TIDMEMH
RNS Number : 8069D
European Metals Holdings Limited
02 May 2017
For immediate release 2 May 2017
EUROPEAN METALS HOLDINGS LIMITED
GRANT OF PERMITS
European Metals Holdings Limited ("European Metals" or "the
Company") (ASX & AIM: EMH) is pleased to announce the recent
granting of three key permits in the development of the Cinovec
Lithium/Tin Project in the Czech Republic.
HIGHLIGHTS
-- The Preliminary Mining Permit covering the majority of the Cinovec
Project has been awarded by the Czech Ministry of Environment.
-- A further Exploration Licence has been granted for the ground immediately
south of the main deposit.
-- A de-watering permit has been obtained from the Ohře River
Authority to pump out the historic workings.
PRELIMINARY MINING PERMIT
As announced to the market on 3 February 2017, the Cinovec South
Resource was formally added to the Czech State resource register,
which was the first step in the process of the granting of a mining
permit. As a next step, the 'Preliminary Mining Permit' (PMP) has
now been received. The permit covers approximately 1,500,000 m(2)
of the Cinovec deposit south area (see Figure 1) and is valid until
April 2025. The Company has until that date to submit an
application for the final mining permit and which it intends to do
well before then. The granting of the PMP means that the regulatory
oversight for the designated area is transferred from the Ministry
of Environment to the Czech Mining Bureau which approves the final
mining plan and delimits the final mining space. Both approvals are
predicated on the results of an Environmental Impacts Analysis,
which the Company has commenced.
ADDITIONAL EXPLORATION LICENCE
The Company has been awarded an additional exploration licence
for the ground immediately south of the deposit (see Figure 1).
Securing this area allows the Company to begin preparatory
geotechnical work for the exploration adit, including excavation of
the adit itself when appropriate.
DE-WATERING PERMIT
The historic Cinovec mine was closed in 1989 and the shafts were
capped. Since that time, the workings have been partially flooded.
The Company has been working with environmental consultants and
relevant local authorities to secure the necessary permits to begin
de-watering the mine well in advance of commencing operations. The
initial permit has been received and the Company will now finalise
the de-watering process. The Company aims to de-water the mine as
part of the Definitive Feasibility Study to allow detailed
geological, geotechnical and hydrological studies of the deposit.
Accessing the underground workings will also allow collecting
representative samples for pilot scale lithium carbonate
production, which will be used to supply potential off-take
customers.
European Metals Managing Director Keith Coughlan commented, "It
is very pleasing to receive all of these permits and the licence in
a clear and timely fashion. As there has been limited commissioning
of new mining operations in the Czech Republic in recent times, the
time line for the permitting process has not been specifically
determined. The awarding of these permits increases our confidence
in the future timing of operations and illustrates the support that
development of the Cinovec Project enjoys in the Czech
Republic."
(Please refer to the announcement on the European Metals Website
for the graphic of Figure 1 - Location of Current Operational
Permits Over the Cinovec Project - www.europeanmet.com.)
BACKGROUND INFORMATION ON CINOVEC
PROJECT OVERVIEW
Cinovec Lithium/Tin Project
European Metals owns 100% of the Cinovec lithium-tin deposit in
the Czech Republic. Cinovec is an historic mine incorporating a
significant undeveloped lithium-tin resource with by-product
potential including tungsten, rubidium, scandium, niobium and
tantalum and potash. Cinovec hosts a globally significant hard rock
lithium deposit with a total Indicated Mineral Resource of 348Mt @
0.45% Li(2) O and 0.04% Sn and an Inferred Mineral Resource of
309Mt @ 0.39% Li(2) O and 0.04% Sn containing a combined 7.0
million tonnes Lithium Carbonate Equivalent and 263kt of tin.
This makes Cinovec the largest 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.
