European Metals Holdings Limited (ASX and AIM: EMH) it has entered into a licensing agreement option to utilize the L-Max® process directly with the owner and developer of the process, Lepidico Limited.
Highlights:
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· Access to L-Max® technology – previously successfully used in European Metals Scoping Study on Cinovec ore |
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· Adds an additional option with regards to metallurgical process route to be investigated as part of the current Preliminary Feasibility Study |
European Metals Managing Director Keith Coughlan commented, “We are very pleased to have entered into this agreement with Lepidico giving us the option to conduct further work with them using the L-Max® technology. Our previous experience with the technology has been very encouraging, as have all our dealings with Lepidico. This brings to four the total number of processing alternatives now available to the Company. We will continue to work with Lepidico and Dorfner Anzaplan to determine the most economic process for the Cinovec project during the PFS period.”
Further Information
The L-Max® process was used very successfully in the Company’s Scoping Study last year and battery grade lithium carbonate was precipitated as part of that work using L-Max®. The key results of that work were:
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· 98% of lithium recovered via flotation to concentrate; |
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· 99.5% of lithium recovered from concentrate via leaching; |
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· Short leach time; 97.6% of the lithium recovered in only 4 hours; |
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· 99.56% pure lithium carbonate precipitated from a sample of Cinovec ore; |
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· By-product potassium sulphate also successfully precipitated; |
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· Estimated operating cost approximately US$1,500 per tonne of lithium carbonate produced – after sulphate of potash credit. (On a project basis, and after tin and tungsten credits, operating cost estimates for lithium carbonate production are anticipated to reduce further.) |
Material Terms of Option to License
The material terms of the option agreement with Lepidico are:
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· Payment of a license option fee of $20,000; |
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· The term of the option is 12 months, which may be extended for a further 12 months by the payment of an additional option fee of $25,000; |
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· Upon exercise of option, the Company must make an additional payment of $30,000 plus the issuance of 890,215 CDI’s in EMH; and |
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· Under the licensing agreement, the Company is required to pay Lepidico a gross product royalty of 2% of all sales relating to lithium chemicals (and other by products) produced using the L-Max® technology. |
The Company will continue further test work with Lepidico and German specialist testing and engineering firm, Dorfner Anzaplan (as announced in ASX release 31 March 2016), running a dual process strategy for the duration of the current PFS, scheduled for completion late in 2016.
PROJECT OVERVIEW
Cinovec Lithium/Tin Project
European Metals owns 100% of the Exploration Rights to 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 Inferred Mineral Resource of 514.8Mt @ 0.43% Li2O. Within this resource lies one of the largest undeveloped tin deposits in the world, with total Indicated and Inferred Mineral Resources of 79.7Mt grading 0.23% Sn for 183,000 tonnes of contained tin. The Mineral Resource estimates are based primarily on over 83,000 metres of historic drilling and 21.5 km of historic underground development completed by the Czechoslovakian Government from the 1960s through to the 1980s. 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 revealing a potential production cost of approximately $1,500 per tonne of lithium carbonate excluding tin and tungsten credits. 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.
