European Metals Holdings Limited (“European Metals” or “the Company”) is pleased to announce the successful completion of the Preliminary Feasibility Study (“PFS”) for development of the Cinovec Lithium and Tin Project, which highlights that Cinovec could be a low cost lithium carbonate producer.

European Metals Managing Director Keith Coughlan said, “I am very pleased to report the headline numbers for the Cinovec Preliminary Feasibility Study. The study highlights the potential for Cinovec to be the world’s lowest cost hard rock producer of lithium carbonate due to its unique geological and metallurgical characteristics. These results, coupled with the macro outlook for the lithium industry, particularly in Europe, highlight the attractiveness of the project. As a result, we will move directly into a definitive feasibility study to accelerate the project towards development.

Highlights (all $ figures in this release are US Dollars):

  • Net overall cost of production – $3,483 /tonne Li2CO3
  •  Net Present Value (NPV) – $540 M (post tax, 8%)
  •  Internal Rate of Return (IRR) – 21 % (post tax)
  •  Total Capital Cost – $393 M
  •  Annual production of Battery Grade Lithium Carbonate – 20,800 tonnes
  •  Study based on only 9.9% of defined Indicated Mineral Resources

The completion of the PFS follows a comprehensive metallurgical test-work campaign managed by European Metals. The PFS has been prepared by the Company based on technical reports undertaken by independent consultants who are specialists in the required areas of work. These included:

  • Resource Estimation – Widenbar and Associates Pty Ltd;
  • Mining – Bara Consulting Ltd;
  • Front-End Comminution and Beneficiation (“FECAB”) – Ausenco Limited; and
  • Lithium Carbonate Plant (“LCP”) – Hatch Pty Ltd.

The study is based upon a mine life of 21 years processing on average 1.7 Mtpa of ore, producing 20,800 tpa of battery grade lithium carbonate via a sodium sulphate roast.

Cinovec is strategically located in central Europe in close proximity to the majority of the continent’s vehicle manufacturers. With increasing demand for Electric Vehicles, and Cinovec’s status as the largest and most advanced European lithium project, the project is very well placed to supply the European lithium market for many decades.”

Read more…