European Metals Share Discussion Threads

[james_jones] 16/8/2017 07:07

European Metals Holdings Limited Drill Results and Appointment of DFS Manager

16/08/2017 7:00am
UK Regulatory (RNS & others)

Europe Met (LSE:EMH)
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Today : Wednesday 16 August 2017

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TIDMEMH

RNS Number : 1025O

European Metals Holdings Limited

16 August 2017

For immediate release

16 August 2017

EUROPEAN METALS HOLDINGS LIMITED

Drill Results and Appointment of DFS Manager

European Metals Holdings Limited ("European Metals" or "the Company") (ASX & AIM: EMH) is pleased to report on its ongoing infill drilling program and announce analytical results for the first drillhole CIS-4 at the Cinovec Lithium-Tin Project ("the project" or "Cinovec").

In addition, the Company is pleased to announce the appointment of Mr Craig Reimer as the Manager of its Definitive Feasibility Study.

HIGHLIGHTS



* Infill drilling continues in the southwest section of
the deposit, targeting two 'gaps' in the resource
model that could potentially be targeted for mining
in the initial years.

* Altogether, five out of 6 planned drillholes have
been completed this year, for a total of 2163.1m.

* Assays have been received for the first drillhole
CIS-4, which returned a continuous mineralized
intercept of 148.30m averaging 0.40%Li2O, starting at
297.7m drill string depth.

* In addition, the upper section of the main lithium
interval contains significant tin and tungsten
mineralization: 15.85 meters averaging 0.70% Li2O,
0.29% tin and 0.073% tungsten.

* Experienced Project Manager, Craig Reimer has been
appointed to head the Company's Definitive
Feasibility study.

European Metals Managing Director Keith Coughlan said, "We are very pleased with the drilling progress to date and the results for the first hole CIS-4 drilled this year. The lithium and tin mineralization intersected in the first hole is strong and continuous and will increase the size of our current inferred and indicated resource at Cinovec south. This will provide additional options for optimizing production and development schedule. I am particularly pleased with the strong tin and tungsten credits in this part of the Cinovec South deposit.

In addition, we welcome Craig Reimer as the Manager of the Definitive Feasibility Study. Craig is a hugely experienced Project Manager and has worked for numerous clients in Australia and overseas and has been involved with studies, commissioning and construction of large scale projects. Craig will head an excellent study team located in Australia and Czech that is focused on delivering a robust Study in H2 2018.

Drill Program

The current six-hole drill program at Cinovec South is planned to focus on infill drilling in two areas where data density is low and 'gaps' in the resource model occur. There are the expectations this will add to the high grade resource at Cinovec South in critical areas where mining will start. It will also assist in the conversion of resources from Inferred to Indicated category, and delivery of material for metallurgical testing. So far five diamond core holes have been completed, and one is underway.

The drill hole information is listed in Table 1 below, and their locations are shown on the sketch below:

Table 1 - Completed drillholes, Cinovec South


Hole North East Elevation Depth Azimuth Dip Comments
ID (m) (m)
------- ------------- ------------- ---------- ------ -------- ------- -----------
Infill,
CIS-4 -966605.9(1) -778582.9(1) 863 448 16.6 -84.6 completed
------- ------------- ------------- ---------- ------ -------- ------- -----------
Infill,
CIS-5 -966607.8(1) -778585.1(1) 862.8 458.8 271.8 -81.28 completed
------- ------------- ------------- ---------- ------ -------- ------- -----------
Infill,
CIS-6 -966516.0(1) -778544.1(1) 866.2 456 28.8 -86.97 completed
------- ------------- ------------- ---------- ------ -------- ------- -----------
Infill,
CIS-7 -966454.0(1) -778655.3(1) 864.4 450.3 0(3) -90(3) completed
------- ------------- ------------- ---------- ------ -------- ------- -----------
Infill,
CIS-8 -966570.0(2) -779163.0(2) 805 350 340(3) -70(3) completed
------- ------------- ------------- ---------- ------ -------- ------- -----------
CIS-9 -966570.0(2) -779163.0(2) 805 0 25(3) -68(3) ongoing
------- ------------- ------------- ---------- ------ -------- ------- -----------

Hole locations are recorded in the local S-JTSK Krovak grid, (1) Coordinates surveyed, (2) Coordinates determined by GPS, (3) Planned, no inclinometry yet.

