intervals,
trace errors, 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.
------------------------------------------------------------ ---------------------------------------------------------------
Site visits
* Comment on any site visits undertaken by the * The Competent Person for the resource estimation is
Competent Person and the outcome of those visits. Mr. James Hogg. Mr Hogg's, last site visit was
completed on 29 August 2021.
* Site visits have not identified any issues relating
to the reporting of mineral resources.
------------------------------------------------------------ ---------------------------------------------------------------
* Site visits have been undertaken.
* If no site visits have been undertaken indicate why
this is the case.
------------------------------------------------------------ ---------------------------------------------------------------
Geological
interpretation * Confidence in (or conversely, the uncertainty of) the * Based upon the level of available information,
geological interpretation of the mineral deposit. geological and deposit complexity, interpretation of
the main lithological boundaries and controls to
mineralisation are considered satisfactory and
appropriate for the assigned resource class.
* Fault modelling is simplified, and further refinement
will improve the models accuracy moving forward.
------------------------------------------------------------ ---------------------------------------------------------------
* Nature of the data used and of any assumptions made. * Drillhole lithological and analytical information,
prospect scale surface geological mapping,
underground mapping and sampling, location of
underground workings were used in geological
interpretation.
* Mineralisation is modelled as a continuous unit
within the major fault units, however it is
anticipated some smaller scale faulting and offset
post mineralisation will be present which is not
accounted for in modelling.
------------------------------------------------------------ ---------------------------------------------------------------
* The effect, if any, of alternative interpretations on * Alternative interpretations infer potential thrust
Mineral Resource estimation. repeats and potential for additional parallel
mineralised zones. However, at the level of
information this interpretation remains unsupported
by drill data and conceptual in nature.
------------------------------------------------------------ ---------------------------------------------------------------
* The use of geology in guiding and controlling Mineral * Drillhole lithological and analytical information and
Resource estimation. underground channel mapping and sampling were used in
geological interpretation.
* The geological model was used to guide the
interpretation and continuity of Zn-Pb mineralised
domains.
* Post mineralisation transfer faults are interpreted
to affect continuity by minor offset.
------------------------------------------------------------ ---------------------------------------------------------------
* The factors affecting continuity both of grade and * Grade continuity is currently interpreted to be
geology. slightly greater down dip forming "shoots". Faulting
effects geological continuity on a local scale
(50-100m) perpendicular to the strike on
mineralisation.
------------------------------------------------------------ ---------------------------------------------------------------
Dimensions
* The extent and variability of the Mineral Resource * Mineralisation is encountered at surface and based on
expressed as length (along strike or otherwise), plan current testing, extends to approximately 1,100m
width, and depth below surface to the upper and lower below the surface. Mineralisation is currently tested
limits of the Mineral Resource. across a 3,600m strike length, the orientation of
mineralisation zone is approximately 110 degrees,
averaging approximately 3.5m in thickness and ranging
from 2m to 5.5m.
* Mineralisation is encountered at surface as a process
of the incisions.
------------------------------------------------------------ ---------------------------------------------------------------
Estimation
and modelling * The nature and appropriateness of the estimation * As with previous resource estimates completed by AMS
techniques technique(s) applied and key assumptions, including (2017, 2018, 2019, 2020) wireframe solid models were
treatment of extreme grade values, domaining, created for each domain based on a mineralisation
interpolation parameters and maximum distance of threshold of approximately 0.2% for Zn and Pb
extrapolation from data points. If a computer (approximately 0.4% Zn+Pb). Analysis of Zn and Pb
assisted estimation method was chosen include a grades in cross section and in scatter plots showed a
description of computer software and parameters used. 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.
* A weathering surface which represents the approximate
transition partially weathered material to material
dominated by joint weathering and fresh rock was
modelled manually in cross section.
