TIDMZNWD
RNS Number : 5079Y
Zinnwald Lithium PLC
07 September 2022
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
7 September 2022
Zinnwald Lithium plc
("Zinnwald Lithium" or the "Company")
Preliminary Economic Assessment Reports Robust Economics for
German Lithium Project
Zinnwald Lithium plc, the German focused lithium development
company, is pleased to announce that a NI 43-101 standard
Preliminary Economic Study ('The Technical Report' or 'PEA') has
been published on its integrated Zinnwald Lithium Project in
Germany ('the Project') focused on supplying battery grade lithium
hydroxide ('LiOH') to the European battery sector.
HIGHLIGHTS
Robust economics with upside to expand production:
-- Pre-tax NPV (at 8% discount) of US$1,605m
-- Pre-tax Internal Rate of Return ('IRR') of 39.0%
-- 3.3 years payback period (post commencement of production)
-- US$336.5m initial construction capital cost
-- US$6,200 Life of Mine ("LOM") operating costs per tonne LiOH (after by-product credits)
-- US$320.7m Average Annual LOM Revenue
-- Post-tax NPV (at 8% discount) US$1,012m
-- Post-tax IRR 29.3%
-- US$192.0m Average Annual EBITDA with co-products
-- US$22,500 per tonne of battery-grade LiOH in the financial model used for this PEA
Opportunity to be become a key low-cost supplier to Europe's
fast-growing battery:
-- Measured and Indicated lithium resource of 35.51 Mt of
greisen ore with a mean lithium grade of 3,519 ppm
-- Production of c. 12,000 tonnes per annum ('tpa') of battery grade (99.5%) LiOH
-- LOM: >35 years
-- Simple 5-stage processing confirmed by extensive testwork -
the estimated overall recovery rate from ROM to end product (LiOH)
is 75.4%
-- Includes the production of key by-products:
o c. 57 ktpa potassium sulfate as fertilizer and technical
product;
o c. 16 ktpa precipitated calcium carbonate ('PCC'); and
o c. 75 ktpa granite and 100 ktpa sand as by-products
Rapidly expanding market due to an increase in the use of
lithium-ion batteries for electric vehicle and energy storage
applications:
-- Compound annual growth rate of lithium market for battery
applications projected to be more than 20% per year to 2028
(Roskill)
-- 282 Gigafactories at various stages of
production/construction, up from only 3 in 2015 (May 2022: +300),
which would require 5 Mt of Lithium each year compared with 480,000
tonnes produced in 2021 (Benchmark)
-- Lack of supply due to a lack of capital investment to build
future mines and estimated $42bn needs to be spent by 2030 to meet
demand for lithium (Benchmark)
-- The EU has made it a strategic priority to improve its self-sufficiency for lithium
-- Analysts forecast an inflation adjusted long term price of
$23,609 per tonne LiOH through to 2036 with a nominal rate of
$33,200 by 2036 (Roskill, March 2022)
Aiming to become a leading European sustainable lithium
producer:
-- Located close to the German chemical industry enabling it to
draw on a well trained and experienced workforce with
well-developed infrastructure
-- Integrated, on-site, mining to battery grade product process
and proximity to many of the planned Gigafactories resulting in
reduced transport emissions
-- An underground mine in an established mining region with
extensive existing and well-maintained infrastructure
-- To be permitted under EU and German environmental rules, some
of the strictest global standards
-- Basic process has key elements that are more sustainable than
some of its main rivals including limited water use and less energy
intensive than traditional spodumene-based production
-- Potential to be a low or "zero-waste" project, as the vast
majority of both its mined product and co-products have their own
large-scale end-markets
-- Bringing industrial activity and jobs back to a region long
steeped in mining history - across the lifetime of the Project, it
is estimated to generate c. EUR2.0bn in state and federal level
taxes
Next steps ahead of planned project construction and production
commencing include:
-- Better define the Resources and Reserves that lie within the
ore body at core Zinnwald license with ongoing infill drilling
programme
-- Complete exploration drilling campaign at the nearby
Falkenhain license to determine the potential for expansion of both
the Project's resources (including tin and tungsten) and the
production level
-- Collate data and optimize mining plan
-- Continue to develop the technologies planned for its
processes with further testwork and refine plans for reducing the
overall CO(2) footprint and operating costs, such as via the use of
electric mining equipment
-- Continue EIA and other permit application processes,
including baseline studies and other reports
-- Evaluate options for the construction strategy - currently EPCM
-- Complete further work/negotiations on all infrastructure aspects of the Project
-- Publish Bankable Feasibility Study end 2023
Zinnwald Lithium CEO, Anton du Plessis, commented: "We are
delighted with the results of the PEA for our integrated Zinnwald
Lithium Project in Germany, which reported a headline pre-tax NPV8
of US$1,605m, IRR of 39.0%, $192m EBITDA and a payback of just 3.3
years. The extremely robust economics in tandem with the
technically proven processing route to deliver circa 12ktpa battery
grade lithium hydroxide to the developing European battery
storage/EV manufacturing sectors, underpins the potential of the
Project.
"There remain other positives: the current Measured and
Indicated lithium resource of 35.51 Mt grading 3,519 ppm, which
provides feed for over 35 years, is scalable and the short
timeframe to production, targeted for 2026, is very opportune,
given the strong LiOH prices and global rise in green energy
strategies.
"We have made significant progress over the last year,
undertaking extensive research and testwork to re-orient the
Project towards producing circa 12ktpa battery grade lithium
hydroxide from the initial plan to produce 5ktpa of Lithium
Fluoride. This optimisation has greatly improved both Zinnwald's
economics and sustainability credentials and I'd like to thank the
team and consultants for all their work.
"Looking ahead, we have an extremely active schedule to
crystallise the value of this project. We are already working on a
Bankable Feasibility Study, which we intend to deliver by the end
of 2023 and will continue to evaluate processing and manufacturing
options to ensure the Project achieves economic and environmental
excellence; our aim is to become one of the more sustainable and
investable lithium projects worldwide."
Cautionary Statement Regarding Preliminary Nature of the PEA
Readers are cautioned that the PEA summarised in this press
release is preliminary in nature and is intended to provide an
initial, high-level review of the project's economic potential and
design options. The PEA mine plan and economic model includes
numerous assumptions. There is no certainty that the PEA will be
realised. Actual results may vary, perhaps materially. The
projections, forecasts and estimates presented in the PEA
constitute forward-looking statements and readers are urged not to
place undue reliance on such forward-looking statements.
The Mineral Resources referred to in the PEA were announced in a
Competent Persons Report on the Zinnwald Lithium Project dated 20
September 2020. Zinnwald Lithium confirms that it is not aware of
any new information or data that materially affects the information
in the above releases and that all material assumptions and
technical parameters, underpinning the estimates continue to apply
and have not materially changed. Zinnwald Lithium confirms that the
form and context in which the Competent Person's findings are
presented have not been materially modified from the original
market announcements.
SUMMARY
Introduction
A Technical Report was commissioned by Zinnwald Lithium's 100%
owned subsidiary, Deutsche Lithium GmbH ('DL') in relation to its
wholly owned Zinnwald Lithium Project (the "Project") in Saxony,
Germany.
The Project is situated near to the town of Altenberg, 35km
south of Dresden and adjacent to the border with the Czech Republic
and is located in a developed area with good infrastructure,
services, facilities, and access roads. Power and water supply is
available from well-established existing regional networks. DL has
held license areas in Zinnwald since 2011 and conducted various
drilling campaigns from 2011 to 2017 to delineate a mineral
resource. DL was subsequently granted a mining permit over its core
Zinnwald License (the "License") area of 2,565,800m2 valid to
December 2047 (subject to receipt of operational permits).
A NI 43-101 Feasibility Study Technical Report for the Project
was published in May 2019 and updated in September 2020 (the "2019
FS"). However, this was based on a smaller scale, niche end-product
(Lithium Fluoride) project designed to be internally financed and
integrated to the original owners' operational strategy. Since June
2021, Zinnwald Lithium Plc ("ZLP") has refined the development plan
in response to the wider lithium market dynamics and has changed
strategy to focus on a larger scale operation that produces
battery-grade Lithium Hydroxide Monohydrate ("LiOH", "LHM" or
"LiOH*H(2) 0") products; to optimise the Project from a cost
perspective, and also to minimise the potential impact on the
environment and local communities. All aspects of the Project from
mining through to production of the end product will now be located
near to the deposit itself.
The Project described in this Technical Report includes an
underground mine with a nominal output of approximately 880,000 t/a
ore at estimated 3,004 ppm Li and 75,000 t/a barren rock. Ore
haulage is via a 7km partly existing network of underground drives
and adits from the "Zinnerz Altenberg" tin mine which closed in
1991. Processing including mechanical separation, lithium
activation, and lithium fabrication will be carried out at an
industrial facility near the village Bärenstein, in close proximity
to the existing underground mine access and an existing site for
tailings deposition with significant remaining capacity.
The nominal output capacity of the project is targeted at c.
12,000 t/a LiOH with c. 56,900 t/a of potassium sulphate ("SOP"),
which is used as a fertilizer, as a by-product. Another by-product
that is contemplated is Precipitated Calcium Carbonate ("PCC") a
key filling material in the paper manufacturing process. The
estimated mine life covers >35 years of production. The
optimisation of mining methods has been a key consideration to
realise increased total mined tonnage from the Zinnwald mine. This
includes utilising more efficient techniques such as sub-level
stoping and Avoca wherever possible and in preference to the less
efficient room and pillar method.
The economic analysis included in this Technical Report
demonstrates the financial viability of the Project. Based on the
assumptions detailed in this report the Project supports a Pre-tax
Net Present Value ("NPV") of US$1.6 billion (at a discount rate of
8%, "NPV8)") and a pre-tax Internal Rate of Return ("IRR") of 39%.
The after tax NPV8 is US$1.0 billion and post-tax IRR is 29.3% The
Project has a mine life of over 35 years and the payback period is
less than four years post commencement of production.
This Technical Report was prepared according to the rules of the
National Instrument 43-101 "Standards of Disclosure for Mineral
Projects" developed by the Canadian Securities Administrators
effective as per June 30, 2011. The NI 43-101 follows the
recommendations of the Canadian Institute of Mining (CIM) Standing
Committee on Reserve Definitions.
This PEA is preliminary in nature, it includes certain
assumptions that are considered too speculative to have economic
considerations applied to them. There is no certainty that the
Project as described in this PEA will be realised.
Accessibility, Local Resources, Infrastructure and
Physiography
DL currently holds four licenses in the area. The core Zinnwald
License, which forms the basis of this report, has a mining
classification, and runs to 31 December 2047. It also holds three
other exploration licenses at Falkenhain, Altenberg DL and
Sadisdorf, as show in Figure 1 below:
Falkenhain - the license covers an area of 2,957,000 m(2) and is
valid to 31 December 2022. DL has already applied for a 3-year
extension and has commenced a 10-drill hole exploration in
September 2022. A geological 3-D model of the "Falkenhain" license
area is being created and further steps will be taken depending on
the results of the drill campaign, such as laboratory-scale
processing tests and the construction of a resource model.
