TIDMEMH
RNS Number : 4704C
European Metals Holdings Limited
01 October 2018
For immediate release
1 October 2018
EUROPEAN METALS HOLDINGS LIMITED
DFS LEVEL DRILLING PERMITS GRANTED - LITHIUM HYDROXIDE TESTWORK
COMMENCED
European Metals Holdings Limited ("European Metals" or "the
Company") is pleased to provide a project update highlighting
further significant advancements made in the development of the
Cinovec Lithium-Tin Project ("the project" or "Cinovec").
HIGHLIGHTS
-- Permits required for the DFS resource drilling campaign have been granted.
-- A total of 13 drill holes for a total drilled length of 3,386 metres have been permitted.
-- The first 4 geotechnical drill holes at the proposed site of
the mine portal have been completed.
-- Testing of the revised lithium hydroxide product flowsheet commenced on schedule.
The Company has received permission from the relevant statutory
authorities in the Czech Republic for the commencement of the
planned comprehensive diamond drilling campaign. The drilling is
aimed at converting a sufficient portion of the existing Indicated
Mineral Resource to the Measured Resource category to cover the
first 2 years of the scheduled mining plan. A total of 8 diamond
drill holes will be completed for 2,560 metres. This is a key
activity in terms of the ongoing ramp up of the project's
definitive feasibility study (DFS).
A second round of drilling to define Measured Resources to
extend coverage to the first 5 years of mining may be undertaken
subsequently depending on feedback from on-going discussions with
financing entities and their requirements.
The Company is also pleased to report the completion of the
initial 4 geotechnical holes reported on 4 September 2018 (CINOVEC
PROJECT UPDATE - SIGNIFICANT ADVANCEMENTS), for the portal area.
Geotechnical logging of the four holes will be completed by 7
October 2018. The rig is continuing with drilling a further five
geotechnical holes along the planned mining decline route to allow
final development ready designs to be completed for the portal and
decline designs.
The Company can also report that testwork at Dorfner Anzaplan in
Germany commenced on schedule. The first stage of the testwork is
focused on proving up a flowsheet developed for the production of
lithium hydroxide. It is the intention that this work will be
followed by locked cycle testing of the flowsheet settled upon.
European Metals Managing Director Keith Coughlan commented, "It
is very pleasing to receive permission from the relevant Czech
authorities to begin our DFS drilling programme. The timing allows
us to begin the programme ahead of the winter season and provide an
upgrade to the existing resource at Cinovec as part of the DFS -it
is encouraging to be able to move quickly into the next stage of
development. The drilling of the geotechnical holes for portal
design and location has been completed in good time and will be
followed by a second programme establishing ground conditions for
the mine decline. Dorfner Anzaplan have begun testwork on proving
up a flowsheet for the production of lithium hydroxide as announced
to the market last month. We expect this work to be very positive
for the predicted financial outcomes from the project and look
forward to releasing the results."
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
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 to Convert to Convert to Li(2)
Li Li(2) O CO(3)
------------------- ------- ----------- ----------- -----------------
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 Limited Tel: +61 (0) 419 996 333
Keith Coughlan, Managing Director Email: keith@europeanmet.com
Kiran Morzaria, Non-Executive Tel: +44 (0) 20 7440 0647
Director Tel: +61 (0) 8 6245 2057
Julia Beckett, Company Secretary Email: julia@europeanmet.com
Beaumont Cornish (Nomad & Tel: +44 (0) 20 7628 3396
Broker) Email: corpfin@b-cornish.co.uk
Michael Cornish
Roland Cornish
Joint Broker Tel: +44 (0) 20 7186 9950
Damon Health
Erik Woolgar
Shard Capital
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. The person who arranged
for the release of this announcement on behalf of the Company was
Keith Coughlan, Managing Director.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
DRLMBBJTMBMMMRP
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