Europa Metals Ltd.'s scoping study for its Toral lead-zinc-silver project in northwest Spain outlined a net present value of US$110 million, using an 8% discount rate, and an internal rate of return of 24.4%.
Executive Director Laurence Read said anticipated payback from first production is within four years.
The company noted March 11 that the capital expenditure for a proposed 450,000 tonne-per-annum plant is estimated at US$33 million, while the total capex is estimated at US$110 million.
Meanwhile, the operating expense of processing at steady state conditions is expected to be US$25 per tonne, while the cost of mining utilizing mechanized cut and fill is anticipated at US$36 per tonne.
The company added that the production plan is currently for 15 years, with significant potential for extension.
This year, the company is planning to conduct an infill drilling campaign, complete first metallurgical test work program, and start environment studies and hydrogeological characterization.
The scoping study is based on an inferred resource estimate of 16 million tonnes at 7.5% zinc equivalent.
The study was launched in June 2018, while the company said it will advance toward a full feasibility study for an underground mining operation after receiving positive results from the scoping study in December 2018.