European Lithium on track to deliver Wolfsberg DFS into lithium bull market

European Lithium remains well placed to deliver the definitive feasibility study for its Wolfsberg Lithium Project into a buoyant lithium market, with the landmark study on track for completion at the end of Q1, 2022.

European Lithium (ASX:EUR) is positioning itself well in the race to be Europe’s first domestic supplier of lithium hydroxide, and is boosting its investment profile to capitalise on the expected uplift in interest as it moves to open a listing on the US OTC market next month.

It comes at a time of rising interest in lithium, with prices for spodumene and lithium chemical soaring towards record highs on the back of rising electric vehicle production and sales.

That would give it direct exposure to investors in three jurisdictions, in Europe via its Frankfurt listing, on the ASX, and in the important American market.

“After the success of our Frankfurt listing to increase our European shareholder base we anticipate the OTC listing will open the door to the huge and sophisticated US market,” European Lithium chairman Tony Sage said.

Drilling done at Wolfsberg, assays and testwork to come

Assay results, from a major resource and reserve drill out at Wolfsberg, are expected to be released next month. These should enable European Lithium to increase its JORC2012 resources at the project.

The drilling program is also expected to show extensions to the Austrian project’s orebody.

Wolfsberg currently boasts a resource of 10.98Mt at 1% lithium oxide, with measured and indicated resources 6.3Mt at 1.17%Li2O used as the basis for its 2018 DFS.

The Company is continuing to process ore from bulk trial mining from the project through a purpose-built pilot processing plant built in conjunction with Dorfner Anzaplan in Germany.

That testwork will be critical to optimising the metallurgical process to convert the Wolfsberg pegmatites into lithium hydroxide, with Dorfner set to complete the report by the end of 2021, enabling the DFS to be completed by the end of the March Quarter.

“I’m excited and impressed with the progress we have achieved given the difficulties experienced due to the Covid-19 pandemic over the past 20 months,” European Lithium CEO Dietrich Wanke said.

“We are nearing the end of the DFS process and look forward to the construction phase.”

Financing discussions under way

Wanke said European Lithium was in talks with banks on the continent about financing the Wolfsberg development.

“The company continues to engage with relevant stakeholders regarding the development of the project that includes various European banks to discuss project financing,” he said.

“The lithium space is very active, and the company is regularly approached with further opportunities to increase our lithium footprint in Europe.”

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.