Name of the Project
Cinovec lithium project.

Location
The project is located in the Krusne Hory mountains, which straddle the border between the Czech Republic and the state of Saxony, in Germany.

Project Owner/s
European Metals Holdings.

Project Description
European Metals Holdings has updated the process flowsheet previously developed for the project to allow for lithium hydroxide production. The project has total indicated and inferred mineral resources of 695.9-million tonnes grading 0.195% lithium, 0.014% tungsten and 0.04% tin. Studies are based on only 9.3% of indicated mineral resource and a mine life of 21 years, processing an average of 1.68-million tonnes a year of ore.

The geometry of the payable ore is largely flat or shallow-dipping and massive enough to mechanise using longhole open stope mining. The mine will be accessed through a twin decline system. A conveyor will be installed from the underground primary crusher on 590 m elevation to the surface in the conveyor decline. The second decline will be used as a service decline for workers, material and as an intake airway. The project aims to produce about 25 267 t/y of battery-grade lithium oxide.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $1.11-billion and an internal rate of return of 28.8%.

Capital Expenditure
The project is estimated at $482.6-million.

Planned Start/End Date
The project is expected to take two years to complete.

Latest Developments
European Metals and Czech power utility CEZ Group have reached a conditional agreement regarding a potential strategic partnership and significant investment in the Cinovec project.

Upon the expected conclusion of the agreement by early 2020, CEZ will become a 51% shareholder in Geomet, a European Metals Czech subsidiary and holder of the rights over the project for about €34-million.

The agreement, which is still subject to the successful completion of due diligence, shareholder and other approvals, will result in Cinovec’s being fully funded to a construction decision and will assist with the integration of Cinovec into the European market.

The next steps for the company will be detailed engineering and completing the formal feasibility study, followed by the bankable stage. This is expected to take about 18 months, towards mid-2021.

Following this, a two-year construction period will start at Cinovec, with the plant operational by mid-2023.

Key Contracts and Suppliers
Widenbar and Associates (resource estimation); Bara Consulting (mine design and scheduling); Ausenco (front-end communition and beneficiation); and Hath Associates (lithium carbonate and hydroxide plants).

On Budget and on Time?
Not stated.

Contact Details for Project Information
European Metals Holdings, tel + 61 8 6245 2050.