(Please refer to the announcement on the European Metals Website for Figure 1: Plan view projected resource blocks, EMH completed and underway drill holes - www.europeanmet.com.)

After geological logging, drill core is cut in half with 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.

Mineralized Intercepts and Lithology in CIS-4

The CIS-4 drill hole is collared in rhyolite in the eastern area of the Cinovec South deposit. The main characteristics is the presence of massive greisen/greisenized zone in granite just below its contact with the overlying rhyolite.

In CIS-4, the Li-mineralized greisen and strongly greisenized granite start immediately bellow the rhyolite/granite contact at a depth of 279.7m. Below the contact, variably altered granite with two major and several minor greisen zones were intersected. Underlying albite granite with lithium mica starts at 320.6m and continues to 338.9m drill string depth. The section from 338.9m up to 426m is formed mostly by greisenized Li-mica rich granite. The tin and tungsten mineralization is spatially associated with the strong to pervasive greisen style alteration in the upper 75.3m of the hole. If no Sn cutoff is applied, the interval grades 0.14% Sn, 0.035%W and 0.42% Li(2) O.

Table 2 below provides summary of the results. According to the geological and block model the greisen bodies (and the mineralized zones) dip to the south, although this fact could not be fully confirmed by core angles observations in the core. The CIS-4 drillhole was angled 16.6 degrees toward NE, with dip -84.6 and the reported intercepts appear close to true thicknesses.

Table 2 - Mineralised intercepts in CIS-4


CIS-4
----------------------------------------------------------------------------
From To Interval Li2O Sn W (%) Note
(m) (%) (%)
------ ------- --------- ----- ----- ------ --------------------------
incl. 4.6m@0.76%Li2O
(282.4-287m),
5m@0.82%Li2O (289-294m),
5m@0.76%Li2O (313-318m)
and
279.7 428 148.3 0.40 2m@1.01%Li2O (424-426m)
------ ------- --------- ----- ----- ------ --------------------------
279.7 295.55 15.85 0.70 0.29 0.073
------ ------- --------- ----- ----- ------ --------------------------
incl. 0.7m@1.036%W
288.3 294 5.7 0.80 0.40 0.197 (288.3-289m)
------ ------- --------- ----- ----- ------ --------------------------
298.5 303.5 5 0.45 0.10 0.061
------ ------- --------- ----- ----- ------ --------------------------
302.5 305 2.5 0.34 0.23 0.039
------ ------- --------- ----- ----- ------ --------------------------
310.3 313 2.7 0.57 0.27 0.003
------ ------- --------- ----- ----- ------ --------------------------
315 317 2 0.76 0.05 0.188
------ ------- --------- ----- ----- ------ --------------------------
318 325 7 0.32 0.18 0.012
------ ------- --------- ----- ----- ------ --------------------------
329.5 332.5 3 0.32 0.31 0.048
------ ------- --------- ----- ----- ------ --------------------------
331 332.5 1.5 0.34 0.30 0.074
------ ------- --------- ----- ----- ------ --------------------------
342 343 1 0.62 0.03 0.096
------ ------- --------- ----- ----- ------ --------------------------
351 355 4 0.32 0.17 0.002
------ ------- --------- ----- ----- ------ --------------------------

As required under the 2012 JORC Code, details of the current drill program are appended (Table 1).

Definitive Feasibility Study Manager and Team

The Company is pleased to welcome Craig Reimer to the position of DFS Manager. Craig has over 25 years' experience in project management, engineering management and business management, and has delivered successful international mining projects for previous clients. Craig is a Mechanical Engineer.

He has previously worked on projects for BHP, Vale Inco, Atlas Iron, ENK, Lynas Rare Earths, Boddington Gold Mine, Alcoa, Jacobs and UGL. The projects range from scoping and feasibility studies, to front-end engineering and detail design, and on to construction and commissioning. Craig has previously worked on projects in Australia, UK, USA, Canada, Indonesia, Phillipines and Malaysia.

The Company is also pleased to have retained the services of Grant Harman as Metallurgical Consultant to the DFS. Grant is one of the world's foremost lithium metallurgist and played a significant role in the Company's successful PFS.

Grant was previously Manager Lithium Chemicals for Talison Lithium and was involved in the management of the Talison Lithium Carbonate Plant from Scoping Study to Definitive Feasibility Study. He was involved in the design and technical direction of the Talison Test Facility and has more recently been a technical consultant on the Sonora Lithium Project in Mexico. Grant has had previous roles with UGL, SNC Lavalin, CleanTec, and Ausenco.

