EMH starts drilling at Cinovec
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 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.
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.