Updated: Apr 21, 2022
Is Mining Zinnwaldite an Overlooked Lithium Source?
I interviewed Keith Coughlan, Executive Chairman of European Metals Holdings Limited (ASX & AIM:EMH, NASDAQ: ERPNF) on their positioning as the next lithium miner in Europe.
European Metals Holdings Limited (EMH) has found itself within a series of major cathode, battery and automative manufacturers - in other words, the company is perfectly placed.
EMH is an intriguing company as it is in a lithium space that is not so well-known to investors. Mr. Coughlan shed some light and brought clarity to what the company is doing - mining Zinnwaldite, a micaceous mineral. It has a highly complicated mineral chemistry, KLiFeAl(AlSi3)O10(OH,F)2, and it comes from the least known lithium mineral to the average investor. (The other micaceous lithium mineral is lepidolite).
What caught my attention was, the first time he noticed EMH in 2018, the company shares were sub AU$0.30. And currently, the company is valued at a range of AU$1.55 with a market capitalisation of AU$271 Million. That is quite a leap from 2018.
It is interesting to learn from Mr. Coughlan why this project could be a giant killer in the lithium space in a couple of years. Considering how strategically placed the project is in Europe, it is set to be the source for all things related to the EV Revolution to European manufacturers.
“The recovery of up to 92% of the lithium in the zinnwaldite concentrate at this early stage of DFS testwork is very promising for increased recoveries during the planned process optimisation work,” said Keith Coughlan
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.
Contact European Metals Holdings Limited:
t/ + 61 (08) 6245 2050
Level 3, 35 Outram Street, West Perth, WA 6005
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About the Author
Noel Ong, CEO of Samso tells compelling stories by engaging business leaders to reveal insights beneficial to the investment community.
Samso helps executives tell their stories to pique investor interest.
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