TIDMEMH
RNS Number : 7237Z
European Metals Holdings Limited
19 December 2017
For immediate release
19 December 2017
EUROPEAN METALS HOLDINGS LIMITED
FURTHER PROGRESS TOWARDS MINING LICENCE; ROAST OPTIMISATION
In February 2017 European Metals Holdings Limited ("European
Metals" or "the Company") 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.
The Company is now pleased to announce that the Cinovec
NorthWest Resource has also been added to the Czech State resource
register.
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.
Key Points:
* 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
European Metals CEO Keith Coughlan said: "Subsequent to a
submission we made to the State Authority, the Cinovec NorthWest
resource estimate was approved by a Ministerial Experts Committee
for Final reports and projects and placed on the State Register of
mineral deposits. We are very pleased with this development and see
it as confirmation that the Company is moving forward within the
regulatory framework of the Czech Republic and in full consultation
with the relevant Czech Ministries. This approval is a
pre-requisite for receiving a mining permit in this area.
The placing of the NorthWest resource on the State Register, in
addition to those portions of the deposit previously added,
finalises the first stage of the permitting process. The Company
will now apply for a preliminary mining permit over this area to
join the previously awarded preliminary mining permits over the
southern and eastern portion of the deposit.
The Company continues to progress the development of its
industry proven, sulphate roast-based flow-sheet of
mica-concentrate from the Cinovec Project. It is very pleasing to
see the recent optimisation testwork produce strong indications of
potential cost savings in both OPEX and CAPEX. Our Preliminary
Feasibility Study has highlighted the potential for Cinovec to be a
low cost producer of battery grade lithium carbonate. Any further
savings will only enhance the already strong economics. In
addition, our current lock cycle testwork program has again shown
we are able to produce battery grade product with >99.5% pure
lithium carbonate."
Further Information
The process for the award of a mining permit commences with the
placing of a mineral resource on the State Resource Registry and
receiving a certificate of an 'exclusive mineral deposit'. This is
achieved by defending a resource calculation and a preliminary
technical and economic analysis proving the studied resource has a
quality consistent with a potentially mined deposit. The addition
to the State Resource Register means that civic development on top
of the area is restricted and it allows the Company to apply for
setting a preliminary mining space, which is a step toward
obtaining the final mining permit.
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 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
Joint Broker Tel: +44 (0) 20 7186
Damon Health 9950
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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