European Lithium Ltd’s (ASX:EUR) engagement of consultants for its 2018 drilling campaign marks an important stage for the Wolfsberg Lithium Project in Austria.
Austrian mining consultants are preparing a lithological model using all drilling and trenching data from the project.
This should be completed shortly, providing the company with the information needed to review the model and develop a targeted drilling program.
Increase in measured and indicated resource
A high density drilling strategy is expected to lead to an increase in measured and indicated resources.
The new drilling program will require authorisation by the Mining Authority which is expected to be forthcoming now that technical studies have been completed.
Receipt of permitting would significantly de-risk the project, and this could be an imminent share price catalyst.
Increasing the measured and indicated resources could support a higher lithium production level for the definitive feasibility study than currently being used for the pre-feasibility study.
A cashed up business with a cleaner structure
Having entered into a binding agreement for the sale of the company’s non-core Paynes Find Gold Project, European Lithium is now a more focused business.
Proceeds from the sale consisted of $500,000 in cash and $500,000 in share capital from the purchaser, Cervantes Corporation Ltd (ASX:CVS).
This along with cash of $7.1 million (before costs) from capital raisings positions the company to undertake a comprehensive exploration program in 2018.