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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Europa Metals Ltd | LSE:EUZ | London | Ordinary Share | AU0000090060 | ORD NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.40 | 1.30 | 1.50 | 1.40 | 1.40 | 1.40 | 68,126 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 0 | -3.38M | -0.0359 | -0.39 | 1.32M |
From Apr 2019 to Apr 2024
TIDMEUZ
RNS Number : 3102B
Europa Metals Ltd
20 September 2018
20 September 2018
Europa Metals Ltd
("Europa Metals", the "Company" or the "Group")(ASX, AIM, JSE: EUZ)
Updated JORC Mineral Resource Estimate for the
Toral Project, Spain
Highlights:
-- Updated JORC (2012) Mineral resource estimate obtained for Toral lead-zinc-silver project
-- 19% increase in Zinc Equivalent Inferred resource to 19Mt (6.9% Zn equivalent with Pb credits and 24 g/t Ag)
-- 7% increase in contained tonnes of Zinc to 720,000 -- 6% increase in contained tonnes of Lead to 570,000 -- 8% increase in contained ounces of Silver to 14 million ounces
Europa Metals, the European lead-zinc explorer, is pleased to announce, further to its recent re-logging programme of certain historical core from its 100% owned Toral lead-zinc-silver project in northern Spain (the "Toral Project"), undertaken at the National Litoteca in Andalucia, as referred to in the Company's announcement of 28 August 2018, an updated independent Mineral Resource Estimate for the project reporting increased tonnage and levels of contained metals. The update has been prepared in accordance with JORC (2012 revision) resource estimate by Addison Mining Services Limited ("AMS"). To view this announcement with the illustrative figures referenced below, please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/3102B_1-2018-9-19.pdf
Revised inputs from relogging work and analysis
Re-logging of historic drill core held at the National Litoteca from the Toral Project resulted in significantly higher bulk density measurements than those used for the Maiden resource estimate completed by AMS between November 2017 and January 2018, as announced by the Company on 6 February 2018.
The increase in bulk density values applied to samples and their spatial distribution resulted in a material change to the estimation of the resource. Ore tonnages are calculated by volume estimated from solid models developed from mapping and drilling information multiplied by rock density.
The updated mineral resource estimate for the Toral lead-zinc-silver deposit comprises:
-- 19Mt @ 6.9% Zn Equivalent (including Pb credits) and 24g/t Ag -- 720,000 tonnes of Zinc, 570,000 tonnes of Lead and 14 million ounces of Silver
This compares favourably with the maiden mineral resource estimate announced on 6 February 2018, containing the following tonnes and grade:
-- 16Mt @ 6.9% Zn Equivalent (including Pb credits) and 25g/t Ag -- 670,000 tonnes of Zinc, 540,000 tonnes of Lead and 13 million ounces of Silver
Laurence Read, Executive Director of Europa Metals, commented:
"The significant increases in estimated contained lead, zinc and silver within our Toral Project has been delivered by the Europa Metals team through highly focussed and cost-effective work. A 19% increase in zinc equivalent tonnes has been achieved and we have been particularly pleased that the new data sets have integrated very well into our existing model. In addition to our ongoing scoping study work and drill campaign at Toral, the team is continuing to analyse the recent information obtained from the historic core in order to provide new insight into the structure of the deposit."
Myles Campion, Executive/Technical Director of Europa Metals, further commented:
"Our team has done an excellent job in utilising the information obtained from examining the historic core stored at the National Litoteca and extracting the most from it. Our concerted effort to re-log the core is already showing significant results and I look forward to further geological interpretation over the coming months as we integrate our various information sources."
Updated JORC (2012) Inferred Mineral Resource Estimate
Further to our recent work at the National Litoteca in Andalucia involving the assessment of historical core from Toral, lithological re-logging and the collection of bulk density measurements, conducted between June 2018 and August 2018, the Company commissioned an updated mineral resource estimate in September 2018 from Addison Mining Services Limited ("AMS"). The updated mineral resource estimate is based on all the available historical data from three drill campaigns conducted on licence number 15.199 (namely, the 1972 - 1984 Peñarroya-Adaro campaign, the 2006 - 2008 Lundin Mining campaign and the 2016 - 2017 Europa Metals campaign), along with underground channel sampling results from the numerous adits. The update also takes into account new bulk density measurement data and information on weathering boundaries captured during the Company's recent historical core re-logging exercise.
The updated mineral resource estimate has been reported in accordance with the guidelines of the Joint Ore Reserve Committee (JORC) 2012 code.
A new block model has increased our overall level of understanding of the mineralogical and geological controls at Toral. However, a review of the historic drill core revealed a considerable difference in the bulk density results. The Company commissioned a re-logging programme (completed in August 2018) that included the collection of an additional 1,002 bulk density measurements, structural and geotechnical readings as well as weathering data to improve confidence in the oxide, transitional and fresh zones.
Block Model
The Inferred resource for the Pb-Zn-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% cut-off was appropriate utilising estimated mining parameters typical for similar types of projects and mineralogy, and 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$2,500/t US$c/lb1.13 Pb Price Used: US$2,100/t US$c/lb0.95 Ag Price Used: US$17/oz
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 3,300m and is still open to the east along strike and also at depth where it has not yet been closed off.
