# European Metals Holdings Ltd Quarterly Activities Report - Link: https://www.directorstalkinterviews.com/european-metals-holdings-ltd-quarterly-activities-report-2/412744947 - Published: 2018-02-01T07:19:05+00:00 - Author: Giles Arbor **European Metals Holdings Ltd** (LON:EMH) has today reported on its activities and continued progress in the development of the globally significant Cinovec Lithium/ Tin Project in Czech Republic during the three month period ending December 2017. **HIGHLIGHTS** · Significant lithium grades and widths intersected in in-fill drill program · Further increase in Indicated Resource at Cinovec South · Capital raising of approx. AUD 4 million · Further progress towards Mining Licence/Czech Government liaison · Further roast optimization work completed **SIGNIFICANT LITHIUM GRADES AND WIDTHS INTERSECTED** On 2 November 2017 the Company announced the successful completion of its six core- hole infill drilling program at the Cinovec Project. A total of 2,697.1m was completed on time and without loss time accidents. Analytical results for three drillholes in the eastern sector and for two drillholes on the western sector of the of the Cinovec South deposit are reported. Results for hole CIS-4 have previously been reported. The following key points were noted: · All six planned infill core drillholes completed for a total of 2,697.1m drilled. · Analytical results confirmed the expected lithium, tin and tungsten contents and mineralization widths. · The results for the two infill drillholes in the western part of the Cinovec South deposit exceed expectations. · Drillhole CIS-9 returned one of the best results of the Company’s drilling program to date: 204.6m averaging 0.44% Li2O, (and within it 70m@0.58%Li2O; 13m@0.19%Sn, 6m@0.58%Sn, 3m@1.02%Sn and 0.179%W). · Drillhole CIS-8 returned a continuous relatively high-grade lithium mineralization interval that includes multiple zones of tin and tungsten mineralization: 152.5m averaging 0.41% Li2O, (and within it 3m@0.52%Sn, 6m@0.12%Sn and 0.077%W, 7m@0.14% Sn). · In the eastern part, the best results are from CIS-7, with 45.5m averaging 0.37% Li2O, and 102m averaging 0.31%Li2O, with strong tin and tungsten credits (11m@0.24% Sn and second interval includes 12m@0.17%Sn and 13m@0.16%W). **FURTHER INCREASE IN INDICATED RESOURCE AT CINOVEC SOUTH** On 28 November 2017 the Company was pleased to announce a further upgrade of its JORC compliant Indicated Mineral Resources at the Cinovec Lithium/Tin Project in the Czech Republic, confirming its status as the largest lithium resource in Europe. The Company had recently completed a four-month drilling campaign at Cinovec South, comprising six core drillholes for 2,697.1m meters, with the goal of closing ‘gaps’ in the existing resource model in and around the initial planned mining areas and upgrading part of the resource from the Inferred category to the higher confidence Indicated category. The results, summarised below, have exceeded expectations. The following key points were noted: · For the entire Cinovec deposit (South and North), the drilling added 39.4 Mt of Mineral Resource grading 0.41% Li2O and 0.04% Sn (0.1% Li cutoff), or 220kt tonnes of lithium carbonate (LCE). · Majority of resource increase (97%) is at Cinovec South where initial mining is planned. · The Indicated Mineral Resource category increased by 7% to 372.4Mt@0.44% Li2O. **EMH RAISES APPROX AUD 4 MILLION VIA SUBSCRIPTION** On 29 November 2017 European Metals announced a capital raising of GBP 2,281,000( approximately AUD 4 million (before costs)) via subscriptions to predominantly UK based sophisticated investors. The raising was completed via an issue of 6,517,142 CDIs at a price of 35p or 61.5 cents and was placed using the Company’s capacity under Listing Rule 7.1. Shard Capital Partners LLP arranged the majority of the subscriptions. The funds will be used to advance the on-going definitive feasibility on the Cinovec deposit, Europe’s largest lithium resource, and for general working capital. **FURTHER PROGRESS TOWARDS MINING LICENCE/CZECH GOVERNMENT – ROAST OPTIMISATION** In February 2017, European Metals announced that the Cinovec South Resource had been added to the Czech State resource register, the first step in the process for the granting of a mining permit. On 19 December 2017, the Company announced that the Cinovec NorthWest Resource had also been added to the Czech State resource register. This permitting development follows on from the signing of a Memorandum of Understanding(“ MoU”) on 2 October 2017 with The Ministry of Industry and Trade of the Czech Republic regarding the development of the Cinovec Project. The MoU was signed in Usti nad Labem between the Minister of Industry and Trade, Jiri Havlicek and the Company, in the presence of the representatives of the Australian Embassy and Australian Trade and Investment Commission, 1st Deputy Governor of Usti Region Mr Martin Klika, president of the Tripartite of Usti Region, Mrs Gabriela Nekolova, Chairman of the Regional Bureau of Czechinvest Mrs Alena Hajkova, Chairman of the Regional Mining Bureau Mr Milos Matz, Mayor of the Town of Dubí Mr Petr Pipal and other guests. On 2 November 2017 the Company noted the results of the recent elections held in the Czech Republic and the debate regarding development of lithium assets within the country leading into the elections. As the sole holder of exploration permits and preliminary mining permits with the preferential right of mining over the Cinovec Project, the Company looks forward to continuing the previous positive engagements with the new Government, once formed, and to rapidly advance development of the project to the mutual benefit of all stakeholders. Additionally, recent optimisation test work has demonstrated the ability to reduce roast temperatures and duration which can result in significant cost savings both in CAPEX and OPEX. The following key points were noted: · NorthWest Resource added to Czech State resource register – majority of Cinovec Resource now officially recognised by Czech mining authorities. · Optimisation test work indicates potential significant savings in both OPEX and CAPEX **TENEMENT SCHEDULE** | Tenement | Interest at beginning of Quarter | Acquired/Disposed | Interest at end of Quarter | | Cinovec | 100% | N/A | 100% | | Cinovec 2 | 100% | N/A | 100% | | Cinovec 3 | 100% | N/A | 100% |   **BACKGROUND INFORMATION ON CINOVEC** **PROJECT OVERVIEW** Cinovec Lithium/Tin Project European Metals, through its wholly owned Subsidiary, Geomet s.r.o., controls the mineral exploration licenses awarded by the Czech State over the Cinovec Lithium/ Tin Project. Cinovec hosts a globally significant hard rock lithium deposit with a total Indicated Mineral Resource of 372Mt @ 0.44% Li2O and 0.04% Sn and an Inferred Mineral Resource of 324Mt @ 0.39% Li2O and 0.04% Sn containing a combined 7.22 million tonnes Lithium Carbonate Equivalent and 278kt of tin. An initial Probable Ore Reserve of 34.5Mt @ 0.65% Li2O and 0.09% Sn has been declared to cover the first 20 years mining at an output of 20,800tpa of lithium carbonate. This makes Cinovec the largest lithium deposit in Europe, the fourth largest non- brine deposit in the world and a globally significant tin resource. The deposit has previously had over 400,000 tonnes of ore mined as a trial sub-level open stope underground mining operation. EMH has completed a Preliminary Feasibility Study, conducted by specialist independent consultants, which indicated a return post tax NPV of USD540m and an IRR of 21%. It confirmed the deposit is be amenable to bulk underground mining. Metallurgical test work has produced both battery grade lithium carbonate and high-grade tin concentrate at excellent recoveries. 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. The economic viability of Cinovec has been enhanced by the recent strong increase in demand for lithium globally, and within Europe specifically. Share on: