TIDMZNWD
RNS Number : 2702H
Zinnwald Lithium PLC
23 November 2022
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the UK Market Abuse Regulation.
With the publication of this announcement, this information is now
considered to be in the public domain.
Zinnwald Lithium plc / EPIC: ZNWD.L / Market: AIM / Sector:
Mining
23 November 2022
Zinnwald Lithium plc
("Zinnwald Lithium" or the "Company")
Operational update
Zinnwald Lithium plc, the German focused lithium development
company , is pleased to provide an operational update as it
advances its 100% owned Zinnwald Lithium Project (the "Project") in
Germany towards its goal of a materially expanded Mineral Resource
Estimate ("MRE") and completion of a Bankable Feasibility Study
("BFS") by the end of 2023.
HIGHLIGHTS
-- Completed 13 in-fill drillholes and 4,311m at core Zinnwald
license - programme aims, inter alia, to assess the potential to
accommodate greater mining capacity for expanded lithium output
o First assays from four drillholes include long mineralised
intervals such as 2,503ppm Li over 86.4m and 1,846ppm Li over 121m
within which there are several high-grade core intervals including
of 4,286ppm Li over 4.6m and 4,345ppm Li over 6.5m
o Initial drill results support the plan to consider the Albite
Granites (previously referred to as "Ore Type 2" in the recent
Preliminary Economic Assessment ("PEA")) for the Mineral Resource
and future mine plan, with potential to materially increase the
total Mineral Resource
-- Awaiting initial assay results at Falkenhain exploration
license where the first drillhole has been completed to a depth of
600m
-- Extended exploration license at Falkenhain by three years
-- Advancing testwork related to production processes
o Confirmed ratios of high grade technical / fertiliser grade
by-product that can be achieved, which will form the basis for
higher level engineering studies
o Additional tests being undertaken to confirm the mineral
processing assumptions for Albite Granites as part of the future
mining feed
-- Completed environmental surveys at areas under consideration
for the Project, which will be utilised to determine the scope of
the Environmental Impact Assessment ("EIA")
-- Strengthening relationships with leading partners:
o SRK Consulting UK Ltd - providing Competent Person ("CP")
support and guidance for the Project
o TheiaX GmbH - assisting with cutting edge hyperspectral
scanning of drill-core to be used in the geo-metallurgical
optimisation of the Project
o Metso Outotec - providing expert support in advancing the
mineral processing concept and engineering
o Epiroc - developing plans for an electrically powered mining
operation
o GICON / GLU - supporting in the permitting process of mining
assets in the state of Saxony
-- As at the date of this announcement, the Company has funds on hand of EUR4.4 million
Zinnwald Lithium CEO, Anton du Plessis, said: "We continue to
make excellent progress advancing multiple workstreams, including
drilling, testwork and permitting, with the aim of publishing a BFS
by the end 2023; this will further quantify the economic returns of
the recently published PEA, which reported a pre-tax NPV8 of
US$1,605m, IRR of 39.0%, $192m EBITDA and a payback of 3.3
years.
"Accordingly, initial results from an in-fill drill programme at
our key deposit to optimise the mine plan and build the scale of
our lithium hydroxide output have supported the potential to apply
larger scale mining methods that can deliver higher economic
returns. Furthermore, testwork programmes related to mineral
processing and by-product production are making headway, while
studies to advance the various permit applications including the
EIA are also advancing. We hope to keep up the pace of activity as
we move into 2023."
DETAILS
Zinnwald Lithium has made good progress advancing its 100% owned
Zinnwald Lithium Project in Germany as it looks to become an
important supplier of lithium hydroxide to Europe's fast-growing
battery sector.
The Company's plan is to complete a BFS by the end of 2023,
subject to financing, with a key interim stage being the completion
of an updated MRE. The Project's historic MRE was based solely on
the Greisen beds and excluded the Albite Granites. One of the goals
of the ongoing in-fill drilling programme is to materially increase
the MRE, which could, in turn, accommodate greater mining capacity
for an expanded Li-product output. Historic estimates quantified
the tonnage potential of the Albite Granites alone at above 200Mt,
an estimate that the Company is working to verify.
1. Resource Development
Zinnwald Lithium Deposit
The Company is progressing an in-fill drilling campaign at its
core Zinnwald Lithium license area (see RNS dated 27 July 2022) to
study the mining scale variability of the ore with the view of
applying larger scale mining methods.
To date a total of 4,311m over 13 drillholes have been completed
with assays received for 592 m in four of these drillholes.
Drilling results have shown a high degree of grade continuity
within the Albite Granite lithology. These also include significant
levels of lithium ("Li") bearing mineralisation that were excluded
from the previous MRE from 2018. The Company intends to further
investigate the option to include this material in a future update
to the MRE.
First assays include long mineralised intersections such as
2,503ppm Li over 86.4m and 1,846ppm over 121m as well as high grade
core intervals of 4,345ppm over 6.5m and 4,243ppm over 9.0m.