Hot Features
Premium
Cut-Off Tonnes Density Zn_Eq Zn Eq Zn Pb Ag Contained Contained Ag Troy
Zn Eq (Millions) (Pb)% (PbAg)% % % g/t Zn Tonnes Pb Tonnes Oz (Millions)
(PbAg)% (000s) (000s)
Total
6.0 10 2.8 8.7 9.3 4.8 4 30 490 420 10
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
5.0 14 2.8 7.7 8.3 4.4 3.5 26 620 490 12
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
4.0 19 2.8 6.9 7.4 3.9 3.1 24 720 570 14
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
3.0 23 2.8 6.2 6.7 3.5 2.8 22 800 630 16
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
Transitional Oxide Material
4 1.8 2.4 5 5.5 2.6 2.5 25 45 44 1.4
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
Unweathered Fresh Rock
4 17 2.8 7 7.6 4 3.1 23 680 530 13
------------ -------- ------- --------- ---- ---- ----- ----------- ----------- ---------------
Table 1: Summary of Inferred 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 estimate and as such totals may not cast.
Figure 1 showing AMS' resource block model for Toral as a 3D view looking north is available at the PDF link above.
The results of the updated resource estimate are positive, with increases in both tonnage and the lead, zinc and silver metal content, which compares favourably to the maiden resource estimate announced on 6 February 2018:
-- Updated Inferred resources of 19Mt @ 6.9% Zn Equivalent (including Pb credits) and 24g/t Ag have increased in terms of overall tonnage and the contained metal content compared to the previous maiden estimate of 16Mt @ 6.9% Zn Equivalent (including Pb credits) and 25g/t Ag. The increase in tonnage and contained metal content is due to new and increased bulk density measurement values used in the updated resource estimate.
Summary of updated resource estimate and reporting criteria
In accordance with ASX Listing Rule 5.8 and the JORC (2012) reporting guidelines, a summary of the material information used to estimate the Mineral Resource is set out below (for further detail please refer to 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 thrust fault-controlled contact, vein, carbonate replacement and breccia styles of mineralisation situated close to the boundary between footwall slates and hangingwall limestones and dolomites, and wholly within the hangingwall limestones and dolomites.
Weathering
A weathering surface was interpreted at the partially weathered-joint boundary to sub-divide transitional material and fresh material. As is common and expected in a litho-boundary/structurally controlled deposit an observed oxidation trough has developed along the main structure. The accuracy of the surface at this stage is suitable for application and use in the reporting of Inferred resources.
Bulk density
The original resource database contained 190 bulk density measurements. As part of the re-logging programme, an additional 1,002 measurements were recorded throughout the deposit for a total of 1,192 measurements. 105 measurements occured within the mineralised wireframe. The mean of all bulk density readings within the mineralised zone wireframe is 2.75 g/cm(3) compared with the previous mean for all readings within the mineralised domain of 2.46 g/cm(3) thereby representing a significant increase in the mean density of the mineralised domain.
The mean for the mineralised domain oxide/transitional zone is 2.4 g/cm(3) and the mean for mineralised domain fresh material is 2.8 g/cm(3) .
Drilling techniques and hole spacing
A total of 92 diamond drill holes (including wedges) totaling 45,000 metres and 19 underground channels for 18.75 metres were used as the input database for geological modelling and resource estimation.
Drill core diameter was PQ, HQ and NQ depending upon depth. Tube type is unknown for the historic Peñarroya drilling, whilst the triple tube method was used for the historic Lundin Mining and Europa Metals campaigns.
No orientation has been performed on the drill core.
Drill and UG channel sample data spacing across the currect resource area ranges from approximately 50-100m x 50-100m centres within the most densely tested area towards the NW, stepping out to approximately 200m x 200m within the mid-section and 100-200m x 500m in the SE.
The distribution of drillholes 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 classification of resources.
Sampling and sub-sampling techniques
The three 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-sample taken for analysis. Multi-element re-analysis of available Peñarroya ddh 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-sample taken for analysis.
Sampling analysis method
Recovery data was recorded for selected intervals in 23 drillholes (11 Peñarroya, 6 Lundin and 6 Europa Metals). A total of 332 core recovery measurements exist in the database with average recovery of 83%. 109 core recovery measurements occur within the interpreted mineralised zone. Core recovery was measured over lengths often corresponding to sample length.
Cut-off grades
The Inferred 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 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 taking into account the factors mentioned above and allowing for some increase in commodity prices to define resources with reasonable prospect of eventual economic extraction now or in the near future. Resources are reported as follows:
The reported total Inferred Resource Estimate is approximately 19 million tonnes at 6.9% Zn Equivalent (including Pb credits) and 24 g/t Ag. Individual zinc and lead grades are 3.9% Zn and 3.1% Pb, with an estimated metal content of 720,000 tonnes of zinc, 570,000 tonnes of lead and 14 million troy ounces of silver.
Estimation methodology
AMS verified primary analytical data via cross reference against original lab certificates and the re-input of all assays for the project for use in geological modelling and estimation. The database for use as input for mineral resource modelling and estimation has also been validated and verified by AMS and the Competent Person. Micromine 3D geological modelling and estimation software was used for import, validation and QA/QC verification assessment, 3D solid modelling, geostatistics and block model grade interpolation estimation. Data checks include checks for overlapping and missing intervals, dh trace errors, missing survey data, litho and collars.
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. Interpretation of the mineralised domains was guided by geological interpretation of the deposit incorporating structural and lithological boundaries.
Extrapolation of the Zn-Pb mineralised domain equals approximately 50m along strike in the NW direction, approximately 50-80m below the deepest sample in the NW and central zones, and approximately 200m below the deepest sample in the SE zone. Mineralisation is extrapolated approximately 60m along strike to the SE. Extents of extrapolation are considered appropriate for the level of information, deposit type, strike and depth extents tested, observed and geostatistical continuity and the assigned resource class.
