The initial economics of the Toral lead/zinc project, in north-west Spain, are robust, with a scoping study calculating a $110-million net present value, at an 8% discount rate, and an internal rate of return of 24.4%, dual-listed Europa Metals announced this week.
The scoping study estimated $33-million in capital expenditure (capex) for a proposed 450 000 t/y design capacity plant and a total capex of $110-million.
The study is based on the inferred resource estimate of 16-million tonnes at 7.5% zinc equivalent with lead and silver credits in accordance with the Joint Ore Reserves Committee (Jorc) code, issued in 2012, which will be the subject of further investigation as part of the planned prefeasibility and feasibility studies in due course.
Looking ahead, and subject to funding, the company’s plans for Toral include an infill drilling campaign to target the high-grade core of the deposit, with the aim of increasing confidence in the resource estimate to the Jorc indicated category.
Europa also intends to complete the first studies of its metallurgical testwork programme on the project to provide prefeasibility study level results on the comminution, flotation and concentrate grade; while simultaneously starting environment studies and the hydrogeological characterisation of the Toral project.