PERTH (miningweekly.com) – A preliminary feasibility study (PFS) has confirmed that the Cinovec project, in the Czech Republic, can be developed into a low-cost lithium carbonate producer, ASX- and Aim-listed European Metals reported on Wednesday.
At a capital cost of A$393-million, the project could deliver some 20 800 t/y of battery grade lithium carbonate, with a mine life of some 22 years.
Around 1.7-million tonnes a year of ore will be mined and crushed in the underground mine, prior to being stockpiled to feed the plant.
The PFS estimates that the project will have a net present value of A$540-million post tax, and an internal rate of return of 21% post tax, with the net overall cost of production estimated at A$3 483/t lithium carbonate.
“The study highlights the potential for Cinovec to be the world’s lowest-cost hard rock producer of lithium carbonate due to its unique geological and metallurgical characteristics,” said European Metals MD Keith Coughlan.
“These results coupled with the macro outlook for the lithium industry, particularly in Europe, highlight the attractiveness of the project. As a result, we will move directly into a definitive feasibility study to accelerate the project towards development.”
The PFS is based on mining 34.5-million tonnes of material, all of which is classified as indicated mineral resource. The tonnage used in the PFS represented only 5.2% of the total mineral resource and 9.9% of the indicated mineral resource at the Cinovec project.