# European Metals Holdings Ltd Drill Results and Initial Stept Towards Mining Licence Achieved

- Link: https://www.directorstalkinterviews.com/european-metals-holdings-ltd-drill-results-initial-stept-towards-mining-licence-achieved/412723039
- Published: 2017-02-03T07:23:36+00:00
- Author: Giles Arbor

**European Metals Holdings Ltd** (LON:EMH) have today announced analytical results
for two drillholes from the recently completed drilling in the Cinovec Main sector
of the deposit. These results confirmed or exceeded the expected lithium content
and mineralisation widths.

In addition, the Cinovec South Resource has now been added to the Czech State resource
register. This is the first step in the process for the granting of a mining permit.
DirectorsTalk caught up with Keith Coughlan to discuss todays news. [You can listen to the interview here.](https://www.directorstalkinterviews.com/interview-european-metals-holdings-results-exceed-expectations/412723047)

Key Points:

· Hole CIW-22 contains the best lithium intercept to-date from the Company’s drill
programme of 264.5 m averaging 0.54% Li2O.
 · This hole also contains significant
tungsten, tin, niobium and tantalum mineralization. For example, the best interval
between 238m to 240m averages 0.86% Li2O, 0.41% Sn, 2.92% W, 868ppm Nb, 150ppm Ta.
The tungsten grade in particular was significantly higher than expected. · Hole 
CIW-26 returned an interval of 236.25m averaging 0.49%Li2O (including high-grade
intervals 16m@0.99%Li2O, 3m@1.15% Li2O, 2m@1.34% Li2O, 2m@0.99% Li2O, 1.3m@1.72%
Li2O, 2m@0.93% Li2O, 5m@0.84% Li2O. · Drillhole CIW-26 is located at the western
edge of the deposit near the contact of the mineralisation. Drillhole CIW-22 is 
located in the central part of Cinovec Main. · All remaining analytical results 
from the program will be released next week. · Geological information from all 17
drillholes has been compiled into the Cinovec database and serves to update the 
geological model for Cinovec Main. The geologic model will be used to constrain 
and update the current block model. The block model will be updated in early February
when all analyses will be available. The block model and resource calculation will
be part of the Pre-Feasibility Study.

> **European Metals Holdings Ltd CEO Keith Coughlan said:** “I am pleased to report
> results from two additional drillholes from the recently completed drilling program
> at Cinovec Main. These results are excellent in terms of lithium grades and length
> of mineralised intervals. An unexpected bonus is a high-grade zone of tungsten,
> intersected by drillhole CIW-22 at 238 meters depth which graded almost 3% of 
> tungsten.
> In addition, we are pleased to have been informed that subsequent to a submission
> we made to the State Authority, the Cinovec South resource estimate was approved
> by a Committee of Experts and placed on the State Register of mineral deposits.
> This is a pre-requisite for receiving a mining permit. We already applied for 
> the ‘preliminary mining space’ for Cinovec South, immediately after the resource
> calculation for Cinovec South was accepted to the State Register.”

Drill Programme

The CIW-22 was collared in the central part of Cinovec main, whereas drillhole CIW-
26 was located at the western edge of the Cinovec Main sector of the deposit (see
Figure 1).

The current drill programme at Cinovec Main has been planned to confirm and delineate
near surface lithium and tin mineralisation that would provide initial feed to the
mill. Other goals are the conversion of resources from the Inferred to Indicated
category, and delivery of material for metallurgical testing. 17 diamond core holes
have been completed. Visual inspection and logging indicates that the geology in
these holes is as expected. Drill details are listed in Table 1 below.

After geological logging, drill core is cut by a diamond saw. Quarter core samples
are selected (honouring geological boundaries) and dispatched to ALS (Romania) for
preparation and assay; the 3/4 of the core is returned to the core box and stored
securely on site. Samples are being prepared and analysed by ALS using ICP and XRF
techniques following standard industry practice for lithium and tin deposits. Strict
QAQC protocols are observed, including the insertion of a Li standard in random 
fashion for every 10 core samples, as well as the insertion of blank and duplicate
samples.

