Czech lithium project bears fruit for European Metals; shares gain 13pc
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Czech Republic explorer European Metals gained on Thursday after reporting significant lithium grades during a recent drilling program at its Cinovec project.
The stock (ASX:EMH) closed 13 per cent higher at 76c after drilling at its Cinovec South deposit confirmed lithium, tin and tungsten.
Cinovec hosts the biggest lithium resource in Europe and one of the biggest undeveloped tin resources globally.
A feasibility study found it had the potential to be the lowest-cost hard rock lithium producer globally.
European reported particularly strong results — 205 metres averaging 0.44 per cent lithium oxide — from two drill holes in the western part of the deposit.
The intercept included 70 metres at 0.58 per cent lithium oxide, 13 metres at 0.19 per cent tin, six metres at 0.58 per cent tin and three metres at 1.02 per cent tin and 0.179 per cent tungsten.
“The results from this drilling will allow the company to convert additional resources to the ‘indicated’ status and further optimise the Cinovec South mine plan,” European Metals chief Keith Coughlan told investors.
Mineral resources are categorised in order of increasing geological confidence as inferred, indicated or measured.
“The geological and resource model upgrade is now underway,” Mr Coughlan said.
The project lies 100km from Prague on the border with Germany in a prime position to access customers such as electric car and battery makers.
Cinovec lies in the Krusne Hore Mountains, a historic mining region where artisanal mining dates back to the 1300s.
European Metals, which is also listed on London’s AIM and Frankfurt Stock Exchange, has a market cap of about $60 million.