European Metals (ASX:EMH) has identified a path to higher production at its Cinovec Lithium Project in the Czech Republic.
The junior explorer, which has a market capitalisation of $31.1 million, says planned production of battery grade lithium hydroxide monohydrate increased by 42% to 41,658 tonnes per annum, or 36,670 tonnes per annum of battery grade lithium carbonate.
This follows a “substantial” 42% increase in planned run of mine (ROM) ore production from 2.25 million tonnes per annum to 3.2 million tonnes per annum.
European Metals says this increase enables the Cinovec Project to benefit from “significant economies of scale” that will be confirmed in the Definitive Feasibility Study now due for completion in mid-2025.
Executive Chairman Keith Coughlan says the work on the production increase was part of the DFS to improve the economics of the project.
“This significant increase in planned lithium output will lead to additional recognition of how important the Cinovec Project is and the role the project will play in enabling the EU to reach its goals of lithium self-sufficiency by 2030,” he says.
The increase in production can be achieved without the need to increase the size of the footprint of the underground mine at surface.
In the past the critical constraint on mine production capacity was the size of the proposed Dukla processing plant site, at 24 hectares.
The Prunéřov EPR1 site which is now to be used is 36 hectares and enables increased ROM production.
The mine plan for the increased ROM planned production is the same as the previous mine plan except that it is mined faster and inferred JORC resources are brought into production in the last eight years of mining.
The news pushed the company’s shares up 6.7% to $0.16 on Friday (20 December).
Write to Angela East at Mining.com.au
Images: European Metals
