European Lithium Ltd (ASX:EUR) has declared a total JORC resource of 6.3 million tonnes at 1.17% lithium oxide at its 100% owned Wolfsberg lithium project in Austria.
This represents a 75% increase in resource tonnes and 33% increase in contained lithium.
The total JORC resource is comprised of 2.86 million tonnes at 1.28% lithium oxide in the Measured category and 3.44 million tonnes at 1.08% lithium oxide in the Indicated category.
Exploration drilling is ongoing and is aimed at extending resources with the results providing further opportunity to upgrade the resource.
Steve Kesler, CEO, commented: “The resource model will allow us to initiate mine design studies to determine the maximum rate of underground mining that can be economically achieved.”
Background
European Lithium, previously named Paynes Find Gold Ltd, relisted on the ASX during September 2016 after acquiring the Wolfsberg Lithium Project.
The project is comprised of 22 original and 32 overlapping exploration licences and a mining licence over 11 mining areas has been issued by the Austrian Mining Authority.
Wolfsberg was discovered by Minerex in the 1980s, a period when the lithium demand and price did not support project development.
European Lithium undertook a successful program to verify the Minerex historical data, which has been used to in associate with recent drill results to compile this JORC resource.
The project has had 17,000 metres of drilling and 1,400 metres of declines, drives and crosscuts completed and installed by previous owners, and this work will allow the company to examine routes to fast track the development phase.
Development road map
The indicative development timetable for Wolfsberg is as follows:
- Q2 2017: Increase resource;
- Q2 2017: Finalise pre-feasibility study;
- H1 2018: Finalise definitive feasibility study;
- H2 2018: Complete baseline/EIS/permitting;
- H2 2018: Fast track, proposed to commenced production of concentrate for glass-ceramic industry; and
- Q4 2019/2020: Commence operations for production of lithium concentrate for battery factories.
Analysis
Establishing an increased JORC resource at Wolfsberg is a key step for the company as it advances the strategy aimed at fast tracking the lithium project’s development.
The current surface exploration program is expected to confirm the continuation of the pegmatite veins at depth and establish an extension into Zone 2.
This is the next key step as it will support the longevity of the project.
It will allow the company to establish the most suitable mining method and maximum production rate and establish the optimum process for recovery of lithium concentrate, marketable by-products and battery grade lithium products.
Apart from the small Iberian production for local ceramics and glass use, the E.U. has no internal lithium supply.
The E.U. is a major importer of lithium, consuming 24% of global market, second only to China.