Zinnwald provides lithium project update

Highlights:

• Completed 13 in-fill drillholes and 4311 m at core Zinnwald license - programme aims, inter alia, to assess the potential to accommodate greater mining capacity for expanded lithium output.
  • First assays from four drillholes include long mineralised intervals such as 2503 ppm Li over 86.4 m and 1846 ppm Li over 121 m within which there are several high-grade core intervals including of 4286 ppm Li over 4.6 m and 4345 ppm Li over 6.5 m.
  • Initial drill results support the plan to consider the Albite Granites (previously referred to as “ore type 2” in the recent preliminary economic assessment (PEA)) for the mineral resource and future mine plan, with potential to materially increase the total mineral resource.
• Awaiting initial assay results at Falkenhain exploration license where the first drillhole has been completed to a depth of 600 m.
• Extended exploration license at Falkenhain by three years.
• Advancing test work related to production processes.
  • Confirmed ratios of high grade technical/fertilizer grade by-product that can be achieved, which will form the basis for higher level engineering studies.
  • Additional tests being undertaken to confirm the mineral processing assumptions for Albite Granites as part of the future mining feed.
• Completed environmental surveys at areas under consideration for the project, which will be utilised to determine the scope of the environmental impact assessment (EIA).
• Strengthening relationships with leading partners:
  • SRK Consulting UK Ltd – providing competent person (CP) support and guidance for the project.
  • TheiaX GmbH – assisting with cutting edge hyperspectral scanning of drill-core to be used in the geo-metallurgical optimisation of the project.
  • Metso Outotec – providing expert support in advancing the mineral processing concept and engineering.
  • Epiroc – developing plans for an electrically powered mining operation.
  • GICON / GLU – supporting in the permitting process of mining assets in the state of Saxony. 
• As at the date of this announcement, the company has funds on hand of €4.4 million.

Zinnwald Lithium CEO, Anton du Plessis, said:

“We continue to make excellent progress advancing multiple workstreams, including drilling, test work and permitting, with the aim of publishing a BFS by the end 2023; this will further quantify the economic returns of the recently published PEA, which reported a pre-tax NPV8 of US$1605 million, IRR of 39.0%, US$192 million EBITDA and a payback of 3.3 years.

“Accordingly, initial results from an in-fill drill programme at our key deposit to optimise the mine plan and build the scale of our lithium hydroxide output have supported the potential to apply larger scale mining methods that can deliver higher economic returns. Furthermore, test work programmes related to mineral processing and by-product production are making headway, while studies to advance the various permit applications including the EIA are also advancing. We hope to keep up the pace of activity as we move into 2023.”

Read the article online at: https://www.globalminingreview.com/mining/23112022/zinnwald-provides-lithium-project-update/