TIDMEMH
RNS Number : 1249Z
European Metals Holdings Limited
19 May 2021
For immediate release
19 May 2021
EUROPEAN METALS HOLDINGS LIMITED
CONFIRMATION OF REFINING PROCESS
STRONG RESULTS FROM LOCKED-CYCLE TESTS
HIGHLIGHTS
-- Successful locked-cycle test ("LCT") results further support
the Cinovec project's credentials to initially produce
battery-grade lithium carbonate.
-- European Metals has demonstrated that Cinovec battery grade
lithium carbonate can be easily converted into lithium hydroxide
monohydrate with a commonly utilised liming plant process.
-- Six LCTs were planned but testwork was stopped after four
cycles as the main process stream compositions had successfully
stabilised.
-- Battery grade lithium carbonate was produced in every LCT
with lithium recoveries of up to 92.0% achieved in the four LCTs
performed.
-- The LCTs tested zinnwaldite concentrate from the southern
part of Cinovec, representative of the first five years of
mining.
-- Improved fluoride removal process step further enhances
project's economic outcomes as a result of the regeneration and
reuse of the ion exchange resins.
-- Further optimisation work in hydrometallurgy processing steps
expected to improve lithium recoveries from concentrate to
>92.0%.
European Metals Holdings Limited (ASX & AIM: EMH, NASDAQ:
ERPNF) ("EMH", "European Metals" or the "Company") is pleased to
announce results of locked-cycle testwork, a metallurgical
processing assessment conducted on ore concentrate extracted from
the Company's flagship Cinovec lithium project.
The Cinovec project, located on the German border of the Czech
Republic, is the largest hard-rock lithium resource in Europe,
containing lithium-bearing mica known as zinnwaldite which the
Company intends to refine using a number of processes initially
outlined in a Pre-Feasibility Study ("PFS") (see ASX Announcement
dated: 17 June 2019).
Commenting on the results, European Metals Executive Chairman
Keith Coughlan said:
"In a significant vote of confidence for our Pre-Feasibility
Study, the proposed process methodology has been confirmed by
excellent locked-cycle test results which also include new
processes involving recycle streams. The robustness of the process
was further confirmed by the stabilisation of the process streams,
enabling the work to stop after only four of the six test cycles
were completed. The recovery of up to 92% of the lithium in the
zinnwaldite concentrate at this early stage of DFS testwork is very
promising for increased recoveries during the planned process
optimisation work. Further, an improved fluoride removal step which
is cheaper and cleaner represents only the beginning of further
optimisation work which we expect will result in greater lithium
recoveries and even stronger economics for the Cinovec Project.
It is also encouraging to note that the process was as
successful as that conducted during the 2019 PFS on the Central/NW
part of the orebody, further underlying the consistency of the
Cinovec ore body.
We look forward to providing further updates on the Definitive
Feasibility Study work as it unfolds."
LOCKED-CYCLE TEST RESULTS PROVE ABILITY TO PROCESS
ZINNWALDITE
Geomet s.r.o. ("Geomet") commissioned the LCTs with the
principal objective of confirming the flowsheet for the processing
of zinnwaldite concentrate from Cinovec run-of-mine ore.
The LCTs differ from previous proof of concept and optimisation
testwork conducted during the Cinovec PFS by confirming the effect
of recycle streams (which carry some lithium and other alkali
metals) on the overall recovery of lithium from the pregnant leach
solution resulting from the water leaching of the roasted
zinnwaldite concentrate and the ability to produce battery grade
lithium carbonate.
The LCTs have been performed by Dorfner Anzaplan, Germany and
have been supervised by Lithium Consultants Australasia and SMS
group Processing Technologies GmbH ("SMS") in parallel with the
Front-End Engineering Design ("FEED") programme being undertaken by
SMS.
The LCTs have processed zinnwaldite concentrate from drill core
samples taken from the southern part of the Cinovec orebody,
representing ore that will be processed in the first five years of
the mine plan. The recovery of up to 92% of the lithium in the
concentrate sample compares favourably with the similar recovery in
the PFS flowsheet of 91%. However, this new recovery of up to 92%
is before lithium plant DFS/FEED optimisation testwork that will be
targeted in specific process areas and which is expected to
increase hydrometallurgical recovery in the lithium plant to more
than 92%.
Separate metallurgical testwork on the Front-End Comminution and
Beneficiation ("FECAB") circuit is underway and is designed to
improve upon the lithium recovery of 90% from ore to concentrate.
This testwork will be reported at a later date.
PROOF OF PROCESSING STEPS FOR REMOVAL OF FLUORIDE, POTASSIUM AND
RUBIDIUM
Ahead of the LCTs, Geomet tested an alternative process to
remove fluoride in order to meet the Electric Vehicle ('EV') grade
specification of <50ppm in the lithium carbonate. The previously
announced PFS flowsheet proposed the removal of fluoride by the use
of activated alumina, a relatively costly step because the
activated alumina was not considered suitable for regeneration.
