Name of the Project
Wolfsberg lithium project.

Location
The project is located in Carinthia, Austria.

Client
European Lithium.

Project Description
The Wolfsberg deposit contains proven and probable reserves of 7.44-million tonnes grading 0.71% lithium oxide. Measured and indicated resources have been estimated at 6.3-million tonnes grading 1.28% lithium oxide, and inferred resources at 4.68-million tonnes grading 0.78%.

The project envisages the development of an underground mine producing, in the base case, an average of about 620 000 t/y run-of-mine (RoM) from stoping and development over 12 years of production.

With additional equipment and improved scheduling, the mining rate could be increased to up to 720 000 t/y, and further to 800 000 t/y, with additional indicated resources to support the higher mining rate.

Ore sorters will be used to reject waste from the RoM so that concentrator feed will average about 400 000 t/y.

The concentrator will produce an average of 55 400 t/y spodumene concentrate with an average of 114 000 t/y feldspar and 71 000 t/y quartz as by-products.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value (NPV), at an 8% discount rate for the base case, of $263.2-million, which increases to $339.4-million for the accelerated case, and an internal rate of return of 21.2%.

Value
Capital expenditure is estimated at $388.58-million.

Duration
The project schedule is estimated 25 months from the release of funding and receipt of permits to full production.

Latest Developments
A further production increase to 800 000 t/y will be studied in the definitive feasibility study, following the declaration of increased indicated resources, and it is expected that this will increase the NPV further.

Key Contracts and Suppliers
DRA Global (PFS); Dorfner Anzaplan (metallurgical testwork); SRK Consulting (mining engineering and capital, operating cost estimates, geotechnical engineering, hydrogeology and ore reserves); Paterson & Cooke (tailings design with capital and operating cost estimate); Umweltbüro (environmental study); Benchmark Minerals Intelligence (marketing study lithium carbonate/hydroxide); Orykton Consulting (marketing study spodumene and by-products); and Al Maynard & Associates (geology from independent geology report).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
European Lithium, tel +61 8 6181 9792 or email info@europeanlithium.com.