     |  Table showing the completed drillholes, Cinovec Main |  
 |  Hole ID |  North |  East |  Elevation (m) |  Depth (m) |  Azimuth |  Dip |  Comments |  
 |  CIW-11 |  -779300 |  -966098 |  867.4 |  444.4 |  40.1 |  -77.86 |  confirmation/infill |  
 |  CIW-20 |  -778811 |  -965638 |  837.5 |  257.6 |  336.7 |  -84.6 |  confirmation/infill |  
 |  CIW-13 |  -779176 |  -966127 |  862.8 |  429.3 |  76 |  -80.4 |  confirmation/infill |  
 |  CIW-19 |  -778811 |  -965692 |  837.8 |  271.6 |  332.1 |  -89.58 |  confirmation/infill |  
 |  CIW-08 |  -778791 |  -965800 |  837.6 |  274.9 |  156.85 |  -89.3 |  confirmation/infill |  
 |  CIW-18 |  -779019 |  -966183 |  855.47 |  395.7 |  210.6 |  -89.05 |  confirmation/infill |  
 |  CIW-14 |  -779056 |  -966093 |  854.46 |  417.8 |  323.3 |  -89.07 |  confirmation/infill |  
 |  CIW-07 |  -778867 |  -965841 |  840.99 |  300 |  333.6 |  -89.57 |  confirmation/infill |  
 |  CIW-26 |  -779215 |  -965937 |  865.33 |  430.5 |  248 |  -89.38 |  confirmation/infill |  
 |  CIW-17 |  -778957 |  -965521 |  847.07 |  238.2 |  332.1 |  -89.58 |  confirmation/infill |  
 |  CIW-21 |  -778812 |  -965952 |  841.33 |  320.6 |  42.68 |  -89.02 |  confirmation/infill |  
 |  CIW-10 |  -779215 |  -965938 |  865.35 |  455 |  303.4 |  -74.47 |  confirmation/infill |  
 |  CIW-23 |  -779009 |  -965994 |  848.91 |  376.1 |  222.3 |  -89.4 |  confirmation/infill |  
 |  CIW-22 |  -779009 |  -965993 |  848.88 |  420.6 |  287.9 |  -70.43 |  confirmation/infill |  
 |  CIW-06 |  -778995 |  -965845 |  846.77 |  296.3 |  11.7 |  -80.18 |  confirmation/infill |  
 |  CIW-25 |  -778994 |  -965902 |  847.04 |  382.4 |  281.1 |  -69.89 |  confirmation/infill |  
 |  CIW-27 |  -779152 |  -965817 |  861.5 |  370 |  271.9 |  -89.53 |  confirmation/infill |  
 |  Hole locations are recorded in the local S-JTSK Krovak grid, all coordinates are surveyed. |

Mineralised Intercepts and Lithology

The drillhole CIW-26 was located near the granite-porphyry contact, testing lithium
mineralisation near the western edge of the deposit. In this location, at the W 
and NW part of the deposit, the contact is relatively steeply dipping. The CIW-26
drillhole was drilled from the same site as CIW-10 but was vertical.

The drillhole CIW-22 was collared in the central part of the Cinovec-Main deposit
where the Cinovec lithium granite daylights, drilled from the same site as CIW-23.
CIW-22 was angled -70degree toward West (288 degrees).

CIW-26 started in the overlying barren porphyry. The porphyry-granite contact at
174m drill string depth (DSD) is of tectonic nature. Immediately below the contact
a massive greisen was intersected to DSD of 203 meters. The interval between 203m
to 296m DSD is dominated by albite granite with zinnwaldite, locally including zones
of greisenized granite and greisen. Below, down to DSD of 424m, is a long zone of
greisenized granite, underlying by low-mica weakly mineralised granite that forms
the base of the lithium mineralization. In CIW-26, very few core angles of contacts
were observed. A narrow greisen contact was measured at 27 degrees, and as the core
was not oriented, it is impossible to ascertain with certainty the orientation of
the mineralised zones. Therefore, the mineralised intercept may not represent true
width. The geological model predicts that at the western contact the greisen dip
W.

Drillhole CIW-22 starts in granite to DSD of 124m. Interval between 124 and 182m
is formed by greisen and greisenised granite, locally with quartz veins. One wider
stope after historic mining was intersected. A long interval formed mostly by greisenised
granite was intersected between 205m and 382m, confirming the general paradigm of
two major greisen zones separated by albite-zinnwaldite granite. The base of the
hole is low-mica granite. As usual the contacts are mostly gradational. Core angles
of sharper contact are steep at around 60 degrees so the intercept lengths do not
represent true widths of mineralisation but are likely reasonably close based on
the general geological model. At 238 meters an unusually high grade zone of tungsten
was intersected. This interval is formed by a quartz-zinnwaldite greisen with crystals
of wolframite, with greisenized granite footwall and hanging wall. Due to relative
lack of data is it difficult to assess the orientation of this high grade zone at
this time.

The Tables below list the mineralised intercepts for the two drillholes.

