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.
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