REG - Cadence Minerals PLC - European Metals Holdings - Cinovec Project Update

Cadence MineralsAnnouncement

27/03/2024 10:30

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RNS Number : 5213I  Cadence Minerals PLC  27 March 2024

Cadence Minerals Plc

("Cadence Minerals", "Cadence", or "the Company")

 

European Metals Holdings #EMH - Cinovec Project Update

 

Cadence Minerals (AIM: KDNC; OTC: KDNCY) is pleased to note the announcement
by European Metals Holdings Limited ("European Metals" or "EMH") (ASX &
AIM: EMH, OTCQX: EMHXY, ERPNF and EMHLF) in regard to the Cinovec Lithium
Project ("Cinovec" or the "Project").

 

Geomet ("Geomet"), 49% owned by European Metals and the owner of 100% of the
Cinovec Project in the Czech Republic, is in the process of completing the
Project Definitive Feasibility Study ("DFS"). DRA Global Limited ("DRA") was
appointed to complete the DFS in February 2023.

 

EMH has previously advised in the announcement to the market on 22 December
2023 that the delivery of the DFS for the Project had been pushed back and was
expected to be completed in Q1 2024.

As a result of the engineering work and social and environmental engagement
work subsequently performed as part of the DFS process, several material
matters have been highlighted that may significantly improve the lithium
processing component of the DFS.

 

The Geomet management team, in conjunction with DRA, is reviewing these
matters. The Company expects to make a further announcement before the end of
April 2024 detailing some of the more significant issues. Further, the Company
reiterates that the process flowsheet remains as announced on 31 October 2022
and confirmed in pilot testing results announced on 9 November 2023. This
review process could significantly improve the economic and social/community
outcomes. Geomet considers this to be an important development in the Project
and makes a further delay in the DFS well justified.

 

Importantly, as previously reported, the Company does not expect that the
extension of the study period will impact the overall Project timeline, with
the permitting process expected to be effectively coordinated pursuant to the
enactment of the European Union's Critical Raw Materials Act.

 

In other matters concerning the DFS Process, EMH is pleased to announce that
previously published physical and hydrometallurgical process flowsheets have
been confirmed to be viable for engineering and construction purposes with
high levels of lithium recovery from run-of-mine ore to battery-grade
end-products.

 

As previously noted, engineering test work programmes continue to improve
process outcomes in various stages of both the physical and hydrometallurgical
processing, and current test work programmes include:

·     Gangue removal from zinnwaldite concentrate to enable a
higher-grade roast mix to be processed by the rotary kilns, thus maximising
the throughput of lithium units in the roasting without an increase in the
size of the plant;

·     recycling and regeneration of reagents in both the roasting and
hydrometallurgical stages to reduce the consumption of fresh reagents and
decrease opex per tonne of end-product, and

·     simplification of precipitation/crystallisation processes to reduce
energy and water costs, aiming at producing end-products with the lowest
economic carbon footprint.

 

Executive Chairman, Keith Coughlan, commented on the update: "Whilst it is
unfortunate not to be able to provide a fully completed DFS at this stage, I
am confident that the developments currently being finalised will add
significantly to the Project. In particular, permitting and timelines are
expected to be positively impacted by the team's additional work. The Cinovec
Project remains an important part of the drive to improve critical materials
security in the EU."

 

Link here
(https://www.londonstockexchange.com/news-article/EMH/extension-granted-for-cinovec-exploration-licenses/16307002)
to view the full EMH announcement

 

Cinovec Lithium/Tin Project

 

Geomet s.r.o. controls the mineral exploration licenses awarded by the Czech
State over the Cinovec Lithium/Tin Project. Geomet has been granted a
preliminary mining permit by the Ministry of Environment and the Ministry of
Industry. The company is owned 49% by EMH and 51% by CEZ a.s. through its
wholly owned subsidiary, SDAS. Cinovec hosts a globally significant hard rock
lithium deposit with a total Measured Mineral Resource of 53.3Mt at 0.48% Li2O
and 0.08% Sn, Indicated Mineral Resource of 360.2Mt at 0.44% Li2O and 0.05% Sn
and an Inferred Mineral Resource of 294.7Mt at 0.39% Li2O and 0.05% Sn
containing a combined 7.39 million tonnes Lithium Carbonate Equivalent and
335.1kt of tin.

 

Cadence Minerals holds approximately 4.9% percent of the equity in European
Metals Holdings.

 

 For further information contact:

 Cadence Minerals plc                           +44 (0) 20 3582 6636
 Andrew Suckling
 Kiran Morzaria

 WH Ireland Limited (NOMAD & Broker)            +44 (0) 20 7220 1666
 James Joyce
 Darshan Patel

 Fortified Securities - Joint Broker            +44 (0) 20 3411 7773
 Guy Wheatley

 Brand Communications                           +44 (0) 7976 431608
 Public & Investor Relations
 Alan Green

 

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information
contained in this announcement. Kiran holds a Bachelor of Engineering
(Industrial Geology) from the Camborne School of Mines and an MBA (Finance)
from CASS Business School.

 

Cautionary and Forward-Looking Statements

Certain statements in this announcement are or may be deemed to be
forward-looking statements. Forward-looking statements are identified by
their use of terms and phrases such as "believe", "could", "should",
"envisage", "estimate", "intend", "may", "plan", "will", or the negative of
those variations or comparable expressions including references to
assumptions. These forward-looking statements are not based on historical
facts but rather on the Directors' current expectations and assumptions
regarding the company's future growth results of operations performance,
future capital, and other expenditures (including the amount, nature, and
sources of funding thereof) competitive advantages business prospects and
opportunities. Such forward-looking statements reflect the Directors' current
beliefs and assumptions and are based on information currently available to
the Directors.  Many factors could cause actual results to differ materially
from the results discussed in the forward-looking statements, including risks
associated with vulnerability to general economic and business conditions,
competition, environmental and other regulatory changes actions by
governmental authorities, the availability of capital markets reliance on key
personnel uninsured and underinsured losses and other factors many of which
are beyond the control of the company. Although any forward-looking statements
contained in this announcement are based upon what the Directors believe to be
reasonable assumptions. The company cannot assure investors that actual
results will be consistent with such forward-looking statements.

 

The information contained within this announcement is deemed by the company to
constitute Inside Information as stipulated under the Market Abuse Regulation
(E.U.) No. 596/2014, as it forms part of U.K. domestic law under the European
Union (Withdrawal) Act 2018, as amended. Upon the publication of this
announcement via a regulatory information service, this information is
considered to be in the public domain.

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