REG - Zinnwald Lithium PLC - 445% Increase in Mineral Resource Estimate
21/02/2024 07:00
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RNS Number : 8278D Zinnwald Lithium PLC 21 February 2024
Zinnwald Lithium plc / EPIC: ZNWD.L / Market: AIM / Sector: Mining
21 February 2024
Zinnwald Lithium plc ("Zinnwald Lithium" or the "Company")
445% Increase in Mineral Resource Estimate
Zinnwald Lithium Project established as the second largest hard rock lithium
project in the EU
Zinnwald Lithium plc, the European focused lithium company, is pleased to
announce the publication of an updated independent Mineral Resource Estimate
("MRE") for its 100% owned Zinnwald lithium project ("Zinnwald" or the
"Project") located in Saxony, eastern Germany.
The 2024 MRE update incorporates 26,911 metres of new diamond core drilling
across 84 drill holes and a reinterpreted and updated geological model since
the previous MRE which was released in September 2018.
In addition to the high-grade greisen mineralisation, focus of the recent
2022/2023 drilling was the lithium mineralisation hosted by the broader zone
of altered albite granite, which includes internal lenses of higher-grade
greisen. The inclusion of this mineralised zone allows for a higher production
rate and a potential optimisation of overall project economics.
2024 Resource Highlights:
· A 445 % increase in tonnes and a 243% increase in contained lithium
("Li") in the Measured and Indicated category versus the previous 2018 MRE.
· Total contained Li of 429kt compared with the 2018 MRE of 125kt in
the Measured and Indicated category.
· 11.3 Mt grading 3,420ppm Li (0.736% Li(2)O) in the Measured category.
· 193.5 Mt grading 2,220ppm Li (0.478% Li(2)O) in the Measured and
Indicated category.
· 33.3 Mt grading 2,140 ppm Li (0.461% Li(2)O) in the Inferred
category.
· Increase in overall tonnage predominantly due to the incorporation of
a broad zone of mineralised granite, as well as contribution of an extra
26,911 metres of new drilling over 84 holes.
· Measured classification only applied to the external greisen domains
due to a higher metallurgical confidence; Snowden Optiro recommends further
metallurgical variability testwork in the broad mineralisation zone domain to
further increase confidence.
· Demonstrated dimensions of the mineralised zone (true thickness c. 80
metres) and continuity of ore supports highly efficient mining methods with
minimal waste rock production.
· Mineral Resources reported using a 1,100ppm Li cutoff grade and a
stope optimisation to constrain an RPEEE Resource.
Zinnwald Lithium CEO, Anton du Plessis, commented: "We are delighted to be
able to announce a substantial increase of our Mineral Resource at the
Zinnwald Project with a 3.4x increase in contained lithium in the Measured and
Indicated categories. This establishes the Project as the second largest hard
rock lithium project by both resource size and contained lithium in the EU and
clearly highlights its scale and strategic importance.
"The inclusion of the mineralised granite in the resource and ultimately the
mine plan will allow more efficient bulk underground mining techniques with
the potential to meaningfully increase the lithium production from what was
contemplated in the PEA published in 2022."
Detailed Information
The following statement of Mineral Resources has been prepared in accordance
with National Instrument 43-101 Standards of Disclosure for Mineral Projects
of the Canadian Securities Administrators ("NI 43-101") by independent
consulting firm Snowden Optiro Ltd ("Datamine International") of Bristol,
United Kingdom.
Table 1.1 Mineral Resource Statement for Zinnwald
Lithium Project, effective 20(th) February 2024.
Classification Domain Tonnes Mean Grade Contained Metal
(Mt) Li (ppm) Li2O (%) Li (kt) LCE (kt)
Measured External Greisen (1) 11.3 3,420 0.736 39 206
Mineralised Zone (2) - - - - -
Internal Greisen - - - - -
Mineralised Granite - - - - -
SubTotal (1) and (2) 11.3 3,420 0.736 39 206
Indicated External Greisen (1) 2.1 3,510 0.756 7 40
Mineralised Zone (2) 180.0 2,120 0.456 383 2,037
Internal Greisen 14.6 3,320 0.715 49 259
Mineralised Granite 165.4 2,020 0.435 334 1,778
SubTotal (1) and (2) 182.2 2,140 0.461 390 2,077
Measured + Indicated SubTotal 193.5 2,220 0.478 429 2,283
Inferred External Greisen (1) 0.8 3,510 0.756 3 15
Mineralised Zone (2) 32.5 2,110 0.454 68 364
Internal Greisen 0.6 2,880 0.620 2 9
Mineralised Granite 31.9 2,090 0.450 67 355
SubTotal (1) and (2) 33.3 2,140 0.461 71 379
Notes
§ Mineral Resource statement has an effective date of 20(th) February 2024.
