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
The project is a joint venture (JV) between EMH and power distribution company CEZ.

Project Description
EMH 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 and 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
EMH's wholly owned subsidiary Geomet has entered into a value-added services agreement with KIC InnoEnergy (EIT InnoEnergy) for the miner’s Cinovec lithium project.

The project has recently received funding of €29-million, taking the project through to a construction decision.

The purpose of the financing agreement is to support the construction financing and ultimate commercialisation of Cinovec, the largest hard-rock lithium deposit in Europe, with EIT InnoEnergy to assist EMH in the sourcing of construction finance, securing grant funding and with offtake introductions and negotiations.

Based on Cinovec's economics, long mine life and proximity to the key manufacturing electric vehicle development centres in Europe, the project is well positioned to work with EIT InnoEnergy and other European organisations to ensure the timely development of the project to assist in meeting the expected significant increase in this demand.

Under the value-added services agreement, EIT InnoEnergy will assist Geomet in securing construction finance for Cinovec, potentially up to the full amount of the capital expenditure and working capital required to put the mine and lithium chemical plant into production.

It will also secure grant funding from applicable European Union national or regional grant schemes for project enhancement studies and economic development objectives for development of green/sustainable energy projects.

The agreement will also assist in developing relationships with EIT InnoEnergy's offtake partners to facilitate and advise on the negotiation of offtake agreements, potentially including offtake prefinancing, and provide general support including education, communication and societal and environmental acceptance.

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

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