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European Lithium Ltd commences test work at Wolfsberg

Tony Sage, chairman, commented: “We are focused on the aggressive development of the project, with the fund raising and ASX listing successfully completed the company can concentrate on the potential for fast track production.”
European Lithium Ltd commences test work at Wolfsberg

European Lithium Ltd (ASX:EUR) has commenced a metallurgical test work program to optimise process design for its Wolfsberg lithium project located in Austria.

Historical test work completed at project from the 1980s concluded that a 6% lithium oxide spodumene concentrate could be obtained.

Since the original test work there have been a number of technological developments that could be applicable to the Wolfsberg deposit.

A pilot plant to produce larger quantities of spodumene concentrate is planned.

Tony Sage, chairman, commented: “We are focused on the aggressive development of the project, with the fund raising and ASX listing successfully completed the company can concentrate on the potential for fast track production.”


Background

European Lithium, previously named Paynes Find Gold Ltd, relisted on the ASX during September after acquiring the Wolfsberg Lithium Project.

Wolfsberg has a JORC compliant inferred resource of 3.7 million tonnes at 1.5% lithium oxide.

The project has had 17,000 metres of drilling and 1,400 metres of declines, drives and crosscuts completed and installed by previous owners.

This previous work will allow the company to examine routes to advance the development phase.

It has a planned production profile of 15-20 months from acquisition.

The previous owner has spent €11.53 million on acquisition and exploration.


Project location benefits

The project is close to the largest lithium import markets in the European Union, which is a major lithium importer, consuming 24% of the global market, second only to China.

Local infrastructure and sources of energy are nearby.

The project also provides a significant transport cost advantage over lithium imported from South America and Australia.


Updated metallurgical test work


The company has engaged Dorfner Anzaplan to undertake a metallurgical test work program to optimise the process design for its Wolfsberg lithium project.

Dorfner Anzaplan is a leading consultant in the development of lithium and industrial mineral processes with laboratory and pilot plant facilities in Hirschau, Germany.

Since the original test work there have been a number of technological developments that could be applicable to the Wolfsberg deposit.

New technologies could be employed to obtain spodumene concentrates using a small and low capital cost facility.

Concentrates could be marketed to the glass-ceramic producers in Europe that are currently importing lithium concentrate from Australia and South America.


Analysis


If the test work is successful it will provide the company with an opportunity to fast track limited production and cash flow whilst the rest of the mineral processing facilities are being constructed.

Operation of the pilot plant to produce larger quantities of spodumene concentrate is scheduled to complete by the end of Q1 2017.

The recently acquired project is located 40 kilometres from the Samsung battery plant in Gratz, Austria.

Europe is the second largest consumer of lithium behind China.

Recent announcements by Samsung, Nissan, Tesla, LG Chem, Jaguar, Ford, Land Rover and BMW outline plans and considerations to build lithium battery plants in Europe.

A drilling program recently completed aimed at verifying 17,000 metres of historical surface and underground drilling.

The company expects the analysis of the drilling samples to be completed by mid-October.

This will enable the verification program report to be completed which will progress towards an upgraded JORC Code 2012 compliant resource by the end of October or early November 2016.

 

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