EMH starts drilling at Cinovec

Published at Aug 25, 2015, in Mining

European Metals Holdings (ASX:EMH) is spinning the drill bit at its Cinovec Lithium/Tin project in the Czech Republic, kicking off a busy five-month window for the ASX-listed company as it seeks to firm up the potential of what has been mooted to be the world’s largest hard-rock lithium resource.

It told its investors this morning that it had started work on a 13-hole campaign for 5,400m, targeting the Cinovec South ore zone.

EMH said the drilling aims to convert the majority of the inferred resource of lithium and tin into the indicated category, giving it further confidence in its potential resource.

The drilling will also provide cores, which will help EMH figure out ideal processing and optimise the metal chain recovery, maximising the value of key products in the ore including lithium, tin, potash, and tungsten.

The project

The Cinovec Project has an inferred lithium resource of just under 515 million tonnes with at 0.43% lithium, while it has an inferred resource of 79.9Mt of tin grading at 0.23%.

This means on an inferred basis it is sitting on a lithium of over two million tonnes, and that doesn’t account for any exploration to further expand it.

Mining at the site has a history going back about 600 years, when the locals were more concerned about looking for tin than for lithium. That deep history means EMH has a great degree of certainty about the deposit as there’s a great degree of historical data on it.

EMH’s Cinovec project in Czech Republic

It has also completed a feasibility study into the commercial potential of the mine back in May, with the study finding a mine and processing facility at the project would be a profitable venture.

A busy five months

EMH said the drilling would take a total of five months to complete, but EMH has plenty on its plate to keep it busy aside from it drilling campaign.

It has tapped Cobre Montana (ASX:CXB) via a non-binding heads of agreement to see whether material from the area could be used to produce high-quality lithium carbonate.

CXB are trialling new technology to process lithium deposits into high-grade lithium carbonate, which would then be ready to sell.

The upshot of CXB’s technology is that it can also funnel out potash and other elements within the ore, which of course can then be on-sold.

It is also seeking to prove that its ore can be produced at scale, sending a 1.5 million tonne sample to process engineering experts in neighbouring Germany last month for preparation of at least 400kg of zinnwaldite concentrate.

That concentrate will then be transported to Perth for continuous feed testing at Strategic Metallurgy’s plant in Perth.

It is also seeking a potential listing on the Alternative Investment Market in London to better tap European investors in the future, with the current drilling campaign to provide EMH the numbers it needs to take to potential investors.

View Our Investment Portfolios



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 Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com 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.

Finfeed.com 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.

Finfeed.com 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!