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Denarius Signs Option Agreement with Europa Metals to Develop Tral Zinc-Lead-Ag Project in Leon Province, Northern Spain, The Canadian Business Journal

TORONTO, Oct. 05, 2022 (GLOBE NEWSWIRE) — Denarius Metals Corporation (“Denarius” or the “Company”) (TSXV: DSLV; OTCQB: DNRSF) is pleased to announce that it has signed an Option Agreement. Joint Venture Agreement (“Letter of Intent”) with Europa Metals Ltd. (“Europa”) (AIM: EUZ). Europa has granted Denarius the right to take up to 80% ownership of Toral Zn. – Pb-Ag Project (“Toral Project”), Province of Leon, Northern Spain, Phase 2 (“Proposed Transaction”).

Serafino Iacono, Chairman and CEO of Denarius, commented:We are very pleased to have reached agreement on the commercial parameters of this proposed farm-in transaction. Above all, we are very pleased to have agreed definitive documents that will allow Denarius to lead the development of this high-grade polymetallic project located in a well-mineralized historic mining area. An active jurisdiction that also offers potential further exploration opportunities. The potential future production of high-grade concentrates at Toral presents a unique opportunity for Denarius to seek to develop high-quality base metals projects in the heart of Western Europe. ”

“Surging demand from industry combined with heightened geopolitical risk has pushed raw material metal prices higher in the last year. There is an urgent need to develop alternative feedstock supply systems that are safer and more sustainable in the region.The proposed transaction provides a wholly-owned It may also provide future strategic synergies with the Romeropoyatos Polymetal Project.”

The proposed transaction will be subject, among other things, to due diligence for confirmation by Denarius, finalization and execution of definitive documents (“Definitive Agreement”), and all necessary shareholder and regulatory approvals as appropriate. Eligible for Europa.

The Toral project is located in the Autonomous Region of Castile and Leon in the province of Leon, about 400 km northwest of Madrid, or a four-hour drive. The project area is located within the administrative district of El Bierzo, the capital of which is the city of Ponferrada, approximately 30 km east of the project area by road. Toral Exploration License 15.199, Permiso de Investigacion (“Permit”) covers an area of ​​20.29 km². The Toral project is adjacent to a main road and is well connected to several industrial ports in northern Spain and the main zinc smelters in the Asturias region.

The Toral Project is a carbonate-hosted Mississippi Valley type (“MVT”) located along the contact between the Middle Cambrian Old Slate of the Footwall and the Upper Cambrian Old Limestone and Dolomite Host Rock of the Suspension Wall. ) Zn-Pb-Ag deposits. Mineralization is continuous along the contact and has been tested by drilling over a strike length of at least 1.7 km. It remains open along the strike and downslope.

Mineral Resource Estimation for the Toral Project

Europa has issued a JORC 2012 Compliant Mineral Resource Estimate for the 2021 Toral Project, with an effective date of 14 September 2021, prepared by Addison Mining Services Ltd (“Addison”) in 2021.

  • Approximately 5.9 million metric tons (Mt) of Indicated Resources at 7.1% Zn Equivalent (including Pb credits) (“Zn Eq”) or 7.8% Zn Equivalent (including Pb and Ag credits (“Zn Eq(PbAg)”)) . 4.2% Zn, 3.3% Pb, and 27 g/t Ag, containing:
    • 251,000 tons of zinc, 196,000 tons of lead, 5.2 million ounces of silver.
  • An Inferred Resource of approximately 14 million tons at 6.0% Zn Eq or 6.5% Zn Eq(PbAg), graded 3.8% Zn, 2.5% Pb, and 20 g/t Ag, including:
    • 540,000 tons of zinc, 350,000 tons of lead, 9 million ounces of silver.

Scientific and technical information about the Toral project can be found atLatest JORC 2012 Technical Report and Resource Estimates for Europa Metals Toral Pb-Zn Project, Leon, SpainDone by Addison for Europa on 20 October 2021, with an effective date of 14 September 2021. The Toral Technical Report was prepared by James Hogg MSc MAIG, Richard Siddle MSc MAIG and Lewis Harvey to his 2012 JORC Code standards. MSc MAIG. The ‘Authorized Person’ under the 2012 JORC Code is James Hogg. JORC ​​Codes are Acceptable Foreign Codes as defined in NI 43-101.

Mineral resources are not mineral reserves and have not demonstrated economic viability. The Toral Project Mineral Resource is reported at a 4.0% zinc equivalent cutoff grade (including Pb and Ag credits) (“Zn Eq (PbAg)”). Zinc equivalent calculations are based on three-year tracked average price statistics obtained from the London Metal Exchange and the London Bullion Market Association, with average zinc prices of US$2,516/tonne, lead prices of US$1,961/tonne, The silver price was US$19.4/oz. Collection and sales factors were incorporated into the calculation of Zn Eq values. Addison is of the opinion that all metals (zinc, lead, and silver) included in metal equivalent calculations have a reasonable chance of being recovered and sold. According to the JORC Code, Zn Eq (PbAg)% is the calculated Zn equivalent incorporating silver credits and lead and is the parameter used to define the cut-off grade used for resource reporting ( ZnEq (PbAg)% = Zn + Pb*0.867 + Ag*0.027). Zn Eq is the Zn equivalent calculated using lead credits and not including silver credits (Zn Eq = Zn + Pb*0.867). All numbers are rounded to reflect the relative accuracy of the estimates.

