TIDMEMH
RNS Number : 0654V
European Metals Holdings Limited
31 October 2017
For immediate release
31 October 2017
EUROPEAN METALS HOLDINGS LIMITED
QUARTERLY ACTIVITIES REPORT - SEPTEMBER 2017
HIGHLIGHTS
* Drill Results
* Appointment of DFS Study Manager
* Memorandum of Understanding signed with Czech
Government
European Metals Holdings Limited ("European Metals" or "the
Company") is pleased to report on its activities and continued
progress in the development of the globally significant Cinovec
Lithium / Tin Project in Czech Republic during the three month
period ending September 2017.
DRILL RESULTS
On 16 August 2017 the Company announced analytical results for
the first drillhole CIS-4 at the Cinovec Lithium-Tin Project ("the
project" or "Cinovec") and reported on its ongoing infill drilling
program. Infill drilling was undertaken in the southwest section of
the deposit, targeting two 'gaps' in the resource model that could
potentially be targeted for mining in the initial years. Five out
of six planned drillholes were completed during the period, for a
total of 2163.1m. Assays have been received for the first drillhole
CIS-4, which returned a continuous mineralized intercept of 148.30m
averaging 0.40%Li(2) O from 297.7m drill string depth. In addition,
the upper section of the main lithium interval contains significant
tin and tungsten mineralization with 15.85 meters averaging 0.70%
Li(2) O, 0.29% tin and 0.073% tungsten.
APPOINTMENT OF DFS STUDY MANAGER & TEAM
The Company welcomed Craig Reimer to the position of DFS Manager
during the quarter. Craig has over 25 years' experience in project
management, engineering management and business management, and has
delivered successful international mining projects for previous
clients. Craig is a Mechanical Engineer.
He has previously worked on projects for BHP, Vale Inco, Atlas
Iron, ENK, Lynas Rare Earths, Boddington Gold Mine, Alcoa, Jacobs
and UGL. The projects range from scoping and feasibility studies,
to front-end engineering and detail design, and on to construction
and commissioning. Craig has previously worked on projects in
Australia, UK, USA, Canada, Indonesia, Phillipines and
Malaysia.
The Company is also pleased to have retained the services of
Grant Harman as Metallurgical Consultant to the DFS. Grant is one
of the world's foremost lithium metallurgist and played a
significant role in the Company's successful PFS.
Grant was previously Manager Lithium Chemicals for Talison
Lithium and was involved in the management of the Talison Lithium
Carbonate Plant from Scoping Study to Definitive Feasibility Study.
He was involved in the design and technical direction of the
Talison Test Facility and has more recently been a technical
consultant on the Sonora Lithium Project in Mexico.
Grant has had previous roles with UGL, SNC Lavalin, CleanTec,
and Ausenco,
The expertise and experience of Craig and Grant will be
complimented well by the Company's Czech based team, led by
Executive Director Richard Pavlik.
DEVELOPMENTS POST REPORTING PERIOD
MEMORANDUM OF UNDERSTANDING SIGNED WITH CZECH GOVERNMENT
On 2 October 2017 the Company announced the signing of a
Memorandum of Understanding ("MoU") with The Ministry of Industry
and Trade of the Czech Republic regarding the development of the
Cinovec Project. The MoU was signed in Usti nad Labem between the
Minister of Industry and Trade, Jiri Havlicek and the Company, in
the presence of the representatives of the Australian Embassy and
Australian Trade and Investment Commission, 1st Deputy Governor of
Usti Region Mr Martin Klika, president of the Tripartite of Usti
Region, Mrs Gabriela Nekolova, Chairman of the Regional Bureau of
Czechinvest Mrs Alena Hajkova, Chairman of the Regional Mining
Bureau Mr Milos Matz, Mayor of the Town of Dubí Mr Petr Pipal and
other guests.
The MoU expresses mutual willingness to:
* work together to maximise downstream processing
options within the Czech Republic;
* investigate suitable locations for processing
facilities for the Cinovec Project to minimize
impacts on the community and environment but maximize
positive impacts on the economy and employment of
persons of the area surrounding the Cinovec Project;
* co-operate to ensure all regulatory requirements are
met, using best practices, and work together to
ensure all permitting and regulatory issues are
addressed in a timely manner;
* discuss and explore possibilities of future bilateral
agreements between the Czech authorities and European
Metals Holdings Limited concerning the framework of
future cooperation in the sector of lithium,
including the potential involvement of the Czech
Government as an equity participant in European
Metals Holdings Limited Cinovec Project;
* support and facilitate investment linked with these
activities; and
* continue to co-operate with the Czech academic
research bases with regards to ongoing research into
the processing of lithium ores.
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 348Mt @ 0.45% Li(2) O and 0.04% Sn
and an Inferred Mineral Resource of 309Mt @ 0.39% Li(2) O and 0.04%
Sn containing a combined 7.0 million tonnes Lithium Carbonate
Equivalent and 263kt 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.
