In February 2017, European Metals Holdings Ltd announced that the Cinovec South Resource had been added to the Czech State resource register, the first step in the process for the granting of a mining permit.
The Company has today announced that the Cinovec NorthWest Resource has also been added to the Czech State resource register.
Additionally, recent optimisation test work has demonstrated the ability to reduce roast temperatures and duration which can result in significant cost savings both in CAPEX and OPEX.
Key Points:
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· NorthWest Resource added to Czech State resource register – majority of Cinovec Resource now officially recognised by Czech mining authorities
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· Optimisation test work indicates potential significant savings in both OPEX and CAPEX |
European Metals CEO Keith Coughlan said: “Subsequent to a submission we made to the State Authority, the Cinovec NorthWest resource estimate was approved by a Ministerial Experts Committee for Final reports and projects and placed on the State Register of mineral deposits. We are very pleased with this development and see it as confirmation that the Company is moving forward within the regulatory framework of the Czech Republic and in full consultation with the relevant Czech Ministries. This approval is a pre-requisite for receiving a mining permit in this area.
The placing of the NorthWest resource on the State Register, in addition to those portions of the deposit previously added, finalises the first stage of the permitting process. The Company will now apply for a preliminary mining permit over this area to join the previously awarded preliminary mining permits over the southern and eastern portion of the deposit.
The Company continues to progress the development of its industry proven, sulphate roast-based flow-sheet of mica-concentrate from the Cinovec Project. It is very pleasing to see the recent optimisation testwork produce strong indications of potential cost savings in both OPEX and CAPEX. Our Preliminary Feasibility Study has highlighted the potential for Cinovec to be a low cost producer of battery grade lithium carbonate. Any further savings will only enhance the already strong economics. In addition, our current lock cycle testwork program has again shown we are able to produce battery grade product with >99.5% pure lithium carbonate.”
Further Information
The process for the award of a mining permit commences with the placing of a mineral resource on the State Resource Registry and receiving a certificate of an ‘exclusive mineral deposit’. This is achieved by defending a resource calculation and a preliminary technical and economic analysis proving the studied resource has a quality consistent with a potentially mined deposit. The addition to the State Resource Register means that civic development on top of the area is restricted and it allows the Company to apply for setting a preliminary mining space, which is a step toward obtaining the final mining permit.
BACKGROUND INFORMATION ON CINOVEC
PROJECT OVERVIEW
Cinovec Lithium/Tin Project
European Metals, through its wholly owned Subsidiary, Geomet s.r.o., controls the mineral exploration licenses awarded by the Czech State over the Cinovec Lithium/Tin Project. Cinovec hosts a globally significant hard rock lithium deposit with a total Indicated Mineral Resource of 372Mt @ 0.44% Li2O and 0.04% Sn and an Inferred Mineral Resource of 324Mt @ 0.39% Li2O and 0.04% Sn containing a combined 7.22 million tonnes Lithium Carbonate Equivalent and 278kt of tin. An initial Probable Ore Reserve of 34.5Mt @ 0.65% Li2O and 0.09% Sn has been declared to cover the first 20 years mining at an output of 20,800tpa of lithium carbonate.
This makes Cinovec the largest lithium deposit in Europe, the fourth largest non-brine deposit in the world and a globally significant tin resource.
The deposit has previously had over 400,000 tonnes of ore mined as a trial sub-level open stope underground mining operation.
EMH has completed a Preliminary Feasibility Study, conducted by specialist independent consultants, which indicated a return post tax NPV of USD540m and an IRR of 21%. It confirmed the deposit is be amenable to bulk underground mining. Metallurgical test work has produced both battery grade lithium carbonate and high-grade tin concentrate at excellent recoveries. 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.
The economic viability of Cinovec has been enhanced by the recent strong increase in demand for lithium globally, and within Europe specifically.