The recently completed Preliminary Feasibility Study, conducted
by specialist independent consultants, returned a post tax NPV of
USD540m and an IRR of 21%. It confirmed the deposit is be amenable
to bulk underground mining. Metallurgical test work has produced
both battery grade lithium carbonate and 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
For further information on this update or the Company generally,
please visit our website at www. http://europeanmet.com or
contact:
Mr. Keith Coughlan
Managing Director
COMPETENT PERSON
Information in this release that relates to exploration results
is based on information compiled by European Metals Director Dr
Pavel Reichl. Dr Reichl is a Certified Professional Geologist
(certified by the American Institute of Professional Geologists), a
member of the American Institute of Professional Geologists, a
Fellow of the Society of Economic Geologists and is a Competent
Person as defined in the 2012 edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves and a Qualified Person for the purposes of the AIM
Guidance Note on Mining and Oil & Gas Companies dated June
2009. Dr Reichl consents to the inclusion in the release of the
matters based on his information in the form and context in which
it appears. Dr Reichl holds CDIs in European Metals.
The information in this release that relates to Mineral
Resources and Exploration Targets has been compiled by Mr Lynn
Widenbar. Mr Widenbar, who is a Member of the Australasian
Institute of Mining and Metallurgy, is a full time employee of
Widenbar and Associates and produced the estimate based on data and
geological information supplied by European Metals. Mr Widenbar has
sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity that he is undertaking to qualify as a Competent Person as
defined in the JORC Code 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Minerals Resources and Ore
Reserves. Mr Widenbar consents to the inclusion in this report of
the matters based on his information in the form and context that
the information appears.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information included in this release constitutes forward-looking
statements. Often, but not always, forward looking statements can
generally be identified by the use of forward looking words such as
"may", "will", "expect", "intend", "plan", "estimate",
"anticipate", "continue", and "guidance", or other similar words
and may include, without limitation, statements regarding plans,
strategies and objectives of management, anticipated production or
construction commencement dates and expected costs or production
outputs.
Forward looking statements inherently involve known and unknown
risks, uncertainties and other factors that may cause the company's
actual results, performance and achievements to differ materially
from any future results, performance or achievements. Relevant
factors may include, but are not limited to, changes in commodity
prices, foreign exchange fluctuations and general economic
conditions, increased costs and demand for production inputs, the
speculative nature of exploration and project development,
including the risks of obtaining necessary licences and permits and
diminishing quantities or grades of reserves, political and social
risks, changes to the regulatory framework within which the company
operates or may in the future operate, environmental conditions
including extreme weather conditions, recruitment and retention of
personnel, industrial relations issues and litigation.
Forward looking statements are based on the company and its
management's good faith assumptions relating to the financial,
market, regulatory and other relevant environments that will exist
and affect the company's business and operations in the future. The
company does not give any assurance that the assumptions on which
forward looking statements are based will prove to be correct, or
that the company's business or operations will not be affected in
any material manner by these or other factors not foreseen or
foreseeable by the company or management or beyond the company's
control.
Although the company attempts and has attempted to identify
factors that would cause actual actions, events or results to
differ materially from those disclosed in forward looking
statements, there may be other factors that could cause actual
results, performance, achievements or events not to be as
anticipated, estimated or intended, and many events are beyond the
reasonable control of the company. Accordingly, readers are
cautioned not to place undue reliance on forward looking
statements. Forward looking statements in these materials speak
only at the date of issue. Subject to any continuing obligations
under applicable law or any relevant stock exchange listing rules,
in providing this information the company does not undertake any
obligation to publicly update or revise any of the forward looking
statements or to advise of any change in events, conditions or
circumstances on which any such statement is based.
LITHIUM CLASSIFICATION AND CONVERSION FACTORS
Lithium grades are normally presented in percentages or parts
per million (ppm). Grades of deposits are also expressed as lithium
compounds in percentages, for example as a percent lithium oxide
(Li(2) O) content or percent lithium carbonate (Li(2) CO(3) )
content.
Lithium carbonate equivalent ("LCE") is the industry standard
terminology for, and is equivalent to, Li(2) CO(3) . Use of LCE is
to provide data comparable with industry reports and is the total
equivalent amount of lithium carbonate, assuming the lithium
content in the deposit is converted to lithium carbonate, using the
conversion rates in the table included below to get an equivalent
Li(2) CO(3) value in percent. Use of LCE assumes 100% recovery and
no process losses in the extraction of Li(2) CO(3) from the
deposit.