Selected assay intervals are included below. While the first
drill-holes have focussed on the western side of the deposit, they
confirm the prospect of applying larger scale mining methods.
The Albite Granite rock indicates favourable geotechnical
strength parameters with good core recovery and Rock Quality
Designation ("RQD") values typically above 90. This is a crucial
metric for the application of high productivity mining methods,
which are expected to be a key driver of the Project's potential
economic returns. One of the objectives of this drill campaign is
to further strengthen the geotechnical dataset of the deposit,
which will be a key input into future mine planning activities.
On-going hyperspectral results are now being gathered in
conjunction with the logging, cutting and sample preparation of the
drill core. This includes the application of AI-driven computer
processing of hyperspectral images of drill core. The inclusion of
geo-metallurgical testing at this stage is critical for the
optimisation of mineral processing design and mine planning.
Highlights of Zinnwald In-fill drilling
To test priority geological targets, the Company decided to
focus the first drill-holes on the western side of the deposit,
with over 300m long holes aimed to identify the contact between the
Rhyolite host rock and the Albite Granite, which hosts the Greisen
style mineralisation. In addition, the distribution of high-grade
Greisen pockets where grades commonly exceed 4,000ppm Li have been
of interest.
Continuous mineralisation intercepts exceeding 1,000ppm Li were
selected to highlight the dimensions of the mineralisation. The
high-grade selection was based on lithology and a minimum length of
four meters.
The first results from this programme include the following and
confirm the expectations regarding high grades in the Greisen:
-- Drillhole ZGLi- 024 - 135.79-227.00m (91.21m) Average 1,786ppm Li
-- Drillhole ZGLi- 025 - 93.00m-97.60m (4.60m) Average 4,286ppm Li
-- Drillhole ZGLi- 025 - 111.00-232.00m (121.00m) Average 1,846ppm Li
-- Drillhole ZGLi-026 - 166.60-253.00m (86.40m) Average 2,503ppm Li
o Including 209.00-218.00mm (9.00m) Average 4,243ppm Li
-- Drillhole ZGLi-028 - 54.77-107.60m (52.83m) Average 2,587ppm Li
o Including 74.47-81.00m (6.53m) Average 4,345ppm Li
Falkenhain Exploration drilling
During September, the Company was informed by the Saxony Mining
Authority ("SOBA") that its application to extend its exploration
license at Falkenhain was successful. The exploration license is
now valid until the 31 December 2025. This exploration licence is
located 7km north from the core Zinnwald License.
The Company is currently undertaking an exploration drill
programme consisting of ten diamond drill holes at the Falkenhain
license to test historic drill data and better determine the
deposit's resource potential. The first exploration drill hole has
been completed to a depth of 600m and the Company is awaiting the
initial assay results.
2. Testwork related to Production Processes
The technical scoping study for potassium sulphate ("SOP) and
precipitated calcium carbonate ("PCC") product optimisation has
been completed, which confirmed the ratios of high grade technical
/ fertiliser grade SOP products that can be achieved. This work
specifically considered the operational aspects of producing
various quantities of SOP products and will form the basis for
higher level engineering studies.
Additional tests to further confirm the mineral processing
assumptions for the Albite Granites as part of the future mining
feed are being undertaken at UVR FIA GmbH in Freiberg. This
principally considers the processing characteristics, mineralogy,
and geo-metallurgy of the Albite Granite, which also holds
significant amounts of lithium bearing mineralisation.
3. Permitting / ESG / Sustainability Matters
Permitting
The Company has started the process to secure its Mandatory
Framework Operation Plan ("MFOP") permit required for the
commencement of all operations. The MFOP permit includes all
required environmental permits.
Environment
In line with its strict environmental policy, the Company is
closely monitoring site conditions with regards to current drilling
activities at the Zinnwald and Falkenhain licenses and frequent
coordination meetings with the regional nature protection agency
and environmental surveyors have been held. The preservation of the
existing nature and areas of recreation is a key concern to the
Company.
Additionally, this month, environmental surveys were completed
at areas under consideration for the Project. The surveys will be
utilised to determine the scope of the Environmental Impact
Assessment ("EIA").
Social
The Company maintains a positive relationship with the local
community and continuously engages with various local organisations
and authorities. As well as conducting a public information event
about the Project in Zinnwald, local elected representatives are
continuously updated about the progress of the drill-campaign and
the Company's local site office in Zinnwald is almost permanently
open to address any questions by local stakeholders. Furthermore,
the Company has donated to several local associations and public
institutions such as the local Kindergarten and the volunteer fire
brigade.
4. Partnerships
SRK Consulting UK Ltd ("SRK")
SRK is providing CP support and guidance for the campaign. SRK
is an independent, international consulting practice providing
focused advice and solutions to clients, mainly in the earth and
water resource industries offering specialist services for the
entire lifecycle of a mining project from exploration to closure
and across the full spectrum of mineral commodities.
