Zinnwald Lithium Share News (ZNWD)

(Sharecast News) - Zinnwald Lithium reported significant advancements in its lithium development project in Germany in its interim results on Friday.

The AIM-traded company, which remains pre-revenue, reported key milestones in its exploration and development activities aimed at positioning the Zinnwald project as a major lithium producer in the European Union.

During the first six months of 2024, it confirmed two updates to its mineral resource estimate (MRE), establishing its project as the second-largest hard rock lithium resource in the EU.

The updates also strengthened the measured category of the resource, enhancing the project's viability and potential output.

It also continued to make progress on processing tests with Metso, yielding promising results that suggest improvements in recovery efficiency and reductions in environmental impact.

Additionally, Zinnwald explored a phased expansion of the project, beginning with phase one, which was expected to produce 16,000 to 18,000 tonnes per annum of battery-grade lithium hydroxide - up 50% from the previous estimate of 12,000 tonnes per annum in 2022.

Support from both federal and state governments in Germany was described as strong, with Zinnwald invited to formally apply for federal grant funding, backed by the State of Saxony.

Since the end of the period, Zinnwald agreed to develop a pre-feasibility study (PFS) to evaluate a phase two expansion of the project.

Several work streams had achieved feasibility study-level accuracy, while others were nearing completion at the pre-feasibility stage.

The company had also applied for the project to be designated as 'strategic' under the European Critical Raw Materials Act, with a decision expected by December.

Zinnwald said it had also strengthened its team to support increased activity and has engaged with local communities and stakeholders, including a meeting with German chancellor Olaf Scholz during his visit to the Saxon Mining Authority.

At 1233 BST, shares in Zinnwald Lithium were down 2.56% at 8.38p.

Reporting by Josh White for Sharecast.com.