Ferrum Crescent Publishes Maiden Resource for Lead-Zinc Project

European explorer Ferrum Crescent (ASX:FCR,LSE:FCR) published a maiden resource estimate for its lead-zinc Toral project in Spain on Tuesday (February 6).

The report shows Toral holds approximately 16 million tonnes at 6.9 percent zinc equivalent, including lead credits, and 25 grams per tonne silver. It points to estimated metal content of 670,000 tonnes of zinc, 540,000 tonnes of lead and 13 million ounces of silver.

“This maiden resource estimate is an outstanding result for the Company and provides us with a strong platform to rapidly progress the project,” said Myles Campion, executive director at Ferrum. 

The estimate uses a zinc price of US$2,400 per tonne, a lead price of US$2,000 and a silver price of US$17 per ounce, which, although conservative, was deemed appropriate by Ferrum at this stage in the project’s development.

“The … silver represents a significant potential contribution to the overall project economics and as we progress our work I am sure its presence will impact favourably on financial models,” Campion added.

According to the company, this initial resource estimate positions Toral as a potential “world-class” lead-zinc project. In the next few months, Ferrum will carry out review work and present it to shareholders and the general trade sector.

“Our immediate objective now is to build on this maiden JORC resource estimate and increase its size and … carry out a preliminary economic assessment,” said Laurence Read, executive director at Ferrum.

In a note to clients, analysts at Beaufort Securities said the resource estimate is an important milestone for the company. “We are encouraged [by the] initial resource estimate and look forward to further updates as management continues to evaluate the economic potential of the Toral deposit. In the meantime, we maintain our speculative buy on the stock,” the analysts commented.

On Tuesday, Ferrum Crescent’s share price closed up 8.51 percent in London, at GBX 0.12. The company has been on an uptrend since the start of the year, and has climbed 190.7 percent year-to-date.

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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.