The expertise and experience of Craig and Grant will be complimented well by the Company's Czech based team, led by Executive Director Richard Pavlik.

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 hosts a globally significant hard rock lithium deposit with a total Indicated Mineral Resource of 348Mt @ 0.45% Li(2) O and 0.04% Sn and an Inferred Mineral Resource of 309Mt @ 0.39% Li(2) O and 0.04% Sn containing a combined 7.0 million tonnes Lithium Carbonate Equivalent and 263kt 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.

The recently completed Preliminary Feasibility Study, conducted by specialist independent consultants, returned a 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.

CONTACT

For further information on this update or the Company generally, please visit our website at www. or contact:

Mr. Keith Coughlan

Managing Director

[sambuca] 14/8/2017 20:24

I havnt seen a link for this posted before.

hxxps://electrek.co/2017/07/10/vw-gigafacrory-size-battery-factories-evs/

Do they want to build or dont they.

Sam

[myst1] 13/8/2017 10:59

Just google translate

[jailbird] 06/8/2017 15:34

The demand for EV Lithium is clear now, and I am expect a MOU of some sort will be signed one day to take up production.

Only things is production is still 2-3 years away. The DFS is most important study for this project and will determine the route of the financing.

Of course a major Co could buy a large share in the Co. Like Newmont has for SOLG.

[myst1] 05/8/2017 21:23

From LSE

Over the last few weeks and months there has been much speculation on this bb about who our potential automotive partners might be. In recent days this seems to have polarized towards Volkswagen.

VW is undoubtedly still suffering a very expensive PR and credibility meltdown from 'Dieselgate'. It has settled a multi billion dollar US lawsuit to compensate customers for a range of damages including loss of residual values. In light of this the rest of the world have woken up to the fact that VW's initial paltry individual offers were not acceptable. In an unprecedented move the UK and Netherlands have now joined together in a high value class action against VW.

Naturally, VW (and all other manufacturers who participated in similar deceptions), being keen to re-establish their green credentials, are accelerating their EV offerings. VW have now completed the development of their MEB platform which will be used by most group companies by 2020 (Audi and Porsche had prior commitments).

The Czech Gov Mining Strategy document (summarized in post 1617 above): is an absolute must read for everyone. Every single word of it. It spells out the future for all to see.

It clearly states that Czech intends to maximise the added value in its natural resources through in country vertical integration. It will get 'involved'. It will offer 'encouragement' and it will favour indigenous companies. It mentions EMH at length throughout the document. HE3DA features strongly and other battery manufacturers get name checks. Czech is going into production big time.

So what's this got to do with VW and recent speculation? SKODA!





As part of VAG, not only would Skoda receive preferential treatment by the Czech Gov but their plans are bang on time with our own production plans. In association with a locally based battery manufacturer they would also satisfy the Gov's in country value added plan.

But just imagine what it would mean to us if VW were to use Skoda as a back door to supply all VW's MEB requirements across their various global brands. Czech would be happy, Germany too. All their other EU factories would be happy with tariff free borders and Brexit wouldn't matter 'cos we only make Bentleys here. The thought of EMH Lithium being used in VW's Chinese, South American and Mexican factories - and shipped there at VW's cost - appeals to me. Would I be happy? Betcha life I would!!! Skoda Superb!

[myst1] 02/8/2017 06:45

From a post elsewhere:

Czech Gov mining strategy:

Now we know what the up to date Czech Gov plans are:

In summary:
- Draft dated June '17. Final report in coming weeks.
- Balanced and very detailed in all aspects.
- Confirms EU 2008 Directive on securing strategic resources.
- None of our Li is going to China.
- Appears to say the same for Sn and W.
- All to be processed in Czech for maximum return.
- Suggests BCN ore to also be processed at Cinovec.
- Ponds and tailings open to offer or JV.
- Vertical integration from mine to complete battery production.
- Czech Gov offering incentives to strategic incomers.
- Aus Gov involved and approve of strategy.
- DIAMO very supportive. EIA approval nailed on.
- Mine and plant location approved. Local employment upside.
- Gov really like the way EMH are doing things.
- Full mining permits for EMH are now, imo, a given.
- Gov bureaucratic delays kept to a minimum to enable
Full speed ahead to production.