This step has been replaced by a cheaper and cleaner two-step
process involving chemical precipitation and ion-exchange. This new
method of fluoride removal has been proven to be highly effective,
easier to implement and is less costly as the ion-exchange resin
can easily be regenerated and re-used many times.
In addition to fluoride, the zinnwaldite mica at Cinovec
contains alkali metals, including potassium, rubidium and caesium,
which are leached into solution and will build up in the plant if
not removed from the circuit.
The LCTs have proven conclusively that unwanted alkali metals
can be removed preferentially by control of temperature, pH,
solution saturation and crystallisation. It has been confirmed that
these alkali metals will not build up due to recycling processes
within the plant. The removal of these deleterious elements within
four LCTs with minor loss of lithium is a major step towards
confirmation of process plant design.
LITHIUM HYDROXIDE PRODUCTION
The current LCTs have been commissioned to confirm the lithium
carbonate processing flowsheet. The Cinovec Project has optionality
to either produce a battery grade lithium carbonate product or to
further process the lithium carbonate to produce battery grade
lithium hydroxide.
As the FEED programme continues, Geomet is expected to
commission testwork to confirm the optimal production route for
lithium hydroxide and to produce marketing samples for prospective
offtake partners and environmental samples to assist in permitting
approvals.
BACKGROUND INFORMATION ON CINOVEC
PROJECT OVERVIEW
Cinovec Lithium/Tin Project
Geomet s.r.o. controls the mineral exploration licenses awarded
by the Czech State over the Cinovec Lithium/Tin Project. Geomet
s.r.o. is owned 49% by European Metals and 51% by CEZ a.s. through
its wholly owned subsidiary, SDAS. Cinovec hosts a globally
significant hard rock lithium deposit with a total Indicated
Mineral Resource of 372.4Mt at 0.45% Li(2) O and 0.04% Sn and an
Inferred Mineral Resource of 323.5Mt at 0.39% Li(2) O and 0.04% Sn
containing a combined 7.22 million tonnes Lithium Carbonate
Equivalent and 263kt of tin reported 28 November 2017 ( Further
Increase in Indicated Resource at Cinovec South ). An initial
Probable Ore Reserve of 34.5Mt at 0.65% Li(2) O and 0.09% Sn
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 reported 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, 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.
In June 2019 EMH completed an updated Preliminary Feasibility
Study, conducted by specialist independent consultants, which
indicated a return post tax NPV of USD1.108B and an IRR of 28.8%
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. Metallurgical test-work has
produced both battery grade lithium hydroxide and battery grade
lithium carbonate in addition to 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.
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 an established,
integrated energy group with operations in a number of Central and
Southeastern European countries and Turkey. CEZ's core business is
the generation, distribution, trade in, and sales of electricity
and heat, trade in and sales of natural gas, and coal extraction.
CEZ Group has 33,000 employees and annual revenue of approximately
EUR 7.24 billion.
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 10.08 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 Czech is a significant
contributor to GDP and the number of EV's in the country is
expected to grow significantly in coming years.
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.
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 Convert Convert
from Convert to to
Convert to Li(2) LiOH.H(
to Li Li(2) O CO(3) 2) O
Lithium Li 1.000 2.153 5.325 6.048
----------------- ------------------ ------------------ ------------------ ------------------
Lithium Li(2)
Oxide O 0.464 1.000 2.473 2.809
----------------- ------------------ ------------------ ------------------ ------------------
Lithium Li(2)
Carbonate CO(3) 0.188 0.404 1.000 1.136
----------------- ------------------ ------------------ ------------------ ------------------
LiOH.
Lithium H(2)
Hydroxide O 0.165 0.356 0.880 1.000
----------------- ------------------ ------------------ ------------------ ------------------
Lithium
Fluoride LiF 0.268 0.576 1.424 1.618
----------------- ------------------ ------------------ ------------------ ------------------
AUTHORISATION
This announcement has been authorised for release by Keith
Coughlan, Executive Chairman.
WEBSITE
A copy of this announcement is available from the Company's
website at www.europeanmet.com.
ENQUIRIES:
European Metals Holdings Limited
Keith Coughlan, Executive Chairman Tel: +61 (0) 419 996 333
Email: keith@europeanmet.com
Kiran Morzaria, Non-Executive Director Tel: +44 (0) 20 7440 0647
Dennis Wilkins, Company Secretary Tel: +61 (0) 417 945 049
Email: dennis@europeanmet.com
WH Ireland Ltd (Nomad & Joint Broker)
James Joyce/James Sinclair-Ford Tel: +44 (0) 20 7220 1666
(Corporate Finance)
Harry Ansell/Jasper Berry (Broking
Shard Capital (Joint Broker) Tel: +44 (0) 20 7186 9950
Damon Heath
Erik Woolgar
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 considered
to be inside information, for the purposes of Article 7 of EU
Regulation 596/2014, prior to its release. The person who
authorised for the release of this announcement on behalf of the
Company was Keith Coughlan, Executive Chairman .
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