Altenberg DL - the license covers an area of 42,252,700 m(2) and
is valid to 15 February 2024. DL is currently evaluating historical
data, which will be used to define new exploration targets in the
area
Sadisdorf - the license covers an area of 2,250,300 m(2) and is
valid to 30 June 2026. The previous holder of the license had
defined a JORC compliant inferred resource of 25 million at a 0.45%
Li(2) O grade. DL is reviewing and evaluating this historic data to
determine further exploration steps.
Figure 1 : Location plan of the exploration licenses and mining permission of DL
Geographically, the area shown above forms part of the upper
elevations of the Eastern Erzgebirge Mountains, at elevations of
750 to 880 m a.s.l. The general topography is typical for a low
mountain range with steep valleys and smooth summits, the latter
gently dipping towards north. It comprises wide grasslands
surrounded by forests and is structured by the local river network
with pronounced V-shaped valleys belonging to the Elbe River Basin.
Most of the land use in the area is agriculture and forestry with
most surface rights being privately owned. The surface water bodies
are reserved for public water supply, farming or recreation. With
an average of 65 inhabitants per km2 the region is sparsely
populated. The town of Altenberg has a population of 7,785
inhabitants.
The main licence area is close to the town of Altenberg. The
motorway A 17 (E 55), which connects Dresden with Prague in the
Czech Republic (CZ) bypasses the property 17 km to the east. Border
crossing between Germany and the Czech Republic at Zinnwald is
possible by car and truck. The airports of Dresden, Berlin and
Prague are 70, 230 and 100 km away, respectively. The Altenberg
railway station is located on the north side of the town. The
Heidenau-Altenberg railway (38 km) connects in Heidenau (near
Dresden) with the Elbe valley railway. This railway represents line
22 of the Trans-European Transport Network (TEN-T).
The overall area is well developed with respect to regional
electricity, sewage, water and gas networks. Electric power, gas
and potable water is available in the region. Area-wide broadband
internet access is being rolled out, but the area is already well
covered by German and Czech mobile telephone networks.
Since the closure of the main regional mining operations 30
years ago following the reunification of Germany, tourism has
become an important local industry. In addition, the region is home
to numerous small and medium-sized enterprises that are based
within in the mechanical, electrotechnical and automotive industry
sectors. However, the region faces the challenge of an ageing
population and the rural exodus of younger people. This is a
supporting factor to local authorities encouraging companies such
as DL that are bringing industrial activity and jobs back to a
region long steeped in mining history.
Geology and Mineralization
The area covered in this Technical Report is part of the
Erzgebirge-Fichtelgebirge Anticlinorium, which represents one of
the major allochthonous domains within the Saxo-Thuringian Zone of
the Central European Variscan (Hercynian) Belt. Its geological
structure is characterized by a crystalline basement and
post-kinematic magmatites (plutonites and volcanites). The Zinnwald
deposit belongs to the group of greisen deposits. Greisens are
formed by post-magmatic metasomatic alteration of late stage,
geochemically specialized granites and are developed at the upper
contacts of granite intrusions with the country rock. The Zinnwald
greisen is bound to an intrusive complex, which intruded rhyolitic
lavas of Upper Carboniferous age along a major fault structure.
The prospective mineralization is of late Variscan age (about
280 million years old) and is geologically restricted to the cupola
of the geochemically highly evolved Zinnwald granite. It was in its
apical parts underground mined for veins with tin (cassiterite) and
tungsten (wolframite, minor scheelite) until the end of the Second
World War. Lithium is incorporated by a lithium-bearing mica, which
is called "zinnwaldite", a member of the
siderophyllite-polylithionite series, which contains up to 1.9 wt.%
lithium. It is enriched in 10 parallel to subparallel stretching
horizons below the already mined tin mineralization. Individual
lithium-bearing greisen beds show vertical thicknesses of more than
40 m. The mineral assemblage consists of quartz, Li-F-mica
(zinnwaldite), topaz, fluorite and associated cassiterite,
wolframite and minor scheelite and sulfides.
Exploration Status
The first underground mining for tin in the Zinnwald deposit on
both sides of the current border between Germany and the Czech
Republic was recorded in the second half of the 15th century. The
"Tiefe-Bünau-Stollen", which was driven from the year 1686 on,
became the most important gallery of the whole Zinnwald ore field.
This adit is part of the visitors' mine "Vereinigt Zwitterfeld zu
Zinnwald" and is located in the mining concession. Tin and minor
tungsten mining on the German side ceased with the end of the
Second World War, and on the Czech side in 1990. From 1890 to 1945
lithium-mica was produced as a by-product and used as raw material
for lithium carbonate production. Lithium exploration on the German
side started again in the 1950s.
DL initially focused its exploration activities on the central
Zinnwald license as well as underground on the accessible parts of
the abandoned mine. An underground sampling campaign was conducted
in 2012, which provided a series of 88 greisen channel samples from
the sidewalls of the "Tiefer-Bünau-Stollen" (752 m a.s.l.) and the
"Tiefe-Hilfe-Gottes-Stollen" galleries (722 m a.s.l.). DL
subsequently expanded the work to peripheral parts of the deposit.
Exploration consisted of 10 surface drill holes (9 DDH and 1 RC DH)
completed between 2012 and 2014 with a total length of 2,484 m.
Infill and verification drilling was resumed and completed in 2017
by DL consisting of 15 surface diamond drill holes with a total
length of 4,458.9 m.
Resource Estimates
The Mineral Resources referred to in this PEA are as previously
published in the 2019 FS. In the 2019 FS, the geological and
geochemical results of the exploration campaigns were fully
integrated in a data base, which comprises the following underlying
data:
-- 76 surface holes,
-- 12 underground holes,
-- 6,342 lithium assays of core samples covering 6,465 m of core,
-- 88 lithium assays from channels; and
-- 1,350 lithium assays from pick samples.
DL's exploration samples were analysed by the accredited
commercial ALS laboratory at Ro ia Montan , Romania. Duplicates
were sent to Activation Laboratories Ltd. In Ancaster, Canada, for
external control. QA/QC procedures were carried out for due
diligence purposes and the results confirmed the careful sampling
and reasonable accuracy and precision of the assays. Twinned drill
holes showed a good match. The initial geological model of several
parallel to sub-parallel stretching mineral horizons ("Ore type 1
greisen beds") was verified and an authoritative resource
assessed.
The general mineral inventory of lithium, shown in Table 1 , was
estimated from the block model based on a zero cut-off and without
a constraint of minimum thickness of the ore bodies. It accounts
for 53.8 Mt greisen tonnage ("Ore Type 1") with a rounded mean
grade of 3,100 ppm.
Table 1 : Lithium Mineral Inventory of Zinnwald (German part below 740m)
Mineral inventory Volume Tonnage Mean Li grade
"Ore Type 1" [103 m(3)] [103 tonnes] [ppm]
Total 19,900 53,800 3,100
------------ -------------- --------------
Selection criteria for eventual economic extraction (vertical
thickness >= 2 m, cut-off = 2,500 ppm Li) applied to the mineral
inventory result in a demonstrated (measured and indicated) lithium
resource of 35.51 Mt of greisen ore with a mean lithium grade of
3,519 ppm (see Table 2 ).
Table 2 : Lithium Mineral Resource - Zinnwald, Base Case
Resource classification Ore Ore Mean Ore Ore Mean
volume tonnage Li grade volume tonnage Li grade
"Ore Type 1" [103 [103 [ppm] [103 [103 [ppm]
greisen beds m(3)] tonnes] m(3)] tonnes]
Vertical thickness Vertical thickness
>= 2 m, >= 2 m,
cut-off Li = 2,500 cut-off Li = 0 ppm
ppm
------------------------------- -------------------------------
Measured 6,855 18,510 3,630 8,954 24,176 3,246
-------- --------- ---------- -------- --------- ----------
Indicated 6,296 17,000 3,399 8,046 21,725 3,114
-------- --------- ---------- -------- --------- ----------
Inferred 1,802 4,865 3,549 2,675 7,224 2,995
-------- --------- ---------- -------- --------- ----------
Total (Measured+Indicated) 13,152 35,510 3,519 17,000 45,901 3,183
-------- --------- ---------- -------- --------- ----------
Internal Dilution
------------------------------- -------- --------- ----------
Total (Measured+Indicated+Inferred 4,722 12,749 2,001
-------- --------- ---------- -------- --------- ----------
The potential of Sn, W and K(2) O have been estimated for the
greisen beds as mean grades for "Ore Type 1" for the German part of
the Lithium Zinnwald Deposit and below 740 m a.s.l.: At a total
volume of rounded 15 million cubic meters and a tonnage of 40
million tonnes, the overall mean tin grade accounts for
approximately 500 ppm, mean tungsten grade for approximately 100
ppm and mean potassium oxide grade for approximately 3.1 wt.%.
Reserve Estimates
Since this Report summarizes the results of a Preliminary
Economic Assessment (PEA), no Mineral Reserves have yet been
estimated for the revised Zinnwald Lithium Project as per NI 43-101
guidelines. However, for the purpose of project appraisal, the
previously calculated Mineral Reserves from the 2019 FS report have
been used as mining inventory. This PEA includes assumptions for an
optimised of the mining extraction and production methods together
with the almost doubling of the Lithium price and accordingly
considers this to be a conservative and appropriate approach.
For detailed summary on the calculation of these mineral
reserves the reader should refer to the 2019 FS. Some key
assumptions are as follows:
-- Proven and Probable Mineral Reserves = 31.20 Mt, 3,004 ppm Li
o Including internal dilution (8%) = 2.28 Mt, 1,929 ppm Li
o Including external dilution (20%) = 5.5 Mt, 1,700 ppm Li
Processing and Metallurgical Test Work
Process Stages
The mineral processing consists of 5 stages
-- Primary crushing using a jaw crusher
-- Secondary crushing using a cone crusher
-- Drying of the crushed material
-- Dry grinding for liberation
-- Dry-magnetic separation
The pyrometallurgical process consists of:
-- Fine grinding of mica concentrate to below 315 um
-- Mixing of milled concentrate with suitable additives such as anhydrite/gypsum and limestone
-- Roasting in kilns e.g., rotary
The hydrometallurgical processing consists of:
-- De-agglomeration of roasted material
-- Leaching of roasted material with hot water
-- Purification of the mother leach liquor
-- Precipitation, washing and drying of lithium hydroxide
-- Sulphate of potassium (SOP)-crystallization
The flow sheet is summarised at a high level in Figure 2
below.
Figure 2 : Simplified Project Flowsheet
Test work undertaken
The most recent test work programmes undertaken in 2021 and 2022
built on the work done for the Feasibility Study, which itself had
confirmed the results of laboratory test work on a technical scale.
The earlier FS test work included flowsheet development test work
using a split of a 100t lithium-mica greisen ore sample, that in
turn generate a 50t sample used in the beneficiation work and a 10t
mica concentrate for use in the pyrometallurgical and
hydrometallurgical work. This ore was mined by drilling and
blasting in the Zinnwald visitor underground mine from ore body B,
one of the largest ore bodies in the deposit.
