Shares of Europa Metals Ltd (LON: EUZ) gapped 16.25% higher after revealing that the results of its latest drilling program at its Toral project in Spain had exceeded expectations.
The lead, zinc and silver exploration and development company clarified that it had completed the drilling phase and would commission a new resource estimate campaign resulting in a revised mine plan.
Investors cheered today's announcement that could increase the project's future production potential, while increasing the mine's lifetime and pay-back period.
Some of the highlights of the drilling campaign include 2.7m @ 11.14% ZnEq(PbAg) from 225.90m to 228.60m, and 1.1m @ 4.24% ZnEq(PbAg) from 251.50m to 252.60m.
Laurence Read, Europa Metals’ CEO, said: “The results from this latest round of drilling in terms of grades and widths of lead, zinc and silver are in our view exceptional and exceed our initial expectations for the upper zone of the Toral project, an area that we have always viewed as being the ‘path' towards the lower, high-grade production zones.”
“The Company has decided to conclude drilling and is assessing the potential positive impact these intersections could have on the existing resource model and the potential future economics for the Toral project.”
The company also noted that it identified copper intersections of 0.93% at 2.7m in hole TOD-032, a significant result, given that the project is mainly focused on lead, zinc and silver.
Europa Metals is now convinced that further copper deposits could exist at depths below the 1,000 metre cut off currently in use.
Europa Metals share price.
Europa Metals shares gapped 16.25% higher to trade at 9.30p, rising from Monday’s closing price of 8.00p.
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