  |  Table summarizing mineralised intercepts in CIW-22 |  
 |  CIW-22 |  
 |  From |  To |  Interval (m) |  Li_(2)O (%) |  Sn (%) |  W (%) |  Note |  
 |  10 |  28 |  18 |  0.22 |   |   |   |  
 |  100 |  119 |  19 |  0.21 |   |   |   |  
 |  123 |  387.5 |  264.5 |  0.54 |   |   |  incl. 6m@1.17%Li2O (129.5-135.5m), |  
 |  4m@0.92%Li2O (141-145m), |  
 |  7m@0.91%Li2O (175-182m), |  
 |  2m@1.07%Li2O (256-258m) |  
 |  125 |  134.5 |  9.5 |  0.96 |  0.22 |  0.071 |   |  
 |  128.5 |  135.5 |  7 |  1.12 |  0.25 |  0.095 |   |  
 |  141 |  143 |  2 |  1.25 |  0.07 |  0.408 |   |  
 |  160 |  161 |  1 |  0.71 |  0.02 |  0.157 |   |  
 |  167 |  168 |  1 |  0.93 |  0.2 |  0.046 |   |  
 |  175 |  179 |  4 |  0.98 |  0.01 |  0.091 |   |  
 |  234 |  235 |  1 |  0.48 |  0.03 |  0.059 |   |  
 |  238 |  240 |  2 |  0.86 |  0.41 |  2.915 |  868ppm Nb, 150ppm Ta |  
 |  256 |  257 |  1 |  1.16 |  0.02 |  0.07 |   |  
 |  221 |  252 |  31 |   |   |   |  150ppm Nb |  
 |  286 |  331 |  45 |   |   |   |  104ppm Nb |  
 |  Cut-off: 0.2%Li_(2)O, 0.1%Sn, 0.05%W, determining metal for definition of interval in bold |

 

  |  Table summarizing mineralised intercepts in CIW-26 |  
 |  CIW-26 |  
 |  From |  To |  Interval (m) |  Li_(2)O (%) |  Sn (%) |  W (%) |  Note |  
 |  173.75 |  410 |  236.25 |  0.49 |   |   |  incl. 16m@0.99%Li2O (186-202m), |  
 |  3m@1.15%Li2O (186-189m), |  
 |  2m@1.34%Li2O (192-194m), |  
 |  2m@0.99%Li2O (246-248m), |  
 |  1.3m@1.72%Li2O (253.1-254.4m), |  
 |  2m@0.93%Li2O (308-310m), |  
 |  5m@0.84%Li2O (369-374m) |  
 |  178 |  181 |  3 |  0.7 |  0.01 |  0.111 |   |  
 |  187 |  188 |  1 |  0.84 |  0.11 |  0.003 |   |  
 |  346 |  368 |  22 |  0.45 |   |   |  103ppm Nb |  
 |  379 |  423.5 |  44.5 |  0.26 |   |   |  111ppm Nb |  
 |  Cut-off: 0.2%Li2O, 0.1%Sn, 0.05%W, determining metal for definition of interval in bold |

(Please refer to the announcement on the European Metals Website for the graphic
Figure 1 – A geological map showing the Company’s drill holes (with angled holes
traces projected to surface) against surface geology and subsurface greisen bodies
projected to surface (in green). Historic UG workings and drill holes not shown –
www.europeanmet.com.)

CINOVEC SOUTH RESOURCE ADDED TO CZECH STATE RESOURCE REGISTER

The process for the award of a mining permit commences with the placing of a mineral
resource on the State Resource Registry and receiving a certificate of an ‘exclusive
mineral deposit’. This is achieved by defending a resource calculation and a preliminary
technical and economic analysis proving the studied resource has a quality consistent
with a potentially mined deposit. The addition to the State Resource Register means
that civic development on top of the area is restricted and it allows the Company
to apply for a setting a preliminary mining space, which is a step toward obtaining
the final mining permit.

The company is currently working on the submission for the remaining NW part of 
the orebody and on placing it on the State Resource Registry.

BACKGROUND INFORMATION ON CINOVEC

PROJECT OVERVIEW

Cinovec Lithium/Tin Project

European Metals owns 100% of the Cinovec lithium-tin deposit in the Czech Republic.
Cinovec is an historic mine incorporating a significant undeveloped lithium-tin 
resource with by-product potential including tungsten, rubidium, scandium, niobium
and tantalum and potash. Cinovec hosts a globally significant hard rock lithium 
deposit with a total Indicated Mineral Resource of 232.8 Mt @ 0.45% Li2O and a total
Mineral Resource of 606.8 Mt @ 0.43% Li2O containing a combined 6.46 million tonnes
Lithium Carbonate Equivalent.

This makes Cinovec the largest lithium deposit in Europe and the fourth largest 
non-brine deposit in the world.

Within this resource lies one of the largest undeveloped tin deposits in the world,
with total Indicated Mineral Resource of 28.6 Mt @ 0.23% Sn and a total Mineral 
Resource of 70.5 Mt grading 0.20% Sn for a combined total of 141.2 kt of contained
tin. The Mineral Resource Estimates have been previously released on 23 November
2016. The deposit has previously had over 400,000 tonnes of ore mined as a trial
sub-level open stope underground mining operation.

A Scoping Study conducted by specialist independent consultants indicates the deposit
could be amenable to bulk underground mining. Metallurgical test work has produced
both battery grade lithium carbonate and high-grade tin concentrate at excellent
recoveries with the Scoping Study. Cinovec is centrally located for European end-
users and is well serviced by infrastructure, with a sealed road adjacent to the
deposit, rail lines located 5 km north and 8 km south of the deposit and an active
22 kV transmission line running to the historic mine. As the deposit lies in an 
active mining region, it has strong community support.

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