All samples contained within the mineralised wireframe were composited to a standard length for geostatistical analysis and interpolation. Variography was performed on the assay data within the primary mineralised wireframe to generate a series of directional semi-variograms for Zn, Pb and Ag. These variograms were used in the Ordinary Kriging process where Zn, Pb and Ag were interpolated and extrapolated using the corresponding variograms on a domain by domain basis. A single pass search was applied to minimise conditional bias, and the number of input data in each block estimate were restricted to prevent over smoothing of the estimates.
The block model used uniform cell size of 50x2x50m 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 Kriged interpolation technique with a single search ellipsoid orientated to the interpreted strike, dip and pitch of mineralisation.
Figure 2 showing grade tonnage Curves, tonnage based on Zn equivalent with Pb and Ag credits, is available at the PDF link above.
Classification criteria
The portion of the Toral deposit defined by drilling, underground development and channel sampling, has been classified as an Inferred Mineral Resource in accordance with the JORC Code (2012) guidelines 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 mining is the intended mining methodology.
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 qualified person under the AIM guidance note for mining and oil & gas companies. The resource estimate was aided by Mr R. J. Siddle, MSc, MAIG Senior Resource Geologist for AMS, under the guidance of the competent person. Mr Hogg has reviewed and verified the technical information that forms the basis of, and has been used in the preparation of, the updated mineral resource estimate and this announcement, including all analytical data, diamond drill hole logs, QA/QC data, density measurements, and sampling, diamond drilling and analytical techniques. Mr Hogg consents to the inclusion in this announcement of the matters based on the information, in the form and context in which it appears. Mr Hogg has also reviewed and approved the technical information in his capacity as a qualified person under the AIM Rules for Companies.
Additionally, Mr Hogg confirms that the entity is not aware of any new information or data that materially affects the information contained within the Company's previous announcements referred to herein.
For further information on the Company, please visit www.europametals.com or contact:
Europa Metals Ltd
Dan Smith, Non-Executive Director and Company Secretary (Australia)
T: +61 417 978 955
Laurence Read, Executive Director (UK)
T: +44 (0)20 3289 9923
Strand Hanson Limited (Nominated Adviser)
Rory Murphy / Matthew Chandler
T: +44 (0)20 7409 3494
Turner Pope Investments (TPI) Limited (Joint Broker)
Andy Thacker
T: +44 (0)20 3621 4120
Peterhouse Corporate Finance Limited (Joint Broker)
Lucy Williams / Duncan Vasey / Heena Karani
T: +44 (0)20 7469 0930
Sasfin Capital Proprietary Limited (a member of the Sasfin group) (JSE Sponsor)
Sharon Owens
T (direct): +27 11 809 7762
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.
Glossary of technical terms:
"Ag" silver;
"g" grammes;
"g/t" grammes per tonne;
"Inferred Resource" that part of a Mineral Resource for which quantity
and grade (or quality) are estimated on the basis
of limited geological evidence and sampling. Geological
evidence is sufficient to imply but not verify
geological and grade (or quality) continuity. It
is based on exploration, sampling and testing information
gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and
drill holes;
"JORC" the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves, as
published by the Joint Ore Reserves Committee of
The Australasian Institute of Mining and Metallurgy,
Australian Institute of Geoscientists and Minerals
Council of Australia;
"JORC (2012)" the 2012 edition of the JORC code;
"m" metre;
"Mineral Resource" a concentration or occurrence of material of economic
interest in or on the earth's crust in such form
and quantity that there are reasonable and realistic
prospects for eventual economic extraction. The
location, quantity, grade, continuity, and other
geological characteristics of a Mineral Resource
are known, estimated from specific geological evidence
and knowledge, or interpreted from a well-constrained
and portrayed geological model;
"Mt" million tonnes;
"oz" troy ounce;
"Pb" lead;
"QA/QC" quality assurance/quality control;
"Zn" zinc.
APPIX: Table 1 Appendix 5A ASX Listing Rules (JORC 2012)
Section 1 Sampling techniques and data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary related to the Toral
Project
Sampling Historic and recent diamond
techniques * Nature and quality of sampling (e.g. cut channels, drill
random chips, or specific specialised industry core and underground cut channel
standard measurement tools appropriate to the sampling. Three main phases of
minerals under investigation, such as down hole gamma exploration drilling and
sondes, or handheld XRF instruments, etc). These sampling:
examples should not be taken as limiting the broad 1972 - 1984 Peñarroya -
meaning of sampling. Adaro. Diamond drill core method
was used to obtain samples for
geological logging and sampling.
* Include reference to measures taken to ensure sample Geological and analytical data
representivity and the appropriate calibration of any is recorded on hardcopy.
measurement tools or systems used. Selective
sampling method was employed
around areas of interest.
* Aspects of the determination of mineralisation that Sampling
are Material to the Public Report. intervals measure approx. 1m,
half core sent for analysis,
with half core retained for
* In cases where 'industry standard' work has been done reference.
this would be relatively simple (e.g. 'reverse Exact details on core
circulation drilling was used to obtain 1 m samples processing,
from which 3 kg was pulverised to produce a 30 g sampling techniques and
charge for fire assay'). In other cases more analytical
explanation may be required, such as where there is methods are unclear, however
coarse gold that has inherent sampling problems. subsequent explorers Lundin
Unusual commodities or mineralisation types (e.g. Mining
submarine nodules) may warrant disclosure of detailed sent the majority of the
information. 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 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
Suecia,
then shipped to ALS Chemex
Vancouver
for multi-element analysis by
ICP. Half core samples reduced
to -400 microns and 100g
sub-sample
taken for analysis.
