TIDMEMH
RNS Number : 7559X
European Metals Holdings Limited
22 December 2023
For immediate release
22 December 2023
European Metals Holdings Limited
("European Metals" or the "Company")
Cinovec Definitive Feasibility Study to be Completed in Q1
2024
European Metals Holdings Limited (ASX & AIM: EMH) ("
European Metals " or the " Company " ) advises that the delivery of
the Definitive Feasibility Study ("DFS") for the Cinovec Lithium
Project in the Czech Republic ("Cinovec" or the "Project") is now
scheduled for Q1 2024. Following detailed analysis, approval has
been granted to a formal request from Geomet and the Project study
team of DRA Global (Lithium Processing DFS) and Bara Consulting
(Mining DFS) for a timetable extension to complete capital and
operating cost estimation and project implementation
scheduling.
The finalisation of the capital and operating cost estimate is
reliant on the timely submission of proposals by numerous external
suppliers and contractors. The process of obtaining sufficient and
diverse proposals is nearing completion. However, the Project study
team has advised that receipt and detailed evaluation of such
proposals is going to take longer than originally scheduled.
The process flowsheet remains as announced on 31 October 2022
and confirmed in pilot testing results announced on 9 November
2023. However, further development of specific areas relating to
engineering, commercial and strategic elements across mining,
processing, procurement and logistics are expected to have a
considerable impact on both capital and operating cost estimates
and Geomet's social licence to operate.
Both Geomet and the Company recognise the importance of ensuring
accurate and comprehensive engineering and cost data for the DFS,
as it forms the foundation of the study's findings and
recommendations. In this regard, the Company believes it is prudent
to allow the necessary time to complete the study to the highest
standard to ensure the delivery of a robust, accurate DFS that
conveys the full economic and resource potential of the Project.
The Company does not expect that the extension of the study period
will impact the overall project timeline, with the permitting
process already well underway.
The ongoing process of offtake and strategic partnering
continues to reflect strategic interest in the Project as one of
the very few advanced stage, large-scale lithium projects in the
European Union.
The Project is underpinned by its Mineral Resource, which hosts
nearly 7.4 million tonnes of contained lithium carbonate equivalent
("LCE") as announced on 13 October 2021 "Resource Upgrade at
Cinovec Lithium Project to 708MT including 53.3MT of New Measured
Resource".
The Company will continue to provide regular updates on any
significant developments during the completion of the DFS. The
Company and Project remain well-funded and the Board remains
confident of the Project's capacity to create sustainable value for
our shareholders.
This announcement has been approved for release by the
Board.
CONTACT
For further information on this update or the Company generally,
please visit our website at www.europeanmet.com or see full contact
details at the end of this release.
BACKGROUND INFORMATION ON CINOVEC
PROJECT OVERVIEW
Cinovec Lithium Project
Geomet s.r.o. controls the mineral exploration licenses awarded
by the Czech State over the Cinovec Lithium Project. Geomet has
been granted a preliminary mining permit by the Ministry of
Environment and the Ministry of Industry. The company is owned 49%
by EMH and 51% by CEZ a.s. through its wholly owned subsidiary,
SDAS. Cinovec hosts a globally significant hard rock lithium
deposit with a total Measured Mineral Resource of 53.3Mt at 0.48%
Li(2) O, Indicated Mineral Resource of 360.2Mt at 0.44% Li(2) O and
an Inferred Mineral Resource of 294.7Mt at 0.39% Li(2) O containing
a combined 7.39 million tonnes Lithium Carbonate Equivalent ( refer
to the Company's ASX/AIM release dated 13 October 2021 ) ( Resource
Upgrade at Cinovec Lithium Project ).
An initial Probable Ore Reserve of 34.5Mt at 0.65% Li(2) O
reported 4 July 2017 ( Cinovec Maiden Ore Reserve - Further
Information ) has been declared to cover the first 20 years mining
at an output of 22,500tpa of lithium carbonate ( refer to the
Company's ASX/AIM release dated 11 July 2018) ( Cinovec Production
Modelled to Increase to 22,500tpa of Lithium Carbonate ).
This makes Cinovec the largest hard rock lithium deposit in
Europe and the fifth largest non-brine deposit in the world.
The deposit has previously had over 400,000 tonnes of ore mined
as a trial sub-level open stope underground mining operation.
On 19 January 2022, EMH provided an update to the 2019 PFS
Update, conducted by specialist independent consultants, which
indicates a post-tax NPV of USD1.938B and a post-tax IRR of 36.3%
and confirmed that the Cinovec Project is a potential low operating
cost producer of battery-grade lithium hydroxide or battery grade
lithium carbonate as markets demand. It confirmed the deposit is
amenable to bulk underground mining (refer to the Company's ASX/AIM
release dated 19 January 2022) ( PFS Update delivers outstanding
results ). Metallurgical test-work has produced both battery-grade
lithium hydroxide and battery-grade lithium carbonate 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. The deposit lies in an active mining region.
The economic viability of Cinovec has been enhanced by the
recent strong increase in demand for lithium globally, and within
Europe specifically.
There are no other material changes to the original information
and all the material assumptions continue to apply to the
forecasts.
BACKGROUND INFORMATION ON CEZ
Headquartered in the Czech Republic, CEZ a.s. is one of the
largest companies in the Czech Republic and a leading energy group
operating in Western and Central Europe. CEZ's core business is the
generation, distribution, trade in, and sales of electri city and
heat, trade in and sales of natural gas, and coal extraction. The
foundation of power generation at CEZ Group are emission-free
sources. The CEZ strategy named Clean Energy for Tomorrow is based
on ambitious decarbonisation, development of renewable sources and
nuclear energy. CEZ announced that it would move forward its
climate neutrality commitment by ten years to 2040.