For mineral processing, DL continues to rely on the original
metallurgical test work undertaken by UVR-FIA for the 2019 FS,
which comprised the following:
-- 2011 - approximately 20 t of ore that had a mean Li grade of 3,900 ppm.
-- 2017 - approximately 100 t of ore that had a mean Li grade of 4,009 ppm.
-- DDH core samples: 25 variability samples selected from drill core from 2012- 2013 and 2017.
For pyrometallurgy, the basic calcination and leaching of
Zinnwaldite concentrate have been tested in several stages and are
described in the FS report. During 2022, a test campaign was
carried out at IBU-TEC to:
-- Further optimise the mixing ratios of the reagents
-- Test the potential to further increase the leaching recovery of metals, especially potassium
-- Confirm that FGD Gypsum can be used as the reagent in the process
For hydrometallurgy, in 2021 further Laboratory scale and Pilot
scale hydrometallurgical test work was carried out at K-UTEC using
5.6 t Calcined Zinnwaldite. This Calcined Zinnwaldite that
originated from calcination tests carried out in 2018 was used for
pilot-scale tests to produce 50 kg of a reference LiOH product
sample as well as for the locked cycle test for process
verification as part of the process design work. The main areas of
testwork were as follows:
-- Test the conversion of the leach brine resulting from
calcined Zinnwaldite leaching into LiOH.
-- Further development of the removal processes for impurities in the leach liquor
-- Further development of the processes to ensure no downstream
quality issues in the sulphate and carbonate stages of the
process
-- Improvements to the crystallisation process for the production of Potassium Sulphate (SOP)
-- Lock cycle tests to confirm composition and quantity ratios required for the mass balance
Summary of results
The key outcomes of the test work are summarized below and the
design criteria that has been used to develop the mass balance are
based on these test work results.
-- The mineral processing has been shown to be very robust. The
lithium recovery was above 90 % for both the 20t test work of the
PFS (94 %) and the 50t test work of the FS (92 %). The lithium
recovery assumed in the FS and the current PEA is 92 %.
-- The pyrometallurgy test work continues to confirm a robust
roasting recipe consistently achieving yields of at least 90% for
Lithium and 80% for Potassium in the leach.
-- The hydrometallurgical work included the following all of
which resulted in a battery-grade LiOH with 99.5% purity with a
recovery rate of 95%.:
o The extraction of lithium and potassium through water leach of
calcined Zinnwaldite is viable, as well as providing the required
amount of leach liquor to verify the downstream processing.
o The test work around recirculation of the liquors showed the
beneficial effects of minimum sulfuric acid consumption for
decarbonisation; minimum losses of potassium and sulphate in the
leach residues and the purification sludge; and establish a
constantly low level of calcium and magnesium concentration below 5
ppm in the brine for further processing
o To avoid quality issues after downstream processing, the tests
show that the pH value should be lowered to just below 4.5 to avoid
these.
o Confirmed the creation of both technical and fertilizer grade
SOP with further work to be done to clarify yields of both. The
testwork also confirmed the process to remove the remaining
impurities.
o 4 lock cycles were performed that further developed the mass
balance and the process.
-- The estimated overall recovery rate from ROM to end product (LiOH) is 75.4%.
Mining
The mining operation for the Project is planned as an
underground mine development using a main ramp for access to the
mine and for ore transportation from the mine to the surface via
access tunnels. The operation has been designed for an annual
output of c. 12,000t of LiOH. Applying the mineral reserve
estimation of 3,004 ppm lithium content, and estimated Lithium
recovery in downstream processes this corresponds to an average
annual ore production of 880,000 tons.
The conceptual plan for mining operations is based on access
from Altenberg Mine on 500 m Reduced Level (RL) advancing upwards
with room and pillar, Avoca, and sublevel stoping methods followed
by hardening backfill. On production levels LHD (Load-Haul-Dump)
loaders dump the mined material into ore passes from where the ROM
(Run of Mine) is transported 7 kms to ROM pad downhill to
Bärenstein via the Zinnerz - Altenberg Mine drainage tunnel.
The mine will be first accessed from two locations: From the
Zinnerz - Altenberg Mine with a 4 km tunnel (Access Tunnel) and
from Zinnwald with a 1.7 km decline (Ventilation Decline). The two
connect at +500 RL in the central pillar / ore pass area. Once
connected the decline functions as a second means of exit and as a
main ventilation route. The cross-section map of the area shown in
Figure 3 shows the drainage access tunnel, as well as the two
access mining tunnels. It also shows the historic tailings facility
at IAA Bielatal, as well as the prospective ore body at the
Falkenhain license.
Figure 3 : Cross section map of access tunnels to main ore
body
In essence, the deposit structure represents an anticline, at
the flanks of which the ore bodies plunge below 400 RL. The Access
Tunnel enters the deposit in the north at 500 RL, which will be the
first production level. The level will be the
loading/transportation level for all the material mined on the
level and levels above it. The ore will be transferred on to 500 RL
via ore passes.
The development drives are planned with a 5.0 m by 4.0 m profile
and will be driven by conventional drilling and blasting
technology. The sublevels are planned with a vertical distance of
12.5 m in East and North Flanks and with 25 m spacing in the West
Flank. A mining area is first entered on the lowest level, the
location of the drive above is designed based on sludge drilling
profiles with horizontal spacing 12.5 m - 25 m.
For an optimal development of the mine and a steady output of
ore material, the initial development of the mine within the first
years will be focused on the bodies between +500 to +600 RL. The
deepest envisaged sublevels are in the North Flank at +392 RL and
in the East Flank at +360 RL. The uppermost mineable sublevel will
be at +688 RL, leaving 20 m vertical distance to the historic mine
workings.
The tailings generated comprise two types. A "quartz-sand"
tailing generated during the mechanical processing of the greisen
ore within the processing plant and a dry Leached Roasted Product
('LRP') tailing generated as residue from the metallurgical
process. Based on the project outline of c. 12,000t/a LHM, c.
610,000 t/a "quartz sand" tailings and about 310,000 t/a (dry) LRP
tailings are generated. The "quartz-sand" tailings represent
basically a sharp-edged crushed grit to fine sand (< 0.1 mm to
1.25 mm grainsize) and predominantly consist of quartz (> 80 %).
This quality of quartz sand is identical to a building aggregate
already being mined nearby for use in various construction
industries. The Company is exploring options to create a railhead
nearby to facilitate the sale and use of this aggregate rather than
having to store it.
During the first years of the production the preferred
extraction method is AVOCA as it allows immediate backfill. The key
working principle of this method is to continuously backfill the
excavated stope with waste rock, the dry LRP and quartz sand. This
minimises the risk of any potential subsidence and could also
increase mining recovery of the resource whilst reducing the need
for intermediate storage facilities for materials such as LRP. It
is anticipated that c. 90% of the mined-out void will be
backfilled.
The ground water draining to the mine will be collected in
settling ponds on 500-level. The clarified excess water will be
drained further to the Bärenstein processing site into a central
water treatment plant. The amount of excess water will change
during operation and depends on the weather and backfill
operations. The mine drainage water between the surface and +750 RL
(TBS level) and +720 RL (THG level) is drained through the existing
galleries.
Recovery Methods
The Zinnwald Lithium Process Plant is designed to process
880,000 dmt/a of ROM feed, at an average grade of 0.30 wt.% Li, to
produce a minimum of 12,011 t/a of battery grade LiOH*H2O
(equivalent to 10,530 t/a LCE) and 56,887 t/a of K2SO4 and about
16,000 t/a PCC (precipitated calcium carbonate) by-products. The
potassium sulfate produced is expected to be sold as a sulfate of
potash (SOP) in technical grade and as fertilizer.
The beneficiation plant will operate 24 h/d, using three 8 h
shifts per day from Monday to Friday, 260 d/a. The extraction plant
is a continuous 24 h/d operation, using three 8 h shifts per day, 7
days per week, 365 d/a. Design plant availabilities are 96 % (6,000
h/a) for the beneficiation plant and 91 % (8,000 h/a) for the
extraction plant.
The flowsheet, as shown in Figure 2 , is based on calcium
sulfate/calcium carbonate roasting and consists of the following
major unit processes:
-- Comminution followed by beneficiation using dry magnetic
separation to recover a lithium mica concentrate.
-- Calcium sulfate / carbonate roasting, which converts the
lithium and potassium to water soluble Li2SO4 and K2SO4 in the
presence of anhydrite or gypsum and limestone
-- A hydrometallurgical section where the roasted product is
leached in water to form an impure Li2SO4 aqueous pregnant leach
solution (PLS). Impurities are then removed from the PLS using
precipitation and ion exchange prior to the precipitation of
battery grade LHM.
-- Potassium sulfate is recovered from the mother liquor using
crystallization and selective dissolution.
-- Precipitated CaCO(3) (PCC) is precipitated from the PLS
Project Infrastructure
On a high-level basis, the Project is located in a region with
developed infrastructure, services, facilities, and access roads.
Power and water are provided by existing regional supply networks.
It is also located close to the heart of the German automotive and
chemical industries. The Project itself comprises several
industrial modules each of which have specific requirements to
local infrastructure, space and proximity to other parts of the
process. Aligned with the conceptual nature of this technical
report, the preferred location is focussed on the geographic area
of Zinnwald / Altenberg for all facilities. However, as required
for on-going development of technical planning and permitting the
Project retains some optionality regarding the precise location of
certain facilities.
The Company has prioritised the alignment of Project goals with
the concerns and needs of other stakeholders and minimise the
potential impact of the operation on the local environment,
businesses, and residents. By removing the need to transport large
volumes of material via roads of the Altenberg and Freiberg region
(as was considered in previous technical reports), the expected
impact of the operation on the environment and local communities
can be reduced significantly.
The preferred Site Option (shown in Figure 4 below) is in the
area near Bärenstein, due to its key advantages:
-- Mine access through existing de-watering adit of the Zinnerz
Altenberg mine (ceased operations in 1991, refurbished in 2020,
total useable length 4 km, with sufficient cross section).
-- Quarry site with intermittent operation.
-- Existing tailings storage facility from the former Zinnerz
Altenberg mine with remaining capacity.
-- Nearby existing rail connection with connection to Dresden.
Figure 4 : Local Infrastructure at Altenberg / Barenstein
The Company has identified a second site location option for the
location of the pyrometallurgical and hydrometallurgical processes
at facilities at an industrial site in Boxberg / Oberlausitz /
Kringelsdorf, close to a former lignite open-pit and coal fired
power station operated by LEAG. The site is approximately 150 km
distance by road and accessible by sealed roads. As an established
industrial site, power, gas and other services are already
available at site. The site has a rail line within 1km, is itself
however not connected to the rail network.
