18th May 2016 08:02
LONDON (Alliance News) - European Metals Holdings Ltd on Wednesday said it has updated the mineral resources lying within the Cinovec lithium and tin project in the Czech Republic to incorprate the five new holes that were recently drilled.
"I am very pleased to report this upgrade to Cinovec's mineral resources. Not only have we defined a maiden lithium indicated resource, but we have also increased the total lithium resource and substantially increased the tonnage and grade of the tin indicated resource," said Managing Director Keith Coughlan.
The upgrade is based on a modest drill program completed in the southern part of the project. A much larger drill program will commence next month to test higher grade, shallower lithium mineralisation in the northern half of the project.
The maiden indicated lithium resource at Cinovec stands at 500,000 tonnes of lithium carbonate equivalent, contained within 49.1 million tonnes of ore graded at 0.43% lithium oxide.
The total resource has been increased to 5.7 million tonnes of lithium carbonate equivalent contained in 532.0 million tonnes at 0.43% lithium oxide.
European Metals Holdings said there is an additional exploration target within the project that is thought to contain an extra 3.4 to 5.3 million tonnes of lithium carbonate equivalent contained within 350.0 to 450.0 million tonnes of ore graded at 0.39% to 0.47% lithium oxide.
The indicated tin resource has more than doubled to 15.7 million tonnes at 0.26% tin and 0.5% lithium oxide, which would produce 40,000 tonnes of tin and 190,000 tonnes of lithium carbonate equivalent, it said.
"Work to date has shown that Cinovec is a robust and consistent deposit; with our extensive historic database I am extremely confident the upcoming program will result in a substantially larger conversion of Inferred to Indicated lithium resources," said the company.
European Metals shares were down 1.9% to 0.265 pence per share on Wednesday morning. Rare Earth Minerals, which owns 19.8% of European Metals, was up 2.7% at 0.534p.
By Joshua Warner; [email protected]; @JoshAlliance
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