Cobre Montana and European Metals strike Cinovec HoA

THE BOURSE WHISPERER: Cobre Montana (ASX: CXB) has completed a second lithium carbonate test on material from European Metals (ASX: EMH) Cinovec lithium deposit in the Czech Republic.

The two companies have declared the results to demonstrate the ability to produce a consistently high-grade lithium carbonate product from the project.

Cobre Montana is managing the testwork program at Cinovec, from which it has determined an approximate cost to produce lithium carbonate of less than $2,000 per tonne net of potash by-product credits.

The company said additional revenue derived from tin-tungsten production should result in a further lowering of this cost.

Based on these results, the two parties have struck a non-binding Heads of Agreement (HoA) outlaying the basis for a Joint Venture with a view to further develop this opportunity.

“Replicating the production of high purity lithium carbonate in further tests provides confidence that Cinovec has the potential to be a globally significant, low cost lithium carbonate producer,” European managing director Keith Coughlan said in his company’s announcement to the Australian Securities Exchange.

“These results are now being included in the company’s scoping study, which is due for release in the very near term.”

Cobre Montana has previously announced an approximate cost to produce lithium carbonate from the ore supplied by European for the tests.

This has been done as part of the company’s assessment of the technology being used under license from Perth-based Strategic Metallurgy.

“We have succeeded in producing battery-grade lithium carbonate from mica sourced from both Lepidolite Hill and Cinovec,” Cobre Montana managing director Adrian Griffin said in the company’s ASX announcement.

“We have repeated the result at Cinovec and had a look at the production implications of processing such materials.

“The fundamentals are outstanding, and the HoA crystallizes our commercial position at Cinovec; a position we see as being very strategic in our quest to capitalize on lithium micas by the application of disruptive processing technology.”