European Metals Holdings “drilling programme has yielded excellent results” CEO Keith Coughlan

European Metals CEO Keith Coughlan said:  “This year’s drilling programme has yielded excellent results. During the year we have continued to verify the historic drilling and also, have identified high-grade drill intersections in areas that there has been relatively little historical work. The shallow lithium intercepts that extend significantly beyond historical workings, combined with the substantive tin and tungsten intercepts, we believe, will have a positive effect on the economics of the project. With three drill rigs operating targeting high-grade zones and metallurgical test work almost complete, we look forward to updating the market as the project advances up the development curve and towards potential commercialization”.

European Metals Holdings Limited (ASX and AIM: EMH) has given DirectorsTalk the analytical results for two confirmation drill holes CIW-19 and CIW-20 at the Cinovec Lithium-Tin-Tungsten Project.

Key Points:

Drill Programme

The drillholes CIW-19 and CIW-20 are located in the central part of the Cinovec, near the Central Shaft where high-grade tin and tungsten veins were mined in the past.  The current drill programme at Cinovec Main has been planned to confirm and delineate near surface lithium and tin mineralisation that would provide initial feed to the mill. Other goals are the conversion of resources from the Inferred to Indicated category, and delivery of material for metallurgical testing.  So far, eight diamond core holes have been completed, and three are underway.  Visual inspection and logging indicates that the geology in these holes is as expected. Drill details are listed in Table 1 below.

After geological logging, drill core is cut in half with a diamond saw.  Quarter core samples are selected (honouring geological boundaries) and dispatched to ALS (Romania) for preparation and assay; the 3/4 of the core is returned to the core box and stored securely on site.  Samples are being prepared and analysed by ALS using ICP and XRF techniques following standard industry practice for lithium and tin deposits.  Strict QAQC protocols are observed, including the insertion of a Li standard in a random fashion for every 10 core samples.

Table 1 – Completed drillholes, Cinovec Main

Hole locations are recorded in the local S-JTSK Krovak grid, ¹⁾ Coordinates surveyed, ²⁾ Coordinates determined by GPS, ³⁾Planned, no inclinometry yet

Mineralized Intercepts and Lithology in CIW-19 and CIW-20

The drillholes CIW-19 and CIW-20 are collared in altered granite near the historic mine shaft. This geological domain is characterized by the presence of quartz veins flanked by relatively narrow li-mica veneers, hosted in variably altered and mineralized lithium granite. Most of the quartz veins were mined out in the past. The drillholes hit several open stopes after vein mining.

This geological domain also has a distinct geochemical signature in that the vein-hosting granite is continuously enriched in tin.  So in  CIW-19 the upper 170 meters average 0.042%Sn (median 262ppm), and 155m@0.044%Sn (median 260ppm) in CIW-20, respectively.

The vein set is underlain by greisenized granite with greisen intervals well mineralized with lithium.

In the lowest parts of the drillholes, unusually elevated grades of niobium and tantalum were recorded, with the best individual samples of 510ppm Nb and 212ppm Ta (CIW-20).

Table summarizing mineralised intercepts in CIW-19

Table summarizing mineralized intercepts in CIW-20.

(Please refer to the announcement on the European Metals Website for the graphic Figure 1 – A geological map showing the Company’s drill holes against surface geology and subsurface greisen bodies projected to surface (in green). Historic UG workings and drill holes not shown – www.europeanmet.com.)

PROJECT OVERVIEW

Cinovec Lithium/Tin Project

European Metals owns 100% of the Cinovec lithium-tin deposit in the Czech Republic. Cinovec is an historic mine incorporating a significant undeveloped lithium-tin resource with by-product potential including tungsten, rubidium, scandium, niobium and tantalum and potash. Cinovec hosts a globally significant hard rock lithium deposit with a total Indicated Mineral Resource of 49.1Mt @ 0.43% Li2O and an Inferred Mineral Resource of 482Mt @ 0.43% Li₂O containing a combined 5.7 million tonnes Lithium Carbonate Equivalent.

This makes Cinovec the largest lithium deposit in Europe and the fourth largest non-brine deposit in the world.

Within this resource lies one of the largest undeveloped tin deposits in the world, with total Indicated Mineral Resource of 15.7Mt @ 0.26% Sn and an Inferred Mineral Resources of 59.7 Mt grading 0.21% Sn for a combined total of 178kt of contained tin. The Mineral Resource Estimates have been previously released on 18 May 2016. The deposit has previously had over 400,000 tonnes of ore mined as a trial sub-level open stope underground mining operation.

A Scoping Study conducted by specialist independent consultants indicates the deposit could be amenable to bulk underground mining. Metallurgical testwork has produced both battery grade lithium carbonate and high-grade tin concentrate at excellent recoveries with the Scoping Study. Cinovec is centrally located for European end-users and is well serviced by infrastructure, with a sealed road adjacent to the deposit, rail lines located 5 km north and 8 km south of the deposit and an active 22 kV transmission line running to the historic mine. As the deposit lies in an active mining region, it has strong community support.