Name of the Project
Zinnwald lithium project.

Location
South-east Germany.

Project Owner/s
Bacanora Lithium.

Project Description
A feasibility study has confirmed the positive economics and favourable operating costs for the Zinnwald project.

The project has total proven and probable reserves of about 31.20-million tonnes grading 3 004 parts per million (ppm), containing 94 000 t of contained lithium.

Measured and indicated mineral resources are estimated at 35.51-million tonnes grading 3 519 ppm, containing about 125 000 t of lithium.

The study envisages the production of 5 112 t/y of battery-grade lithium fluoride (or about 7 285 t/y lithium carbonate equivalent) – a high-value, downstream product used in the manufacture of lithium battery electrolytes for the European electric vehicle industry.

The process plant design comprises a preconcentration stage to produce an initial concentrate prior to roasting.

The integrated plant has been designed to initially process 522 000 t/y of ore. The plant will scale up to process up to 600 000 t/y of ore over the life of the mine.

The plant design also includes a circuit to produce up to 32 000 t/y of potassium sulphateand/or sulphate of potash by-product through a series of evaporation and precipitation stages.

The feasibility study forecasts a 30-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The feasibility study estimates a pretax net present value, at an 8% discount rate, of €428-million and an internal rate of return of 27.4.

Capital Expenditure
The capital cost of the project is estimated at €158.9-million and includes mining, a processing plant, infrastructure, tailings management and general administration costs, as well as the requisite contingencies.

Planned Start/End Date
Not stated.

Latest Developments
Erris Resources has said that it is in the advanced stages of a transaction to buy the Zinnwald lithium project from fellow London-listed Bacanora Lithium.

The proposed acquisition of 50% of Zinnwald will transform Erris from a discovery-driven consulting and exploration company into Europe’s next lithium producer, Erris chairperson Anton du Plessis has said.

The other 50% of Deutsche Lithium, in which Bacanora has a 50% share, which owns Zinnwald, is held by SolarWorld, which has been in administration since August 2017.

Bacanora will sell its 50% share in Deutsche Lithium plus €1.35-million cash in exchange for new shares in Erris, providing Bacanora with a 70% ownership stake in Erris and a net profit royalty.

The proposed acquisition will constitute a reverse takeover under Aim rules.

If the proposed acquisition proceeds, Bacanora will have the right to appoint two representatives to the board of Erris. In preparation for the acquisition, nonexecutive director Jeremy Taylor-Firth resigned from his position on the Erris Resources board on September 30.

Bacanora CEO Peter Secker has said that the transaction will ensure that Zinnwald receives the attention that it requires.

Key Contracts and Suppliers
UVR-FIA, IBU-Tec, K-UTEC and Ercosplan (metallurgical testwork and process design); KÖPPERN Aufbereitungstechnik (beneficiation process); CEMTEC Cement & Mining Technology (pyrometallurgy); and AMPROMA (hydrometallurgy).

Contact Details for Project Information
Bacanora Lithium, email info@bacanoralithium.com.