* A main structure or vein (MV) was modelled and split
into four fault units. Four subordinate structures
accounting for less than 1% of the mineralised volume
were modelled manually using cross section string
interpretation. Some drill holes are outside the
licence to the northwest. The model included these
drillholes, but the resultant block model was
filtered to only include blocks within the licence
boundary.
* To the northwest the resource is truncated by the
licence boundary and are extended approximately 10m
past the south easterly most drillhole which was
mineralised but contained sub-economic grades (3 m at
2.4% ZnEq). The total strike length of the modelled
mineralisation within the licence is approximately
3.1 km. The structure remains open to the southeast.
Down dip the model was extrapolated approximately
50-200m below the deepest sample in the northwest and
central parts of the deposit, and approximately
250-280m below the deepest sample in the southeast
with consideration of depths tested along strike to
the northwest. The models extent from surface to a
range of approximately 800 - 1150 m below the
surface. 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.
------------------------------------------------------------ ---------------------------------------------------------------
* The availability of check estimates, previous * The estimates have been reconciled against previous
estimates and/or mine production records and whether AMS estimates.
the Mineral Resource estimate takes appropriate
account of such data.
* The increases / decreases are related to data
confidence and additional samples and updated models.
* A full description for the differences is described
in the body text.
* There are no historical production records to
validate against.
------------------------------------------------------------ ---------------------------------------------------------------
* The assumptions made regarding recovery of * It is the opinion of the Company that Ag will be
by-products. recovered along with Pb and Zn and a credit paid on
refining.
------------------------------------------------------------ ---------------------------------------------------------------
* Estimation of deleterious elements or other non-grade * No estimation of deleterious elements has been made
variables of economic significance (e.g. sulphur for at this time and it is anticipated this will be
acid mine drainage characterisation). conducted on completion of a block model which is to
be used for PFS.
------------------------------------------------------------ ---------------------------------------------------------------
* In the case of block model interpolation, the block * A uniform cell block model of 25m E, 10 m N, 25m Z
size in relation to the average sample spacing and was restricted to the wireframes using block factors.
the search employed. The block model was rotated by 20deg 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 110deg to account for fault offsets,
improve variography and grade mapping. Thickness was
preserved in the flattening process and no lateral
stretching was applied.
------------------------------------------------------------ ---------------------------------------------------------------
* Any assumptions behind modelling of selective mining * Wireframe models included minimum anticipated mining
units. width of 2m.
------------------------------------------------------------ ---------------------------------------------------------------
* Any assumptions about correlation between variables. * As with previous resource estimates completed by AMS
(2017, 2018, 2019 and 2020) 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.
------------------------------------------------------------ ---------------------------------------------------------------
* Description of how the geological interpretation was * The updated wireframes were generated using
used to control the resource estimates. Micromine's implicit vein modelling functionality and
incorporated major fault boundaries as inclined and
vertical planes. Interpretation of the mineralised
domains was guided by geological interpretation of
the deposit incorporating structural and lithological
boundaries such as footwall slate contacts and
surface expression in topographical data and outcrop
mapping.
------------------------------------------------------------ ---------------------------------------------------------------
* Discussion of basis for using or not using grade * During block model interpolation, the influence of
cutting or capping. some isolated high-grade values was found to be
sufficiently localized and did not have undue
influence on the estimates of grade.
* It was decided that no need for top cutting was
required.
------------------------------------------------------------ ---------------------------------------------------------------
* The process of validation, the checking process used, * The block model was validated visually in long
the comparison of model data to drill hole data, and section and cross section to inspect assay grades vs
use of reconciliation data if available. block grades, particular attention was given to areas
of low grade that may be influenced by higher grade
samples within search radii. The mean values
including declustered mean of the input data were
compared against the output data along with
comparison of histograms. Several sensitivity checks
were completed using different kriging
neighbourhoods.
------------------------------------------------------------ ---------------------------------------------------------------
Moisture
* Whether the tonnages are estimated on a dry basis or * Tonnages are estimated on a dry basis.
with natural moisture, and the method of
determination of the moisture content.
