Toral is demonstrating itself to be a highly robust lead, zinc and silver project located in a first world jurisdiction.

Laurence Read, chief executive

How it’s doing

Europa Metals Limited (LON:EUZ) is developing the Toral project in Castilla y Leon region in north-west Spain.

Findings of a preliminary economic study in December proposed an operation of 700,000 tonnes per annum operation over a 12-year life.

Europa said Toral is a very robust project capable of producing high-grade saleable concentrates within an EU jurisdiction.

The study pitched the project’s net value (NPV) at US$156mln with an internal rate of return (IRR) of 31.3%.

Upfront capital requirement is estimated at US$79mln and life-of-mine operating costs are seen at US$477mln.

The mine is predicted to generate US$963mln of revenue over life-of-mine, with life-of-mine earnings (EBITDA) forecast at US$471mln.

Europa highlighted the deposit is still open to the east and also at depth, which allows for production expansion.

What the boss says: Laurence Read, chief executive

“Having recently secured a new three-year investigation permit for Toral and with today’s updated economics attributing a US$156mln NPV and a 31.3% IRR, the board shall progress Europa’s strategy to secure the most value-accretive pathway to advance the project.

“With work towards a PFS for Toral now underway, we look forward to updating the market in due course on our hydrogeology programme, planned resource and metallurgical drilling and geotechnical work.”

Latest video

Inflexion points

  • Resource definition drilling to identify characteristics of metals in the concentrate
  • Drilling in high-grade areas alongside metallurgical work to upgrade resource to indicated status
  • Changes to mining regulations give a boost to Toral

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