TIDMEMH
RNS Number : 5632D
European Metals Holdings Limited
01 February 2018
For immediate release
1 February 2018
EUROPEAN METALS HOLDINGS LIMITED
QUARTERLY ACTIVITIES REPORT - 31 DECEMBER 2017
HIGHLIGHTS
* Significant lithium grades and widths intersected in
in-fill drill program
* Further increase in Indicated Resource at Cinovec
South
* Capital raising of approx. AUD 4 million
* Further progress towards Mining Licence/Czech
Government liaison
* Further roast optimization work completed
European Metals Holdings Limited ("European Metals" or "the
Company") (ASX & AIM: EMH) 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 December 2017.
SIGNIFICANT LITHIUM GRADES AND WIDTHS INTERSECTED
On 2 November 2017 the Company announced the successful
completion of its six core-hole infill drilling program at the
Cinovec Project. A total of 2,697.1m was completed on time and
without loss time accidents. Analytical results for three
drillholes in the eastern sector and for two drillholes on the
western sector of the of the Cinovec South deposit are reported.
Results for hole CIS-4 have previously been reported.
The following key points were noted:
* All six planned infill core drillholes completed for
a total of 2,697.1m drilled.
* Analytical results confirmed the expected lithium,
tin and tungsten contents and mineralization widths.
* The results for the two infill drillholes in the
western part of the Cinovec South deposit exceed
expectations.
* Drillhole CIS-9 returned one of the best results of
the Company's drilling program to date: 204.6m
averaging 0.44% Li2O, (and within it 70m@0.58%Li2O;
13m@0.19%Sn, 6m@0.58%Sn, 3m@1.02%Sn and 0.179%W).
* Drillhole CIS-8 returned a continuous relatively
high-grade lithium mineralization interval that
includes multiple zones of tin and tungsten
mineralization: 152.5m averaging 0.41% Li2O, (and
within it 3m@0.52%Sn, 6m@0.12%Sn and 0.077%W,
7m@0.14%Sn).
* In the eastern part, the best results are from CIS-7,
with 45.5m averaging 0.37% Li2O, and 102m averaging
0.31%Li2O, with strong tin and tungsten credits
(11m@0.24%Sn and second interval includes 12m@0.17%Sn
and 13m@0.16%W).
FURTHER INCREASE IN INDICATED RESOURCE AT CINOVEC SOUTH
On 28 November 2017 the Company was pleased to announce a
further upgrade of its JORC compliant Indicated Mineral Resources
at the Cinovec Lithium/Tin Project in the Czech Republic,
confirming its status as the largest lithium resource in
Europe.
The Company had recently completed a four-month drilling
campaign at Cinovec South, comprising six core drillholes for
2,697.1m meters, with the goal of closing 'gaps' in the existing
resource model in and around the initial planned mining areas and
upgrading part of the resource from the Inferred category to the
higher confidence Indicated category. The results, summarised
below, have exceeded expectations.
The following key points were noted:
* For the entire Cinovec deposit (South and North), the
drilling added 39.4 Mt of Mineral Resource grading
0.41% Li2O and 0.04% Sn (0.1% Li cutoff), or 220kt
tonnes of lithium carbonate (LCE).
* Majority of resource increase (97%) is at Cinovec
South where initial mining is planned.
* The Indicated Mineral Resource category increased by
7% to 372.4Mt@0.44% Li2O.
EMH RAISES APPROX AUD 4 MILLION VIA SUBSCRIPTION
On 29 November 2017 European Metals announced a capital raising
of GBP 2,281,000 (approximately AUD 4 million (before costs)) via
subscriptions to predominantly UK based sophisticated
investors.
The raising was completed via an issue of 6,517,142 CDIs at a
price of 35p or 61.5 cents and was placed using the Company's
capacity under Listing Rule 7.1.
Shard Capital Partners LLP arranged the majority of the
subscriptions.
The funds will be used to advance the on-going definitive
feasibility on the Cinovec deposit, Europe's largest lithium
resource, and for general working capital.
FURTHER PROGRESS TOWARDS MINING LICENCE/CZECH GOVERNMENT - ROAST
OPTIMISATION
In February 2017, European Metals 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.
On 19 December 2017, the Company announced that the Cinovec
NorthWest Resource had also been added to the Czech State resource
register.
This permitting development follows on from the signing of a
Memorandum of Understanding ("MoU") on 2 October 2017 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.
On 2 November 2017 the Company noted the results of the recent
elections held in the Czech Republic and the debate regarding
development of lithium assets within the country leading into the
elections. As the sole holder of exploration permits and
preliminary mining permits with the preferential right of mining
over the Cinovec Project, the Company looks forward to continuing
the previous positive engagements with the new Government, once
formed, and to rapidly advance development of the project to the
mutual benefit of all stakeholders.
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.
The following key points were noted:
* NorthWest Resource added to Czech State resource
register - majority of Cinovec Resource now
officially recognised by Czech mining authorities.
* Optimisation test work indicates potential
significant savings in both OPEX and CAPEX
TENEMENT SCHEDULE
Tenement Interest Acquired/Disposed Interest
at beginning at end of
of Quarter Quarter
----------- -------------- ------------------ -----------
Cinovec 100% N/A 100%
----------- -------------- ------------------ -----------
Cinovec 2 100% N/A 100%
----------- -------------- ------------------ -----------
Cinovec 3 100% N/A 100%
----------- -------------- ------------------ -----------
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% Li(2) O and 0.04% Sn
and an Inferred Mineral Resource of 324Mt @ 0.39% Li(2) O 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.
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) 8 6245 2057
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
Joint Broker Tel: +44 (0) 20 7186
Shard Capital 9950
Damon Health
Erik Woolgar
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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