European Lithium Ltd (ASX:EUR) is continuing its aggressive exploration effort with new extensional drilling at the 100% owned Wolfsberg lithium project in Austria.
The program aims to extend resources in Zone 1 and investigate mineralisation in Zone 2 in a bid to upgrade the current JORC resource.
Four deep diamond holes will be drilled at Zone 1, Nine holes at Zone 2 and 300 metres of trenching between Zone 1 and Zone 2.
An upgraded resource model is anticipated by early November, 2016 from the underground program completed last month.
An increased resource from the current program is anticipated by end of Q1 2017.
Exploration program
The surface drilling and trenching program is scheduled to be completed in 16 weeks.
Once drilling is completed, assay results obtained and evaluated, an upgraded JORC resource statement will be declared.
The exploration program includes:
- Drilling of four deep diamond holes in Zone 1 for 1,760 metres of total drilling;
- Drilling of nine holes in Zone 2 for 1,750 metres of total drilling; and
- Trenching of 300 metres to a depth of 3-4 metres to better understand the geology and transition from Zone 1 to Zone 2.
A drilling permit has been received for Zone 2 and Zone 1 permission is expected shortly.
Background
European Lithium, previously named Paynes Find Gold Ltd, relisted on the ASX during September after acquiring the Wolfsberg Lithium Project.
Wolfsberg has a JORC compliant inferred resource of 3.7 million tonnes at 1.5% lithium oxide.
The project has had 17,000 metres of drilling and 1,400 metres of declines, drives and crosscuts completed and installed by previous owners.
This previous work will allow the company to examine routes to fast track the development phase.
The previous owner has spent €11.53 million on acquisition and exploration.
Analysis
This surface drilling exploration program will aim to upgrade the current JORC resource to advance the lithium project towards the development phase.
The recently acquired project is located 40 kilometres from the Samsung battery plant in Gratz, Austria.
Wolfsberg is proximate to the largest lithium import markets in the European Union, which is a major lithium importer, consuming 24% of the global market, second only to China.
Local infrastructure and sources of energy are nearby.
Announcements by Samsung, Nissan, Tesla, LG Chem, Jaguar, Ford, Land Rover and BMW outline plans and considerations to build lithium battery plants in Europe.
Metallurgical test work is currently underway and if successful it will provide the company with an opportunity to fast track limited production and cash flow whilst the rest of the mineral processing facilities are being constructed.
News flow is expected with regard to the current drilling program and the pending upgraded resource model anticipated by early November, 2016.