European Lithium Ltd (ASX:EUR) has received assays confirming high grades of lithium at the 100% owned Wolfsberg lithium project in Austria.
Highlights from the drilling include 4.26 metres grading 1.44% lithium oxide from 91 metres.
This data will be used with historical data to compile an updated JORC 2012 resource anticipated by end of Q1 2017.
Steve Kesler, CEO, commented: "These results confirm the Wolfsberg deposit to have high grade pegmatite veins.
"Following comparison to and verification of the original Minerex data the next step will be to shortly declare an upgraded JORC Code 2012 compliant resource both in category and tonnes which will be a significant milestone for the company."
Exploration program
Seven holes with twin hole collars were drilled perpendicular to the dip of the veins.
Results included:
- 4.26 metres at 1.44% lithium oxide from 91 metres;
- 3.62 metres at 1.41% lithium oxide from 95.2 metres; and
- 0.65 metres at 3.35% lithium oxide from 57.5 metres.
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
These drill results provide integral data required to upgrade the current JORC resource, which represents a significant milestone for the company.
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.