European Metals finds 'substantial' increase in lithium resource at Czech mine
Miner European Metals found that there is a “substantial” increase in indicated resource at its lithium and tin project in the Czech Republic, following a seven month drilling programme.
The AIM-listed company said this confirmed the status of the Cinovec project as the largest lithium resource in Europe.
The company found after the drilling campaign of 17 holes of 6,081 meters that lithium indicated resource increased 50% to 3.9m tonnes of lithium carbonate equivalent, contained in 347.7m tonnes at 0.45% lithium oxide and 0.04% tin - 0.1% lithium cut-off.
Lithium total resource also rose 11.8% to 7m tonnes of lithium carbonate equivalent, contained in 656.5m tonnes at 0.43% lithium oxide and 0.04% tin - 0.1% lithium cut-off.
Contained tin in the total mineral resource increased to 262,600 tonnes and the contained tin in the total mineral resource grew to 262,600 tonnes.
Managing director Keith Coughlan said: "Cinovec is a globally significant lithium deposit. Its location on the German-Czech Republic border places it in very close proximity to the largest car manufacturers in Europe and is in a unique position to supply lithium to the rapidly growing European electric vehicle industry.
“The substantial increase in the higher confidence indicated resources in both contained lithium and in valuable by-product tin provides more certainty that European industry will be able to source locally produced lithium in a secure and stable environment."
Lynn Widenbar, an independent resource consultant, added: "The additional new drilling results from 2016 have greatly increased confidence in the historic surface and underground drilling and sampling, resulting in a substantial amount of previously Inferred material being re-classified as Indicated. The additional drilling has also enabled the two main value elements of lithium and tin to be combined in one complete model that covers the entire mineralisation at the Cinovec deposit."
Shares in European Metals were up 6.25% to 68p at 0959 GMT.