European Metals Holdings Ltd (LON:EMH, ASX:EMH) is pleased with the first assay results from its infill drilling programme at the Cinovec lithium-tin project.
Infill drilling continues in the south-west section of the deposit, targeting two gaps in the resource model that could be potentially targeted for mining in the initial years.
So far, five out of six planned holes have been drilled this year, and test results (assays) have been received for the first of them, drill hole CIS-4.
The hole returned a continuous mineralized intercept of 148.30m averaging 0.40% lithium oxide (Li2O), starting at 297.7m drill string depth.
In addition, the upper section of the main lithium interval contains significant tin and tungsten mineralization: 15.85m averaging 0.70% Li2O, 0.29% tin and 0.073% tungsten.
“The lithium and tin mineralization intersected in the first hole is strong and continuous and will increase the size of our current inferred and indicated resource at Cinovec south,” said Keith Coughlan, managing director of EMH.
“This will provide additional options for optimizing production and development schedule. I am particularly pleased with the strong tin and tungsten credits in this part of the Cinovec South deposit,2 he added.
Meanwhile, the company has appointed experienced project manager Craig Reimer as the manager of the definitive feasibility study (DFS) that the company is working on.
“Craig is a hugely experienced project manager and has worked for numerous clients in Australia and overseas and has been involved with studies, commissioning and construction of large scale projects. Craig will head an excellent study team located in Australia and Czech that is focused on delivering a robust study in H2 2018,” Coughlan said.
The recently completed preliminary feasibility study of Cinovec, in the Czech Republic, returned a post tax net present value of US$540mln and an internal rate of return of 21%.
Shares in EMH were up 1.65 at 48.75p in early trading.
In a separate announcement, the company said it had issued 351,448 chess depositary interests at 73.27 Australian cents a pop via its previously announced fund facility agreement to raise A$250,000.
The funds will be used on the preparation of the DFS, for further drilling and for general working capital purposes.