§ A Mineral Resource is reported using a cut-off grade of 1,100 ppm Li,
which was calculated using the following assumptions: lithium hydroxide
monohydrate price USD 23,800 /t, operating costs of USD $ 121.5/ t ROM; Li
recovery of 69%; mining dilution and recovery of 10%.
§ The requirement of a reasonable prospect of eventual economic extraction
is met by having a minimum modelling width for mineralized zones, a cut-off
grade based on reasonable inputs and an economic binding volume that lends
itself to a potential scenario of underground extraction for undiluted in-situ
resources.
§ The Mineral Resource is reported at a minimum of 20m below historical
underground mine workings (to avoid historic underground workings), and within
Germany only.
§ All tonnages reported are dry metric tonnes.
§ Minor discrepancies may occur due to rounding and use of appropriate
significant figures.
§ LCE (lithium carbonate equivalent) calculation used - 5.323 x Li metal.
LiOH*H2O (lithium hydroxide monohydrate) calculation used - 6.045 x Li Metal.
§ Mineral resources which are not mineral reserves do not have demonstrated
economic viability. An Inferred Mineral Resource has a lower level of
confidence than that applying to an Indicated Mineral Resource and must not be
converted to a Mineral Reserve. It is reasonably expected that the majority of
Inferred Mineral Resources could be upgraded to Indicated Mineral Resources
with continued exploration.
§ The results from the stope optimization are used solely for the purpose
of testing the "reasonable prospects for economic extraction" by underground
methods and do not represent an attempt to estimate mineral reserves. There
are no mineral reserves reported in this NI 43-101 resource update. The
results are used as a guide to assist in the preparation of a Mineral Resource
statement and to select an appropriate resource reporting cut-off grade. Stope
optimisation does not represent an economic study.
§ The estimate of Mineral Resources may be materially affected by
environmental, permitting, legal, title, taxation, socio-political, marketing,
or other relevant issues.
§ The Author is not aware of any known mining, processing, metallurgical,
environmental, infrastructure, economic, permitting, legal, title, taxation,
socio-political, or marketing issues, or any other relevant factors, that
could materially affect the current Mineral Resource Estimate.
Mineral Resource Estimate
Zinnwald Lithium has recently completed an infill drilling campaign in order
to increase confidence in the geological block model and to produce an updated
MRE. This update to the MRE has been completed in conjunction with other
technical work contributing to an updated feasibility study.
This MRE required a reinterpretation and an updated geological model in order
to represent the geological and mineralogical domains that have been defined
by the most recent drilling campaign undertaken by the Company during 2022 and
2023. The geological model includes mineralisation domains that are
represented by the higher grade greisens "external", as well as a broader zone
of lithium mineralisation contained within a mineralised albite lithium mica
granite and "internal" higher grade greisens. The higher-grade external
greisens are narrow in places but can reach up to 40 metres in true thickness,
they outcrop above the mineralised zone of granite and internal greisens, with
a typical separation but variable distance of approximately 10 metres. The
broader mineralised zone has an average true thickness of approximately 80
metres and contains lenses of greisen that locally exhibit higher grades of
lithium mineralisation. Both the mineralisation zone and the greisens mirror
the strike and dip of the host rock intrusion- the albite granite, as is
typical of many greisen related roof zone deposits.
Lithium mineralisation within all geological domains is hosted exclusively by
polylithionite micas, or better known as "zinnwaldite" type micas.
Lithium has been estimated using ordinary kriging methods and density using
simple kriging methods. Estimation has honoured the hard boundaries of the
external greisens, internal greisens and mineralised granite domains, as well
as using a dynamic anisotropic search method to honour the varying dip and dip
directions of all estimation domains (Figure 1.2, Figure 1.3 and Figure 1.4).