Multi-element
re-analysis of available
Peñarroya
ddh 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 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
samples
reduced to -400 microns and 100
g sub-sample taken for analysis.
Drilling A total of 92 diamond drill
techniques * Drill type (e.g. core, reverse circulation, open-hole holes
hammer, rotary air blast, auger, Bangka, sonic, etc) (inc. wedges) for 45,000 metres,
and details (e.g. core diameter, triple or standard and 19 underground channels for
tube, depth of diamond tails, face-sampling bit or 18.75 metres were used as the
other type, whether core is oriented and if so, by input database for geological
what method, etc). modelling and resource
estimation.
Drill core diameter was PQ, HQ
and NQ depending upon depth.
Tube type is unknown for
Peñarroya
driling, triple tube method was
used for Lundin and Europa
Metals
campaigns.
No orientation has been done
on drill core.
Drill Recovery data was recorded for
sample * Method of recording and assessing core and chip selected intervals in 23
recovery sample recoveries and results assessed. drillholes
(11 Peñarroya, 6 Lundin
and 6 Europa Metals).
* Measures taken to maximise sample recovery and ensure A total of 332 core recovery
representative nature of the samples. measurements exist in the
database
with average recovery of 83%.
* Whether a relationship exists between sample recovery 109 core recovery measurements
and grade and whether sample bias may have occurred occur within the interpreted
due to preferential loss/gain of fine/coarse mineralised zone.
material. Core recovery was measured over
lengths often corresponding to
sample length.
Recoveries average 80% within
the mineralised zone, ranging
from 100% down to 19% within
areas of broken ground
conditions,
intense fracturing and
alteration.
Statistical assessment suggests
a possible slight bias exists
between recovery and grades,
with higher recovery returning
slightly higher average grades.
However, due to limited samples
findings are currently
inconclusive
and additional recovery data
and investigatioin is required
to draw conclusions.
Logging In 2018, all drill core was
* Whether core and chip samples have been geologically relogged
and geotechnically logged to a level of detail to on paper logs and transferred
support appropriate Mineral Resource estimation, to an Access database.
mining studies and metallurgical studies. DH lithology, alteration,
mineralisation
and structural observations were
* Whether logging is qualitative or quantitative in recorded by variable interval
nature. Core (or costean, channel, etc) photography. based on charactristical
similarities
and change boundaries.
* The total length and percentage of the relevant Summary interval information
intersections logged. was input to the database,
comprising
codes to describe logged
lithology,
alteration, mineralisation and
major structure for the
interval.
Graphic and schematic logs were
produced for all drilling.
Lundin and Europa Metals core
was routinely photographed.
Drill core logging is considered
satisfactory for the level of
study and resource class.
Sub-sampling The sub-sampling techniques and
techniques * If core, whether cut or sawn and whether quarter, sample preparation details are
and sample half or all core taken. not known for the Peñarroya
preparation drill core.
Lundin and Europa Metals core
* If non-core, whether riffled, tube sampled, rotary was cut by core saw and half
split, etc and whether sampled wet or dry. core submitted for analysis.
Underground channels were cut
by angle grinder/circular saw.
* For all sample types, the nature, quality and A channel approximately 7 cm
appropriateness of the sample preparation technique. wide and 5 cm deep to obtain
2-3 kg sample.
Sample collection, sample size,
* Quality control procedures adopted for all preparation and analysis are
sub-sampling stages to maximise representivity of considered appropriate for the
samples. mineralogy and deposit type.
Samples are considered
representative
* Measures taken to ensure that the sampling is of the in-situ material
representative of the in situ material collected, collected.
including for instance results for field QAQC sample insertion procedures
duplicate/second-half sampling. were not employed during the
historical Peñarroya drill
campaigns.
* Whether sample sizes are appropriate to the grain Lundin Mining completed limited
size of the material being sampled. quarter core field duplicate
insertion and selected pulp
re-assay
by external lab.
Europa Metals conducted a QC
program of inserting quarter
core field duplicates, course
blank and pulp blank material,
external standards, selected
pulp repeats and submission of
pulp rejects for umpire lab
analysis.
ALS internal QC exists for
Peñarroya
re-analysis, Lundin and Europa
Metals sample batches.
Quality Historical Peñarroya
of assay * The nature, quality and appropriateness of the assaying
data and assaying and laboratory procedures used and whether and laboratory procedures are
laboratory the technique is considered partial or total. unknown.
tests Commercial laboratories ALS
Chemex
* For geophysical tools, spectrometers, handheld XRF Vancouver and ALS Seville
instruments, etc, the parameters used in determining (ISO9001:2008)
the analysis including instrument make and model, were used for Lundin and Europa
reading times, calibrations factors applied and their Metals drill core respectively
derivation, etc. and Europa Metals underground
channel sample analysis.
Multi-element analysis,
* Nature of quality control procedures adopted (e.g. including
standards, blanks, duplicates, external laboratory Pb, Zn, Cu, Ag by ICP-MS were
checks) and whether acceptable levels of accuracy completed on all samples.
(i.e. lack of bias) and precision have been Over limits samples were
established. re-analysed
using ore grade methods of
determination.
Sample analytical techniques
are considered in line with
industry
standard for this style of
mineralisation.
QAQC sample insertion procedures
were not employed during the
historical Peñarroya drill
campaigns. However, Lundin
re-analysis
of Peñarroya drill core
pulp rejects does allow for
comparison
of 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.
EUZ 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 or fatal
flaws were identified from the
assessment of QA data.
The nature and quantity of QA/QC
data, procedures employed, level
of accuracy and precision are
considered acceptable for the
assigned resource
classification.