Lithium resources and reserves are usually presented in tonnes
of LCE or Li.
The standard conversion factors are set out in the table
below:
Table: Conversion Factors for Lithium Compounds and Minerals
Convert from Convert Convert Convert to
to Li to Li(2) Li(2) CO(3)
O
------------------- ------- -------- ---------- -------------
Lithium Li 1.000 2.153 5.324
Li(2)
Lithium Oxide O 0.464 1.000 2.473
Li(2)
Lithium Carbonate CO3 0.188 0.404 1.000
------------------- ------- -------- ---------- -------------
WEBSITE
A copy of this announcement is available from the Company's
website at www.europeanmet.com.
TECHNICAL GLOSSARY
The following is a summary of technical terms:
"beneficiation" in extractive metallurgy, is any
or "benefication" process that improves (benefits)
the economic value of the ore by
removing the gangue minerals, which
results in a higher grade product
(concentrate) and a waste stream
(tailings)
"carbonate" refers to a carbonate mineral such
as calcite, CaCO(3)
"cut-off grade" lowest grade of mineralised material
considered economic, used in the
calculation of Mineral Resources
"deposit" coherent geological body such as
a mineralised body
"exploration" method by which ore deposits are
evaluated
"g/t" gram per metric tonne
"grade" relative quantity or the percentage
of ore mineral or metal content
in an ore body
"Indicated" as defined in the JORC and SAMREC
or "Indicated Codes, is that part of a Mineral
Mineral Resource" Resource which has been sampled
by drill holes, underground openings
or other sampling procedures at
locations that are too widely spaced
to ensure continuity but close
enough to give a reasonable indication
of continuity and where geoscientific
data are known with a reasonable
degree of reliability. An Indicated
Mineral Resource will be based
on more data and therefore will
be more reliable than an Inferred
Mineral Resource estimate
"Inferred" or as defined in the JORC and SAMREC
"Inferred Mineral Codes, is that part of a Mineral
Resource" Resource for which the tonnage
and grade and mineral content can
be estimated with a low level of
confidence. It is inferred from
the geological evidence and has
assumed but not verified geological
and/or grade continuity. It is
based on information gathered through
the appropriate techniques from
locations such as outcrops, trenches,
pits, working and drill holes which
may be limited or of uncertain
quality and reliability
"JORC Code" Joint Ore Reserve Committee Code;
the Committee is convened under
the auspices of the Australasian
Institute of Mining and Metallurgy
"kt" thousand tonnes
"LCE" the total equivalent amount of
lithium carbonate (see explanation
above entitled Explanation of Lithium
Classification and Conversion Factors)
"lithium" a soft, silvery-white metallic
element of the alkali group, the
lightest of all metals
"lithium carbonate" the lithium salt of carbonate with
the formula Li(2) CO(3)
"Measured" or Measured: a mineral resource intersected
Measured Mineral and tested by drill holes, underground
Resources" openings or other sampling procedures
at locations which are spaced closely
enough to confirm continuity and
where geoscientific data are reliably
known; a measured mineral resource
estimate will be based on a substantial
amount of reliable data, interpretation
and evaluation which allows a clear
determination to be made of shapes,
sizes, densities and grades. Indicated:
a mineral resource sampled by drill
holes, underground openings or
other sampling procedures at locations
too widely spaced to ensure continuity
but close enough to give a reasonable
indication of continuity and where
geoscientific data are known with
a reasonable degree of reliability;
an indicated resource will be based
on more data, and therefore will
be more reliable than an inferred
resource estimate. Inferred: a
mineral resource inferred from
geoscientific evidence, underground
openings or other sampling procedures
where the lack of data is such
that continuity cannot be predicted
with confidence and where geoscientific
data may not be known with a reasonable
