European Metals Holdings (EMH ) said the quarter to 30 June 2021 has been marked with ‘positive and encouraging results’, particularly from the Cinovec Lithium/Tin Project in Czech Republic.
Over the period, the company said it received ‘strong results’ from a locked-cycle test ("LCT") which further supported Cinovec’s credentials to produce battery-grade lithium chemicals.
European Metals demonstrated that Cinovec battery grade lithium carbonate can be easily converted into lithium hydroxide monohydrate with a commonly utilised liming plant process.
Six locked-cycle tests ("LCTs") were planned at the site but testwork was stopped after four cycles as the main process stream compositions had been successfully stabilised, it outlined.
The LCTs tested zinnwaldite concentrate from the southern part of Cinovec, representative of the first five years of mining. Battery grade lithium carbonate was shown to be produced in every LCT with lithium recoveries of up to 92.0% achieved in all four LCTs performed.
These LCTs have been commissioned to confirm the lithium carbonate processing flowsheet. The Group said Cinovec has optionality to either produce a battery grade lithium carbonate product or to further process the lithium carbonate to produce battery grade lithium hydroxide.
Shares in European Metals Holdings have increased by 40% in value since the beginning of the year. The stock was trading 2.00% higher this morning at 86.5p following the news.
On 6 May 2021 the Cinovec Project’s company Geomet s.r.o submitted the documentation related to the initial EIA notification to the Czech Ministry of the Environment, officially initiating the environmental impact assessment process of the Cínovec project.
As the FEED programme continues, Geomet is expected to commission testwork to confirm the optimal production route for lithium hydroxide and to produce marketing samples for prospective offtake partners and environmental samples to assist in permitting approvals.
The Group said it plans to develop the Cinovec Project with a strong environmental focus as it believes it holds ‘very strong’ ESG credentials and a low carbon footprint relative to its peers.
From a macro perspective, the Company highlighted that the market for and price of lithium improved significantly during the quarter and that it expects this trajectory to continue.
In June 2021, the Group said it had appointed Deutsche Bank as the depositary bank for its American Depositary Shares (ADS) as part of its plans to increase its presence in the US.
At the time, the firm said it would launch an extensive marketing campaign to US investors while, at the same time, continuing to build relationships with U.S. banks, green energy funds and institutional investors and brokers focused on the lithium and "clean-technology" sectors.
The group said Cinovec, which is the largest hard rock lithium deposit in Europe and the fourth largest non-brine deposit in the world, holds a globally significant tin resource.
In particular, the group stated that the economic viability of Cinovec has been enhanced “by the recent strong increase in demand for lithium globally, and within Europe specifically.”
“We continue to be highly encouraged by the results of our Definitive Feasibility Study and look forward to updating the market on the project development plan,” said European Metal Holdings’s Executive Chairman Keith Coughlan.
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