6th Jul 2016 10:16
LONDON (Alliance News) - European Metals Holdings Ltd Wednesday provided an update to the ongoing drilling programme being conducted at the Cinovec lithium and tin project in the Czech Republic, posting results from five new drill holes.
One of the drill holes returned the main mineralised intercept of 167.1 metres averaging 0.36% lithium oxide, including high grade intervals of 12.0 metres averaging 0.77% lithium oxide and 7.0 metres averaging 0.87% lithium oxide.
That also included a tin-enriched interval of 8.0 metres averaging 0.16% tin.
Other intervals were intercepted at a shallower depth and European Metals Holdings said the best one was 19.5 metres averaging 0.42% lithium oxide, including a 2.0 metre wide tin and tungsten zone graded at 0.75% lithium oxide, 1.46% tin and 0.55% tungsten.
"We are very pleased with the results for the latest drillhole. This results from this drillhole located in the northernmost part of the southern sector of the Cinovec deposit re-confirms continuous mineralisation through to the main areas of the deposit," said Chief Executive Keith Coughlan.
Fellow AIM-listed Rare Earth Minerals PLC, which holds a 16.4% stake in European Metals Holdings at a corporate level, also noted the drill update on Wednesday.
European Metals Holdings has already accelerated the drill programme to focus on the main part of the deposit where the company believes there are zones containing lithium mineralisation at shallower depths. The pre-feasibility study is also being completed and the company said it will be able to "report on progress and milestones within the next week".
The current drill programme has been planned to facilitate the conversion of resources from the inferred to indicated category and to provide material for metallurgical testing.
European Metals Holdings secured a maiden indicated mineral resource estimate for Cinovec in May this year and this remained unchanged on Wednesday, standing at 49.1 million tonnes of ore graded at 0.43% lithium oxide - thought to contain around 500,000 tonnes of lithium carbonate equivalent.
The inferred resource was also unchanged on Wednesday, standing at 482.0 million tonnes graded at 0.43% lithium oxide - thought to contain a further 5.7 million tonnes of lithium carbonate equivalent.
European Metals shares were down 1.0% to 23.15 pence per share on Wednesday morning whilst Rare Earth Mineral shares were trading down 0.3% to 0.439 pence.
By Joshua Warner; [email protected]; @JoshAlliance
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