European Metals cuts Cinovec cost

PERTH (miningweekly.com) – Metals developer European Metals has decreased the expected capital at its Cinovec lithium/tin project, in the Czech Republic, by some 33%.

The company said on Tuesday that the Cinovec project economics, detailed in the scoping study, had been enhanced by a review of the study, as part of the prefeasibility work.

Savings of $47-million have been reported at the proposed lithium carbonate plant, and a further $38-million in mining costs, bringing the total preproduction capital costs to $169-million, as opposed to the $254-million estimated by the scoping study.

“The current environment provides an exceptional opportunity for European Metals with low capital cost and increasing prices and demand for lithium carbonate,” said European Metals CEO Keith Coughlan.

“Cinovec is currently the largest lithium deposit in Europe and conveniently located in close proximity to multiple end-users. Enhanced economics are making the project even more attractive.”

The 2015 scoping study found that a two-million-tonne-a-year operation could deliver 4 200 t/y of tin, 800 t/y of tungsten, and 19 400 t/y of lithium carbonate.

The significant reduction in capital costs for the Cinovec project, was achieved through modifications to the planned mine design. Based on historic data and the company’s refined geological model, European metals identified a higher-grade lithium zone in the northern part of the deposit, which is relatively closer to surface.

The mine redesign includes haulage access through a shorter decline and no requirement to refurbish the historic Cinovec No 1 shaft.

The lithium carbonate plant was also redesigned to remove the sulphuric acid production plant, as there is currently an oversupply in Europe, which means that it is cheaper to purchase acid rather than producing it at site.