This updated MRE differs from the previous MRE, completed in 2018, by
incorporating the broader mineralised zone. The incorporation of the
mineralised zone has allowed for a higher production rate and a reduction in
unit processing costs.
Figure 1.2 - 3D view looking north west. Updated resource block model showing
distribution of lithium metal (Li_ppm) grades
Block model showing lithium (Li_ppm) grade distribution.
Figure 1.3 - North-South long section through the resource block model.
Block model showing lithium (Li_ppm) grade distribution, red line denotes
reportable limit as defined by a 20-metre safety pillar below historical mine
workings, black line denotes topography.
Figure 1.4 - West-East cross section through the resource block model.
Block model showing lithium (Li_ppm) grade distribution, red line denotes
reportable limit as defined by a 20-metre safety pillar below historical mine
workings, black line denotes topography.
Classification
Snowden Optiro has taken multiple factors into account when considering
classification:
· Drillhole spacing
· Geological model confidence
· Mineralisation continuity
· Metallurgical confidence
· Estimation pass
· Mineralisation thickness
The classification criteria for the resource are as follows:
· Measured: External greisen units, below the 20 metre safety buffer,
showing consistently mineralised zones supported by several drilling
intersections at a spacing of approximately 80 metres. This corresponds to
parts of the model where the geo-metallurgical behaviour is well understood,
and the mineralisation shows suitable continuity. The classification does
not include any extrapolated material beyond appropriately spaced drillholes
and must be estimated in the first search pass.
· Indicated: External greisen units and the mineralisation zone, below
the 20 metre safety buffer, supported by drilling intersections on a spacing
of 80-120 metres. The classification does not include any extrapolated
material beyond appropriately spaced drillholes and must be estimated in the
first search pass.
· Inferred: External greisen units and the mineralisation zone, below
the 20 metre safety buffer, supported by wider-spaced drilling. This
corresponds to less certainty in geological / mineralisation continuity and
consists of material estimated in the first and second pass and extrapolated
beyond drillholes at the periphery of the model up to half drillhole spacing.
It is the opinion of Snowden Optiro that given the metallurgical understanding
of the mineralisation zone of the albite granite, it would not be appropriate
to apply a classification of higher confidence than Indicated to the broad
mineralisation zone. Snowden Optiro considers that due to lower mineralogical
variability within the high grade greisens, and greater metallurgical test
work coverage, portions of the high-grade greisen can be classified as
Measured. Snowden Optiro has recommended to Zinnwald Lithium that a
geo-metallurgical testwork program be undertaken to provide a higher level of
confidence in the Mineral Resource within the broader mineralisation zone.
Snowden Optiro has provided Zinnwald Lithium guidance in sample selection and
the metallurgical testwork programme.
Reasonable Prospects for Eventual Economic Extraction
NI 43-101 defines a mineral resource as that portion of the mineral inventory
that has reasonable prospects for economic extraction ("RPEEE"). CIM Best
Practice Guidelines for estimating mineral resources require the factors
significant to project economics be current, reasonably developed and based on
generally accepted industry practice and experience. In establishing the
cut-off grade, it must realistically reflect the location, deposit scale,
continuity, assumed mining method, metallurgical processes, costs and
reasonable long-term metal prices appropriate for the deposit.
Key assumptions have been provided to Snowden Optiro by Zinnwald Lithium for
this MRE; these have been adjusted in accordance with the Company's
understanding of costs associated with a higher production rate expected when
mining a greater volume of material at a lower grade. This includes
metallurgical recoveries and mineral processing costs based on the results of
ongoing metallurgical testwork.
The grade-tonnage curve in Figure 1.5 demonstrate the robustness of the
estimation to changes in cut-off grade around the 1,100 ppm Li grade.
Figure 1.5 - Grade-tonnage curve for the Zinnwald Lithium deposit, Measured
and Indicated only.
Comparison with Previous Estimates
The most recent MRE for the deposit was completed on 30 September 2018 by
G.E.O.S. Ingenieurgesellschaft GmbH and was prepared using the terminology and
definitions given in the Canadian securities National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI 43-101"). The previous MRE
focussed only on the greisens and not on the mineralised granite. The Snowden
Optiro updated MRE has included the mineralised granite and incorporated
internal greisens within a mineralised zone. A direct comparison is provided
in Table 1.3, noting that the mineralised zone contains greisens as defined as
type 1 in the 2018 MRE.
