European Metals and Czech Republic sign lithium agreement

JOHANNESBURG (miningweekly.com) – ASX- and Aim-listed European Metals on Tuesday signed a memorandum of understanding (MoU) with the Czech Republic over the development of the Cinovec lithium/tin project.

The MoU, which was signed in Usti nad Labem, covers aspects relating to downstream processing, permitting and regulatory approvals, as well as potential future cooperation in the lithium sector.

European Metals explained in a statement that the company and the government would work together to ensure downstream processing opportunities within the Czech Republic were fully exploited. The Industry and Trade Ministry wants extracted lithium ore to be processed into the final intermediate products in the country.

“Our main objective is that lithium is not only obtained, but also mainly processed and utilised within the Czech Republic,” commented Industry and Trade Minister Jiri Havlicek.

European Metals said the MoU expressed the government’s willingness to work together with the company to find suitable locations for processing facilities for the project, which could yield 20 800 t/y of lithium carbonate.

The MoU also opened the way for discussions on potential future cooperation in the lithium sector, including the potential involvement of the government as an equity participant in the Cinovec project.

“We would like to help maximise the creation of the entire manufacturing chain and we are already taking concrete steps in this area. We are looking forward to continuing our discussions with the Czech Republic to identify possible synergies in the areas of mining, processing and utilisation of lithium…,” commented MD Keith Coughlan.

The government and the company further committed to working together to ensure that all permitting and regulatory issues were addressed in a timely manner.

Located near the town of Dubí, Cinovec hosts a globally significant hard rock lithium deposit with a total indicated mineral resource of 348-million tonnes at 0.45% lithium and 0.04% tin and an inferred mineral resource of 309-million tonnes at 0.39% lithium and 0.04% tin, containing a combined seven-million tonnes lithium carbonate-equivalent and 263 000 t of tin.

An initial probable ore reserve of 34.5-million tonnes at 0.65% lithium and 0.09% tin has been declared to cover the first 20 years mining at an output of 20 800 t/y of lithium carbonate. This makes Cinovec the largest lithium deposit in Europe, and the fourth largest non-brine deposit.

The company has completed a preliminary feasibility study and is working on a definitive feasibility study.