The highlight of the three months to June 2017 for European Metals Holdings Limited (LON:EMH) was undoubtedly the completion of a preliminary feasibility study for the company’s Cinovec lithium carbonate project.
This showed that Cinovec is likely to be a low cost producer, with an initial production estimate of US$3,483 per tonne of lithium carbonate.
The total cost of construction was put at US$393mln, with the internal rate of return running at 21% post-tax.
The company has now commenced an infill drilling program at Cinovec South. There are six core drill holes for a total of 2,800 metres planned in two areas where data density is low and there are 'gaps' in the resource model.
This programme is expected to add high grade resources in critical areas where mining will start and the results will be utilised during the DFS programme to optimise the current mine plan.
The probable ore reserve at Cinovec now stands at 34.5 mln tonnes at 0.65% Li2O.