------------------------------------------------------------ ---------------------------------------------------------------
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality * For the purpose of reporting updated resources with
parameters applied. reasonable prospect of eventual economic extraction a
cut-off grade of 4% Zn equivalent was selected, based
upon mining, processing, and production rate
parameters identified in the updated scoping study
(2020), using a three-year trailing average price for
Zn, Pb and Ag.
* 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$2,516/t,
Pb price of US$1,961/t and Ag price of US$19.4/oz.
* 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*0.867 + Ag*0.027).
------------------------------------------------------------ ---------------------------------------------------------------
Mining factors
or assumptions * Assumptions made regarding possible mining methods, * Assumed mining methods are based upon a review of
minimum mining dimensions and internal (or, if methods of extraction, cost and performance on
applicable, external) mining dilution. It is always similar type deposits. Summary of mining and
necessary as part of the process of determining processing costs used in determination of economic
reasonable prospects for eventual economic extraction cut off. Mechanised Cut and fill mining method
to consider potential mining methods, but the assumed.
assumptions made regarding mining methods and
parameters when estimating Mineral Resources may not
always be rigorous. Where this is the case, this * Total Mining Processing cost estimated at US$62.93/t.
should be reported with an explanation of the basis Dilution assumed at 90% and 10%.
of the mining assumptions made.
------------------------------------------------------------ ---------------------------------------------------------------
Metallurgical
factors * The basis for assumptions or predictions regarding * Assumed processing methods are based upon a review of
or assumptions metallurgical amenability. It is always necessary as methods of extraction, cost and performance of
part of the process of determining reasonable similar type deposits.
prospects for eventual economic extraction to
consider potential metallurgical methods, but the
assumptions regarding metallurgical treatment * Assumed metallurgical recoveries are Zn 85%, Pb 86%
processes and parameters made when reporting Mineral and 82% Ag.
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. * Assumed concentrate selling factors are Zn 85%, Pb
95%, Ag 89%
------------------------------------------------------------ ---------------------------------------------------------------
Environmental
factors * Assumptions made regarding possible waste and process * No assumptions are made on environmental factors
or assumptions residue disposal options. It is always necessary as other than the cost to back fill waste tailings.
part of the process of determining reasonable
prospects for eventual economic extraction to
consider the potential environmental impacts of the * Flora and fauna studies were started in 2019 by the
mining and processing operation. While at this stage companies and institution of "Universidad de Leon"
the determination of potential environmental impacts, and "Mas que pájaros, biologia, ecoturismo y
particularly for a greenfields project, may not medioambiente S.L". Their report is pending.
always be well advanced, the status of early
consideration of these potential environmental
impacts should be reported. Where these aspects have * AMS has not reviewed any Environmental, Social and
not been considered this should be reported with an Permitting (ES&P) documents or licences.
explanation of the environmental assumptions made.
* AMS understands that there are no legal or project
permitting, environmental and social settings issues
or risks.
* No red flags were identified via the site visit or
study desk review.
------------------------------------------------------------ ---------------------------------------------------------------
Bulk density
* Whether assumed or determined. If assumed, the basis * The bulk density was calculated using the Archimedes
for the assumptions. If determined, the method used, method weighting the samples in air and water using a
whether wet or dry, the frequency of the measurements Kern precision balance.
,
the nature, size and representativeness of the
samples. * Bulk density measurements were carried out on most of
the drillholes, in both mineralised and
un-mineralised samples.
* The resource database contains 3,012 bulk density
measurements, with a total of 234 within the
mineralised wireframe, with a mean value of 2.84
g/cm(3) .
------------------------------------------------------------ ---------------------------------------------------------------
* No bulk material was measured.
* The bulk density for bulk material 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.
------------------------------------------------------------ ---------------------------------------------------------------
* Discuss assumptions for bulk density estimates used * The resource database contains 3,012 bulk density
in the evaluation process of the different materials. measurements, with a total of 234 within the
mineralised wireframe, with a mean value of 2.84
g/cm(3) .
