Europa Metals Share Discussion Threads

[edgein] 09/8/2019 16:11

GD,

Yes they're a very close neighbour (large Tara mine in Ireland) and a very large company and would make an ideal partner for EUZ.

Here's a recent interesting interview regarding what's going on especially with TOD-23:



Don't think the market realises the importance of this or how close we now are to completion given how long its been since this hole started.

Regards,
Ed.

[greatfull dead] 09/8/2019 16:05

Ed,

You did mention Boliden at some point a long time ago. A perfect fit imo

hxxps://www.boliden.com/operations/mines/boliden-tara#

ATB,
GD

[edgein] 09/8/2019 15:09

I certainly hadn't expected them to start engaging with the authorities and community just as quickly though. I didn't expect that until the met test work had been completed and the DFS well underway. But they're not sitting on their hands so who knows what the next move will be. As RA1 points out its an indication of the quality of the asset to be moving ahead with the initial stages of the ML. Taking a peek at the chart too these have a long way to recover for those willing to take the punt.

Regards,
Ed.

[edgein] 09/8/2019 14:59

GD,

Not sure about the majors but the likes of Boliden could be a good match for Toral for sure. As that broker interview recently said that the current drilling about to be completed could take some of the discount off their target. As said they've a discounted target, discounted by a whopping 70% at 0.095p per share, about x5 higher than current. With indicated booked and possibly an increase to inferred to the high grade core from the current and historic holes it'll certainly de-risk this even further. That'll send the broker target even higher as they'll not be discounting by 70% and make these look even more ridiculously over sold. Sure I don't see why it wouldn't attract partners, the conservative SS and NPV are many times the value of EUZ. One of the large players could buy these out at a snip or get a good jv. A large company more likely than a major mining company. These are being accumulated and tightly held by the bargain hunters, no need for folks to chase explorers when they've companies like this sitting right under their nose.

They're just infill drilling what they know is already there. Just filling in gaps in the current data. Next move is met test work, DFS and possible jv. A jv with a large company to drill even deeper under Toral to see where the high grades go would be interesting. But that's after a JV or sale of Toral imo.

Regards,
Ed.

[smraynot] 09/8/2019 14:11

🚀 and the fun begins.

[bernieboy] 09/8/2019 14:03

Wise words, up she goes and 0.022 paid....

[greatfull dead] 09/8/2019 14:03

ED,

Do you feel once the assays have shown how good Toral is plus the mining licence that a major miner may want a share of Toral?

IMO at least one major will a JV and it will be down to the BOD to negotiate the JV price...

Am I being simplistic at this stage?

ATB,
GD

[bernieboy] 09/8/2019 13:57

Think we are definitely going higher today....

[edgein] 09/8/2019 13:46

RA1,

Spot on fella, just shows how oversold these are compared to peers. Also those peers have much lesser grades to Toral too. Good to see the management push ahead now that we're getting towards the end of the drilling campaign. We may get the assays back from the first couple of holes soon too. At least the market is starting to pick up on the potential here. We could spike up at any stage.

Regards,
Ed.

[greatfull dead] 09/8/2019 13:15

BB,

I am done now. Now for the next RNS's...

ATB,
GD

[bernieboy] 09/8/2019 13:02

11million more for me about to go through....

[greatfull dead] 09/8/2019 12:48

researchanalyst1,

Thanks for your informative post.

ATB,
GD

[bernieboy] 09/8/2019 11:53

Good post sir!

[greatfull dead] 09/8/2019 11:46

Averaging down.

GLA,
GD

[greatfull dead] 09/8/2019 09:02

Ed,

Thanks. Great info.

ATB,
GD

[edgein] 09/8/2019 08:58

GD,

Good background info from your link.

Regards,
Ed.

[edgein] 09/8/2019 08:51

I hadn't realized that they were sending off samples for assay as they went along, thought they might do that in the end:

11/07/19

"Core from hole TOD-022 has recently been processed and sent to ALS Laboratories Seville for independent analysis."

"TOD-023 aims to replicate the un-assayed results encountered in an historic Peñarroya drill hole, SJ22, which was drilled as part of a third-party drilling campaign concluded in 1984. Hole SJ22 is proximate to a series of five other historic drill holes whose locations are shown on the map in Figure 1"

The historic drilling were also using a diamond rig:

"Source: Peñarroya results from IGME "National core library", 1984. Selected significant historic intercepts (> 5% Zn Eq, including intervals of internal waste up to 2m in thickness) from drilling completed by Peñarroya. Drill holes are diamond core holes, 1/2 core sampled at average 1.0m intervals."

"The location of hole TOD-023 will contribute to establishing the continuity and extent of the plunging high-grade shoots observed in the deposit."

Its pretty significant stuff they're doing at the minute as it can fill in the gaps with this unassayed older drill data that EUZ could use to upgrade the JORC. With them now engaging with the authorities and community I would assume that hole TOD-023 is progressing quite well as it should be complete or almost complete with the samples taken (it did start about a month ago).

Regards,
Ed.

[greatfull dead] 09/8/2019 08:49

Ed,

Thanks. I was just going through the drill RNS's and goggled this-
hxxps://www.equipmentandcontracting.com/drilling-techniques-for-mining-exploration/

ATB,
GD

[edgein] 09/8/2019 08:42

GD,

This is a diamond drill rig for the current campaign. I'd also assume that the additional hole that was drilled by the previous owner that can now be assayed and used in the JORC would also be diamond drill cored. There's quite a few diamond drill holes on Toral as well as the RC drill stuff. I think its around 50,000m drilled to date into this asset. For a small company they've already a ton of data, I guess that's why the SS looked more like a DFS.

Regards,
Ed.

[greatfull dead] 09/8/2019 08:35

Ed,


Do you know if EUZ are using RC drilling or Diamond drilling for this hole?

ATB,
GD

[edgein] 09/8/2019 08:20

GD,

True, and for a second this morning I thought the news was related to the conclusion of the drilling and sending off the samples for assay and met test work. I guess it'll probably be next week for that one.

Regards,
Ed.

[greatfull dead] 09/8/2019 08:08

Shows confidences imo...

ATB,
GD

[edgein] 09/8/2019 08:04

Manini,

Well the SS is very detailed and it came back with good numbers. The company is significantly oversold. When they're this low they're always vulnerable to a cheap takeover and going through the ML application process would make them more so. They're valued slightly above £2m at the moment and the NPV is $110m and even the 70% discounted price target is almost 0.1p (that'll derisk on getting indicated according to the broker). I haven't found another lead/zinc mine that can match the high grade core of Toral, the cutoff that EUZ are using of 4% would be commercial at most other mines. So yes it makes them even better value to be starting the ML process and shows how serious they are to engage with both the local authorities but also the local community to promote the benefits of a developed mine.

Regards,
Ed.

[the manini] 09/8/2019 07:56

Pushing ahead with the ML at this stage, does that not suggest they're in a hurry to sell Toral...?