The quality of assay data and
laboratory tests is acceptable
for the resource classification
for this deposit.
No geophysical tools,
spectrometers
or handheld XRF instruments were
used in the exploration and
resource
work.
Verification Paper recorded drill hole
of sampling * The verification of significant intersections by logging
and assaying either independent or alternative company personnel. data is transferred to Excel,
imported in to Mapinfo for
viewing
* The use of twinned holes. and imported to Micromine 3D
geological modelling software
for validation.
* Documentation of primary data, data entry procedures, DGPS collar and survey excel
data verification, data storage (physical and data, and lab analytical data
electronic) protocols. transferred from lab.csv, to
Excel and imported to Micromine
3D geological modelling
* Discuss any adjustment to assay data. software.
Geological data from gallery
is observed and reported by
geologists
and mining engineers.
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.
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 Lundin and Europa Metals drill
of data * Accuracy and quality of surveys used to locate drill collars were surveyed using a
points holes (collar and down-hole surveys), trenches, mine Geomax 35 high-precision DGPS
workings and other locations used in Mineral Resource device Accuracy +/-3cm. Downhole
estimation. survey measurements taken using
Reflex Maxibore downhole survey
tool.
* Specification of the grid system used. Peñaroyya drill hole collar
locations were measured off
plans
* Quality and adequacy of topographic control. and sections, located on the
ground and picked up using
Geomax
35 high-precision DGPS device.
Accuracy +/-5 m. Peñarroya
drill hole dip and azimuth
measured
from historical plans, cross
sections and longitudinal
section.
Accuracy +/-5 m.
Old workings were surveyed using
Leica Disto tmx310 survey
device.
Co-ordinate grid system used
is European Terrestrial
Reference
System 1989 UTM Zone 29.
Topographic DTM taken from 5
m resolution Lidar data
MDT05-Lidar,
from government mapping and
survey
association Plan Nacional de
Ortofotografía Aérea
(PNOA).
Data spacing Drill and UG channel sample data
and distribution * Data spacing for reporting of Exploration Results. spacing across the currect
resource
area ranges from approximately
* Whether the data spacing and distribution is 50-100mx50-100m centres within
sufficient to establish the degree of geological and the most densely tested area
grade continuity appropriate for the Mineral Resource towards the NW, stepping out
and Ore Reserve estimation procedure(s) and to approximately 200mx200m
classifications applied. within
the mid-section, and
100-200x500m
* Whether sample compositing has been applied. in the SE. Toral ZnEq block
model
and sample points are set out
in Figure 3 (available at the
PDF link above).
The distribution of drillholes,
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
classification
of resources.
Intervals were not composited
at the sampling stage. Grade
compositing was done for domain
interpretation and modelling,
and 2 m length compositing done
for grade interpolation.
Orientation Drilling is angled to
of data * Whether the orientation of sampling achieves unbiased intercept
in relation sampling of possible structures and the extent to mineralised structures at
to geological which this is known, considering the deposit type. high
structure angle, as close to
perpendicular
* If the relationship between the drilling orientation to dip and strike as
and the orientation of key mineralised structures is practicable.
considered to have introduced a sampling bias, this No sample bias is introduced
should be assessed and reported if material. by drilling orientation.
Sample Historical Peñarroya sample
security * The measures taken to ensure sample security. 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 loss and
contamination.
Plastic bags are placed in dry
weave bags.
Samples are delivered to
laboratory
by courier in secured boxes.
Audits Competent Person's review and
or reviews * The results of any audits or reviews of sampling discussion of sampling
techniques and data. techniques
and data took place prior to
and during consultant site visit
between 20-22 November 2017 and
23-26 July 2018. Findings were
satisfactory and considered
appropriate
for the JORC (2012) resource
classification.
================== =============================================================== =================================
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral Toral exploration permit number
tenement * Type, reference name/number, location and ownership 15.199 (also referred to as
and land including agreements or material issues with third Permiso
tenure status parties such as joint ventures, partnerships, de Investigacion), is located
overriding royalties, native title interests, approximately 400 km northwest
historical sites, wilderness or national park and of Madrid, within the Province
environmental settings. of León, Autonomous
Community
of Castile and Le n.
* The security of the tenure held at the time of Licence 15.199 covers an area
reporting along with any known impediments to of 24 km(2).
obtaining a licence to operate in the area. Exploration licence 15.199 is
owned by Goldquest Iberica,
S.L.,
a wholly owned subsidiary of
Europa Metals Limited. The
licence
was renewed on 14 November 2017
for a period of 3 years.
Exploration 1972-1984 -
done by * Acknowledgment and appraisal of exploration by other Peñarroya-Adaro.
other parties parties. 55 drill holes, 36 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 The Toral Project is located
* Deposit type, geological setting and style of in the Southwestern part of the
mineralisation. 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 Drilling:
Information * A summary of all information material to the Number of drillholes used: 92
understanding of the exploration results including a Collar East: 679962mE - 684702mE
tabulation of the following information for all Collar North: 4708653mN -
Material drill holes: 4710598mN
Collar RL: 410mRL - 753mRL
Azimuth: 007deg - 345
o easting and northing Dip: -87deg - -40deg
of the drill hole collar Length: 82.3m - 1,285.3m
o elevation or RL (Reduced Interception depth: 578mRL -
Level - elevation above -405mRL
sea level in metres) UG Channels:
of the drill hole collar Number of channels: 19
o dip and azimuth of Collar East: 680917mE - 682607mE
the hole Collar North: 4709161mN -
o down hole length and 4709996mN
interception depth Collar RL: 447mRL - 693mRL
o hole length. Azimuth: 010deg - 313deg
* If the exclusion of this information is justified on Dip: -24deg - 19deg
the basis that the information is not Material and Length: 0.25m - 4.25m
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
Data aggregation No top cuts were applied to the
methods * In reporting Exploration Results, weighting averaging Zn and Pb data. However, Lundin
techniques, maximum and/or minimum grade truncations and Europa Metals samples were
(e.g. cutting of high grades) and cut-off grades are limited to analytical method
usually Material and should be stated. upper detection limits of 30%
for Zn, Pb
A top cut of 200 ppm was applied
* Where aggregate intercepts incorporate short lengths to Ag assay data.
