European Metal Holdings has received permission from the Czech authorities to start a comprehensive drilling campaign as part of its definitive feasibility study for the Cinovec lithium/tin project.
The drilling is aimed at converting a sufficient portion of the existing indicated mineral resource to the measured resource category to cover the first two years of the scheduled mining plan.
A total of eight diamond drill holes will be completed for 2 560 m.
“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,” said European Metals MD Keith Coughlan.
A second round of drilling to define measured resources to extend coverage to the first five years of mining may be undertaken subsequently, depending on feedback from ongoing discussions with financing entities and their requirements.
Cinovec hosts a globally significant hard rock lithium deposit with a total indicated resource of 348-million tonnes at 0.45% Li2O and 0.04% tin and an inferred mineral resource of 309-million tonnes at 0.39% Li2O and 0.04% tin, containing a combined seven-million tonnes lithium carbonate equivalent and 263 000 t of tin. An initial probable ore reserve of 34.5-million tonnes at 0.65% Li2O and 0.09% tin has been declared to cover the first 20 years mining at an output of 20 800 t/y of lithium carbonate.
European Metals also reported that drilling of the geotechnical holes for portal design and location had been completed and that it would be followed by a second programme establishing ground conditions for the mine decline.
Further, testwork at Dorfner Anzaplan, in Germany, has started on schedule. The first stage of the testwork is focused on proving up a flowsheet developed for the production of lithium hydroxide. This work will be followed by locked cycle testing of the flowsheet settled upon.
“We expect this work to be very positive for the predicted financial outcomes from the project and look forward to releasing the results.”
The project’s prefeasibility study indicated a return post-tax net present value $540-million and an internal rate of return of 21%.