Environmental Studies
Due to the revised operational plan that involved a significant
increase in planned production and the location of the refining
plant near to the mine site - the Company has suspended its
previous strategy to pursue the Facultative Framework Operational
Plan (FFOP). Instead, the Company will convert the permitting
progress made so far into a regular permitting process, including
EIA/UVP permits within a Mandatory Framework Operation Plan (MFOP)
under mining law.
The overall permitting pathway for the project is subdivided
between processes to be permitted under
-- Mining Act, including the mine, its associated infrastructure
and the mechanical separation plant. This includes the Mandatory
Framework Operation Plan (MFOP) approved by the Saxon Mining
Authority.
-- Bundesimmissionsschutzgesetz (BImSchG) (Federal Emission
Protection Act) can be led by either regional authorities or the
mining authority and evaluates compliance of facilities with
existing technical standards as well as other requirements set by
law. It provides for protections from noise and air pollution,
vibration, and other impacts on the environment from human
activity.
-- Water Permits - all aspects relevant to water use, potential
for water pollution etc are reviewed and permitted by the water
authority, in this case the lower water authority.
The MFOP provides clarity on a first outline of the planned
operation, even if final technical items are still outstanding. It
provides an overview of the technical process of mining and
processing, considerations for environmental aspects, urban
planning and expected impact on residents. The MFOP will include a
specific EIA on all directly mining related assets.
-- Note: Following MFOP approval, the Company will also require
a separate Mine Operation Plan Permit to cover the actual
construction and operation of the assets.
The BImSchG Permit under Germany's environmental legal framework
ensures that installations meet all technical minimum standards
based on provided technical plans. DL commissioned G.E.O.S. in 2021
to carry out an updated Environmental Impact Assessment Screening
study to consider several operational concepts, including trucking
ore material over longer distances to external facilities vs. local
processing operations. The study concluded that the option to
concentrate all processing operations at one location will likely
have the least environmental impact of all options under
consideration. DL is currently updating this study for the
revisions to the site location and technical processes and will
submit shortly. The EIAs for the pyrometallurgical and
hydrometallurgical plants will fall under the BImSchG.
The Company is committed to being a responsible project
developer and maintains the environmentally acceptable and
sustainable construction and operation of the Project as a
paramount principle in its activities. The Company will comply with
all applicable environmental laws and regulations, as well as other
industry codes and standards to which we subscribe, such as:
-- Social Impact Assessment - noise, light pollution. Vital for local stakeholder support.
-- Prevention/ mitigation of impact on Animals, Plants and
Biodiversity, based on international best practice.
-- Compliance with European Water Framework Directive around
groundwater, surface water, mine water.
-- Maintenance of Air Quality
-- Ensure that the Project does not compromise local recreation and tourism
Market Review and Lithium Pricing
Background to Lithium and its production
Lithium compounds typically come from one of two sources -
metallic brines or hard-rock mining of spodumene ores. In many
ways, Lithium extraction and production is a specialty chemicals
business rather than a conventional mining one, and it is that
chemicals expertise that plays a vital role in a project's success,
especially for those designed to produce battery grade lithium
compounds. Qualification of battery grade lithium compounds for use
in battery cathode materials can take a long time and is often
specific to individual battery manufacturers/cathode makers.
Brines
Brine is pumped from subsurface reservoirs to surface ponds and
evaporated until the lithium liquor content reaches 6%, when it is
removed and processed into lithium chemicals. This processing,
initially into lithium carbonate, generally occurs on site.
Typically, the timetable to produce a saleable lithium product is
in the range of 2 - 3 years, depending on prevailing weather
conditions. Several companies are currently experimenting with
Direct Lithium Extraction (DLE) technologies in an attempt to speed
up the extraction process and utilise lower grade brines. Whilst
the application of DLE to low grade brines has been shown to work
at a laboratory scale, large scale industrial extraction has yet to
be demonstrated. Where DLE has been used in commercially, it has
typically been following a pre-concentration step and using
higher-grade brines.
Historically, brine producers have enjoyed a significant
advantage on the cost curve given the fact that there is no mining
and crushing involved and their location in arid regions enables
them to utilize evaporative drying. From a sustainability point of
view, brines benefit from a low energy intensity for production and
the technology involved is conventional and well established.
However, it has three main ESG downsides - its water intensity is
high and typically in areas where water is scarce; it also takes up
a very large physical footprint during production and tailings
disposal; finally these sites are typically a long way from the end
market for its product with the resultant transport costs and CO2
emissions.
Hard-rock Mining
Hard rock mining is the more traditional extraction process.
Spodumene, a lithium-containing mineral, is mined and crushed to
form a low-grade concentrate (4-6%). This mineral concentrate is
then sold to lithium processors which use the feedstock to produce
lithium chemicals, or to glass and ceramics producers for use as an
additive.
Mineral producers, compared with Brines, have additional costs
associated with both hard rock mining and processing and
historically have not benefited from the integration of the
chemical conversion. Currently the majority of mineral producers
are located in Australia and typically supply concentrate to
lithium processors in China. As such they typically often have
extensive transport costs due to the low-grade concentrate and
distances covered.
From a sustainability point of view, Spodumenes benefit from a
relatively low water intensity in their production process and the
extraction technology is well established. However, it has three
main ESG downsides - the physical footprint of the sites are
usually large and often open-pit; the energy required to process a
spodumene concentrate is high; and the transport distances are
usually extremely large raising the overall CO2 footprint
(especially given that they are effectively transporting 94% waste
product). Further, as noted above, the majority of spodumene
currently comes from Australia and processed in China which has a
high proportion of coal-based power in its energy mix.
Lithium Market - Supply / Demand and Pricing Forecasts
The global lithium market is expanding rapidly due to an
increase in the use of lithium-ion batteries for electric vehicle
and energy storage applications. In recent years, the compound
annual growth rate of lithium for battery applications was over 22%
and is projected by Roskill to be more than 20% per year to 2028.
This expansion is being driven by global policies to support
decarbonisation towards carbon neutrality via electrification,
which is underpinned by Carbon Emission Legislation (COP26, EU
Green Recovery, Paris Accord); Government regulation and subsidies;
and Automakers commitment to EVs.
Benchmark Minerals highlighted that there are 282 Gigafactories
at various stages of production/construction, up from only 3 in
2015 (by May 2022, this number had gone over 300). If all these
plants did come online in the planned 10-year timeframe, it would
equate to 5,777 GWh of battery capacity, equivalent to 109 million
EVs. But more relevantly it would require 5m tonnes of Lithium each
year, as compared with 480,000 tonnes produced in 2021. They noted
that the lack of supply is not due to any geological constraints
but to a simple lack of capital investment to build future mines
and estimated $42bn needs to be spent by 2030 to meet demand for
lithium.
In April 2022, the Belgium-based research university KU Leuven
published a report "Metals for Clean Energy" on behalf of Europe's
metal industry group, Eurometaux, and endorsed by the EU. This
report explored in detail the supply, demand and sustainability
factors at play around critical raw materials, especially in
Europe. It noted that Europe's 2030 energy transition goals would
require 100-300kt of lithium rising to around 600-800kt by 2050,
equivalent to 3,500% of Europe's low consumption levels today. In
terms of direct European supply, Eurometaux comments that "Several
projects are subject to local community opposition (most visibly in
Portugal, Spain, and Serbia). Others are dependent on untested
technologies to be viable or have less certain economics. However,
the EU has made it a strategic priority to improve its
self-sufficiency for lithium."
Lithium Supply is currently concentrated in four main countries,
each of which have strengths and weaknesses to their ability to
materially ramp-up supply to meet the expected demand.
-- Chile - dominated by the incumbent suppliers, SQM and
Albermarle. Strengths are that they are the established industry
experts in production of lithium from brines. They have announced
plans for expanded production, but that is set against a backdrop
of local water issues and also a potentially punitive royalty
regime at a governmental level on expanded production.
-- Argentina - the newcomer in the production from brines with
Livent and Orocobre in production and a number of well-funded
newcomers, such a Lithium Americas, Neo, POSCO and Millennial.
Argentina is expected to be the next major source of battery grade
lithium to the market. Its biggest downsides are on a
sustainability front around water usage and transport distances to
the end-users.
-- Australia - the dominant producer of spodumene concentrate
globally with the largest producers being Pilbara, Mineral
Resources/Ganfeng, Talison JV. Australia has the advantages of a
well-established mining industry and significant scope to increase
production. Its downsides are that it has almost no processing
facilities currently, so its emissions levels from transport and
conversion in China are high.
-- China - has an existing in-country mining industry, but this
is dwarfed by its dominance in the production of end-product
lithium based primarily on Australian spodumene. Ganfeng and Tianqi
are two of the world's four biggest lithium companies and are
expanding their investments globally. The biggest issue is one of
sustainability and that its energy intensive processing of
spodumene is largely from coal fired power station, thus worsening
the already high emissions levels from transport.
One of the wider issues around constriction of global supply is
that of resource nationalism and security of title. Bolivia has had
a long-standing nationalised industry that has resulted in its
production being suppressed to a fraction of its potential. Mexico
has recently nationalised its nascent lithium industry. In the
wider mining industry, political and economic instability in many
jurisdictions has manifested itself in significant real and
perceived risks around security of ownership and continued ability
to operate resulting in limited production. These factors have
contributed to an increasing interest by western car makers to
secure supply in domestic or more "reliable" jurisdictions.
Price Forecasts
Definitive and accurate lithium pricing is inherently
problematic, due to the opaque nature of what is, in global mining
terms, a relatively new and small market by value. Lithium is not
quoted on any major exchange, so there is no readily available
information. There is no terminal market, although the LME is
working to launch a futures contract. There is a spot market
visible in China, but this is a small part of the overall lithium
market. As there is no industry wide benchmark for pricing, the
bulk of the market is sold based on negotiation between buyer and
seller on long term contracts with prices fixed on an annual or
quarterly revised basis. This is not wholly surprising given that
battery grade lithium is a speciality chemical that requires cycle
testing by manufacturers who value the consistency of quality of
end product and its impurities and guarantee on supply.
Furthermore, the largest current players in the market are
companies that are either not listed or ones that are not required
by local listing rules to detail their contract pricing achieved.
This will likely change as the industry matures and more listed
companies become involved.
What is clear is that lithium prices have experienced
exponential growth in the last 18 months. SQM announced their Q1
2022 numbers that showed $38,000 per tonne for contract lithium
hydroxide. Allkem has also increased its Q2'22 guidance on contract
pricing for lithium from $35k to $40k per tonne and that China spot
pricing is now around $70k per tonne.
There is also a growing consensus around the worsening Supply /
Demand imbalance, which is generally accepted economic pre-cursor
to increased prices. In terms of what that means for long term
lithium hydroxide prices, back in Q3 2021 Benchmark forecast a
price of $12,110 long term, but this is before the step change in
balance in the market. In March 2022, Roskill forecast an inflation
adjusted long term price of $23,609 per tonne through to 2036 with
a nominal rate of $33,200 by 2036.
