What’s better than a lithium resource located right smack in the middle of an emerging battery manufacturing hub? The answer’s an even larger lithium resource of course.

That’s the enviable position European Lithium (ASX:EUR) has found itself in after cranking up Measured, Indicated and Inferred resources at its flagship Wolfsberg project in beautiful Austria by 11% to 12.9Mt grading 1% lithium oxide.

This increased global resource follows on from EUR moving a significant chunk of its previous resource to the higher confidence Measured and Indicated resource last month, which remains at 9.7Mt at 1.03% Li2O.

“These results are another step in the right direction for the Wolfsberg project,” chairman Tony Sage said.

“An increase in resources means an extension of mine life from what was previously announced in the PFS.”

Location, Location, Location

The Wolfsberg Lithium Project sits 270km south of Vienna in Carinthia and just 20km east of its namesake industrial town — a well serviced locale surrounded by established infrastructure including access to the European motorway and rail network.

That makes Wolfsberg ideally suited to fulfill Europe’s growing appetite for battery metals as adoption of electric vehicles and zero emissions energy gains traction.

EUR’s 2018 pre-feasibility study, based on previous Measured and Indicated resources of 6.3Mt at 1.17% lithium oxide, outlined a project capable of producing 10,129tpa of battery-grade lithium hydroxide at a cost of US$6,561.20 per tonne, including sales of by-products in the accelerated case.

This will generate net present value – a measure of a project’s profitability – of US$339.4m ($476m).

While attractive, these numbers are looking decidedly conservative given both the increased resources and the dramatic spike in pricing.

Lithium hydroxide is currently going for more than US$30,000/t, well above the US$16,000/t price assumptions used in the pre-feasibility study (PFS).




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.