Granted Additional Exploration Licence

RNS Number : 3103C

Zinnwald Lithium PLC

18 June 2021

 

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation. With the publication of this announcement, this information is now considered to be in the public domain.

Zinnwald Lithium plc / EPIC: ZNWD.L / Market: AIM / Sector: Mining

18 June 2021

Zinnwald Lithium plc ("Zinnwald Lithium" or the "Company")

Granted Additional Exploration Licence

Zinnwald Lithium plc, the German focused lithium development company, i s pleased to announce that its 50%-owned subsidiary, Deutsche Lithium GmbH ('Deutsche Lithium'), has been granted a five-year Exploration Licence (the 'Sadisdorf Licence') covering approximately 225 hectares ('ha') in the Erzgebirge or Ore Mountains region of Saxony, Germany.  The Sadisdorf Licence has the potential to provide additional resource upside to the Company's advanced Zinnwald Lithium Project (the "Project") and is in line with its strategy to become an important supplier to Europe's fast-growing lithium sector.

Overview

· The Sadisdorf Licence, which has historically been mined for tin and copper and includes a significant lithium resource, further increases Deutsche Lithium's resource base and potentially the lifetime of the planned mine and mineral processing operations

· Historical exploration work at the Sadisdorf Licence by previous licence holders resulted in a 2017 historic JORC compliant inferred mineral resource of 25 million tons with an average grade of 0.45% Li₂O (average 2,053 parts per million ('ppm') lithium head grade).

· Strategy to advance the Sadisdorf Licence and evaluate the viability of combining resources with the Project

· The Company continues to advance other key work streams on the Project in Germany so as to capitalise on the strong market conditions driven by the green metals revolution

Zinnwald Lithium CEO, Anton du Plessis, commented:  "The Sadisdorf Licence is an excellent addition to the Company which, following further work we will undertake in due course, has the potential to increase the resource base and lifetime of the planned mine and mineral processing facilities related to our Project. Given that the lithium-ion battery is most likely to lead the EV transition, we are ideally positioned to contribute to this fast-evolving market with an advanced asset in the centre of Europe."

Details

Deutsche Lithium has been granted the Sadisdorf Licence, which covers circa 225 ha in the Erzgebirge or Ore Mountains region of Saxony, Germany and is valid until 30 June 2026.  The license area is located circa 12km NNE of the Company's Zinnwald license area, and forms part of the same geological unit that hosts the historic Li-Sn-W deposits at Zinnwald, Falkenhain and Altenberg. The 5-year exploration licence was issued to Deutsche Lithium by the Saxony State Mining Authority (Sächsisches Oberbergamt) in accordance with §7 of the German Mining Act (Bundesberggesetz). As is standard practise in Germany, the granting of the licence is subject to there being confirmation of no valid objection to its granting and the Company anticipates this confirmation being received by mid-July.

The deposit at Sadisdorf has historically been mined for tin and copper.  More recently, exploration work has been undertaken by Tin International AG and Lithium Australia NL for tin and lithium, respectively.  In December 2017, Lithium Australia published a 2017 historic JORC compliant inferred mineral resource of 25 million tons with an average grade of 0.45% Li₂O (average 2,053 ppm lithium head grade).

The Company's key focus remains the development of its principal asset, the 50% owned, advanced Zinnwald Lithium Project in Germany, where it is advancing a defined development plan aimed at constructing and operating a mine and processing plant to become an important supplier to Europe's fast-growing lithium sector.

Deutsche Lithium plans to investigate the Sadisdorf Licence over the next five years and to assess its potential to enhance the Project.

ENDS

For further information go to www.zinnwaldlithium.com or contact:

Anton du Plessis	Zinnwald Lithium plc	[e-mail]
David Hart/Liz Kirchner	Allenby Capital (Nominated Adviser)	[phone]
James Pope/Andy Thacker	Turner Pope Investments (TPI) Ltd (Broker)	[phone]
Isabel de Salis/Selina Lovell	St Brides Partners (Financial PR)	[e-mail]

 

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