Metallurgical testing conducted by Wardell Armstrong International in 2020 culminated in a canned cycle test that achieved 77.0% zinc recovery into a zinc concentrate grading 59.1% zinc. Another lead and silver concentrate with recoveries of 83.7% and 87.1%, respectively, was obtained with his Ag grades of 60.2% lead and 1,350 ppm.

Transaction description

The transaction includes the formation of an unincorporated joint venture between Denarius and Europa for the development of the Toral project. This includes the incorporation of permits and, where approved by the military government of Castile and Leon, certain other mineral licenses nearby (“Junta”), the local mining authority. The transaction will be completed in his two stages and is subject to certain pre-conditions, as described below.

The definitive agreement includes an option for Denarius or its designee to acquire a 51% interest in the Toral Project through a firm-in from Europa Metals Iberia SL (“EMI”), a wholly owned Spanish subsidiary of Europa. . , own permission (“first option”).

To execute the first option and acquire a 51% interest in the Toral Project, (i) Denarius and Europa agree on a work plan and budget, and (ii) Denarius must pay a minimum of $4 million (including $100,000). ). Paid upon execution of the final contract, he will have US$550,000 sent to his Europa upon completion of his Denarius financing, which is expected to be completed by March 31, 2023.

  1. A six-month due diligence twin drilling project of up to 2,000 meters to confirm mineralization and grade and allow Denarius to retrieve the core from the wireframe of the mineral resource.When
  2. Completion of a pre-feasibility study (“pre-feasibility study”) of the Toral project to be submitted to the military government. Notwithstanding the above, Europa and Denarius understand that in order to comply with their obligations under the Permit, they must submit a pre-feasibility study of the Tral project to be accepted by the military government by the end of October 2023. I’m here.

Payment of the remaining amount (minimum US$3,350,000) to exercise the first option is subject to the effective incorporation of certain other Mineral Permits into the Toral Project (“Permit Precedent”). Denarius agrees that if (i) he fails to secure certain nearby mining rights within 18 months from the date of execution of the definitive agreement, or (ii) due diligence twin results are obtained, the joint venture will reserves the right to terminate The drilling project found significant assay discrepancies with values ​​previously reported by Europa.

The Definitive Agreement includes an option for Denarius or its designees to acquire an additional 29% interest in the Toral Project from EMI (the “Second Option”), whereby (i) that interest in the Toral Project becomes 80%. Pre-He conducts a feasibility study demonstrating favorable economic outcomes for the expanded Toral Project and (ii) he will provide Europa with a USD 2,000,000 payment within 12 months from the date of exercise of the first option. I’ll pay cash.

Qualified review

Technical information in this news release has been reviewed and approved by Stewart D. Redwood, BSc (Hons), PhD, FIMMM, FGS, “Qualified Person” as defined by National Instrument 43-101.

About Denarius

Denarius is a Canadian junior company engaged in the acquisition, exploration, development and eventual operation of mining projects in high-grade areas, with a focus on the Lomero-Poyatos project in Spain. The company also owns the Zancudo and Guia Antigua projects in Colombia.

For additional information about Denarius, please visit the www.denariusmetals.com website and SEDAR profile. www.sedar.com.

Cautionary Note Regarding Forward-Looking Statements

Neither TSX Venture Exchange nor its regulated service providers (as those terms are defined in the TSX Venture Exchange Policy) are responsible for the adequacy or accuracy of this release.

This news release contains “forward-looking information.” This may include, but is not limited to, statements regarding anticipated business plans or strategies, such as exploration programs, anticipated exploration results, and mineral resource estimates. Often, but not always, forward-looking statements are referred to as “plans,” “anticipates,” “anticipates,” “budgets,” “intends,” “estimates,” “forecasts,” “such “intend,” “predict,” “believe,” or variations (including negative variations) of a word or phrase, or that a particular action, event, or outcome “could,” “could,” to be taken, to occur, or to be achieved stating that there is, could, could, or could Forward-looking statements involve known and unknown risks, uncertainties, and that Denarius’ actual results, performance or performance may differ materially from future results, performance or achievements expressed or implied by the forward-looking statements. Includes other factors that may vary. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include, but are not limited to: Approval of nearby mineral licenses by the military regime. Denarius-European Agreement on Work Plan and Budget. Denarius’ ability to pay the minimum amount of funds to exercise the first option; completion of permit condition precedent; results of due diligence twin projects. Providing a positive pre-feasibility study. Denarius’ ability to pay cash to exercise the second option. In addition, the factors set forth under the heading “Risk Factors” in the company’s filing statement dated February 18, 2021 are available on his SEDAR at www.sedar.com. The forward-looking statements contained herein are made as of the date of this press release and Denarius does not make any assumptions about new information, results, future events or circumstances, except as required by law. As a result, we disclaim any obligation to update any forward-looking statements. , or if management’s estimates or opinions change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements.

For more information, please contact:

Christopher Holden
Vice President of Investor Relations
(416) 360-4653
[email protected]

CBJ Newsmaker

Denarius Signs Option Agreement with Europa Metals to Develop Tral Zinc-Lead-Ag Project in Leon Province, Northern Spain, The Canadian Business Journal

Source link Denarius Signs Option Agreement with Europa Metals to Develop Tral Zinc-Lead-Ag Project in Leon Province, Northern Spain, The Canadian Business Journal

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