CONTACT
For further information on this update or the Company generally,
please visit our website at www. http://europeanmet.com or
contact:
Mr. Keith Coughlan
Managing Director
COMPETENT PERSON
Information in this release that relates to exploration results
is based on information compiled by Dr Pavel Reichl. Dr Reichl is a
Certified Professional Geologist (certified by the American
Institute of Professional Geologists), a member of the American
Institute of Professional Geologists, a Fellow of the Society of
Economic Geologists and is a Competent Person as defined in the
2012 edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves and a Qualified Person
for the purposes of the AIM Guidance Note on Mining and Oil &
Gas Companies dated June 2009. Dr Reichl consents to the inclusion
in the release of the matters based on his information in the form
and context in which it appears. Dr Reichl holds CDIs in European
Metals.
The information in this release that relates to Mineral
Resources and Exploration Targets has been compiled by Mr Lynn
Widenbar. Mr Widenbar, who is a Member of the Australasian
Institute of Mining and Metallurgy, is a full time employee of
Widenbar and Associates and produced the estimate based on data and
geological information supplied by European Metals. Mr Widenbar has
sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity that he is undertaking to qualify as a Competent Person as
defined in the JORC Code 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Minerals Resources and Ore
Reserves. Mr Widenbar consents to the inclusion in this report of
the matters based on his information in the form and context that
the information appears.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information included in this release constitutes forward-looking
statements. Often, but not always, forward looking statements can
generally be identified by the use of forward looking words such as
"may", "will", "expect", "intend", "plan", "estimate",
"anticipate", "continue", and "guidance", or other similar words
and may include, without limitation, statements regarding plans,
strategies and objectives of management, anticipated production or
construction commencement dates and expected costs or production
outputs.
Forward looking statements inherently involve known and unknown
risks, uncertainties and other factors that may cause the company's
actual results, performance and achievements to differ materially
from any future results, performance or achievements. Relevant
factors may include, but are not limited to, changes in commodity
prices, foreign exchange fluctuations and general economic
conditions, increased costs and demand for production inputs, the
speculative nature of exploration and project development,
including the risks of obtaining necessary licences and permits and
diminishing quantities or grades of reserves, political and social
risks, changes to the regulatory framework within which the company
operates or may in the future operate, environmental conditions
including extreme weather conditions, recruitment and retention of
personnel, industrial relations issues and litigation.
Forward looking statements are based on the company and its
management's good faith assumptions relating to the financial,
market, regulatory and other relevant environments that will exist
and affect the company's business and operations in the future. The
company does not give any assurance that the assumptions on which
forward looking statements are based will prove to be correct, or
that the company's business or operations will not be affected in
any material manner by these or other factors not foreseen or
foreseeable by the company or management or beyond the company's
control.
Although the company attempts and has attempted to identify
factors that would cause actual actions, events or results to
differ materially from those disclosed in forward looking
statements, there may be other factors that could cause actual
results, performance, achievements or events not to be as
anticipated, estimated or intended, and many events are beyond the
reasonable control of the company. Accordingly, readers are
cautioned not to place undue reliance on forward looking
statements. Forward looking statements in these materials speak
only at the date of issue. Subject to any continuing obligations
under applicable law or any relevant stock exchange listing rules,
in providing this information the company does not undertake any
obligation to publicly update or revise any of the forward looking
statements or to advise of any change in events, conditions or
circumstances on which any such statement is based.
LITHIUM CLASSIFICATION AND CONVERSION FACTORS
Lithium grades are normally presented in percentages or parts
per million (ppm). Grades of deposits are also expressed as lithium
compounds in percentages, for example as a percent lithium oxide
(Li(2) O) content or percent lithium carbonate (Li(2) CO(3) )
content.
Lithium carbonate equivalent ("LCE") is the industry standard
terminology for, and is equivalent to, Li(2) CO(3) . Use of LCE is
to provide data comparable with industry reports and is the total
equivalent amount of lithium carbonate, assuming the lithium
content in the deposit is converted to lithium carbonate, using the
conversion rates in the table included below to get an equivalent
Li(2) CO(3) value in percent. Use of LCE assumes 100% recovery and
no process losses in the extraction of Li(2) CO(3) from the
deposit.
Lithium resources and reserves are usually presented in tonnes
of LCE or Li.
The standard conversion factors are set out in the table
below:
Table: Conversion Factors for Lithium Compounds and Minerals
Convert from Convert Convert Convert to
to Li to Li(2) Li(2) CO(3)
O
------------------- ------- -------- ---------- -------------
Lithium Li 1.000 2.153 5.324
Li(2)
Lithium Oxide O 0.464 1.000 2.473
Li(2)
Lithium Carbonate CO3 0.188 0.404 1.000
------------------- ------- -------- ---------- -------------
WEBSITE
A copy of this announcement is available from the Company's
website at www.europeanmet.com.
ENQUIRIES:
European Metals Holdings Tel: +61 (0) 419 996
Limited 333
Keith Coughlan, Chief Email: keith@europeanmet.com
Executive Officer Tel: +44 (0) 20 7440
Kiran Morzaria, Non-Executive 0647
Director Tel: +61 (0) 6141 3500
Julia Beckett, Company Email: julia@europeanmet.com
Secretary
Beaumont Cornish (Nomad Tel: +44 (0) 20 7628
& Broker) 3396
Michael Cornish Email: corpfin@b-cornish.co.uk
Roland Cornish
The information contained within this announcement is considered
to be inside information, for the purposes of Article 7 of EU
Regulation 596/2014, prior to its release.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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