Name of the Project
Cinovec lithium project.

Location
The project is located in the Krusne Hory mountains, which straddle the border between the Czech Republic and the state of Saxony, in Germany.

Project Owner/s
European Metals Holdings (EMH).

Project Description
EMH has updated the process flowsheet previously developed for the project to allow for lithium hydroxide production.

The project has total indicated and inferred mineral resources of 695.9-million tonnes grading 0.195% lithium, 0.014% tungsten and 0.04% tin. Studies are based on only 9.3% of indicated mineral resource and a mine life of 21 years, processing an average of 1.68-million tonnes a year of ore.

The geometry of the payable ore is largely flat or shallow-dipping and massive enough to mechanise using longhole open stope mining.

The mine will be accessed through a twin decline system.

A conveyor will be installed from the underground primary crusher on 590 m elevation to the surface in the conveyor decline. The second decline will be used as a service decline for workers, material and as an intake airway.

The project aims to produce about 25 267 t/y of battery-grade lithium oxide.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $1.11-billion and an internal rate of return of 28.8%.

Capital Expenditure
The project is estimated at $482.6-million.

Planned Start/End Date
The project is expected to take two years to complete.

Latest Developments
EMH has approved energy group CEZ’s investment in the Cinovec project, paving the way for the lithium and tin project to be developed.

CEZ will invest €29.1-million for a 51% equity interest in Geomet – EMH’s Czech subsidiary and holder of the Cinovec lithium and tin project licences.

The CEZ investment will fully finance Geomet and Cinovec through permitting and the start of construction, thereby enabling the project to become the first European Union producer of battery-grade lithium compounds from a local lithium resource.

The transaction was scheduled for completion by April 27, with the work programme starting immediately thereafter.

With the completion of the agreement with CEZ, Geomet will start the definitive feasibility study and front-end engineering design (FEED) work.

The principal components of the next phase of work on Cinovec are the availability of management and staff, ore samples for testwork and laboratory staff and time.

In terms of the impact of Covid-19, EMH has said that the Cinovec project is unaffected by the pandemic, while management and staff at EMH and Geomet have also not been affected.

In addition, the current restrictions on travel and meetings are not expected to have any impact for the foreseeable future. “All staff are able and continue to work remotely,” EMH has noted.

To date, more than 13 800 m of diamond drilling has taken place at the Cinovec project under the management of EMH. Extensive sample quantities are available from the resulting drill core, as well as material recovered from historic adit drives into the orebody. Significant quantities of ore samples are held at EMH’s laboratory partners, in Germany, and at the project office, in the Czech Republic.

EMH and Geomet have confirmed with their laboratory and engineering partners, in Germany and Australia, that staff and laboratories involved in the definitive feasibility study and FEED programmes over the next three months are ready and open for work on an immediate basis.

Key Contracts and Suppliers
Widenbar and Associates (resource estimation); Bara Consulting (mine design and scheduling); Ausenco (front-end comminution and beneficiation); and Hath Associates (lithium carbonate and hydroxide plants).

Contact Details for Project Information
European Metals Holdings, tel + 61 8 6245 2050.