Numerous share price catalysts on the horizon for European Lithium

By Trevor Hoey. Published at Apr 28, 2017, in Small Caps

While promising drilling results released on April 18 by European Lithium (ASX: EUR) sparked a share price rerating of more than 5%, arguably of more significance in terms of the group’s long-term production profile was news released yesterday regarding confirmation that the Wolfsberg lithium project is both technically and economically viable.

However, touching on the drilling results, the share price response wasn’t surprising with high lithium grade intersections identified in amphibolite with a vein packet of 6.2 metres comprising 4.3 metres of mineralised vein at a composite and grade of 1.9% lithium dioxide.

It should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.

Furthermore, lithium intersections were identified at depth in mica schist with a vein packet of 4.28 metres comprising 2.71 metres of mineralised veins at a composited grade of 0.73% lithium dioxide.

Commenting on these results, Chief Executive Steve Kesler said, “The drilling results to date clearly demonstrate that the pegmatite veins extend to depths, and we anticipate completion of the drilling program by the end of April, allowing us to declare an increased resource by the end of May”.

Further drilling will explore Zone 2 which there is evidence to suggest a possible mirroring of the Zone 1 resource.

Independent engineer deems Wolfsberg to be technically and economically viable

Results from the recently completed initial mine design study at Wolfsberg are extremely promising as they demonstrate that pegmatite veins can be mined economically using long hole opened stoping.

This is a low-cost bulk mining technique which utilises laser sensor sorting to reject waste dilution from the run of mine, effectively maximising the lithium grade of the process plant feed.

The metallurgy test work by independent consulting engineer, Dorfner Anzaplan, confirms that the Wolfsberg ore is suitable for the production of battery grade lithium carbonate, having produced >99.9% Li2CO3 by the conventional acid bake process with impurity removal by precipitation and ion exchange with precipitation of lithium carbonate and purification via bicarbonation.

The preliminary mine design by SRK has shown that the pegmatite veins at Wolfsberg, can be mined economically. Kesler highlighted the fact that an essential component in improving Wolfsburg’s economic viability was the use of ore sorting to reject waste dilution.

Furthermore, the project becomes more attractive economically as it is expanded beyond that supported by the current JORC Code (2012) resource. Following completion of the current exploration programme and PFS, EUR plans to undertake further drilling as part of the Definitive Feasibility Study (DFS) to upgrade the deeper resources to indicated category.

The work by Dorfner Anzaplan confirms that the Wolfsberg ore is suitable for battery grade production, and delivering that to the emerging lithium battery plants in Europe is our objective. Opportunities for limited fast track production of concentrate for the European glass-ceramic industry are also being evaluated.

SRK to develop scoping study to be used as the basis for PFS

SRK Consulting (UK) Limited (SRK) was engaged to develop to Scoping Study level an appropriate mining concept based on the updated resource and geological models declared by the company, reported metallurgical test work undertaken by Dorfner Anzaplan, as well as geotechnical and mine design studies by previous owners. This design will then be used as the basis for a pre-feasibility study (PFS).

The resource derived from drilling solely in Zone 1, the northern limb of an anticline, was declared as a Measured and Indicated Resource of 6.30 million tonnes at 1.17% Li2O (ASX release 21 November 2016 “European Lithium declares 75% increase in JORC Code (2012) compliant resource tonnes”).

This resource is the basis for the mine study and conversion into mineable material. The resource is believed to extend to an unknown depth and an Exploration Target of 8 to 14 million tonnes at 1.1 to 1.2% Li2O has been estimated by extending the known major pegmatite veins down to 1100masl.

SRK concluded that based on this preliminary study the Wolfsberg Lithium Project is technically and economically viable based on the current Measured and Indicated resources.

It should be noted that EUR is an early stage play, so seek professional financial advice if considering this stock for your portfolio.

An increase in mine life is expected based on the exploration target material at depth which should also allow an increase in the production rate and improved project economics. SRK is of the opinion that the economic evaluation is robust, that proper dilution is applied and that further refinements are possible to increase both the mineralised material recovered and the NPV.

Where to invest $1,000 right now

When the experts at Next Investors have a stock pick, it may pay to listen.

The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.

They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.

Click the link below to see what they are currently investing in.




S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). 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.

Publishers Notice

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.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!