Europa Metals Ltd Scoping Study Commencement - Toral Project, Spain (7778R)

TIDMEUZ

RNS Number : 7778R

Europa Metals Ltd

19 June 2018

19 June 2018

Europa Metals Limited

("Europa", "EUZ", the "Company" or the "Group")(ASX, AIM, JSE: EUZ)

Scoping Study Commencement - Toral Project, Spain

Europa Metals, the European lead-zinc explorer, today announces that it has engaged the services of UK based Addison Mining Services Limited (www.addisonminingservices.com) ("AMS", "Addison") with immediate effect, to commence an initial Scoping Study (the "Study") on the Company's 100% owned Toral lead, zinc and silver project located in the Province of Leon, Spain (the "Toral Project"). Addison previously compiled the Toral Project's maiden independent JORC (2012) mineral resource estimate, announced in January 2018.

The principal objective of the Study will be to determine first economics on the Toral Project, reported on by a fully accredited and independent mining consultancy group. The findings of the Study will be disclosed to the market following completion, which is currently anticipated during Q4 2018.

Addison's Principal Geologist, James Hogg, and Associate Principal Mining Engineer, Julian Bennett, will lead the Study project team dedicated to the Toral Project. The dedicated Study team will work alongside the Company's existing in-country management, under the direction of Myles Campion, Technical Director, and Jesus Montero, principal Mining Engineer from Mining Sense. The specific workstream headings for the work to be undertaken for the Study are as follows:

   --      Resource optimisation of recently completed JORC 2012 Inferred resource; 
   --      Preliminary mine layout; 
   --      Mineral inventory estimation; 
   --      Preliminary Economic Assessment, DCF and sensitivity analysis; 
   --      CAPEX and OPEX parameters; and 
   --      Review of environmental, hydrogeological and geotechnical parameters. 

Myles Campion, Executive / Technical Director, commenting today, said:

"We are delighted to appoint Addison Mining Services to conduct the initial Scoping Study over the Toral deposit and look forward to working closely with them to combine their experience with our on-ground knowledge to move Toral forward as quickly as possible.

On completion of the Study, we will hope to have the first real look at the prospectivity we think Toral has to offer, providing greater insight into the economics and the potential of the deposit."

Laurence Read, Executive Director, added:

"Our maiden JORC 2012 resource, announced in January 2018, estimated that Toral has a metal content of 670,000 tonnes of zinc, 540,000 tonnes of lead and 13 million troy ounces of silver. While Europa will be pursuing drilling along strike during 2018 (at present we are completing the tendering process for drilling), our core focus will be confirming the economic viability of developing this significant metals resource. The initial Scoping Study, to be undertaken by an independent consultant, will examine a wide range of sensitivities and report on the viability of a future mining operations. With an already defined high-grade centre within the block model, I look forward to the scenarios that might be uncovered by Addison in developing a robust production model."

For further information on the Company, please visit www.europametals.com or contact:

Europa Metals Limited

Dan Smith, Non-Executive Director and Company Secretary (Australia)

T: [phone]

Laurence Read, Executive Director (UK)

T: + 44 (0)20 3289 9923

Strand Hanson Limited (Nominated Adviser)

Rory Murphy / Matthew Chandler / James Dance

T: [phone]

Turner Pope Investments Limited (Joint Broker)

Andy Thacker

T: [phone]

Peterhouse Corporate Finance Limited (Joint Broker)

Lucy Williams / Duncan Vasey / Heena Karani

T: [phone]

Sasfin Capital Proprietary Limited (a member of the Sasfin group) (JSE Sponsor)

Sharon Owens

T (direct): [phone]

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.

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June 19, 2018 02:00 ET (06:00 GMT)