Zinnwald Project Business Model
Strengths and Sustainability of the Project
The Zinnwald Lithium Project's business model is predicated
around utilising its inherent advantages to enable it to become one
of the more sustainable projects in the global lithium market:
-- It is located close to the German chemical industry enabling
it to draw on a well trained and experienced workforce and
attendant infrastructure. Addresses the issue of "Lithium is a
specialty Chemicals industry rather than a conventional mining
one."
-- It is situated close to many of the planned Gigafactories,
and it is an integrated mining to battery grade product process.
The transport distances for emissions will be measured in the tens
of kilometres rather than tens of thousands.
-- It will be an underground mine and is in an established
mining region. There is extensive existing and well-maintained
infrastructure that the Project may be able to use.
-- It will be permitted under EU environmental rules, which are
some of the strictest globally. OEMs will be able rely on the
production being done in compliance with EU Battery Chain
directives.
-- Its basic process has key elements that are more sustainable than some of its main rivals
-- The process has limited water use relative, in particular, to brine producers.
-- The process flowsheet is less energy intensive than
traditional spodumene-based production as it involves a single
pyrometallurgical step at a lower temperature than is required in a
spodumene-based process
-- Overall transport costs and emissions are reduced by being an
integrated operation located close to end markets especially when
compared to Australian sourced spodumene concentrate processed in
China
-- German energy sources currently include a higher overall "low carbon" component than China
-- It has the potential to be a low or "zero-waste" project, as
the vast majority of both its mined product and co-products have
their own large-scale end-markets:
-- Its initial mined waste product, quartz sand, is a "benign
dry stack end product" that itself is used as a construction
aggregate for roads and other projects.
-- Its primary co-product is high grade Potassium Sulphate,
which is in huge demand as a fertiliser.
-- Its secondary co-product is Precipitated Calcium Carbonate
("PCC") typically used as a filler in the paper making process
Project's pricing assumptions
As part of the PEA process, the Company commissioned Grand View
Research to provide 25-year pricing forecasts for Lithium Hydroxide
and Potassium Sulphate, to underpin the pricing assumptions assumed
in the financial
model. The results of these forecasts are shown in Figure 5 below.
Figure 5 : LiOH and SOP - 25 Year Pricing forecasts
Primary Output - Lithium Hydroxide (LiOH)
The Company has used a base average price of US$22,500 per tonne
of battery-grade Lithium Hydroxide in the financial model used for
this PEA. This price is based on a conservative discount to the
projections provided Grand View Research. It is also at a discount
to pricing forecast data issued by peer companies in recent months
(Keliber: $24,936, European Lithium: $26,800, Bearing Lithium:
$23,609).
Primary by-product - Potassium Sulphate
The primary by-product produced from the Hydromet stage is a
high-grade potassium sulfate (K(2) SO(4) or sulfate of potassium
"SOP"). Based on an annual production of c.12,000 tonnes of LiOH,
the Project will produce approximately 57,000 tonnes of SOP each
year. The process can be adjusted to produce a blend of Fertiliser
Grade SOP (98.45% K2SO4) and Technical Grade SOP (>99.6% K(2)
SO(4) ). The former is a high value fertilizer with particular
application for producers of fruits, vegetables and nuts. The
latter is supplied to the chemical industry. The bulk of global
production is predominantly in China and European production is
heavily sourced from Russia. Grand View has produced a forecast
that shows combined demand for these types of SOP rising in Europe
alone from circa 410,000 tonnes in 2021 to more than a million
tonnes by 2045, so the Zinnwald Project's output of SOP should be
readily absorbed into this market without distorting pricing. For
the purposes of the financial model, a blended SOP price level of
EUR875 per tonne has been assumed.
Secondary by-product - Precipitated Calcium Carbonate
PCC is used in 5 five main industrial areas, as a filler in
high-performance adhesives and sealants; as dietary calcium in
medicines, food and cosmetics; as an extender in paints to increase
opacity and porosity; as a coating and surface finishing agent in
papers; and as filler/extender in Plastics, such as improving
impact strength in rigid PVC fillers. PCC is estimated to represent
approximately 20% of the European market for Calcium Carbonate
products, which itself is expected to grow at around 5.6% CAGR from
2022 to 2030 to a market size in of US$14.1 billion (circa US$3bn
for PCC alone). In terms of pricing, ongoing political turmoil from
Russia's invasion of Ukraine, has caused prices to rise to $297 per
tonne in Europe in Q1 2022, as compared with EUR150 per tonne in
the same quarter of 2021. For the purposes of the financial model,
the Company has used US$150 per tonne and expects to produce circa
16,300 tonnes of PCC per annum.
Other by-products - Construction Aggregates
Approximately 75% of the original ore mined is a coarse grade
Quartz Sand, which can either be stored as an inert landfill or
potentially sold to construction companies as an industrial
aggregate. The current financial model assumes a very limited
revenue for this end product of 100,000 tonnes per year at EUR5 per
tonne. However, the goal is to find outlets to take this in-demand
industrial product either as a direct revenue stream or simply to
reduce the cost of storage.
Other by-products - Tin
The Zinnwald Lithium Project has historically not considered the
option of including a tin circuit as part of its production
process, primarily because the planned annual mining rate did not
support the economics of a such a concept. However, with the
planned increase in size of the Zinnwald Project, and the generally
stronger tin price, the Company is reviewing both the cost and the
practicality of adding beneficiation of tin to the Project. The
Company may include further details in any future NI 43-101
Feasibility Study, if the economics support such a plan.
Capital Cost Estimates
The overall capital cost estimate is summarized in Table 3 . The
capital cost estimates were produced by ZLP, OEMs and external
expert consultants.
-- G.E.O.S.
-- Epiroc for mining capital costs
-- Metso:Outotec for beneficiation capital costs
-- CEMTEC for pyrometallurgical capital costs
-- K-UTEC for hydrometallurgical costs
It must be noted, that, at the time of writing this study,
extraordinary supply chain disruptions are having a general effect
on the cost estimates. The estimates presented below are made with
the assumption that at the time of construction, the underlying
supply disruptions have been resolved and raw material costs
normalised. Capital costs below are all presented in US$ and a USD
/ EUR exchange rate of 1.05 for costs based in EUR.
The capital cost estimates cover the design and construction of
the mine and the process plants, together with on-site and off-site
infrastructure to support the operation including water and power
distribution and support services. The capital costs associated
with the gas supply pipeline and power/steam stations are also
included.
Table 3 : Overview of the Project's Capital Expense Estimate
Initial Capital
Category (US$m)
Mining 54.0
----------------
Mineral Processing 73.1
----------------
Pyrometallurgy 49.4
----------------
Hydrometallurgy 115.7
----------------
Surface Land acquisition 1.6
----------------
Subsidies (15.8)
----------------
20% Contingency 58.5
----------------
Total Capex 336.5
----------------
(* The subsidies are based on present EU and German laws and are
granted for investments in the industrial sector of the former
German Democratic Republic.)
Operating Cost Estimates
The project operating cost is mainly determined by the cost of
labour, power (electrical and natural gas), consumables and
reagents. For this estimate, long term average prices as well as
consensus forecasts for reagents and energy were used. Fixed cost
components have been drawn from current process unit engineering
plans, which include estimates of labour costs. All costs have been
attributed to the production of battery-grade lithium hydroxide.
The chemical circuits produce a by-product of potassium sulphate
("SOP"), which can be sold as a potash fertiliser, and the
financial model treats this as co-product credit revenue with no
associated direct costs. Table 4 summarizes the average overall
operating costs per tonne of LiOH produced over the 36-year life of
mine plan of the financial model.
Table 4 : Average Operating Costs per tonne of LiOH
US$ per tonne
Category LiOH
Mining 2,254
--------------
Mechanical Processing 898
--------------
Chemical Processing (Pyrometallurgical
and Hydrometallurgical) 7,358
--------------
G&A 306
--------------
Total Operating Costs per tonne LiOH before
by-product credits 10,816
--------------
Total Operating Costs per tonne LiOH after
by-product credits 6,200
--------------
Total Cost per tonne mined 147.63
--------------
The operating cost estimate has been compiled by ZLP supported
by G.E.O.S. / K-UTEC and is based on the basic estimates received
from:
- G.E.O.S. for mining operating costs
- Metso:Outotec for mechanical process operating costs
- CEMTEC for pyrometallurgical operating costs
- K-UTEC for hydrometallurgical operating costs
Economic Analysis
As shown in Table 5 , the PEA demonstrates the financial
viability of the Project at an initial minimum design production
rate of approximately 12,011 t/a LiOH (battery grade 99.5 %). The
Project is currently estimated to have a payback period of 3.3
years. Cash flows are based on 100 % equity funding. The economic
analysis indicates a pre-tax NPV, discounted at 8 %, of
approximately US$ 1,605m and an Internal Rate of Return (IRR) of
approximately 39%. Post-tax NPV is approximately US$1,012m and IRR
29.3%.
German federal income tax and depreciation were applied to the
appropriate capital assets and income categories to calculate
taxable income. A basic corporation tax rate of 30.9 % has been
assumed together with a 100,000 EUR/a Mining Royalty Tax due to the
Government of Saxony. Across its lifetime, the Project is estimated
to generate c. EUR2.0bn in state and federal level taxes.
Table 5 : Overview Financial Analysis
PEA Key Indicators Unit Value
Pre-tax NPV (at 8 % discount) US$ m 1,605
--------------- --------
Pre-tax IRR % 39.0%
--------------- --------
Post-tax NPV (at 8 % discount) US$ m 1,012
--------------- --------
Post-tax IRR % 29.3%
--------------- --------
Simple Payback (years) Years 3.3
--------------- --------
Initial Construction Capital Cost US$ m 336.5
--------------- --------
Average LOM Unit Operating Costs (pre US$ per tonne
by-product credits) LiOH 10,872
--------------- --------
Average LOM Unit Operating Costs (post US$ per tonne
by-product credits) LiOH 6,200
--------------- --------
Average LOM Revenue US$ m 320.7
--------------- --------
Average Annual EBITDA with by-products US$ m 192.0
--------------- --------
Tonnes per
Annual Average LiOH Production annum 12,011
--------------- --------
LiOH Price assumed in model US$ per tonne $22,500
--------------- --------
Tonnes per
Annual Average SOP Production annum 56,887
--------------- --------
Blended SOP Price assumed in model EUR per tonne 875
--------------- --------
A sensitivity analysis has shown that the Project is more
sensitive to the lithium price than it is to either CAPEX or OPEX.
An increase of 22% in the average lithium hydroxide price, from
22,500 US$/t to 27,500 US$/t, increases the post-tax NPV from
US$1,012.3m to 1,444.6m (42%) and the post-tax IRR to 36.8%. A
decrease of 22 % in the average lithium hydroxide price, from
22,500 US$/t to 17,500 US$/t, decreases the post-tax NPV (8 %) from
US$1,012.3m to 579.9m (-42%) and the post-tax IRR to 21.1%.
