Shares of Zinnwald Lithium PLC (LON: ZNWD, OTC: ZNWLF) surged over 40% on Wednesday morning following the announcement of a significantly increased resource estimate for its eastern Germany project.
2024 Resource Highlights:
· A 445 % increase in tonnes and a 243% increase in contained lithium (“Li”) in the Measured and Indicated category versus the previous 2018 MRE.
· Total contained Li of 429kt compared with the 2018 MRE of 125kt in the Measured and Indicated category.
· 11.3 Mt grading 3,420ppm Li (0.736% Li2O) in the Measured category.
· 193.5 Mt grading 2,220ppm Li (0.478% Li2O) in the Measured and Indicated category.
· 33.3 Mt grading 2,140 ppm Li (0.461% Li2O) in the Inferred category.
· Increase in overall tonnage predominantly due to the incorporation of a broad zone of mineralised granite, as well as contribution of an extra 26,911 metres of new drilling over 84 holes.
· Measured classification only applied to the external greisen domains due to a higher metallurgical confidence; Snowden Optiro recommends further metallurgical variability testwork in the broad mineralisation zone domain to further increase confidence.
· Demonstrated dimensions of the mineralised zone (true thickness c. 80 metres) and continuity of ore supports highly efficient mining methods with minimal waste rock production.
· Mineral Resources reported using a 1,100ppm Li cutoff grade and a stope optimisation to constrain an RPEEE Resource.
The company’s Saxony site is now believed to contain 429 kilotons of lithium-rich granite, a substantial increase from the previously estimated 125 kilotons, with a lithium grade of 0.736%.
This revision comes in the wake of extensive new diamond core drilling, encompassing 84 holes, and the inclusion of a larger area of mineralized granite within the project’s scope.
CEO Anton du Plessis stated that this revised estimate positions the project as the EU’s second-largest hard rock lithium endeavour in terms of both resource size and lithium content.
Following this news, the company’s shares jumped by 40.19% to 7.70p at the time of writing.
