European Metals Holdings Limited (LON: EMH) Managing Director Keith Coughlan talks to DirectorsTalk about the importance of of producing produce battery grade lithium hydroxide. Keith also explains whether this means production of both lithium carbonate and hydroxide from the processing facility, why the productions rates have increased markedly from the 2017 PFS projections, when we can expect the DFS to progress and why update the PFS when the DFS as already started.
HIGHLIGHTS
· Flowsheet successfully developed and tested for the production of lithium hydroxide from Cinovec ore.
· A potential production rate in excess of 25,000 tpa lithium hydroxide has been demonstrated to be possible utilising a robust process route proven in the lithium production sector.
· A formal update of the project PFS reflecting the production of lithium hydroxide is underway and will be completed within the next 6 weeks.
European Metals Holdings 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% reported 19 April 2017 (PFS Confirms Potential Low Cost Lithium Carbonate Producer). It confirmed the deposit is 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.