15th Jan 2016 08:30
LONDON (Alliance News) - European Metals Holdings Ltd shares rose on Friday morning after the company finished drilling four holes at its lithium, tin and tungsten project in the Czech Republic and released some of the results.
European Metals shares were trading up 17% to 9.25 pence per share on Friday morning.
The company said it completed four core holes totalling 1655.3 metres at the Cinovec project before the end of 2015, and released the rest results for the second well to be completed, PSn05.
That drillhole returned intercepts of 29.5 metres at 0.25% lithium from 83.5 metres to 133.0 metres, and 152.2 metres at 0.47% lithium from 229.9 metres to the end of the hole at 382.1 metres.
That mineralised intercept includes a high grade interval of 14.0 metres averaging 1.08% lithium from 276.0 metres to 290.0 metres in depth. In addition, the lithium intercept found in that hole contains zones enriched in tin and tungsten, yielding 4.0 metres at 0.39% tin, 3.0 metres at 0.26% tin and 5.0 metres at 0.09% tungsten.
Overall, the company said the grades from that drillhole were in line with its expectations, with the core samples from the other holes being analysed. The aim of the drill programme is to convert the resources at the largest lithium depsoit in Europe from the inferred category to indicated.
Chief Executive Keith Coughlan said: "We are very pleased that the 2015 drilling program which has been completed on time and budget with no accidents and loss time. We received the assays result from the second drillhole PSn05 completed in 2015 and they surpass our expectations and confirm that the lithium mineralisation at Cinovec is robust and continuous."
On a more negative note, the company said it has not yet started the mini plant trial at the project that was due to begin in the fourth quarter of 2015 in conjunction with Lithium Australia. European Metals said work had not commenced because it is first undertaking bench scale test work to fully explore all available recovery techniques.
"In addition, as part of the pre-feasibility study, the company has also begun work on trade off studies with regards to plant location and into the potential of the development of high grade outcropping and shallow mineralisation for initial start-up tonnage to accelerate production timelines, lower capital costs and improve project economics," the company said.
By Joshua Warner; [email protected]; @JoshAlliance
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