(Sharecast News) - Zinnwald Lithium updated the market on its integrated Zinnwald Lithium Project in Germany on Thursday, having recently reported a 445% increase in tonnes and a 243% increase in contained lithium in a mineral resource estimate last month.
The AIM-traded firm said successful mineral processing testwork affirmed the feasibility of incorporating Albite Granites into production plans.
It said the completion of mineral processing pilot-scale tests in December demonstrated promising lithium recoveries and the viability of the mainstream front-end flowsheet design.
Basic engineering for the mineral processing flowsheet started in December, while the company had confirmed the suitability of Zinnwaldite concentrate for Metso's alkaline process at bench-scale.
The firm said it remained focussed on optimising the project, with a bankable feasibility study (BFS) expected in late 2024, contingent on the availability of pilot testing facilities.
Zinnwald Lithium maintained a current cash position of €12.3m to support its ongoing initiatives.
In addition to project advancements, Zinnwald Lithium said it was progressing exploration efforts within its wholly-owned highly-prospective licence areas spanning nearly 10,000 hectares surrounding the Zinnwald Project.
"As evidenced by our recently published updated mineral resource estimate for the Zinnwald Lithium Project, which confirmed a 445% increase in tonnes and a 243% increase in contained lithium, the project's strategic value within the EU is clear," said chief executive officer Anton du Plessis.
"This substantial expansion, driven by extensive drilling, positions us as a key player in the region's lithium market and will, we hope, see our project classified as a strategic project within the EU."
In addition, du Plessis said the results from various processing testwork to date had been encouraging, potentially offering significant advantages in terms of overall recovery, efficiency, and reduced impact on the environment.
"As we advance the various workstreams and engage with key stakeholders, we are now aiming to deliver a robust BFS in late 2024.
"With a strong cash position and ongoing collaboration with leading partners, we are positioned to realise the full potential of the Zinnwald Project while prioritising environmental stewardship and community engagement."
At 1230 GMT, shares in Zinnwald Lithium were down 1.49% at 6.6p.
Reporting by Josh White for Sharecast.com.
Zinnwald Lithium (ZNWD)