of high grade results and longer lengths of low grade Data aggregation or Grade
results, the procedure used for such aggregation Compositing
should be stated and some typical examples of such rules for the reporting of
aggregations should be shown in detail. exploration
drill and channel significant
results were minimum width 1m,
* The assumptions used for any reporting of metal minimum average grade 0.5% ZnEq,
equivalent values should be clearly stated. maximum allowable internal waste
of 2m.
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$2,400/t, Pb price of
US$2,000/t
and Ag price of US$17/Oz.
Recovery
and selling factors were
incorporated
into the calculation of Zn Eq
values. It is the Company's
opinion
that all the elements included
in the metal equivalents
calculation
(Zinc, Lead and Silver) have
a reasonable potential to be
recovered and sold.
Relationship Mineralisation is interpreted
between * These relationships are particularly important in the as sub-vertical to steeply
mineralisation reporting of Exploration Results. dipping
widths and to the NE.
intercept Angled drilling is
lengths * If the geometry of the mineralisation with respect to sub-perpendicular
the drill hole angle is known, its nature should be to +/- 20 oblique to
reported. mineralisation.
True thickness of mineralisation
ranges from approximately
* If it is not known and only the down hole lengths are 90%-60%
reported, there should be a clear statement to this downhole interval length.
effect (e.g. 'down hole length, true width not
known').
Diagrams Appropriate scaled diagrams are
* Appropriate maps and sections (with scales) and included within the AMS Toral
tabulations of intercepts should be included for any JORC (2012) Resource Statement
significant discovery being reported. These should and Technical Report.
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views.
Balanced All available exploration data
reporting * Where comprehensive reporting of all Exploration for the Toral deposit area has
Results is not practicable, representative reporting been collected and reported.
of both low and high grades and/or widths should be Representative data from all
practiced to avoid misleading reporting of drillings have been reported.
Exploration Results.
Other substantive No geophysical works have been
exploration * Other exploration data, if meaningful and material, completed.
data should be reported including (but not limited to): Geological mapping and solid
geological observations; geophysical survey results; geology map generation
geochemical survey results; bulk samples - size and completed.
method of treatment; metallurgical test results; bulk Structural interpretation and
density, groundwater, geotechnical and rock 3D modelling completed.
characteristics; potential deleterious or Soil geochemical surveys
contaminating substances. demonstrate
strong coherent Zn in soil
anomalism
coincident with interpreted
controlling
structures.
No geotechnical, metallurgical
or bulk sample test work
completed
to date.
Further Surface drilling and trenching
work * The nature and scale of planned further work (e.g. works testing open strike extent
tests for lateral extensions or depth extensions or to the SE and infill drilling
large-scale step-out drilling). within current resource limits
to increase confidence and
resource
* Diagrams clearly highlighting the areas of possible class.
extensions, including the main geological Underground cut-channel sampling
interpretations and future drilling areas, provided and mapping.
this information is not commercially sensitive. Systematic bulk density
measurement
work.
Preliminary metallurgical
testwork.
================== =============================================================== =================================
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 Commentary related to the Toral
Project
Database The databases (geological and
integrity * Measures taken to ensure that data has not been analytical) are maintained by
corrupted by, for example, transcription or keying the geologist.
errors, between its initial collection and its use The database for use as input
for Mineral Resource estimation purposes. to mineral resource modelling
and estimation has been validated
and verified by AMS and the Competent
* Data validation procedures used. Person.
Micromine 3D geological modelling
and estimation software used
for import, validation and QAQC
verification assessment.
Data checks include checks for
overlapping and missing intervals,
dh trace errors, missing survey
data, litho and collars.
Site visits Competent Person for structurally
* Comment on any site visits undertaken by the controlled carbonate hosted Pb-Zn
Competent Person and the outcome of those visits. resource estimation is Mr. James
Hogg who has a Master Degree
of Science in Mineral Exploration
* If no site visits have been undertaken indicate why and is a member of the Australian
this is the case. Institute of Geoscientists.
Site visits were completed between
20-22November 2017 and again
between 23-26 July 2018.
Geological Based upon the level of available
interpretation * Confidence in (or conversely, the uncertainty of) the information, geological and deposit
geological interpretation of the mineral deposit. complexity, interpretation of
the main lithological boundaries
and controls to mineralisation
* Nature of the data used and of any assumptions made. are considered satisfactory and
appropriate for the assigned
resource class.
* The effect, if any, of alternative interpretations on Drillhole lithological and analytical
Mineral Resource estimation. information, prospect scale surface
geological mapping, underground
mapping and sampling, location
* The use of geology in guiding and controlling Mineral of underground workings were
Resource estimation. used in geological interpretation.
Alternative interpretations infer
potential thrust repeats and
* The factors affecting continuity both of grade and potential for additional parallel
geology. mineralised zones. However, at
the level of information this
interpretation remains unsupported
by drill data and conceptual
in nature.
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.