The financial analysis for this report considers only the
project level economics and excludes any cost of financing or any
historic cost incurred in the development of the project. The
analysis assumes the Project is 100 % equity financed. It includes
the project phases comprising 24 months of construction, followed
by 12 months of commissioning, ramp-up and stabilisation phases. A
total mine life of 36 years is expected when assuming the mining
rate of 880,000t / a, and mineral inventory of 31.2Mt which is
equivalent to the Proven and Probable category tonnage of the
latest Mining Reserve statement, as announced on 31st May 2019. A
mean grade of 3,004 ppm Li was assumed, as per the historic Mining
Reserve grade, which should account conservatively for potential
dilution from mining.
Project Development Plan
The tentative project schedule in this PEA report is developed
on the assumption that the Project will be fully funded throughout
both its next stage of producing a Bankable Feasibility Study
("BFS") phase and then into construction; all environmental and
other regulatory permits will be granted without delays; external
agencies and suppliers will be cooperative; and management of the
execution will be by competent EPCM / EPC groups. The preliminary
development schedule is shown in Figure 6 below.
DL is continuously in contact with the administrative bodies in
Altenberg and Zinnwald (mayor, municipal council) regarding ongoing
project developments. Furthermore, the Company continues to keep
the residents of Zinnwald and Altenberg updated about the Project
via newspapers and regular information meetings.
Execution Strategy
The execution strategy assumed in the PEA report is based on the
hybrid model mixing the conventional EPCM and Engineering
Procurement Construction ("EPC") approach. This type of hybrid
model will allow for extensive participation of the local
contractors where possible. The preliminary schedule includes
typical durations for major activities based on experience with
similar size projects. A more detailed execution plan is to be
developed during the BFS phase of the project. Project permitting
will cover the mining and processing stages at the same time.
Project Development Plan and Timetable
The project development plan includes the following major
phases
-- PEA
-- Geological and Processing development
-- EIA and Permits
-- Bankable Feasibility Study
-- EPCM and EPC selection
-- Construction and commissioning into Production
The schedule of project development shown in Figure 6 ,
developed for the PEA phase, is a graphical snapshot of the driving
summary activities and logic. The intent is to demonstrate major
project execution activities and key milestones following
completion of this PEA. The schedule covers the entire project life
cycle from the start of the PEA study until commissioning and
nameplate production capacity is reached.
Figure 6 : Project Development Plan
Sustainability Matters
As a mining development Group operating in Germany and the UK,
the Company and the wider ZLP Group (the Group") takes seriously
its ethical responsibilities to the communities and environment in
which it works. Wherever possible, local communities are engaged in
the geological operations and support functions required for field
operations, providing much needed employment and wider economic
benefits to the local communities. In addition, the Company and
Group follows international best practice on environmental aspects
of its work. The Company's goal is to meet or exceed the required
standards, in order to ensure the Company obtains and maintains its
social licence to operate from the communities with which it
interacts.
The Group has already put in place a Sustainability Committee in
place at Plc Board level to incorporate and emphasise the Group's
commitment to Sustainability and ESG Matters. The Group's
Sustainability framework. is based on the United Nations' set of 17
Sustainable Development Goals. The Company recognises the need to
proactively consult and engage with the communities that may be
affected by our activities. The Company aims to foster long-term
relationships with these communities to develop mutual
understanding, cooperation, and respect. As part of this process,
the Company will put in place a local Sustainability Committee as
part of the Group's wider structures.
Conclusions and Recommendations
The results of this study confirm the development of an
underground mine with an extraction rate of 880,000 t/a and a mine
life of more than 30 years, including the ramp-up phase, followed
by mechanical processing (crusher and magnetic concentrator) at the
mine site for the separation of 179,200 t/a of a Zinnwaldite
concentrate and the construction of a plant for the production
nominally 12,000 t/a of lithium hydroxide monohydrate (LHM)
(corresponding to 10,565 t/a of LCE). The project includes the
production of 56,887 t/a potassium sulfate as fertilizer and
technical product, 16,320 t/a PCC (precipitated calcium carbonate)
and annual sales of 75,000 t of granite and 100,000 t quartz sand
as by-products.
The Project is of substantial size with the potential to produce
496,000 t of LHM over 36 years. It has a robust average grade
compared to the cut-off grade, promising an operation at a
significant profit margin.
The Company has already commenced an infill drilling programme
at the core Zinnwald license with the objective of better defining
the Resources and Reserves that lie within the ore body, as well as
determine the detailed early years' mining plan. This will likely
lead to revised Resource and Reserves Estimate to be included in
the new BFS planned for the re-scoped Project as defined in this
PEA Study. The Company has also commenced an exploration drilling
campaign at its nearby Falkenhain license to determine the
potential for expansion of both the project's resources and the
production level.
The Company will continue to develop the technologies planned
for its processes. Individual processing methods and stages are
well established in mining and other industries. As the recognition
of Zinnwaldite as a source for battery metals is more recent, the
application of methods such as high-intensity magnetic separation
has not previously been used in beneficiation of this specific type
of lithium ore but is utilised and well established in the
beneficiation of other ore types. Evaporators and crystallizers are
common processing methods in the production of fertiliser salts.
The Company has also completed the initial phases of bulk and
particle sorting techniques designed to increase the type of
resource available to the Project. The Company will also continue
to refine its plans for reducing its overall CO2 footprint and
operating costs, such as via the use of electric mining
equipment.
The Company has already commenced its EIA and other permit
application process, including baseline studies and other reports.
This will be the highest priority area over the coming
quarters.
This PEA assumes that the Group will adopt an EPCM construction
strategy, but in the BFS phase other options should also be
evaluated. The EPCM contractor will provide overall management for
the Project as Zinnwald will likely look to limit the size of its
Owner's team. The EPCM Contractor will need to work in
collaboration with the Company, its consultants and the relevant
regulatory bodies.
Forward Work Program
Geology
The Company is currently executing an In-fill drilling campaign
to further improve the mineral resources. In connection with the
campaign, it is recommended to:
-- Further investigate geo-metallurgical properties of the Ore
type 2 to possibly increase the Resources.
-- Collect all geotechnical and structural data from the core to
better understand small scale features of the deposit and provide
information for detailed mine planning.
The Company is also undertaking an exploration drill campaign at
its Falkenhain license area in order to test historic drill
results. The intention to establish a lithium resource with
potential for tin and tungsten. If successful, this could
ultimately provide additional high grade feed for the Project.
Mining
To optimize the full project and to prepare the bankable
feasibility study and to minimize further risks, additional
recommendations include:
-- To ensure access to underground mine galleries in Altenberg.
Negotiation with current owner, LMBV, are on-going.
-- The ventilation must be optimized and validated by modelling
-- Further optimising the logistical system of the mine, both
regarding export of ore and return of material for
back-filling.
-- A more detailed concept for backfilling by means of pumps
must be developed in the next project steps.
Processing
The next phase testwork for optimization should focus on the
following aspects:
-- To further explore the application of ore sorting technology with the goal of
-- Reduction of material for comminution (size reduction) and thus cost / energy reduction.
-- Improve overall process efficiency through the reduction of fines generated in comminution.
-- Facilitate geo-metallurgical control over the ROM-feed
material to the mineral processing plant.
-- Test work to check whether a tunnel kiln will be better in
process stability and cheaper than a rotary kiln
-- Evaluation of in-house grinding of limestone chunks to flour
with the aim to reduce cost for additives
-- Study to further improve SOP and PCC production planning, as
economically significant by-products and integrate with the
existing extended process design.
-- Further test option for in-house production of potassium
carbonate (K2CO3) from other potassium compounds to reduce costs
and supply risks for this reagent.
-- Explore the opportunity to additionally reduce the carbon footprint of the process.
-- Carry out further testwork for alternative usages of Quartz Sand
-- Carry out further testwork for alternative usages of LRP
Improve the energy efficiency of processes including heat-recovery,
heat recirculation or reduction of overall heat / energy demand
within the process stages.
-- Progress REACH / CLP registration with the European Chemicals
Agency (ECHA) for required reagents as well as products.
Infrastructure
Further work on infrastructure related items is recommended in
the following areas:
-- To progress negotiations to access the IAA Bielatal tailings
facility with the state company LMBV
-- To carry out Geotechnical studies on the IAA Bielatal
tailings facility with regard to risk assessment
-- Alternative options for placement of dry stack tailings material should be investigated.
-- Advance the negotiations for land usage / purchase required for surface installations.
-- Advance negotiations for service contracts for electric power
and natural gas with local power companies as well as supply
contracts for required reagents and materials
Environment, Social and Governance
Environmental considerations of the Project are a critical
aspect that are a key issue to be advanced. The following aspects
should be advanced / improved in the further development of the
Project:
-- Carry out required environmental baseline surveys for the areas under consideration.
-- Complete a comprehensive Environmental and Social Impact
Assessment study that will quantify the expected impact of the
project, with special regard to:
o Local environment, flora, and fauna
o Local residents and stakeholders
o Possible effect on local economy and businesses
o Opportunities for additional benefit to local stakeholders
by
-- Improved employment opportunities
-- Retention of younger residents and families in an area of
overall ageing population
-- Improved local infrastructure for residents and
businesses
To continue and intensify efforts of public participation and
local stakeholder engagement. These must be carried out with the
goal of better local understanding of the project and its potential
benefits and risks.
Qualified Persons
Kersten Kühn (EurGeol), Head of the Resources Department and
Senior Geologist for G.E.O.S. Ingenieurgesellschaft GmbH, Schwarze
Kiefern 2, 09633 Halsbrücke, Germany, and Dr Bernd Schultheis
(FIMMM), Deputy Head of Department, Chemical / Physical Process
Engineering of K-UTEC AG Salt Technologies, each being a Qualified
Person as defined in the AIM Rules for Companies and Canadian
National Instrument 43-101, have reviewed the information in this
announcement.
*S*
For further information visit www.zinnwaldlithium.com or
contact:
Anton du Plessis Zinnwald Lithium info@zinnwaldlithium.com
Cherif Rifaat plc
David Hart Allenby Capital
Liz Kirchner (Nominated Adviser) +44 (0) 20 3328 5656
---------------------- --------------------------------
Oberon Capital Ltd
Michael Seabrook (Broker) +44 (0) 20 3179 5300
---------------------- --------------------------------
Isabel de Salis St Brides Partners zinnwald@stbridespartners.co.uk
Catherine Leftley (Financial PR)
---------------------- --------------------------------
Notes
AIM quoted Zinnwald Lithium plc (EPIC: ZNWD.L) is focussed on
becoming an important supplier of lithium hydroxide to Europe's
fast-growing battery sector. The Company owns 100% of the Zinnwald
Lithium Project in Germany, which has an approved mining licence,
is located in the heart of Europe's chemical and automotive
industries.
Appendix 1 - List of Definitions, Symbols, Units and Technical
Terms
List of Definitions
Title Explanation
-------------------------------------------------------------
A / B Resource class according to the resource classification
of the former G.D.R, comparable approximately with
the category "Measured"
-------------------------------------------------------------
Bulk density In situ density of material
-------------------------------------------------------------
Cut-off The lowest grade or quality of mineralized material
grade that qualifies as economically mineable and available
in a given deposit. May be de- fined on the basis
of economic evaluation or on physical or chemical
attributes that define an acceptable product specification.
