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  – in the base case – the development of an underground mine producing 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 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, 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 at 25 months from the release of funding and receipt of permits to full production.

Latest Developments
European Lithium has raised A$2.1-million to continue to advance its Wolfsberg project.

The company reported in September that the share placement at $0.045 a share had been strongly supported by several existing shareholders and institutional investors.

Funds raised from the placement will be applied to metallurgical testwork of bulk samples from the Wolfsberg project to qualify product specifications for offtake partners and end-use applications in support of the company's definitive feasibility study, and to redeem convertible notes issued to Winance with a face value of $500 000.

Key Contracts, Suppliers and Consultants
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).

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