A transitional oxide material
surface was modelled from the
logging of the drill core.
Dimensions Mineralisation is encountered
* The extent and variability of the Mineral Resource at surface and based on current
expressed as length (along strike or otherwise), plan testing, extends to approximately
width, and depth below surface to the upper and lower 1,100 m below the surface. Mineralisation
limits of the Mineral Resource. is currently tested across a
3,300 m strike length, the orientation
of mineralisation zone is approximately
110 degrees, averaging approximately
3 m in thickness.
Estimation Wireframe solid models were created
and modelling * The nature and appropriateness of the estimation for each domain based on a mineralisation
techniques technique(s) applied and key assumptions, including threshold of approximately 0.2%
treatment of extreme grade values, domaining, for Zn and Pb (approximately
interpolation parameters and maximum distance of 0.4% Zn+Pb). Analysis of Zn and
extrapolation from data points. If a computer Pb grades in cross section and
assisted estimation method was chosen include a in scatter plots showed a strong
description of computer software and parameters used. relationship and no requirement
to model Zn and Pb separately
was identified. Ag showed a strong
* The availability of check estimates, previous correlation with Pb and was estimated
estimates and/or mine production records and whether within the Zn/Pb mineralised
the Mineral Resource estimate takes appropriate domain. Interpretation of the
account of such data. mineralised domains were guided
by geological interpretation
of the deposit incorporating
* The assumptions made regarding recovery of structural and lithological boundaries.
by-products. Extrapolation of the Zn-Pb mineralised
domain equals approximately 50m
along strike in the NW direction,
* Estimation of deleterious elements or other non-grade approximately 50-80m below the
variables of economic significance (e.g. sulphur for deepest sample in the NW and
acid mine drainage characterisation). central zones, and approximately
200m below the deepest sample
in the SE zone. Mineralisation
* In the case of block model interpolation, the block is extrapolated approximately
size in relation to the average sample spacing and 60m along strike to the SE. Extents
the search employed. of extrapolation are considered
appropriate for the level of
information, deposit type, strike
* Any assumptions behind modelling of selective mining and depth extents tested, observed
units. and geostatistical continuity
and the assigned resource class
of Inferred. Figures 4 and 5
* Any assumptions about correlation between variables. (both available at the PDF link
above) show the extrapolated
zone of mineral domain block
* Description of how the geological interpretation was model (shown in grey).
used to control the resource estimates.
All samples contained within
the mineralised wireframe were
* Discussion of basis for using or not using grade composited to a standard length
cutting or capping. for geostatistical analysis and
interpolation. Variography was
performed on the assay data within
* The process of validation, the checking process used, the primary mineralised wireframe
the comparison of model data to drill hole data, and to generate a series of directional
use of reconciliation data if available. semi-variograms for Zn, Pb and
Ag. These variograms were used
in the Ordinary Kriging process
where Zn, Pb and Ag were interpolated
and extrapolated using the corresponding
variograms on a domain by domain
basis. A single pass search was
applied to minimise conditional
bias, the number of input data
in each block estimate were restricted
to prevent over smoothing of
the estimates.
The block model used uniform
cell size of 50x2x50 m 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
Kriged interpolation technique
with a single search ellipsoid
orientated to the interpreted
strike, dip and pitch of mineralisation.
No top cutting was applied to
Zn or Pb grades due to the upper
detection limit of the data being
30%. High-grade outlier values
for Ag were capped ('top-cut')
at 200 ppm (g/t) based on the
data distribution and statistics.
The current resource completed
by AMS on the Toral project compares
well with the historic 2011 NI43-101
reported resource which stated
resources at 4% cut off of 18Mt
@ 8.4% (Pb+Zn), 27g/t Ag. An
AMS audit of the historic resource
has identified a number of errors
and issues in regard to input
data, estimation methodology,
assumptions and reporting of
metal equivalents, and considers
the historic resource inaccurate
and unreliable.
The data was continually validated
throughout drilling and at the
resource stage. Data was validated
both visually and in Micromine.
No significant errors were detected
and the data set is considered
robust and compliant with JORC
2012 reporting standards.
A comparison between the volume
and tonnage of the block model
and the volume and tonnage of
the wireframe which represents
all mineral domains. The volumes
of the wireframe and block model
agree within acceptable limits.
Moisture Tonnages are estimated on a dry
* Whether the tonnages are estimated on a dry basis or basis.
with natural moisture, and the method of
determination of the moisture content.
Cut-off Zn equivalent calculations were
parameters * The basis of the adopted cut-off grade(s) or quality based on 3 year trailing average
parameters applied. price statistics obtained from
the London Metal Exchange and
London Bullion Market Association
giving an average Zn price of
US$2,400/t, Pb price of US$2,000/t
and Ag price of US$17/Oz. Recovery
and selling factors were incorporated
into the calculation of Zn Eq
values. It is the Company's opinion
that all the elements included
in the metal equivalents calculation
(Zinc, Lead and Silver) have
a reasonable potential to be
recovered and sold.
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*0.96 + Ag*0.022).
Zn Eq (Pb)% is the calculated
Zn equivalent using lead credits
and does not include silver credits.
It is displayed here for comparison
purposes (Zn Eq (Pb)% = Zn +
Pb*0.96).
