Vulcan confirmed as Europe’s largest JORC Lithium Resource
Vulcan Energy Resources Ltd. (ASX:VUL | FRA:6KO), today announced the completion of the maiden JORC (2012) Mineral Resource Estimate for its Ortenau licence within the Vulcan Zero Carbon LithiumTM Project, in the Upper Rhine Valley of South-West Germany.
The company also announced its dual listing on the Frankfurt Stock Exchange, increasing its exposure to German and European markets.
Vulcan is now the largest JORC-compliant Lithium Resource in Europe by a considerable margin and a globally significant lithium brine resource.
The total Inferred Mineral Resource for the brine has been calculated at 13.2 Mt of contained Lithium Carbonate Equivalent (LCE), at a lithium brine grade of 181 mg/l Li.
The company note that this Maiden Mineral Resource Estimate was calculated on just one of the five licence areas within the Vulcan Project, where the majority of exploration licence areas remain as future “upside”.
Vulcan’s Inferred Mineral Resource Estimate of 13.2 Mt of contained LCE, at a lithium brine grade of 181 mg/l lithium (Li), average porosity of 9.5% and lower cut-off of 100 mg/l Li compares very favourably to other JORC-compliant lithium resources in Europe. These include European Metals’ Cinovec at 7.17 Mt LCE, Rio Tinto’s Jadar at 6.24 Mt LCE, Infinity Lithium’s San Jose at 1.68 Mt LCE and Savannah Resources’ Barroso at 0.71 Mt LCE, all of which are hard-rock projects.
While the EU currently produces no battery-quality lithium hydroxide, there is already a severe battery-quality lithium supply shortfall in Europe with slated battery and EV manufacturing.
This is not unlike China in the 2010s, which experienced the world’s highest growth in lithium-ion battery production for electric vehicles. It caused a lithium supply shortage in China and a 300% lithium price spike.
In the 2020s, the same is forecast to happen in Europe, albeit on a much larger scale:
Vulcan is aiming to be the world’s first Zero Carbon LithiumTM producer, and strategically located to provide the only zero carbon lithium product to the burgeoning European EV and Li-ion battery markets.
Fast-track development of the project is under way, with the Resource Estimate being incorporated into a Scoping Study that’s due in the first quarter of 2020 and the company targeting production of lithium hydroxide by 2023.
Managing Director, Dr Francis Wedin commented: “Vulcan’s Maiden Mineral Resource Estimate, on just one of the licence areas within the Vulcan Project, elevates us into becoming a globally significant lithium project. It also shows the potential for the Vulcan Project to be a primary source for the burgeoning European battery industry’s lithium hydroxide needs, via a low-impact, Zero Carbon LithiumTM process powered by and sourced from geothermal wells.
“This comes at an opportune time, as we enter a period where Europe is forecast to dwarf China’s growth in demand for lithium hydroxide in Europe as part of the transition to electric vehicles, but with currently only high carbon emission sources of lithium hydroxide available to cathode and battery manufacturers.”
Vulcan lists on Frankfurt Stock Exchange
Vulcan today announced the dual listing of the company’s shares on the Frankfurt Stock Exchange, under the code “6KO”.
The dual listing widens Vulcan’s investor reach and increases the company’s exposure to German and European markets, where the Vulcan Zero Carbon Lithium Project is located.
The Frankfurt Stock Exchange is the world’s third largest exchange-trading market, behind the New York Stock Exchange and NASDAQ. More than 50% of the total trades on the Frankfurt Stock Exchange are conducted through investors in countries outside of Germany.
Given that the ASX is a Frankfurt Stock Exchange approved exchange, the dual listing was possible without primary listing procedures or significant cost to the company.