Toral Project
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Europa Toral Project Fly Through
Toral, Spain - a European Metals Base
- Province of Leon - established mining region
- Close cooperation with Junta of Castilla y Leon has allowed delivery of multiple work programmes
- Industrialised area - regional mining expertise
- Infrastructure corridor - road, rail & power
- EU/Regional grant access
Immediate Toral Area
Toral - Resource Overview
Economics
- $156m NPV
- 31.3% IRR
- $79m Capex to production
- Payback Year 4
- 700kt/a- 12LOM
- 49 Op Margin ($63.56/6)'
Resource (JORC 2012)
- 17 Mt @ 6.9% Zn Eq (inc. Pb credits), 4.1% Zn, 2.9% Pb & 24 g/t Ag (inf/ind: 720,000 Zn, 510,000t of Pb and 14Moz of Ag (Approx.)
- 3.8 Mt @ 8.3% Zn Eq (inc. Pb credits) and 30 g/t Ag indicated:180,000t Zn,150,000t Pb & 3.7 Moz Ag (Approx.)
Technical
- 'SLOS with ramp/raise-bore shaft access - 10% dilution;
- 3.5m average mined mineralised widths'
- Environmental Baseline studies underway
- Initial hydrogeological report successful
- Advancing geotechnical approach
Metallurgy/ Economic recovery
- Significant Indicated and Inferred JORC (2012) resource, Spain
- Metallurgy and XRT ore sorting proving up high grade concentrates
- 'Grade/recovery 3.3% Pb/87%; 4.2% Zn/86%; 26.7g/t Ag/85%'
- Scoping Study and PEA complete - PFS underway
Toral - Block Model
The updated mineral resource estimate as of August 2020 for the Toral lead-zinc-silver deposit comprises:
- High grade core identified in initial work, area has been focus of recent campaigns and successfully upgraded from inferred to indicated.
- Purple - Indicated Resources of approximately 3.8Mt@8.3% Zn Equivalent (including Pb credits), 4.7% Zn, 3.9% Pb and 30 g/t Ag
- Green - Inferred Resources of approximately 14Mt@6.5% Zn Equivalent (including Pb credits), 4% Zn, 2.7% Pb and 23 g/t Ag
Toral - Economics
- US$156m NPV at an 8% discount rate
- 31.3% IRR
- 17Mt @ 6.7% ZnEq (including Pb credits) resource (JORC 2012) including indicated resource of 3.8Mt @ 8.1% ZnEq (including Pb and Ag credits) - 4% cut off grade
- Sub-Level Longhole Stoping (“SLOS”) mining method selected
- 700k tonnes per annum operation with a 7.6% ZnEq mined grade:
- SLOS with ramp/raise-bore shaft access;
- 10% dilution;
- 3.5m average mined mineralised widths
- Processing comprises an ore sorting front-end using X-ray Transmission (“XRT”) followed by grinding and flotation
- Grade/recovery:3.3% Pb/87%; 4.2% Zn/86%; 26.7g/t Ag/85%
- US$79m upfront Capex
- 3-year trailing average metals prices of US$2,668/t for zinc, US$2,099/t for lead and US$16.5/oz for silver
- US$963m Revenue over Life of Mine (“LOM”)
- US$477m Opex over LOM
- US$471m EBITDA over LOM
- 49% Operating Margin (US$63.56/t all-in cost)
- 12-year LOM scenario
- Conceptual LOM production schedule incorporates 100% of the existing Indicated resource in the early years, ending with elevated zinc grades in the deep Inferred zones
- Deposit open to the east and at depth for potential production expansion during the mine’s life
- Project’s 3-year Investigation Permit renewed until 15 November 2023 (as announced previously on 12 November 2020)’
Toral - Bara Preliminary Economic Report highlights
A graph of mined production, revenues and costs, showing major project milestones is presented
Summary Mining Schedule (Years)
Key observations:
- Payback in Year 4;
- Year 12 ends in high grade zinc; and
- Resource expansion potential exists at depth and along strike to the east.
Toral Live of Mine Development Plan (looking North)
Typical sub-level set of 3 levels showing underhand development sequence, overhand stoping sequence and pillar layout
Total revenue is $962m over the life of mine, with zinc the major revenue contributor at $526m, followed by lead at $370m and silver at $66m. 3-year trailing average metal prices were used including $2668/t for zinc, $2099/t for lead and $16.5/oz for silver. A graph of relative metal revenue contributions is shown in Figure 1
