TIDMEUZ
RNS Number : 2404X
Europa Metals Ltd
18 December 2019
18 December 2019
Europa Metals Ltd
("Europa Metals", the "Company" or the "Group") (AIM, AltX:
EUZ)
Preliminary Metallurgical Results Received Confirming Saleable
Levels of Concentrate Product, Toral Pb, Zn & Ag Project,
Spain
Europa Metals, the European focused lead-zinc and silver
developer, is pleased to announce that it has received a
preliminary independent metallurgical testwork report (the
"Report") from Wardell Armstrong International ("Wardell
Armstrong"), in respect of the Company's 100% owned Toral lead,
zinc and silver project (the "Toral Project" or "Toral") in the
region of Castilla y León, north west Spain.
Highlights:
-- First metallurgical testwork results received for the Toral Project.
-- 61.6kg sample taken from the Company's 2019 drill programme
was submitted to Wardell Armstrong for analysis.
-- Locked cycle testing confirms saleable concentrate quality of
the lead, zinc and silver, with good grades reported for each
concentrate:
o 57.5% lead;
o 55.8% zinc; and
o 1,457 parts per million ("ppm") (approximately 1.5kg/t) silver
grade reporting to the lead concentrate.
-- Locked cycle testing demonstrates good recoveries for each metal:
o 84.3% lead recovery;
o 70.7% zinc recovery; and
o 90.3% silver recovery reporting to the lead concentrate.
-- No testing for deleterious elements or by-products has been
undertaken for the purposes of the Report.
Based on the preliminary findings set out herein, the Company
will now proceed with the next phase of preliminary metallurgical
work, adopting the recommendations made by Wardell Armstrong in the
Report. This second phase of testwork is expected to be completed
during Q1 2020. Sufficient core remains available for testing and
the additional testwork will comprise, inter alia, the
following:
-- Second phase locked cycle testwork examining an increased
depression of zinc during lead flotation, with the aim of
increasing zinc recoveries; and
-- Full testing for deleterious elements and by-products
following such second phase locked cycle testwork.
Today's preliminary metallurgical results follow the Company's
announcement of 29 October 2019, which detailed an updated JORC
(2012) Mineral resource estimate at the 4% cut-off, including a
first Indicated resource of approximately 2.7Mt @ 8.9% Zn
Equivalent (including Pb credits), 5% Zn, 4.2% Pb and 32g/t Ag and
an Inferred resource of approximately 16Mt @ 7.2% Zn Equivalent
(including Pb credits), 4.5% Zn, 2.9% Pb and 22g/t Ag.
Laurence Read, Executive Director of Europa Metals,
commented:
"The lead, zinc and silver grades obtained from Wardell
Armstrong's preliminary testwork are, in comparison with the
Company's peers, very encouraging, particularly in the context of
the strong lead recovery. Zinc recovery is in line with the
industry average, when compared to producing projects, and the next
stage of metallurgy and process design work will focus on
optimising zinc retention. Further to the recommendations made by
Wardell Armstrong, we shall also commence testing for deleterious
elements within the next phase of metallurgical testwork, which is
expected to commence shortly and be concluded in Q1 2020. Today's
results will enable us to progress the Toral Project and further
demonstrate its potential strengths in terms of resource, grade and
future saleable material."
Myles Campion, Technical Director of Europa Metals, further
commented:
"We are very pleased with the results from this first-pass
testwork seeking to identify future saleable concentrates. The
initial grades in the concentrates are good, particularly in
relation to the lead and silver, whilst the zinc grade is also
encouraging. The zinc recoveries are to be refined via the
additional testwork. We look forward to the results of the second
phase of testwork in due course."
Report's Key Findings
Comminution testwork
A series of comminution tests were undertaken to investigate the
crushing and grinding characteristics of the sample. The testing
conducted investigated conventional crushing technologies, the
results of which are summarised in Table 1 below.