-------------------------------------------------------------
C1 Resource class according to the resource classification
of the former G.D.R, comparable approximately with
the category "Indicated"
-------------------------------------------------------------
C2 Resource class according to the resource classification
of the former G.D.R, comparable approximately with
the category "Inferred"
-------------------------------------------------------------
Density The mass or quantity of a given substance per unit
of volume of that substance, usually expressed in
kilograms or tonnes per cubic metre.
-------------------------------------------------------------
Dip The maximum angle at which a planar geological feature
is inclined from the horizontal.
-------------------------------------------------------------
Grade Any physical or chemical measurement of the characteristics
of the material of interest in samples or product.
-------------------------------------------------------------
Indicated That part of a Mineral Resource for which tonnage,
Mineral densities, shape, physical characteristics, grade
Resource and mineral content can be estimated with a reasonable
level of confidence. It is based on exploration,
sampling and testing information gathered through
appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes. The locations
are too widely or inappropriately spaced to confirm
geological and/or grade continuity but are spaced
closely enough for continuity to be assumed.
-------------------------------------------------------------
Inferred That part of a Mineral Resource for which tonnage,
Mineral densities, shape, physical characteristics, grade
Resource and mineral content can be estimated with a low level
of confidence. It is inferred from geological evidence
and assumed but not verified geological and/or grade
continuity. It is based on information gathered through
appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes that may
be limited or of uncertain quality and reliability.
-------------------------------------------------------------
Measured That part of a Mineral Resource for which tonnage,
Mineral densities, shape, physical characteristics, grade
Resource and mineral content can be estimated with a high
level of confidence. It is based on detailed and
reliable exploration, sampling and testing information
gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill
holes. The locations are spaced closely enough to
confirm geological and grade continuity.
-------------------------------------------------------------
Mineralization Any single mineral or combination of minerals occurring
in a mass or deposit of economic interest. The term
is intended to cover all forms in which mineralisation
might occur, whether by class of deposit, mode of
occurrence, genesis or composition.
-------------------------------------------------------------
Mineral A concentration or occurrence of material of economic
Resource interest in or on the Earth's crust in such form,
quality and quantity that there are rea- sonable
prospects for eventual economic extraction. The location,
quantity, grade, continuity and other geological
characteristics of a Mineral Resource are known,
estimated or interpreted from specific geological
evidence and knowledge. Mineral Resources are subdivided,
in order of increasing geological confidence, into
"Inferred", "Indicated" and "Measured" categories.
-------------------------------------------------------------
Mineral The economically mineable part of a Measured and/or
Reserve Indicated Mineral Resource. It includes diluting
materials and allowances for losses, which may occur
when the material is mined. Appropriate assessments,
which may include feasibility studies, have been
carried out and include consideration of and modification
by realistically assumed mining, metallurgical, economic,
marketing, legal, environmental, social and governmental
factors. These assessments demonstrate at the time
of reporting that extraction could reasonably be
justified. Mineral Re- serves are sub-divided in
order of increasing confidence into "Probable" Mineral
Reserves and "Proved" Mineral Reserves.
-------------------------------------------------------------
NI 43-101 National Standard of Disclosure for Mineral Projects,
enforced by the Canadian Securities Administrators
(CSA)
-------------------------------------------------------------
PERC Code The Pan European Reserves and Resources Reporting
Committee (PERC) Code for reporting of exploration
results, mineral resources and mineral reserves sets
out minimum standards, recommendations and guidelines
for public reporting of exploration results, mineral
resources and mineral reserves in the United Kingdom,
Ireland and Europe.
-------------------------------------------------------------
Pre-production A period of mine commissioning, construction of mechanical
period and chemical processing plant.
-------------------------------------------------------------
Recovery The percentage of material of initial interest that
is extracted during mining and/or processing. A measure
of mining or processing efficiency.
-------------------------------------------------------------
List of element symbols and element oxide conversion factors
Symbol Element Oxide formula Oxide Multiply factor (element
to oxide)
------------ --------------- ---------------- -------------------------
Aluminium
Al Aluminium Al2O3 oxide 1.8895
------------ --------------- ---------------- -------------------------
Ba Barium BaO Barium oxide 1.117
------------ --------------- ---------------- -------------------------
Ca Calcium CaO Calcium oxide 1.399
------------ --------------- ---------------- -------------------------
Cs Caesium Cs2O Caesium oxide 1.06
------------ --------------- ---------------- -------------------------
Iron (II)
Fe Iron FeO oxide 1.2865
------------ --------------- ---------------- -------------------------
Iron (III)
Fe Iron Fe2O3 oxide 1.4297
------------ --------------- ---------------- -------------------------
Potassium
K Potassium K2O oxide 1.2046
------------ --------------- ---------------- -------------------------
Magnesium
Mg Magnesium MgO oxide 1.6581
------------ --------------- ---------------- -------------------------
Manganese
Mn Manganese MnO oxide 1.2912
------------ --------------- ---------------- -------------------------
Na Sodium Na2O Sodium oxide 1.348
------------ --------------- ---------------- -------------------------
Phosphorus
P Phosphorus P2O5 oxide 2.2914
------------ --------------- ---------------- -------------------------
Rb Rubidium Rb2O Rubidium oxide 1.094
------------ --------------- ---------------- -------------------------
Si Silicon SiO2 Silicon oxide 2.1393
------------ --------------- ---------------- -------------------------
Sn Tin SnO2 Tin oxide 1.2696
------------ --------------- ---------------- -------------------------
Strontium
Sr Strontium SrO oxide 1.185
------------ --------------- ---------------- -------------------------
Ti Titanium TiO2 Titanium oxide 1.6681
------------ --------------- ---------------- -------------------------
W Tungsten WO3 Tungsten oxide 1.2611
------------ --------------- ---------------- -------------------------
List of Lithium Salts and Lithium salt conversion factors
Name Formula Mass [g/mol] Proportion Conversion
Li [%] factor
------------ ------------- ----------- -----------
Lithium element/metal Li 6.941 100.00 1.000
------------ ------------- ----------- -----------
Lithium oxide Li2O 29.880 46.46 2.152
------------ ------------- ----------- -----------
Lithium carbonate Li2CO3 73.887 18.79 5.323
------------ ------------- ----------- -----------
Lithium fluoride LiF 25.940 26.76 3.737
------------ ------------- ----------- -----------
Lithium hydroxide LiOH 23.946 28.99 3.450
------------ ------------- ----------- -----------
Lithium hydroxide
monohydrate LiOH.H2O 41.960 16.54 6.045
------------ ------------- ----------- -----------
Lithium chloride LiCl 42.392 16.37 6.107
------------ ------------- ----------- -----------
Lithium nitrate LiNO3 68.944 10.07 9.933
------------ ------------- ----------- -----------
Lithium sulphate Li2SO4 109.940 12.63 7.920
------------ ------------- ----------- -----------
Lithium sulfate
monohydrate Li2SO4.H2O 127.995 10.85 9.220
------------ ------------- ----------- -----------
Lithium phosphate Li3PO4 115.790 17.98 5.561
------------ ------------- ----------- -----------
Appendix 2 - List of Abbreviations
Abbreviation Explanation
AAS Atomic absorption spectrometry
-------------------------------------------------------------
Actlabs Activation Laboratories Ltd., Ancaster, Ottawa (Canada)
-------------------------------------------------------------
ALS ALS Global / ALS Romania SRL, Rosia Montana (Romania)
-------------------------------------------------------------
a.s.l. Elevation above sea level
-------------------------------------------------------------
ATVC Altenberg-Teplice volcanic complex (also Altenberg-Teplice
caldera)
-------------------------------------------------------------
BBergG Bundesberggesetz (German Mining Act)
-------------------------------------------------------------
BC Kataclastic breccia (lithology in model)
-------------------------------------------------------------
BBF Baubüro Freiberg GmbH
-------------------------------------------------------------
BE Basic engineering
-------------------------------------------------------------
BFS Bankable Feasibility Study
-------------------------------------------------------------
BOO Build, own, operate
-------------------------------------------------------------
BSE Back scattered electron
-------------------------------------------------------------
CAD Computer-aided design
-------------------------------------------------------------
CAGR Capex Growing
-------------------------------------------------------------
CHS Channel sample
-------------------------------------------------------------
CAPEX Capital expenditure
-------------------------------------------------------------
CEF Balance measures
-------------------------------------------------------------
CEO Chief Executive Officer
-------------------------------------------------------------
CFO Chief Financial Officer
-------------------------------------------------------------
CHS Channel sample
-------------------------------------------------------------
CIF Cost, Insurance & Freight
-------------------------------------------------------------
CIM Canadian Institute of Mining
-------------------------------------------------------------
COO Chief Operation Officer
-------------------------------------------------------------
C.P. Competent Person (according to PERC Standard)
-------------------------------------------------------------
CSO Chief Sales Officer
-------------------------------------------------------------
CTO Chief Technical Officer
-------------------------------------------------------------
CZ Czech Republic
-------------------------------------------------------------
DDH Diamond drillhole
-------------------------------------------------------------
DGEG Deutsche Gesellschaft für Erd und Grundbau (German
Society of Earthworks and Foundation Engineering)
-------------------------------------------------------------
DH Drill hole
-------------------------------------------------------------
DIN Deutsches Institut für Normung (German Institute
of Standardization)
-------------------------------------------------------------
DIN 18136 German Standard No. 18136 for soil investigation
and testing - unconfined compression test
-------------------------------------------------------------
DIN 52105 German Standard No. 52105 for testing compressive
strength of natural stone
-------------------------------------------------------------
DL Deutsche Lithium GmbH
-------------------------------------------------------------
D&M Distribution and Marketing
-------------------------------------------------------------
E East
-------------------------------------------------------------
EDX Energy-dispersive X-ray spectroscopy
-------------------------------------------------------------
EEG Renewable Energy Sources Act
-------------------------------------------------------------
EFG European Federation of Geologists
-------------------------------------------------------------
EIA Environmental impact assessment
-------------------------------------------------------------
EPCM Engineering, Procurement, Construction and Management
-------------------------------------------------------------
EU European Union
-------------------------------------------------------------
EUR Euro
-------------------------------------------------------------
EurGeol European Geologist (Professional who has had his
training and experience peer reviewed and who practises
in accordance with the EFC code of ethics. Listened
in the register of European Geologists in the section
EurGeol title available at www.eurogeologists.eu
).