* A broad linear relationship between Pb+Zn grade and
Bulk Density was identified from scattergrams and the
formula 2.7 + 0.02(Pb+Zn%) used to estimate block
density in relation to block grade within the block
model, density was capped the 3.5 g/cm(3) .
------------------------------------------------------------ ---------------------------------------------------------------
Classification
* The basis for the classification of the Mineral * In the updated resource estimation of the Toral
Resources into varying confidence categories. property, the above definitions have been taken into
consideration when applying resource classification.
It was the opinion of the Competent Person that
within some areas of the deposit sample density,
Quality Control data, density determinations and
drilling recoveries were sufficient to allow
classification of some additional Indicated Resources
versus the previous (2020) Resource Estimate.
* The area of the previous Indicated Resources was
still found to be valid with the addition of some new
drilling at higher elevations which was considered
suitable for inclusion in the Indicated Resource.
Within the indicated area the mean average distance
of composites is 95m and the mean closest distance
48m. The remaining blocks within the block model were
classified to the Inferred category.
------------------------------------------------------------ ---------------------------------------------------------------
* Whether appropriate account has been taken of all * The assigned classification of Inferred and Indicated
relevant factors (i.e. relative confidence in reflects the Competent Persons' assessment of the
tonnage/grade estimations, reliability of input data, accuracy and confidence levels in the input data and
confidence in continuity of geology and metal values, the resulting Mineral Resource Estimate.
quality, quantity and distribution of the data).
------------------------------------------------------------ ---------------------------------------------------------------
* Whether the result appropriately reflects the * The result reflects the quality and quantity of data,
Competent Person's view of the deposit. geostatistical analysis of correlation and
relationship between mineralised samples
(semi-variography) and the Competent Person's view of
the deposit.
* The semi-variography reflects the sample density.
------------------------------------------------------------ ---------------------------------------------------------------
Audits
or * The results of any audits or reviews of Mineral * The 2021 Mineral Resource has been reviewed
reviews Resource estimates. internally as part of normal validation processes by
AMS.
* The AMS 2021 resource estimate has not been audited
or reviewed externally at the time of writing.
------------------------------------------------------------ ---------------------------------------------------------------
Discussion
of relative * Where appropriate a statement of the relative * It is the Competent Person's opinion that the level
accuracy/ accuracy and confidence level in the Mineral Resource of confidence is consistent with the level of
confidence estimate using an approach or procedure deemed Inferred and Indicated categorised mineral resources.
appropriate by the Competent Person. For example, the
application of statistical or geostatistical
procedures to quantify the relative accuracy of the * Geostatistical assessment of confidence limits such
resource within stated confidence limits, or, if such as conditional simulation of grades has not been
an approach is not deemed appropriate, a qualitative conducted at this time.
discussion of the factors that could affect the
relative accuracy and confidence of the estimate.
* Interpretation of the thickness and therefore volume
of the mineralisation along with bulk density have
the greatest effect on the contained metal.
* Kriging neighbourhood and the control of higher grade
samples and preventing them from over smoothing is
also important in producing a realistic estimate.
* It is the Competent Person 's opinion that the level
of confidence is consistent with the level of
Indicated and Inferred categorised mineral resources.
------------------------------------------------------------ ---------------------------------------------------------------
* The statement should specify whether it relates to * The estimate is a local estimate to the 25m block
global or local estimates, and, if local, state the scale; however, the data density is too sparse to
relevant tonnages, which should be relevant to allow modelling of selective units inside of the 25m
technical and economic evaluation. Documentation panel scale.
should include assumptions made and the procedures
used.
* As with all kriged estimates there is a degree of
smoothing.
------------------------------------------------------------ ---------------------------------------------------------------
* These statements of relative accuracy and confidence * There are no historical production records from the
of the estimate should be compared with production deposit.
data, where available.
------------------------------------------------------------ ---------------------------------------------------------------
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