Comminution Test Units Value
Unconfined Compressive Strength (UCS) MPa 51.8
Bond Abrasion Index - 0.5227
Bond Rod Mill Work Index kWh/t 12.69
Bond Ball Mill Work Index kWh/t 9.83
Table 1: Comminution testwork results
Flotation testwork
A series of tests were undertaken to investigate the recovery of
lead and zinc and to separate concentrates by means of froth
flotation. The testing conducted consisted of eight rougher
flotation tests; four first-stage cleaner flotation tests; six
three-stage cleaner flotation tests; and a single locked cycle
flotation test.
The results of the locked cycle test are summarised in Table 2
below.
Table 2: Locked cycle flotation test results
Assay Recovery (%)
Product Mass (%) Pb (%) Zn (%) Ag (ppm) Pb Zn Ag
Pb Cl 3
Conc 2.5 57.47 10.06 1,457 84.30 9.65 90.35
Zn Cl 3
Conc 3.4 1.16 55.78 38.6 2.25 70.71 3.17
Zn Cl 1
Scav Tailings 5.3 1.74 2.89 28.8 5.36 5.82 3.76
Zn Ro Tailings 88.8 0.16 0.41 1.3 8.09 13.82 2.73
Feed 100.0 1.73 2.65 40.9 100.00 100.00 100.00
The locked cycle test achieved a lead recovery of 84.3% to a
concentrate grading 57.5% lead and a zinc recovery of 70.7% to a
concentrate grading 55.8% zinc. 90.3% of the silver was recovered
to the lead concentrate at a grade of 1,457ppm Ag.
Results in the context of potential future production
The grades of lead and zinc in their respective concentrates are
expected to render them marketable products from potential future
production at Toral. The lead concentrate is in the mid-range when
compared with other European producers, whereas the zinc
concentrate is of a higher grade than most currently being produced
in Europe.
The lead also contains significant levels of silver, at 1,457ppm
Ag, which is expected to allow for attractive payment terms on any
future production. The levels of penalty elements in both
concentrates are collectively unknown and therefore cannot be
benchmarked at this stage.
Deleterious elements and by-products
Wardell Armstrong has recommended that testing for deleterious
elements and by-products be conducted during the second phase of
metallurgical testing, once new reagents and zinc suppression
processes are examined to avoid having to conduct the same work
twice as the flow sheet evolves. At present no testing has occurred
for deleterious elements or by-products and the Company expects to
complete such second phase work during Q1 2020.
Whilst the Company considers these results to be encouraging,
they represent the findings of a single test, conducted without any
further optimisation of flotation performance under closed circuit
conditions.
Furthermore, as the testing undertaken to date has not been
exhaustive, today's results should only be considered preliminary
in nature. Analysis of the deportment of the main elements of
interest (i.e. the lead and zinc) showed that whilst 99.5% of the
lead present was in the form of galena, which is readily amenable
to recovery by means of froth flotation, only 88.6% of the zinc was
present in the form of sphalerite, similarly amenable to recovery
by flotation. Of the remaining 11.4% of the zinc, 5.8% was present
in dolomite, 2.5% as smithsonite, 1.1% as willemite and 2.0% as
other minerals, none of which are readily amenable to flotation
which would limit the maximum amount of zinc that could be
recovered by this methodology.
Second phase of metallurgical testwork
Further to its review of the Report, Europa Metals now intends
to commence a second phase of metallurgical testing, adopting the
recommendations made by Wardell Armstrong. This second phase is
expected to be completed during Q1 2020 and comprise:
-- Staged addition of depressants during flotation;
-- Modified flotation residence times;
-- Testing with alternative zinc depressants;
-- Utilisation of further data to balance zinc concentrate recovery towards zinc;
-- Additional locked cycle testing examining the effects of
recirculating loads on flotation performance, following initial
test data clearly showing that this has a beneficial impact on
overall metal recoveries for both concentrates; and
-- Testing for deleterious elements and by-products.
A further announcement(s) will be made, as appropriate, in due
course.
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/Zoe Alexander
T: +44 (0)20 3657 0050
Brandon Hill Capital (Joint Broker)
Jonathan Evans/Oliver Stansfield
T: +44 (0)20 3463 5000
Sasfin Capital Proprietary Limited (a member of the Sasfin
group)
Sharon Owens
T (direct): +27 11 809 7762
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014.
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END
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