(Alliance News) - Cadence Minerals PLC noted European Metals Holdings Ltd's release earlier on Tuesday and confirmed that interim test results from the six recently completed holes at the Cinovec lithium-tin project in Czech Republic were in line with or better than expectations.
The London-based investment firm, and partner in the discovery & development of iron ore and lithium deposits, owns a 12% stake in European Metals, a mineral exploration and development company. European Metals holds a 49% interest in the Cinovec project.
The duo said in all of the six holes, the upper section of the drilled ore body is elevated in tin. The best intercept was returned from the hole CIS-22, with an interval of 28 metres averaging 0.3% tin.
European's announcement noted that it has completed drilling 12 out of 19 holes, which it began back in August, with the thirteenth hole currently underway. All six holes have been terminated in lithium ore and not in the underlaying low-mica granite, which is considered to be the footwall of the lithium granite, it added.
"The primary purpose of the programme is to convert a larger portion of the resource to the measured category to provide greater certainty to the financial model, and security for the financiers we are currently in discussions with. It is important to note that in the first stage of the proposed process, the wet magnetic separation has the effect of greatly increasing the grade of lithium oxide in the concentrate to approximately 2.9%," said European Metals Executive Chair Keith Coughlan.
Cadence Chief Executive Kiran Morzaria added: "These strong drilling results serve to highlight the overall quality of the Cinovec project, and the reason European Metals has attracted a partner of the calibre and size of CEZ Group. With Cinovec set to play a key role as a battery grade lithium supplier to the lithium market in Europe and worldwide."
Shares in European Metals were up 8.2% at 59.50 pence and shares in Cadence Minerals were up 3.0% at 17.10 pence in London on Tuesday.
By Zoe Wickens; zoewickens@alliancenews.com
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European Metals Holdings (EMH)
Cadence Mineral (KDNC)