25.9 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

Canada Nickel reveals initial resource estimate for Deloro project, underscoring Timmins District prospects

Canada Nickel has announced the initial mineral resource estimate for its Deloro nickel sulphide project, located in Ontario's Timmins-Cochrane mining camp. This estimate marks...

Resouro Strategic Metals unveils extensive resource estimate for Tiros titanium and rare earths project

Resouro Strategic Metals, a recent entrant into Brazil’s rare earths sector, has unveiled a significant resource estimate for its Tiros project located in Minas...

NMMC targets $1 billion investment in 2024 to expand gold production capacity

Navoi Mining and Metallurgical Combine (NMMC), the world’s fourth-largest gold producer and Central Asia’s largest gold miner, has announced an ambitious investment program for...

U.S. and Kazakhstan strengthen energy partnership at 2024 Strategic Dialogue in Astana

On July 18, 2024, the U.S. Department of State and the Department of Energy, in partnership with Kazakhstan’s Ministry of Foreign Affairs and Ministry...
Supported by
Supported by
Supported by
error: Content is protected !!