level of reliability
"metallurgical" describing the science concerned
with the production, purification
and properties of metals and their
applications
"micrometer" (symbol um) is an SI unit of length
equal to one millionth of a metre
"Mineral Resource" a concentration or occurrence of
material of intrinsic economic
interest in or on the Earth's crust
in such a form that there are reasonable
prospects for the eventual economic
extraction; the location, quantity,
grade geological characteristics
and continuity of a mineral resource
are known, estimated or interpreted
from specific geological evidence
and knowledge; mineral resources
are sub-divided into Inferred,
Indicated and Measured categories
"mineralisation" process of formation and concentration
of elements and their chemical
compounds within a mass or body
of rock
"Mt" million tonnes
"P80" the mill circuit product size in
micrometers
"ppm" parts per million
"PSD" particle size distribution
"recovery" proportion of valuable material
obtained in the processing of an
ore, stated as a percentage of
the material recovered compared
with the total material present
"run-of-mine" mined ore of a size that can be
processed without further crushing
"semi-autogenous a method of grinding rock into
grinding" or fine powder whereby the grinding
"SAG" media consist of larger chunks
of rocks and steel balls
"stope" underground excavation within the
orebody where the main production
takes place
"t" a metric tonne
"tin" A tetragonal mineral, rare; soft;
malleable: bluish white, found
chiefly in cassiterite, SnO(2)
"treatment" Physical or chemical treatment
to extract the valuable metals/minerals
"tungsten" hard, brittle, white or grey metallic
element. Chemical symbol, W; also
known as wolfram
"W" chemical symbol for tungsten
ADDITIONAL GEOLOGICAL TERMS
"apical" relating to, or denoting an apex
"cassiterite" a mineral, tin dioxide, SnO2. Ore
of tin with specific gravity 7
"cupola" a dome-shaped projection at the
top of an igneous intrusion
"dip" the true dip of a plane is the
angle it makes with the horizontal
plane
"glaserite" A colourless or white crystalline
compound, K(2) SO(4) , used in
glassmaking and fertilisers and
as a reagent in analytical chemistry
"granite" coarse-grained intrusive igneous
rock dominated by light-coloured
minerals, consisting of about 50%
orthoclase, 25% quartz and balance
of plagioclase feldspars and ferromagnesian
silicates
"greisen" a pneumatolitically altered granitic
rock composed largely of quartz,
mica, and topaz. The mica is usually
muscovite or lepidolite. Tourmaline,
fluorite, rutile, cassiterite,
and wolframite are common accessory
minerals
"igneous" said of a rock or mineral that
solidified from molten or partly
molten material, i.e., from a magma
"muscovite" also known as potash mica; formula:
KAl(2) (AlSi(3) O(10) )(F,OH)(2)
.
"quartz" a mineral composed of silicon dioxide,
SiO2
"rhyolite" an igneous, volcanic rock of felsic
(silica rich) composition. Typically
>69% SiO(2)
"vein" a tabular deposit of minerals occupying
a fracture, in which particles
may grow away from the walls towards
the middle
"wolframite" a mineral, (Fe,Mn)WO(4) ; within
the huebnerite-ferberite series
"zinnwaldite" a mineral, KLiFeAl(AlSi(3) )O(10)
(F,OH)(2) ; mica group; basal cleavage;
pale violet, yellowish or greyish
brown; in granites, pegmatites,
and greisens
ENQUIRIES:
European Metals Holdings Tel: +61 (0) 419 996
Limited 333
Keith Coughlan, Chief Email: keith@europeanmet.com
Executive Officer Tel: +44 (0) 20 7440
Kiran Morzaria, Non-Executive 0647
Director Tel: +61 (0) 6141 3504
Julia Beckett, Company Email: julia@europeanmet.com
Secretary
Beaumont Cornish (Nomad Tel: +44 (0) 20 7628
& Broker) 3396
Michael Cornish Email: corpfin@b-cornish.co.uk
Roland Cornish
The information contained within this announcement is considered
to be inside information, for the purposes of Article 7 of EU
Regulation 596/2014, prior to its release.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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