Sign up Australia
Proactive Investors - Run By Investors For Investors

European Lithium to swell JORC resource in June

The company recently signed a binding term sheet with its first off-take partner.
European Lithium to swell JORC resource in June
The drill results have extended the pegmatite veins at depth

European Lithium (ASX:EUR) has received results from the final two holes from its initial surface deep drilling program completed at its advanced Wolfsberg Lithium Project in Austria.

Significant intersections included veins 2.33 metres thick assaying 1.44% lithium oxide.

Steve Kesler, CEO, commented: “The drilling results to date clearly demonstrates that the pegmatite veins extend to depth to at least 1250 metre above sea level.

“These results also intersected pegmatite veins in an area of previously unrecognised potential which merits further exploration.

“Interpretation of the results is underway with the intention of declaring an increased resource in June 2017.”

Drill result details

The initial surface deep drilling program was comprised of four diamond holes.

Drill hole P15-14 was targeted to intersect pegmatites in the mica schist down to about 1250 metres depth.

Unexpectedly, two significant intersections were encountered within 50-70 metres of surface of 2.33 metres assaying 1.44% lithium oxide and 1.01 metres assaying 1.56% lithium oxide.

This amphibolite area has extended strike and will merit further exploration.

Drill hole P15-19 was also targeted deeper into the mica schist to 1100 metres depth.

Again significant intersections of pegmatite in the initial amphibolite were obtained including a packet of 2.67 metres with 2.03 metres mineralised veins at 2.01% lithium oxide.

Wolfsberg Lithium Project

The 100% owned Wolfsberg project has a JORC resource estimate of 6.3 million tonnes at 1.17% lithium oxide.

Recent study results supported an economical mining operation at Wolfsberg with an estimated preliminary pre-tax net present value (NPV) of US$94.8 million.

The current JORC resource supports a mine life of 13 years with potential to increase mine life and production rate as additional resources are developed.

Furthermore, the project has proven to be able to produce 99.9% battery grade lithium carbonate from the project’s concentrate.

A preliminary evaluation of the project economics includes:

- Capex cost of US$178.8 million;
- 13 years life of mine (LoM);
- LoM revenue of US$972 million or US$74.8 annually
- LoM EBITDA of US$509 million or US$39.2 annually; and
- Pre-tax NPV of US$94.8 million.

Completion of the pre-feasibility study is anticipated by the end of the September quarter 2017.

Recent off-take signed

The company recently signed a binding term sheet with its first off-take partner, Shandong RuiFu Lithium Co., Ltd, a leading Chinese lithium producer.

This is a major milestone on the development road map for the advanced flagship Wolfsberg Lithium Project.

The plan to supply up to 50,000 tonnes per annum of 6% lithium spodumene concentrates from Wolfsberg under the proposed off-take agreement.

Shandong will commence testing samples of Wolfsberg ore at their concentrate plant and a formal off-take agreement will be entered into within 90 days of signing the terms sheet.

View full EUR profile View Profile

European Lithium Ltd Timeline

Related Articles

November 02 2017
Pan Asia Metals is building strength in depth in South East Asia
a person sampling at the Berenguela Central prospect
April 04 2018
The company's shares are trading about 8% higher intra-day, at 1.4 cents.
Picture of area surrounding Paradox Lithium Project
May 07 2018
Cloud, Cane and LC South will be part of Anson's Paradox project with the claims being close to oil wells with historically recorded lithium values.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use