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LONDON (Alliance News) - European Metals Holdings Ltd Wednesday published the results from the latest hole to be drilled on the Cinovec project in the Czech Republic that contains lithium, tin and tungsten.
Fellow London-listed Rare Earth Minerals PLC also noted the results in its own statement as it holds a 19.8% stake in European Metals.
European Metals shares were down 8.% to 15.27 pence per share on Wednesday morning following the results, whilst Rare Earth shares were down 0.8% to 0.595 pence.
The latest drillhole, PSn02, returned a mineralised intercept of 188.0 metres averaging 0.46% lithium oxide, which includes a 25.0 metre interval averaging 0.72% lithium oxide and another intersect of 20.0 metres averaging 0.86% lithium oxide.
"We are very pleased with the results for the latest drillhole. The intercept has delivered outstanding results in terms of metals content and length, it also confirms the company's geological and block models, developed from historical data," said Keith Coughlan, chief executive of European Metals.
In addition, the intercept contains zones that are "significantly enriched" with tin and tungsten, reporting intercepts including 12.4 metres at 0.13% tin, 9.0 metres at 0.36% tin and 2.0 metres at 0.12% tungsten.
"I am very pleased with the fact that as in previous drillholes, the lithium enriched interval in PSn02 includes tin and tungsten mineralization of significant intersections and grades," said Coughlan.
"The valuable tin and tungsten minerals will be recovered by gravity separation 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 is still drilling the PSn13 drillhole, and plans to focus on shallower, higher grade lithium areas within the main section of the deposit at the project once it is completed. In tandem, European Metals is currently finalising plans to accelerate drilling at Cinovec in order to complete a pre-feasibility study in "late 2016".
Drillhole PSn13 is the last one to be drilled under the current campaign, following on from the five other holes that were drilled on the project, including the recently completed PSn02 hole. They are also in addition to three holes drilled on the project back in 2014.
The move toward shallower, higher grade lithium areas will start in the latter half of the second quarter.
Commenting on the results, Rare Earth Chief Executive Kiran Morzai said the Cinovec project is producing "excellent results" which should support the development of a large scale project.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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