Table 1.3 - Comparison of the GEOS 2018 MRE with the updated Snowden Optiro
2024 MRE
Model Classification Type Tonnes Mean Grade Contained Metal
(Mt) Li (ppm) Li (kt)
GEOS (2018) Measured External Greisen (1) 18.5 3,630 67
Mineralised Zone (2) - - -
Indicated External Greisen (1) 17 3,399 58
Mineralised Zone (2) - - -
Measured + Indicated 35.5 3,519 125
Inferred External Greisen (1) 4.9 3,549 17
Mineralised Zone (2) - - -
Snowden Optiro (2024) Measured External Greisen (1) 11.3 3,420 39
Mineralised Zone (2) - - -
Indicated External Greisen (1) 2.1 3,510 7
Mineralised Zone (2) 180.0 2,120 383
Measured + Indicated 193.5 2,220 429
Inferred External Greisen (1) 0.8 3,510 3
Mineralised Zone (2) 32.5 2,110 68
Cut-off grade used for the GEOS 2018 MRE was 2,500ppm (due to lower expected
processing throughputs) and 1,100ppm for the Snowden Optiro 2024 MRE.
The 2024 MRE shows a 445 % increase in tonnage in the Measured and Indicated
category over the 2018 MRE. This is predominantly due to the incorporation of
the broad mineralised zone, as well as the significant increase in drilling
meters (27,000m) and sampling intervals contributed by the 2022-2023 campaign.
A slight drop in the Measured category is in part due to the incorporation of
internal greisens within the mineralised zone, and a more appropriate
classification of higher confidence parts of the resource, taking into
account, drillhole spacing, geological model confidence, mineralogical &
metallurgical confidence and estimation quality. Snowden Optiro has
recommended to Zinnwald Lithium that further metallurgical testing of the
mineralisation zone be undertaken in order to convert parts of the mineralised
zone currently defined as Indicated.
Qualified Persons
Laurie Hassall, Senior Consultant, MSci FIMMM '689775' FGS '1044219', of
Snowden Optiro is the main author of the 2024 MRE and is responsible for the
technical information in this announcement. Mr Hassall is a Qualified Person
under the terms of NI 43-101 and is independent of the Company.
In accordance with the AIM Rules - Note for Mining and Oil & Gas
Companies, the information in this announcement has been reviewed and approved
by Qualified Person EurGeol (#641) Christian Masurenko of Zinnwald Lithium,
Dipl. Geo., Member EFG, Fellow SEG
*ENDS*
For further information visit www.zinnwaldlithium.com
(http://www.zinnwaldlithium.com/) or contact:
Anton du Plessis Zinnwald Lithium plc info@zinnwaldlithium.com (mailto:info@zinnwaldlithium.com)
Cherif Rifaat
David Hart Allenby Capital +44 (0) 20 3328 5656
Dan Dearden-Williams (Nominated Adviser)
Michael Seabrook Oberon Capital Ltd +44 (0) 20 3179 5300
Adam Pollock (Joint Broker)
Richard Greenfield Tamesis Partner LLP +44 (0) 20 3882 2868
Charles Bendon (Joint Broker)
Isabel de Salis St Brides Partners zinnwald@stbridespartners.co.uk (mailto:zinnwald@stbridespartners.co.uk)
Paul Dulieu (Financial PR)
Notes
AIM quoted Zinnwald Lithium plc (EPIC: ZNWD.L) is focused 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 and has the potential to be
one of Europe's more advanced battery grade lithium projects.
Glossary and definition of terms
Title Explanation
Cut-off grade The lowest grade or quality of mineralized material that qualifies as
economically mineable and available in a given deposit. May be defined on the
basis of economic evaluation or on physical or chemical attributes that define
an acceptable product specification.
Indicated Mineral Resource That part of a Mineral Resource for which tonnage, densities, shape, physical
characteristics, grade and mineral content can be estimated with a reasonable
level of confidence. It is based 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 Mineral Resource That part of a Mineral Resource for which tonnage, densities, shape, physical
characteristics, grade 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 grady 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 Mineral Resource That part of a Mineral Resource for which tonnage, densities, shape, physical
characteristics, grade 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.
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