European Metals Increases Cinovec Indicated Lithium Resource

THE DRILL SERGEANT: European Metals Holdings (ASX: EMH) announced an interim upgrade of the Mineral Resources at the company’s Cinovec lithium-tin project in the Czech Republic.

European Metals Holdings informed the market the upgrade has delivered a 420 per cent increase in Indicated Mineral Resources, which, when combined with the Inferred Mineral Resources, results in a total resource of an estimated 6.46 million tonnes of lithium carbonate equivalent (LCE).

The company said the 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, acknowledging the Mineral Resource will allow management to optimise the mine plan and maximise Cinovec’s financial returns and further progress in the ongoing prefeasibility study, which is due for publication at the end of March next year.

European Metals said the lithium and tin resources have been updated using data from the latest drill holes the company has released to market over the last five months.

Resource classifications have been revised on the basis of the new data.

Highlights of the upgrade include:

Lithium Indicated Resource increased 420 per cent to 2.6 million tonnes LCE, contained in 232.8 million tonnes at 0.45 per cent lithium dioxide (Li2O) (0.1% Li cutoff);

Lithium Total Resource increased 11.8 per cent to 6.46 million tonnes LCE, contained in 606.8 million tonnes at 0.43 per cent Li2O (0.1% Li cutoff); and

Tin Indicated Resource increased by 64 per cent to 28.6 million tonnes 0.23 per cent tin, 0.54 per cent Li2O (0.1% tin cutoff) for 658,000 tonnes tin, 0.38 million tonnes LCE.

 European Metals said the results from the drilling program support the original Cinovec model and that the company remains confident additional drilling will result in further resource upgrades.

The company indicated its Lithium Exploration Target remains at 350 million tonnes to 450 million tonnes at 0.39 per cent to 0.47 per cent for 3.4 million tonnes to 5.3 million tonnes of LCE.

“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,” European Metals managing director Keith Coughlan said in the company’s announcement to the Australian Securities Exchange.

“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.”

Website: www.europeanmet.com