European Lithium Ltd (ASX:EUR) has upgraded the Wolfsberg Project’s measured and indicated resource from 6.3 million tonnes at 1.17% lithium oxide to 9.7 million tonnes at 1.03% lithium oxide following targeted drilling.
This is an increase of nearly 54% from the previous resource, with further upside potential from existing exploration targets already identified along strike and in Zone 2.
The estimation of inferred resources is ongoing and will be announced separately.
Another milestone
Non-executive chairman Tony Sage said: “It's fantastic that the company has reached another milestone by significantly increasing the resource at Wolfsberg.
“This and buying back the royalty are major positives for the company in progressing with the DFS for Wolfsberg.
“This will see EUR taking advantage of the recent tremendous growth in the hydroxide price.”
Drilling
A total of 7,953.3 metres of diamond core from 20 holes was drilled from the entire program.
The updated estimation used the additional data from the 7,953.3 metres of core from new drilling completed in August 2021.
This new data was used to augment the existing 2016 and 2018 interpretations and to provide additional data density for re-estimation resulting in the upgraded resource.
Mining and metallurgy
The economic minimum mining width still has to be established, taking into account current studies to remove waste dilution by sensor-based sorting.
Complex test-work at the company’s pilot plant facility (Dorfner/Anzplan, in Hirschau, Germany) with mined bulk samples from the existing underground mine (2,500 tonnes) has been undertaken and showed that the spodumene concentrate can be successfully processed to battery-grade lithium carbonate and lithium hydroxide, using commercially proven technology.
Royalty buyback
European Lithium has agreed with Exchange Minerals, the holder of a €1.50 per tonne royalty for all mineral products extracted from the Wolfsberg Project, to buy back and cancel the royalty.
It has paid Exchange Minerals €500,000 and within 60 days a further €2 million (at the company’s election of either cash or 15,552,850 fully paid ordinary European Lithium shares, with one attaching option for every two shares issued.
The option will have an exercise price of $0.20 and expires two years from issue.