Is Mining Zinnwaldite an Overlooked Lithium Source?
Coffee with Samso Episode 90 with Keith Coughlan, Executive Chairman of European Metals Holdings Limited (ASX:EMH)
European Metals Holdings Limited (ASX & AIM: EMH, NASDAQ: ERPNF) is positioning itself as the next lithium miner in Europe. And it is perfectly placed within a series of major cathode, battery and automotive manufacturers.
I have been looking forward to getting EMH onto Coffee With Samso as it is in a lithium space that is not common to investors. European Metals is mining Zinnwaldite which is a micaceous mineral. A highly complicated mineral chemistry, KLiFeAl(AlSi3)O10(OH,F)2, it comes from the least known lithium mineral to the average investor. The other micaceous lithium mineral is lepidolite.
When I first looked at EMH in 2018, the company shares were sub AUD$0.30 which is a far cry from the AUD$1.55 range the company is valued at now with a market capitalisation of AUD271 Million. For a company that is not far from production, the valuation seems reasonable.
In this episode, Keith Coughlan shares with us why this project could be a giant killer in the lithium space in a couple of years. The project is strategically placed in Europe and will be the source for all things related to the EV Revolution to European manufacturers.
About Keith Coughlan
Keith has almost 30 years’ experience in stockbroking and funds management. He has been largely involved in the funding and promoting of resource companies listed on the ASX, AIM and TSX. He has advised various companies on the identification and acquisition of resource projects and was previously employed by one of Australia’s then largest funds.
Keith was previously the Non–Executive Chairman of ASX listed Talga Resources Limited. He is currently the Non-Executive Chair of Doriemus PLC and a Non-Executive Director of Calidus Resources Limited.
Keith is a member of the Audit & Risk Committee, Remuneration Committee and Nomination Committee.
About European Metals Holdings Limited (ASX:EMH)
European Metals Holdings Limited (ASX & AIM: EMH, NASDAQ: ERPNF) is the owner of the Cinovec Lithium/Tin Project (“Cinovec”) Cinovec, which is the largest hard rock lithium deposit in Europe. Cinovec is also the fourth largest non-brine deposit in the world and a globally significant tin resource and is fully funded through to Final Investment Decision, expected early 2022.
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% Li2O and 0.04% Sn and an Inferred Mineral Resource of 323.5Mt at 0.39% Li2O 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% Li2O 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.
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