(Sharecast News) - European Metals Holdings updated the market on progress at the Cinovec Project in the Czech Republic on Wednesday, owned by its 49% subsidiary Geomet, focusing on the ongoing definitive feasibility study.
The AIM-traded firm said the study, being undertaken by DRA Global, had encountered significant advancements since its inception.
Engineering work and social and environmental engagement efforts had highlighted several crucial aspects that could notably enhance the lithium processing component of the study.
Geomet and DRA Global were reviewing the findings, with an announcement expected before the end of April outlining significant improvements and developments.
Importantly, despite the extended study period, European Metals anticipated that the overall timeline of the Cinovec Project would remain unaffected, with the permitting process expected to align effectively with the European Union's Critical Raw Materials Act.
The board said that legislative development would be pivotal for the project, as it would facilitate shorter and simplified permitting processes, in addition to providing political and financial support for designated 'strategic projects'.
Additionally, it sid recent advancements in the definitive feasibility study process had confirmed the viability of previously published physical and hydrometallurgical process flowsheets, ensuring high levels of lithium recovery from run-of-mine ore to battery-grade end-products.
Ongoing engineering test work programmes were aimed at further improving process outcomes, including gangue removal, recycling and regeneration of reagents, and simplification of precipitation and crystallisation processes to reduce energy and water costs.
"Whilst it is unfortunate not to be able to provide a fully completed definitive feasibility study at this stage, I am confident that the developments currently being finalised will add significantly to the project," said executive chairman Keith Coughlan.
"In particular, permitting and timelines are expected to be positively impacted by the team's additional work.
"The Cinovec Project remains an important part of the drive to improve critical materials security in the EU."
At 1233 GMT, European Metals Holdings shares were down 2.83% at 12.88p.
Reporting by Josh White for Sharecast.com.
European Metals Holdings (EMH)