European Metals Holdings (LON:EMH) has identified a series of shallower, higher grade deposits at its Cinovec lithium deposit in the Czech Republic.
EMH carried out a detailed geological model of the deposit and using that, and recent drilling, has put together a picture of where the higher grades may be located.
Rare Earth Minerals (LON:REM), which has an 11.87% stake in European Metals, added that identification of shallow higher grade material was an important development. Scheduling these early within the potential mine plan would have a positive effect on the economics of the project, it said.
“The average grade for the greisen (a quartz-mica-topaz rock completely replacing the original granite) is significantly higher than the surrounding greisenised granite,” said Kiran Morzaria, Rare Earth’s chief executive.
Keith Coughlan, EMH’s chief executive, added the model was another big step forward in its understanding of the huge deposit at Cinovic.
Assay results for next two drill holes are due imminently and Coughlan expects eventually to convert a significant amount of the current Inferred Resource to the Indicated category.
Cinovec has an inferred resource of 514.8Mt at 0.43% Li2O (lithium oxide) to give 5.5Mt LCE (lithium carbonate).
EMH shares rose 11% to 5.68p.