KDNC RNS17 Jun 2019 11:01
Update - European Metals Holdings
Mon, 17th Jun 2019 09:53
RNS Number : 4651C
Cadence Minerals PLC
17 June 2019
Cadence Minerals Plc
("Cadence Minerals", "Cadence" or "the Company")
European Metals (AIM: EMH) PFS Update Confirms Potential of Low Cost Lithium Hydroxide Production at Cinovec.
Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the results published today by European Metals Holdings Limited ("European Metals" or "EMH") from the successful update of the process flowsheet previously developed to enable the production of lithium hydroxide (LiOH.H2O). This work has been completed in conjunction with test-work confirming the production of battery grade lithium hydroxide from Cinovec ore. EMH states that the results significantly enhance the forecast economics of the Cinovec Project.
Highlights:
· Net estimated overall cost of production post credits: $3,435 / tonne LiOH.H2O
· Project Net Present Value ("NPV") increases 105% to: $1.108B (post tax, 8%)
· Internal Rate of Return ("IRR") increased 37% to 28.8% (post tax)
· Total Capital Cost: $482.6M
· Annual production of Battery Grade Lithium Hydroxide: 25,267 tonnes
· Studies are based on only 9.3% of reported Indicated Mineral Resource and a mine life of 21 years processing an average of 1.68 Mtpa ore
· The process used to produce lithium hydroxide allows for the staging of lithium carbonate and then lithium hydroxide production to minimize capital and startup risk and enables the production of either battery grade lithium hydroxide or carbonate as markets demand
Cadence holds approximately 19.1 percent of the equity in European Metals, which, through its wholly owned Subsidiary, Geomet s.r.o., controls the mineral exploration licenses awarded by the Czech State over Cinovec.
The full release can be found at:
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/EMH/14112338.html
Cadence Minerals CEO Kiran Morzaria commented: "Great work from Keith Coughlan and the EMH team. This important update to the PFS has increased the project NPV and once again highlighted the strategic importance of the Cinovec project for the European lithium market."