2.1 C
Belgrade
Supported byspot_img
spot_img

European Lithium confirms its Austria based economic lithium project

Member of Europium Groupspot_img
Supported byspot_img

European Lithium has confirmed the technical and economic viability through an initial mine design study at its advanced Wolfsberg Lithium Project in Austria.

The study results show that the pegmatite veins can be mined economically with an estimated preliminary pre-tax net present value 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.

Supported by

Furthermore, independent consulting engineers have confirmed the ability to produce battery grade lithium carbonate from Wolfsberg concentrate.

Steve Kesler, CEO, commented: “Following completion of the current exploration program and pre-feasibility study we plan to undertake further drilling as part of the definitive feasibility study to upgrade the deeper resources to indicated category.”

Mine design study results

The study shows that the pegmatite veins can be mined economically using long hole open stoping.

An essential component is the use of ore sorting to reject waste dilution

The project becomes more attractive economically as it is expanded beyond that supported by the current JORC resource.

A preliminary evaluation of the project economics includes:

– Capex cost of US$178.8 million;

– 13 years life of mine;

– 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.

Wolfsberg Lithium Project

The Wolfsberg project recently had a 75% increase of JORC resource tonnages to 6.3 million tonnes at 1.17% lithium oxide completed in November 2016.

The project is comprised of 22 original and 32 overlapping exploration licences and a mining licence over 11 mining areas has been issued by the Austrian Mining Authority.

Wolfsberg was discovered by Minerex in the 1980s, a period when the lithium demand and price did not support project development.

European Lithium undertook a successful program to verify the Minerex historical data, which has been used to in associate with recent drill results to compile this JORC resource.

The project has had 17,000 metres of drilling and 1,400 metres of declines, drives and crosscuts completed and installed by previous owners, and this work will allow the company to examine routes to fast track the development phase.

Analysis

The study results are positive for European Lithium for a number of reasons, firstly they confirm the Wolfsberg project to be technically and economically viable with a preliminary valuation of US$94.8 million.

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

Thirdly, the study has outlined the upside potential for the project’s valuation that exists should the JORC resource be increased.

This is significant given the resource has been declared by previous owners as considerably greater than the current JORC compliant resource.

A deep drilling program is currently in progress and the first two holes have confirmed that the pegmatite veins do extend to depth.

This program will complete by end April and an updated resource is expected by end May.

Source: proactiveinvestors

 

Supported byElevatePR Digital

Related News

Current Accusations Against Tara Resources, the Concessionaire, Found to Be Unsubstantiated

The most likely outcome, if the concession agreement for the Brskovo mine is terminated, is that the concessionaire, Tara Resources, will initiate arbitration against...

Titan Lithium Plans Establishment of Lithium Processing Plant in the UAE

KEZAD Group, the largest operator of integrated and purpose-built economic zones, and UAE-based Titan Lithium have announced the signing of a 50-year land lease...

Outdated 1872 Law Exempts Gold, Silver, and Lithium Mining on Federal Land from Royalties to the US Treasury

When Congress opened U.S. public lands for mining in 1872, the nation was less than a century old. Miners used picks, shovels and pressurized...

Allied Nations, Including US, Advance Rare Earth Recovery Initiatives in Response to China’s Dominance

Rare Element Resources is working to establish US-based rare earth production using innovative recovery and separation technology. Forty years ago, China understood something long before...
Supported by
Supported by
Supported by
error: Content is protected !!