European Lithium on track to deliver resource extension news in January
Winter conditions haven’t delayed European Lithium’s (ASX: EUR) drilling progress at its Wolfsberg project in Austria. As a result of the group’s aggressive exploration initiatives it is on track to inform the market of important developments regarding a resource extension in January.
On this note, EUR’s Chairman, Tony Sage said, “Drilling of the deep holes in Zone 1 to increase the recently declared measured and indicated resource of 6.3 million tonnes grading 1.17% lithium dioxide and the drilling of the new Zone 2 (southern limb of anticline) will be undertaken in parallel and results will be reported as received”.
Sage confirmed that all permits, including deep hole drilling permit and forest clearance permits, required from the authorities in Austria to allow drilling in a forest area were received by the Austrian subsidiary company, ECM Lithium AT GmbH.
EUR has also made good progress on planning in relation to mine design and processing with Chief Executive, Steve Kesler saying, “Metallurgical studies into sensor-based sorting to remove waste dilution from mining and into dense media separation are very encouraging, and mine design studies have begun and will quickly determine the maximum rate of mine production, and hence lithium production potential for the Wolfsburg project”.
However, potential investors should note that EUR is an early stage exploration company and independent financial advice should be sought if considering this stock as an investment.
Prospect of early cash flow from spodumene concentrate
Importantly, the company has already started to explore the prospect of generating early cash flow by tapping into markets where there may be demand for dense media separation spodumene concentrate and flotation/magnetic spodumene concentrate. The initial report of these findings will be received before year-end.
With regard to mine design studies, a seven-week Phase 1 program is underway that will address geological modelling for mine planning, which should provide important data in relation to production rate analysis, production scheduling and high-level capital and operating costs.
Following the results of this study a 12 week program to undertake mine design and scheduling to Pre-Feasibility Study (PFS) level will be carried out.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.