18th Feb 2016 09:09
LONDON (Alliance News) - European Metals Holdings Ltd on Thursday said it is "very pleased" with the drill results from the Cinovec project in Czech Republic as the company published the results from the final two holes drilled during 2015.
Fellow London-listed Rare Earth Minerals PLC noted the announcement in its own statement as it holds an 11.87% stake in European Metal Holdings. The Cinovec project contains lithium, tin and tungsten and lies near the border with Germany.
European Metal Holdings said the PSn01 drill hole at the project returned an intercept of 156 metres averaging 0.46% lithium oxide, and that intercept includes a high grade interval of 64 metres averaging 0.63% lithium oxide.
The company said the lithium intercept from that drillhole contains zones "significantly enriched" in tin and tungsten. Intercepts include 36 metres at 0.22% tin and 20 metres at 0.18% tungsten.
The other drillhole, PSn07, returned a main intercept of 194 metres averaging 0.32% lithium oxide, including 47 metres averaging 0.47% lithium oxide. The lithium intercept from that hole yielded 5 metres at 0.31% tin, 5 metres at 0.97% tin, 12 metres at 0.17% tin and 2 metres at 0.32% tungsten.
This program will conclude with the completion of PSn02 before the rigs are moved to the high grade shallow lithium zone in the north west of the ore body where a second program will commence.
The miner is currently planning the second program which will begin in the second quarter of 2016 and will target the shallow high grade lithium zone that it believes will form the basis of the initial mining operation at Cinovec.
"We are very pleased with the results for these drillholes. These holes are about 500 metres apart and show the extent and consistency of the lithium mineralization at Cinovec. I am very pleased with the fact that the lithium enriched zones include tin and tungsten mineralisation of significant width and locally outstanding grades of tin and tungsten," said Keith Coughlan, chief executive of European Metal Holdings.
"The valuable tin and tungsten minerals will be recovered by gravity during the preparation of lithium concentrate without incurring added cost and will thus significantly reduce the total cost of lithium carbonate produced from the Cinovec project," he added.
European Metals Holdings shares were trading up 14% to 6.25 pence per share on Thursday morning whilst Rare Earth shares were up 4.2% to 0.683p.
By Joshua Warner; [email protected]; @JoshAlliance
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