-------------------------------------------------------------
EV Electric vehicle
-------------------------------------------------------------
EXW Ex Works (name placed of delivery)
-------------------------------------------------------------
FEED Front-end engineering design
-------------------------------------------------------------
FEL Front-end loader
-------------------------------------------------------------
FFOP Facultative frame operation plan
-------------------------------------------------------------
FGD Flue gas desulfurization
-------------------------------------------------------------
FIBC Flexible intermediate bulk container
-------------------------------------------------------------
fl Fluorite
-------------------------------------------------------------
FM Finance model
-------------------------------------------------------------
FMC FMC Corporation
-------------------------------------------------------------
FP Flame photometry
-------------------------------------------------------------
FS Feasibility study
-------------------------------------------------------------
GA Dyke rock (lithology in model)
-------------------------------------------------------------
GDO Large rotary kiln
-------------------------------------------------------------
G.D.R. German Democratic Republic
-------------------------------------------------------------
G.E.O.S. G.E.O.S. Ingenieurgesellschaft mbH
-------------------------------------------------------------
GFE F VEB Geologische Forschung und Erkundung Freiberg
(former G.D.R. com- pany for geological research
and exploration)
-------------------------------------------------------------
GL Gallery
-------------------------------------------------------------
Gy L VEB Geophysik Leipzig (former G.D.R. company)
-------------------------------------------------------------
HEV Hybrid electric vehicles
-------------------------------------------------------------
HIMS High intensity magnetic separation
-------------------------------------------------------------
HPGR High pressure grinding roll
-------------------------------------------------------------
HQ Diamond core drilling with core diameter 63.4 mm
-------------------------------------------------------------
HR Human resources
-------------------------------------------------------------
IAA Industrial setting plant
-------------------------------------------------------------
ICP-AES Inductively coupled plasma - atomic emission spectrometry
-------------------------------------------------------------
ICP-MS Inductively coupled plasma - mass spectrometry
-------------------------------------------------------------
ICP-OES Inductively coupled plasma - optical emission spectrometry
-------------------------------------------------------------
IRR Internal rate of return
-------------------------------------------------------------
IS1 Internal standard 1 (high grade standard)
-------------------------------------------------------------
IS2 Internal standard 2 (low grade standard)
-------------------------------------------------------------
ISE Ion-selective electrode
-------------------------------------------------------------
ISO International Standards Organization
-------------------------------------------------------------
ISO 9001 International Standard 9001 for quality of management
systems
-------------------------------------------------------------
ISO 17025 International Standard17025 for general requirements
for the competence of testing and calibration laboratories
-------------------------------------------------------------
IT Information technology
-------------------------------------------------------------
KDO Small rotary kiln
-------------------------------------------------------------
KV Loss of drill core
-------------------------------------------------------------
LCE Lithium carbonate equivalent
-------------------------------------------------------------
LFA Lignite filter ash
-------------------------------------------------------------
LfULG Federal State Office for Agriculture, Environment
and Geology of Saxony
-------------------------------------------------------------
LHD Load - Haul - Dump Technology
-------------------------------------------------------------
LMBV Lausitzer und Mitteldeutsche Bergbau-Verwaltungsgesellschaft
mbH
-------------------------------------------------------------
Li-OG63 Analysis of lithium by 4-acid digestion and ICP-AES
(ALS Romania SRL, range 0.005 - 10 %)
-------------------------------------------------------------
LOI Loss of ignition
-------------------------------------------------------------
LOMP Life of mine plan
-------------------------------------------------------------
ME-4ACD81 Analysis of base metals by 4-acid digestion and ICP-AES
(ALS Romania SRL)
-------------------------------------------------------------
ME-MS81 Analysis of 38 elements by lithium borate fusion
(FUS-LI01) and ICP-MS (ALS Romania)
-------------------------------------------------------------
ME-XRF05 Analysis of single elements by pressed pellet XRF
(ALS Romania)
-------------------------------------------------------------
MLA Mineral Labaration Analyzer
-------------------------------------------------------------
msc Muscovite
-------------------------------------------------------------
my Mylonite (lithology in model)
-------------------------------------------------------------
N North
-------------------------------------------------------------
n.a. Not analyzed
-------------------------------------------------------------
NCA Nickel cobalt aluminium battery
-------------------------------------------------------------
NE Northeast
-------------------------------------------------------------
NI 43-101 National Instrument 43 - 101 Standard of Disclosure
for Mineral Projects
-------------------------------------------------------------
NMC Nickel cobalt aluminium battery
-------------------------------------------------------------
NNE Northnortheast
-------------------------------------------------------------
NNW Northnorthwest
-------------------------------------------------------------
NPV Net present value
-------------------------------------------------------------
NQ Diamond core drilling with a core diameter of 47.6
mm
-------------------------------------------------------------
NW Northwest
-------------------------------------------------------------
OIC Older intrusive complex
-------------------------------------------------------------
OK Percussion drilling
-------------------------------------------------------------
OPEX Operational expenditure
-------------------------------------------------------------
PDC Process design criteria
-------------------------------------------------------------
PDF Portable document format
-------------------------------------------------------------
PERC (Standard) Compliance and Guidance Standards Proposed by Pan-European
Reserves & Resources Reporting Committee ("The PERC
Reporting Standard")
-------------------------------------------------------------
PFS Prefeasibility study
-------------------------------------------------------------
PG Albite granite (lithology in model)
-------------------------------------------------------------
PG_GGM_1 Weakly greisenized albite granite (lithology in model)
-------------------------------------------------------------
PG_GGM_2 Medium greisenized albite granite (lithology in model)
-------------------------------------------------------------
PG_GGM_3 Strongly greisenized albite granite (lithology in
model)
-------------------------------------------------------------
PG_PR Porphyritic albite granite (lithology in model)
-------------------------------------------------------------
PG_PR_GGM_1 Weakly greisenized porphyritic albite granite (lithology
in model)
-------------------------------------------------------------
PG_PR_GGM_2 Medium greisenized porphyritic albite granite (lithology
in model)
-------------------------------------------------------------
PG_PR_GGM_3 Strongly greisenized porphyritic albite granite (lithology
in model)
-------------------------------------------------------------
PG_UK Stockscheider (lithology in model)
-------------------------------------------------------------
PL Poland
-------------------------------------------------------------
PLS Pregnant leach solution
-------------------------------------------------------------
PPG Porphyritic protolithionite granite
-------------------------------------------------------------
PPM Porphyritic protolithionite microgranite
-------------------------------------------------------------
PQ Diamond core drilling with a core diameter of [.0
mm
-------------------------------------------------------------
PZM Porphyritic zinnwaldite-microgranite
-------------------------------------------------------------
Q Quaternary (lithology in model)
-------------------------------------------------------------
QA/QC Quality assurance / Quality control
-------------------------------------------------------------
Q.P. Q.P. Qualified Person (according to NI 43-101)
-------------------------------------------------------------
Q1, Q2, Year quarter1 to 4
Q3, Q4
-------------------------------------------------------------
qtz Quartz
-------------------------------------------------------------
RBS Rock bulk sample
-------------------------------------------------------------
RC Resource category
-------------------------------------------------------------
RC DH Reverse circulation drill hole
-------------------------------------------------------------
RCS Rock chip sample
-------------------------------------------------------------
REACH Registration, Evaluation, Authorization and restriction
of chemicals
-------------------------------------------------------------
ROM Run-of-mine ore
-------------------------------------------------------------
RQD Rock quality designation index
-------------------------------------------------------------
R2 Linear coefficient of correlation
-------------------------------------------------------------
R&D Research and development
-------------------------------------------------------------
S South
-------------------------------------------------------------
SA Spectral analyses
-------------------------------------------------------------
SOBA Sächsisches Oberbergamt (Mining Authority of
Saxony)
-------------------------------------------------------------
SD Standard deviation
-------------------------------------------------------------
SE Southeast
-------------------------------------------------------------
SEM Scanning electron microscope
-------------------------------------------------------------
SGK Staatliche Geologische Kommission (State Geological
Commission of the former G.D.R.
-------------------------------------------------------------
SOP Sulphate of potash (K2SO4)
-------------------------------------------------------------
SQM Sociedad Química y Minera
-------------------------------------------------------------
SSE Southsoutheast
-------------------------------------------------------------
SSW Southsouthwest
-------------------------------------------------------------
StVK Staatliche Vorratskommission (State Resource Committee
of the former G.D.R)
-------------------------------------------------------------
SW Southwest
-------------------------------------------------------------
SWS SolarWorld Solicium GmbH
-------------------------------------------------------------
SY Syenite (lithology in model)
-------------------------------------------------------------
TBS Tiefer-Bünau-Stollen gallery
-------------------------------------------------------------
TF Feldspatite or metasomatized feldspathic rock (lithology
in model)
-------------------------------------------------------------
TGGM Mica greisen (lithology in model)
-------------------------------------------------------------
TGQ Quartz greisen (lithology in model)
-------------------------------------------------------------
TGQ+GM Quartz mica greisen (lithology in model)
-------------------------------------------------------------
THG Tiefe-Hilfe-Gottes Stollen gallery
-------------------------------------------------------------
TINCO TINCO Exploration Ltd.
-------------------------------------------------------------
to Topaz
-------------------------------------------------------------
TR Teplice Rhyolite
-------------------------------------------------------------
TU BAF Technical University Mining Academy Freiberg
-------------------------------------------------------------
UG Microgranite (lithology in model)
-------------------------------------------------------------
UG_GGM_1 Weakly greisenized microgranite (lithology in model)
-------------------------------------------------------------
UG_GGM_2 Medium greisenized microgranite (lithology in model)
-------------------------------------------------------------
UG_GGM_3 Strongly greisenized microgranite (lithology in model)
-------------------------------------------------------------
UG_GQ_3 Microgranite with strong quartz greisenization (lithology
in model)
-------------------------------------------------------------
UK United Kingdom
-------------------------------------------------------------
UNESCO United Nations Educational, Scientific and Cultural
Organization
-------------------------------------------------------------
US US Dollar
-------------------------------------------------------------
UVR-FIA UVR-FIA GmbH
-------------------------------------------------------------
VA Measures for special protection
-------------------------------------------------------------
VBGU Union for Mining, Geology and Environment
-------------------------------------------------------------
VEB Public owned enterprise of the former G.D.R.
-------------------------------------------------------------
W West
-------------------------------------------------------------
WRRL Water Framework Directive
-------------------------------------------------------------
XE Xenolith (lithology in model)
-------------------------------------------------------------
XRD X-ray diffraction analysis
-------------------------------------------------------------
XRF X-ray fluorescence analysis
-------------------------------------------------------------
YI Rhyolite (lithology in model)
-------------------------------------------------------------
YI_GGM_1 Weakly greisenized Teplice rhyolite (lithology in
model)
-------------------------------------------------------------
YI_GGM_2 Medium greisenized Teplice rhyolite (lithology in
model)
-------------------------------------------------------------
YI_GGM_3 strong greisenized Teplice rhyolite (lithology in
model)
-------------------------------------------------------------
YI_GQ Teplice rhyolite with quartz greisenization (lithology
in model)
-------------------------------------------------------------
YIC Younger intrusive complex
-------------------------------------------------------------
ZAG Zinnwald Albite Granite
-------------------------------------------------------------
ZG Zinnwald Granite
-------------------------------------------------------------
ZGI Zentrales Geologisches Institut (Central Geological
Institute of the former G.D.R.
-------------------------------------------------------------
ZW Zinnwaldite
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MSCLFMFTMTAMBPT
(END) Dow Jones Newswires
September 07, 2022 02:00 ET (06:00 GMT)
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