Mining factors Assumed mining methods are based
or assumptions * Assumptions made regarding possible mining methods, upon a review of methods of extraction,
minimum mining dimensions and internal (or, if cost and performance on similar
applicable, external) mining dilution. It is always type deposits.
necessary as part of the process of determining
reasonable prospects for eventual economic extraction Summary of mining and processing
to consider potential mining methods, but the costs used in determination of
assumptions made regarding mining methods and economic cut off: Assumed cut
parameters when estimating Mineral Resources may not and fill/sub level open stoping,
always be rigorous. Where this is the case, this US$38/t, 7% mining loss, 5% dilution.
should be reported with an explanation of the basis Processing US$25/t, GNA US$8/t,
of the mining assumptions made. tailing handling US$3, rehab,
US$1/t Total US$75.
Metallurgical Assumed processing methods are
factors * The basis for assumptions or predictions regarding based upon a review of methods
or assumptions metallurgical amenability. It is always necessary as of extraction, cost and performance
part of the process of determining reasonable of similar type deposits.
prospects for eventual economic extraction to
consider potential metallurgical methods, but the Summary of recovery and selling
assumptions regarding metallurgical treatment factors used in the determination
processes and parameters made when reporting Mineral of economic cut off and equivalents.
Resources may not always be rigorous. Where this is Discounted factor for selling
the case, this should be reported with an explanation concentrate product applied to
of the basis of the metallurgical assumptions made. metal prices. Metal Recoveries
and Concentrate Selling Factors
are taken into account in Zn
Eq calculation.
Metal Metal Zn Mining Process Conc Metal
price % Recovery Recovery Selling Contribution
US$ Equivalent Factor Factor Factor Factor
Conversion (MRECF) (PRECF) (CONCF)
Factor
2500
Zn /t 1 0.88 0.9 0.85 0.53
-------- ------------ ---------- ---------- --------- --------------
2100
Pb /t 0.96 0.88 0.95 0.92 0.40
(x
%
Pb)
-------------------- ------------ ---------- ---------- --------- --------------
17
Ag /Oz 0.022 0.88 0.80 0.95 0.07
(x
g/t
Ag)
-------------------- ------------ ---------- ---------- --------- --------------
Zn Eq
Weighted 0.88 0.95 0.884
------------ ---------- ---------- --------- --------------
Environmental No assumptions are made on environmental
factors * Assumptions made regarding possible waste and process factors other than the cost to
or assumptions residue disposal options. It is always necessary as back fill waste tailings.
part of the process of determining reasonable
prospects for eventual economic extraction to
consider the potential environmental impacts of the
mining and processing operation. While at this stage
the determination of potential environmental impacts,
particularly for a greenfields project, may not
always be well advanced, the status of early
consideration of these potential environmental
impacts should be reported. Where these aspects have
not been considered this should be reported with an
explanation of the environmental assumptions made.
Bulk density The bulk density was calculated
* Whether assumed or determined. If assumed, the basis using the Archimedes method weighting
for the assumptions. If determined, the method used, the samples in air and water
whether wet or dry, the frequency of the measurements using a Kern precision balance.
,
the nature, size and representativeness of the 1,002 new bulk density measurements
samples. were recorded, for a total of
1,192 readings. 105 occurring
within the mineralisation. The
* The bulk density for bulk material must have been mean for the mineralised domain
measured by methods that adequately account for void oxide/transitional zone is 2.4
spaces (vugs, porosity, etc), moisture and g/cm(3) and mean for mineralised
differences between rock and alteration zones within domain fresh material is 2.8
the deposit. g/cm(3) .
* Discuss assumptions for bulk density estimates used
in the evaluation process of the different materials.
Classification The Inferred mineral resource
* The basis for the classification of the Mineral category for the Toral zinc-lead-silver
Resources into varying confidence categories. project (at cut-off grades >4%
Zn Equivalent) comply with the
resource definitions as described
* Whether appropriate account has been taken of all in the Australasian Code for
relevant factors (i.e. relative confidence in Reporting of Exploration Results,
tonnage/grade estimations, reliability of input data, Mineral Resources and Ore Reserves.
confidence in continuity of geology and metal values, The JORC Code, 2012 Edition.
quality, quantity and distribution of the data). Prepared by: The Joint Ore Reserves
Committee of The Australasian
Institute of Mining and Metallurgy,
* Whether the result appropriately reflects the Australian Institute of Geoscientists
Competent Person's view of the deposit. and Minerals Council of Australia
(JORC).
The result reflects the quality
and quantity of data, 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 There has been one historical
reviews * The results of any audits or reviews of Mineral resource estimate performed on
Resource estimates. the deposit, completed in 2013
and reported in compliance with
NI43-101. A review of the NI43-101
report and available models has
raised some concerns on the validity
of input data used, modelling
and estimation methodologies
and resulting reliability of
reported resources.
The AMS 2018 resource report
has not been audited.
Discussion It is the CP's opinion that the
of relative * Where appropriate a statement of the relative resource model and estimations
accuracy/ accuracy and confidence level in the Mineral Resource are accurate given the quantity
confidence estimate using an approach or procedure deemed and quality of data, and reported
appropriate by the Competent Person. For example, the in accordance with JORC (2012)
application of statistical or geostatistical guidelines.
procedures to quantify the relative accuracy of the The level of confidence is consistent
resource within stated confidence limits, or, if such with the level of Inferred categorised
an approach is not deemed appropriate, a qualitative mineral resource.
discussion of the factors that could affect the There were sufficient statistical
relative accuracy and confidence of the estimate. and geostatistical procedures
to quantify the accuracy of the
mineral resource.
* The statement should specify whether it relates to There are no historical production
global or local estimates, and, if local, state the records from the deposit.
relevant tonnages, which should be relevant to
technical and economic evaluation. Documentation
should include assumptions made and the procedures
used.
* These statements of relative accuracy and confidence
of the estimate should be compared with production
data, where available.
=============== ============================================================ ========================================================================================
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