Zinnwald reports progress on wholly-owned lithium project

8th Jun 2022 11:28

(Sharecast News) - Germany-focussed lithium developer Zinnwald updated the market on its operations on Wednesday, as it advanced its wholly-owned Zinnwald Lithium Project.

The AIM-traded firm said it had recently improved the project's economics through process testwork. conducted in conjunction with third-party engineering groups/

An in-fill drilling programme at the Zinnwald deposit, to study the mining scale variability of the ore, was meanwhile ready to start, subject to final permits.

The company said an exploration drill campaign was planned, to test historic drill data and determine the resource potential of the Falkenhain exploration licence as potential feed into the Zinnwald plant.

Zinnwald said it had engaged SRK Consulting UK to provide competent person support for the drill campaign and geometallurgy work, while it had also joined the EU-funded 'Horizon Europe' exploration information systems project, focussed on developing new exploration techniques.

The company said it had strengthened its team in Germany, adding skills in "several key disciplines" including geology, mining and logistics, and had also advanced plans to deliver a bankable feasibility study based on the new project parameters within 18 months, subject to financing and continued favourable progress on "all major fronts".

Zinnwald said it expected to provide "greater clarity" on the revised project parameters in the form of a preliminary economic assessment "as soon as the company can".

As of Wednesday morning, the firm said it had €6.1m (£5.22m) of funds on hand.

"Our objective is to deliver a bankable feasibility study, which in turn will take us closer to delivering a much-needed supply of lithium hydroxide to the European market," said chief executive officer Anton du Plessis.

"The secular demand growth picture underpinned by ambitious, government mandated climate change goals together with limited supply response continues to underpin the robust fundamentals for the sector despite broader economic headwinds.

"To this end, we are very pleased with the continued results from the project - not only have we undertaken extensive testwork focussed on producing battery grade lithium hydroxide. but also on optimising all steps of the production process."

Du Plessis said the firm was also optimising the plant layout, mine plan and infrastructure, all driving improved project economics.

"I look forward to providing further updates on our progress as we focus on ensuring the underlying value of our compelling asset is more fully reflected in our share price."

At 1254 BST, shares in Zinnwald Lithium were down 4.55% at 9.55p.

Reporting by Josh White at Sharecast.com.