TheiaX GmbH ("TheiaX")
Following on from initial tests completed earlier in 2022, the
Company engaged TheiaX to carry out a large-scale tailored
hyperspectral imaging and characterisation of historic and new
drill cores from both the Zinnwald and Falkenhain license areas.
When identifying and mapping the distribution of key minerals,
TheiaX's products can be used to derive geometallurgical
parameters.
TheiaX has its headquarters in Freiberg and is a recently
established start-up company spun out from the Helmholtz Institute
Freiberg for Resources Technology.
Epiroc Rock Drills AB ("Epiroc")
As announced 1 November 2022, the Company entered into a
non-binding Memorandum of Understanding with Epiroc, a leading
provider of electric and battery-operated mining solutions, to
collaborate in the development of a state-of-the-art mine at the
Project . Designing an underground mine to be operated with fully
electrical equipment from the outset can provide material
environmental and cost benefits in terms of reduced ventilation
requirements, lower lifetime operating costs.
Metso Outotec Corporation ("Metso Outotec")
The Company has engaged Metso Outotec to assist it in further
refining its process flow sheet ahead of delivery of the BFS. The
scope of work includes verification of historic engineering, the
development of a conceptual study to produce engineering
deliverables to enable a smoother transition into basic engineering
and support of further development stages of the Project. Within
this, state-of-the-art solutions for water recycling and energy
optimisation across mineral processing, pyro- and
hydrometallurgical processes are essential deliverables for the
Project.
Metso Outotec is a frontrunner in sustainable technologies,
end-to-end solutions and services for the aggregates, minerals
processing and metals refining industries globally. Headquartered
in Helsinki, Finland, and listed on the Nasdaq Helsinki, Metso
Outotec employs over 15,000 people in more than 50 countries and
its sales for 2021 were about EUR 4.2 billion.
GICON(R) Großmann Ingenieur Consult ("GICON Group")
For support in all permitting matters, the Company has engaged
Geologische Landesuntersuchung GmbH Freiberg ("GLU"), part of the
GICON Group, which has extensive experience in the permitting
process of mining assets in the state of Saxony.
The GICON Group is a group of independent, internationally
operating engineering service providers. GICON's motto is
"Sustainable and Innovative", and the companies of the Group
provide complete interdisciplinary engineering services "from one
source". GLU is an engineering service provider with broad
geological, mining, and geotechnical expertise, that can plan and
implement complex interdisciplinary projects. GLU contribute not
only methodological, scientific, and technical know-how, but also
extensive experience in the fields of mine planning and raw
material exploration, as well as from the specialist areas of
engineering geology and geotechnics.
5. Outlook
The Company's near-term priorities are the completion of the
in-fill and exploration drill campaigns. In addition, it is focused
on the delivery of a BFS by the end of 2023, further building on
the technical concept detailed in the PEA published in September
2022. The PEA demonstrated a robust Project with very attractive
economics and the team is working hard to advance this to the next
stage.
As at the date of this announcement, the Company has funds on
hand of EUR4.4 million.
The technical information in this announcement has been reviewed
on behalf of Zinnwald Lithium by Martin Pittuck CEng, FGS, MIMMM of
SRK Consulting. Mr Pittuck is a Corporate Consultant of SRK
Consulting Ltd. Mr Pittuck has sufficient experience relevant to
the style of mineralisation and type of deposit under
consideration, and to the activity which he is undertaking to
qualify as a Competent Person in accordance with the guidance note
for Mining, Oil & Gas Companies issued by the London Stock
Exchange in respect of AIM Companies, which outlines standards of
disclosure for mineral projects.
. *ENDS*
For further information visit www.zinnwaldlithium.com or
contact:
Anton du Plessis Zinnwald Lithium info@zinnwaldlithium.com
Cherif Rifaat plc
David Hart Allenby Capital
Freddie Wooding (Nominated Adviser) +44 (0) 20 3328 5656
---------------------- --------------------------------
Michael Seabrook Oberon Capital Ltd
Adam Pollock (Broker) +44 (0) 20 3179 5300
---------------------- --------------------------------
Isabel de Salis St Brides Partners zinnwald@stbridespartners.co.uk
Catherine Leftley (Financial PR)
---------------------- --------------------------------
Notes
AIM quoted Zinnwald Lithium plc (EPIC: ZNWD.L) is focussed on
becoming an important supplier of lithium hydroxide to Europe's
fast-growing battery sector. The Company owns 100% of the Zinnwald
Lithium Project in Germany, which has an approved mining licence,
is located in the heart of Europe's chemical and automotive
industries and has the potential to be one of Europe's more
advanced battery grade lithium projects.
Reference to Ore / Lithology Types
In historic reporting and regulatory news releases, the Albite
Greisen mineralisation, commonly surrounding the higher-grade
greisen ore material has been referred to as "Ore Type 2". In this
release, this material will be referred to as Albite Granite.
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