European Metals Holdings has announced a significant reduction of pre-production capital costs, based on a review of the scoping study.
The review is being undertaken as part of the pre-feasibility study and has resulted in the identification of significant reductions to the previously-released capital expenditure estimations for the Cinovec lithium-tin project.
- Project economics enhanced
- Significant reduction in CAPEX costs
- USD 38 million savings on mining CAPEX costs
- USD 47 million savings on lithium plant CAPEX costs
- Improved design and operating procedures based on independent studies and market benchmarks
- Savings, designs and operating procedures to be included in improved pre-feasibility study
European Metals chief executive Keith Coughlan said: "The current environment provides an exceptional opportunity for European Metals with low capital costs and increasing prices and demand for lithium carbonate. Cinovec is currently the largest lithium deposit in Europe and conveniently located in close proximity to multiple end-users. Enhanced economics are making the project even more attractive.
"The reduced capital requirements that we have achieved improve the project economics and shorten the payback period. This assists greatly in attracting development finance.
"We will continue to report on improvements to aspects of the pre-feasibility study. Metallurgical testing and test work on the front end of the proposed process route are progressing with positive results that we expect to announce shortly.
"We are very pleased with the progress on all facets of the pre-feasibility study currently being completed on Cinovec. Significant improvements are evident in all aspects and will result in further enhancments to project economics."