The largest shareholder of its parent company, CEZ a.s., is the
Czech Republic with a stake of approximately 70%. The shares of CEZ
a.s. are traded on the Prague and Warsaw stock exchanges and
included in the PX and WIG-CEE exchange indices. CEZ's market
capitalization is approximately EUR 20.3 billion.
As one of the leading Central European power companies, CEZ
intends to develop several projects in areas of energy storage and
battery manufacturing in the Czech Republic and in Central
Europe.
CEZ is also a market leader for E-mobility in the region and has
installed and operates a network of EV charging stations throughout
Czech Republic. The automotive industry in the Czech Republic is a
significant contributor to GDP, and the number of EV's in the
country is expected to grow significantly in the coming years.
COMPETENT PERSONS
Information in this announcement relating to the FECAB
metallurgical testwork is based on technical data compiled or
supervised by Mr Walter Mädel, a full-time employee of Geomet s.r.o
a subsidiary of the Company. Mr Mädel is a member of the
Australasian Institute of Mining and Metallurgy (AUSIMM) and a
mineral processing professional with over 27 years of experience in
metallurgical process and project development, process design,
project implementation and operations. Of his experience, at least
5 years have been specifically focused on hard rock pegmatite
Lithium processing development. Mr Mädel consents to the inclusion
in the announcement of the matters based on this information in the
form and context in which it appears. Mr Mädel is a participant in
the long-term incentive plan of the Company.
Information in this release that relates to exploration results
is based on information compiled by Dr Vojtech Sesulka. Dr Sesulka
is a Certified Professional Geologist (certified by the European
Federation of Geologists), a member of the Czech Association of
Economic Geologist, and a Competent Person as defined in the JORC
Code 2012 edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves. Dr Sesulka
has provided his prior written consent to the inclusion in this
report of the matters based on his information in the form and
context in which it appears. Dr Sesulka is an independent
consultant with more than 10 years working for the EMH or Geomet
companies. Dr Sesulka does not own any shares in the Company and is
not a participant in any short- or long-term incentive plans of the
Company .
Mr Grant Harman (B.Sc Chem Eng, B.Com) is an independent
consultant with in excess of 7 years of lithium chemicals
experience. Mr Harman supervised and reviewed the metallurgical
test work and the process design criteria and flow sheets in
relation to the LCP. Mr Harman is a participant in the long-term
incentive plan of the Company.
The information in this release that relates to Mineral
Resources and Exploration Targets is based on, and fairly reflects,
information and supporting documentation prepared by Mr Lynn
Widenbar. Mr Widenbar, who is a Member of the Australasian
Institute of Mining and Metallurgy and a Member of the Australasian
Institute of Geoscientists, 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 has provided his prior written consent to the inclusion in
this report of the matters based on his information in the form and
context that the information appears. Mr Widenbar does not own any
shares in the Company and is not a participant in any short- or
long-term incentive plans of the Company .
The Company confirms that it is not aware of any new information
or data that materially affects the information included in the
original market announcement and, in the case of estimates of
Mineral Resources or Ore Reserves, that all material assumptions
and technical parameters underpinning the estimates in the relevant
market announcement continue to apply and have not materially
changed. The Company confirms that the form and context in which
the Competent Person's findings are presented have not been
materially modified from the original market announcement.
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, sta tements 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 Li(2) Convert to LiOH.H(2)
Convert to Li Convert to Li(2) O CO(3) O
Lithium Li 1.000 2.153 5.325 6.048
------------- -------------- ------------------- --------------------- ----------------------
Lithium Oxide Li(2) O 0.464 1.000 2.473 2.809
------------- -------------- ------------------- --------------------- ----------------------
Lithium Carbonate Li(2) CO(3) 0.188 0.404 1.000 1.136
------------- -------------- ------------------- --------------------- ----------------------
Lithium Hydroxide LiOH.H(2) O 0.165 0.356 0.880 1.000
------------- -------------- ------------------- --------------------- ----------------------
Lithium Fluoride LiF 0.268 0.576 1.424 1.618
------------- -------------- ------------------- --------------------- ----------------------
WEBSITE
A copy of this announcement is available from the Company's
website at www.europeanmet.com/announcements/ .
ENQUIRIES:
European Metals Holdings Limited
Keith Coughlan, Executive Chairman Tel: +61 (0) 419 996 333
Email: keith@europeanmet.com
Kiran Morzaria, Non-Executive Tel: +44 (0) 20 7440 0647
Director
Tel: +61 (0) 418 675 845
Shannon Robinson, Company Secretary Email: shannon@europeanmet.com
WH Ireland Ltd (Nomad & Broker)
James Joyce / Darshan Patel / Tel: +44 (0) 20 7220 1666
Isaac Hooper
(Corporate Finance)
Harry Ansell (Broking)
Panmure Gordon (UK) Limited (Joint
Broker) Tel: +44 (0) 20 7886 2500
John Prior
Hugh Rich
James Sinclair Ford
Harriette Johnson
Blytheweigh (Financial PR) Tel: +44 (0) 20 7138 3222
Tim Blythe
Megan Ray
Chapter 1 Advisors (Financial
PR - Aus) Tel: +61 (0) 433 112 936
David Tasker
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014 ("MAR") as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act 2018
and is disclosed in accordance with the Company's obligations under
Article 17 of MAR.
The person who authorised for the release of this announcement
on behalf of the Company was Keith Coughlan, Executive
Chairman.
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