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.”
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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
