European Lithium charges towards DFS after water clarification
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European Lithium has eyes on a definitive feasibility study for its advanced Wolfsberg lithium project in Austria by the end of 2021 or early 2022, after settling a legal dispute.
European Lithium’s (ASX:EUR) wholly owned subsidiary, ECM Lithium AT GmbH, has reached an agreement with Glock Gut-und Forstverwaltung GmbH over prior concerns relating to ground and spring water. Glock Gut-und Forstverwaltung GmbH owns the land to which European Lithium’s mining and exploration licences relate.
An independent expert was consulted and clarified that there was no risk posed by EUR’s project to ground or spring water in the nearby communities of Styria due to the Wolfsberg project’s location on the other side of the Koralpe mountain range.
The clarification and subsequent agreement over the Wolfsberg project clears the way for European Lithium to progress a final feasibility study, expected to be finished late this year or early next.
The company said on the back of the clarity, mine setup could start between late 2022 and early 2023. CEO Dietrich Wanke said the settlement was an important step for the company’s lithium production ambition.
“It is a pleasure and important to continue work with a strong partner in developing the unique and most advanced lithium mining project within Europe,” he said.
“We anticipate to increase the Measured/Indicated and Inferred JORC compliant resource base to be developed into JORC compliant reserves during the ongoing complex DFS work.
“We are convinced that we will achieve our ambitious aim to become one of the first battery-grade lithium producers in Europe, despite current restrictions during the pandemic all over the world.”
Resource extension drilling is currently underway at Wolfsberg. The project’s current Measured and Indicated mineral resource records 6.3 million tonnes at 1.17% lithium oxide. The drilling aims to upgrade a further Inferred 4.98Mt at 0.78% lithium oxide to the Measured and/or Indicated category.
The mineral resource is split across two zones – Zone 1 and Zone 2 – which represent the northern and southern limbs of an anticline.
A prefeasibility study using the existing measured and indicated resource was completed on Wolfsberg in 2018.
The latest developments at Wolfsberg come as the European continent shifts dramatically towards the uptake of electric vehicles on the back of ambitious climate targets.
Wolfsberg is one of the continent’s most advanced lithium projects. It sits 270km south of Vienna in Carinthia and just 20km east of its namesake industrial town which is well serviced by established infrastructure including access to the European motorway and rail network.
EUR raised $7 million through a placement in January to further the project’s development, and believes it has significant potential to meet the needs of a growing appetite for battery metals across the European continent.
This article was developed in collaboration with European Lithium, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.