European Metals Holdings Limited (“European Metals” or “the Company”) (ASX and AIM: EMH) announce an interim upgrade of its Mineral Resources at the Cinovec lithium/tin project in the Czech Republic. The upgrade has delivered a 420% increase in Indicated Mineral Resources, which, when combined with the Inferred Mineral Resources, results in a total resource of an estimated 6.46Mt of LCE.
The significant increase in the indicated portion of the Mineral Resource, and the resource in total, will have a positive impact for mine planning and the life of mine. In particular, the Mineral Resource will allow management to optimise the mine plan and maximise Cinovec’s financial returns and further progress in the ongoing pre-feasibility study, which is due for publication at the end of March next year.
The lithium (“Li”) and tin (“Sn”) resources have been updated using data from the latest drill holes released to market over the last 5 months. Resource classifications have been revised on the basis of the new data.
· Lithium Indicated Resource increased 420% to 2.6 Mt LCE, contained in 232.8 Mt @ 0.45% Li2O (0.1% Li cutoff)
· Lithium Total Resource increased 11.8% to 6.46 Mt LCE, contained in 606.8 Mt @ 0.43% Li2O (0.1% Li cutoff)
· Tin Indicated Resource increased by 64% to 28.6 Mt @ 0.23% Sn, 0.54% Li2O (0.1% Sn cutoff) for 65.8 kt Sn, 0.38 Mt LCE
· Results from the drilling programme support the original Cinovec model. Management are confident that additional drilling will result in further significant resource upgrades.
· Lithium Exploration Target remains 350 to 450 Mt @ 0.39% to 0.47% for 3.4 Mt to 5.3 Mt of LCE.
European Metals Managing Director Keith Coughlan said, “This significant upgrade to the Cinovec Indicated lithium resource is particularly pleasing as it provides basis for the soon to be completed preliminary feasibility study. When the tonnage and grade for this material are compared to the previously calculated Inferred resource, neither grade nor tonnage changed much, highlighting the robustness of the resource and geological models, and continuity of the orebody. Drilling will continue until the end of the year at which point the model will be updated again.
The substantial upgrade to the Indicated tin resource is also very encouraging, particularly in light of the rising tin price on LME throughout 2016. The tin credits at Cinovec will be significant for the project and greatly enhance the overall economics.
The pre-feasibility study is moving ahead rapidly and I look forward to releasing some exciting updates on this in the very near future.”