European Metals Holdings Ltd (LON:EMH) shares found gains on Tuesday on news it has successfully developed a flow sheet for the production of battery-grade lithium hydroxide from ore from the Cinovec project in the Czech Republic.
A formal update to the pre-feasibility study is underway and will incorporate a potential production rate of 25,000 tonnes per year.
It should be ready within six weeks.
Of the various tests done, the more robust flowsheet involved the production of battery grade lithium carbonate followed by conversion to battery grade lithium hydroxide.
"The clear majority of European battery producers are indicating a requirement for lithium input to be supplied as battery grade lithium hydroxide,” said European Metals managing director Keith Coughlan.
“The fact that European Metals Holdings has now demonstrated the ability to produce this product from Cinovec ore is an exciting development that will enable the company to supply its final product into the European marketplace.”
Cinovec hosts a globally significant hard rock lithium deposit with a total indicated mineral resource of 372.4mln tonnes grading 0.45% Li2O and 0.04% tin and an inferred resource of 323.5mln tonnes grading 0.39% Li2O and 0.04% tin.
In early afternoon trading, shares in European Metal were 4.4% higher at 17.75p.
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