The Toral lead/zinc project, in north-west Spain, could be a significantly larger operation than previously contemplated, with a new independent study pegging its production rate at 700 000 t/y.
This compares with a previous scoping study design of 450 000 t/y.
The 700 000 t/y operation is based on a 17-million-tonne resource at 6.7% zinc equivalent, including an indicated resource of 3.8-million tonnes at 8.1% zinc equivalent.
The new study also delivered enhanced economics, owing to a change in the mining method, increased run-of-mine and the addition of ore sorting. The net present value, at an 8% discount, is $156-million and the internal rate of return is 31.3%.
“With a mining grade of 7.6% zinc equivalent and as a potential high margin operator, Toral has the scope to generate over $470-million earnings before interest, tax, depreciation and amortisation from $963-million of revenue over the life-of-mine from upfront capex of $79m and estimated payback in year four,” said Europa CEO Laurence Read.
The Aim- and AltX-listed company has started work on a prefeasibility study.