RE: Spike9 Dec 2020 13:34
Zinnwald is in a granite hosted Sn/W/Li belt that has been mined historically for tin, tungsten, and lithium at different times over the past 300 years. With an abundant supply of fluorspar/hydrofluoric acid available in the immediate vicinity, Deutsche Lithium has chosen to focus on Lithium Fluoride ("LiF") production. LiF is a high value downstream lithium product and one of the two key components in the manufacturing process of LiPF6, which is the most important conducting salt in lithium electrolytes and serves as the "shuttle" in the battery electrolyte which "ships" the lithium ion between the cathode and the anode. Approximately 95% of all lithium battery electrolytes use LiPF6, and the percentage used in each cathode is increasing in newer battery types. The strategic location of the Project allows access to the German automotive and downstream lithium chemical industries.
In May 2019, DL announced the results of the NI 43-101 feasibility study for the Project ("Feasibility Study"), which confirmed the positive economics and favourable operating costs for the production of 5,112 tpa of battery grade LiF (~7,285 tpa lithium carbonate equivalent ("LCE")). With a long life project of 30 years, the Feasibility Study estimated a pre-tax project Net Present Value of €428m (8% discount rate); an Internal Rate of Return of 27.4%; and favourable Life of Mine operating costs resulting in a 46% EBITDA operating profit margin.
The 30-year Feasibility Study mine plan equates to the extraction of less than 50% of the currently identified resource.
• Measured plus Indicated Mineral Resource estimate containing 35.51 Mt at a grade of 3,519 ppm containing 124,974 t Li at cut-of grade of 2,500 ppm Li