With that level of all round support I'm not surprised KC has a number of JV / OTA suitors. Germany could push for Daimler, Czech could prefer indigenous battery manufacturer (they'll not want corporate profits and thus taxes to be repatriated). Interesting mention of Skoda which is owned by VW. Could be the answer to both scenarios.

All to play for but we're firmly in the driving seat. Great report, great news.

[melody9999] 01/8/2017 07:56

myst1 - useful table thanks - what about BCN ?

[myst1] 30/7/2017 15:09

Lets compare the 5 companies mentioned, ignoring the better location of EMH:

PLS Market cap $550 Million : containing an estimated 1.95 million tonnes of LCE
LAC Market cap $420 Million : Proven & probable reserves 1.5 million tonnes LCE
LIX Market cap $170 Million : Indicated & Inferred resource 2.05 Million tonnes LCE
EMH Market cap $100 Million : Indicated & Inferred resource 6.99 Million tonnes LCE
AVZ Market cap $90 Million : Can’t find any indication seem they just drilled first hole

The above resource no's for EMH also excludes all the tin.

EMH has got to be the cheapest share on AIM IMHO.

[fqr714bhp] 28/7/2017 11:27

We need Off Take news here.
Come on BMW but your money where your mouth is.
The good thing here is only 135 Million shares, so any great news it will be £1 in no time at all.

Haha.

[jailbird] 28/7/2017 07:05

Thanks for infoI will expect a combination Partner or debt or funding by dilution

[ahbroad] 27/7/2017 10:44

strategic partner will be providing funding. I think KC has made that pretty clear in the last few interviews, and with the interim funding being cited as necessary to ensure the best deal possible.

[qackers] 27/7/2017 10:05

I think he mentioned £10m in the video. Guess we have to wait to see what happens with offtake agreements?

[jailbird] 27/7/2017 09:39

qackers,

I am comparing this to other DFS studies I have seen delivered.

AUD 2 Million is not enough...need more like 3 or 4 times that at least

"preparation of the Company’s Definitive Feasibility Study"..the wordings here are not quite clear hence my cynicism.

I am just talking from previous knowledge of other Cos

[qackers] 27/7/2017 09:05

Funding also addressed in the proactive interview at around 3mins in. Doesn't expect to go to market for more funds prior to mine construction

[qackers] 27/7/2017 09:00

Regarding funding see below.

From the company statement issued 27th June 2017

INTERIM FUNDING
The Company is actively engaged in discussions with potential European strategic partners with regards to the funding and development of the Cinovec Project. Given the high level of interest in Europe in the lithium market, the Company is confident of a successful outcome in the near term in this regard. In order to allow sufficient time to finalise discussions and properly assess the various options open to the Company, the Company has arranged an interim funding facility to maintain momentum in developing the project.

This facility has been provided by an Australian based sophisticated investor, 6466 Investments Pty Ltd, and allows for the draw down of up to AUD 2 million in tranches as required over 12 months. Any funds drawn down will convert to CDI’s in the Company at a 10% discount to the 10 day vwap in the Company’s securities. The funds will be used in the preparation of the Company’s Definitive Feasibility Study, for further drilling and general working capital. The issue of shares pursuant to draw downs
does not require shareholder approval.

[jailbird] 27/7/2017 08:42

This is a great bet to supply Lithium for EV batteries.

However DFS study is still 12 -15 months away. There will also be another cash call to fund this study

[qackers] 26/7/2017 14:54

Lithium producers gearing up to feed EV demand after UK ban on petrol and diesel vehicles

12:18 26 Jul 2017

Keith Coughlan, managing director of European Metals Holdings Limited (LON:EMH, ASX:EMH) chats through the news the UK is to ban the sale of petrol and diesel vehicles by 2040.

Coughlan also updates on developments at their Cinovec lithium-tin deposit in the Czech Republic.

Video link below
hxxp://www.proactiveinvestors.co.uk/companies/stocktube/7839/lithium-producers-gearing-up-to-feed-ev-demand-after-uk-ban-on-petrol-and-diesel-vehicles-7839.html

[telbap] 26/7/2017 10:23

Spoke too soon

[matt123d] 26/7/2017 09:52

Looking good for a turn here, added some. Gap above to fill 59.5p-76p

[telbap] 26/7/2017 08:07

After last nights announcement I thought we would see a morning Mark up

[melody9999] 25/7/2017 12:25

big announcement by Greg Clark / BEIS / OFGEM and augurs well for high future demand for lithium. main doc below. other govts will be watching.