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European Lithium drills out evidence of new resource area

The Zone 2 area lies outside the current JORC resource estimate.
European Lithium drills out evidence of new resource area
An updated JORC resource is expected in the near term

European Lithium (ASX:EUR)  has received results from the surface drilling program in Zone 2 at its advanced Wolfsberg Lithium Project located in Austria.

The two drill holes just completed show wide intersections of spodumene rich pegmatite.

Hole P15-5 showed numerous pegmatite intersections including one of 3.51 metres true width.

Hole P15-6 also showed numerous pegmatite intersections including one of 5.38 metres and another of 4.52 metres true width.

Samples are being prepared for lithium assay after complete core logging and results are expected by mid-June.

Steve Kesler, CEO, commented: “We always understood the potential of Zone 2 but the thicknesses of the pegmatite intersections in these two holes have exceeded our expectations. The pegmatites are spodumene rich with many large crystals.

“Clearly we have excellent exploration potential in Zone 2 and we will be aiming to complete this initial program by mid-year.”


Wolfsberg: Zone 2

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.

Surface sampling of pegmatite boulders and limited scout drilling in 2012 at Zone 2 demonstrated the presence of lithium bearing pegmatites.

It is believed that Zone 2 has the potential to mirror the resource of the northern limb.

A drilling and trenching program comprising 1,750 metres of diamond drilling and 300 metres of trenching was defined for Zone 2.


Analysis

Zone 2 has the potential to be a game changer for European Lithium as these observed widths are more than double those observed in Zone 1.

Additionally, these are the first holes drilled in this area so good upside potential remains.

While this opens to door to further resource growth, the company’s strategy remains focused on fast tracking a lithium mining operation at Wolfsberg.

A resource upgrade delivers the potential to extend the projects mine life.

Assay results will be highly anticipated.

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