REG - Zinnwald Lithium PLC - Grant Of Additional Exploration Licence

Zinnwald LithiumAnnouncement

06/07/2023 07:00

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RNS Number : 1173F  Zinnwald Lithium PLC  06 July 2023

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

6 July 2023

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

Grant Of Additional Exploration Licence

Zinnwald Lithium plc, the European focused lithium company developing the
advanced Zinnwald Lithium Project (the 'Project') in Germany, is pleased to
announce that its 100%-owned subsidiary, Deutsche Lithium GmbH ('Deutsche
Lithium'), has been granted an additional exploration licence (the
'Bärenstein Licence') covering approximately 4,933.9 hectares ('ha') in the
Erzgebirge region of Saxony, Germany.  The Bärenstein Licence has the
potential to provide additional resource upside to the Company's Project and
results in continuous licence coverage from the Zinnwald Mining Licence to the
Falkenhain Exploration licence, thus complementing the Company's strategy to
potentially develop future operations in this area.

 

HIGHLIGHTS

·    Closes the gap between Falkenhain and Altenberg Exploration licences
and adds a substantial land area to the mineral exploration titles of the
Company in the region that now stands at combined 9,959.6 ha.

·   Potential to further expand the Company's lithium resources which could
ultimately contribute to the mining production of the Project.

·    The greenfield Bärenstein Licence holds significant mineral
potential and was historically mined for tin and silver between the 15th and
19th centuries.

·   The Bärenstein Licence area includes land that is being evaluated for
the future mining and processing operations of the Project.

·   The Company continues to prioritise the work towards the Project's
Bankable Feasibility Study ("BFS").  The immediate goal is to conclude the
on-going drill-campaign in Zinnwald in the coming months, which should result
in an updated Mineral Resource Estimate ("MRE") being published in Q4 2023.

Zinnwald Lithium CEO, Anton du Plessis, commented: "The Bärenstein Licence
is an excellent addition to the Company which complements our existing licence
holdings by linking the promising Falkenhain licence area with our core
Zinnwald Licence. Following further work we will undertake in due course, the
Bärenstein Licence has the potential to increase the resource base and
lifetime of the planned mine and mineral processing facilities related to our
Project.

 

DETAILS

Deutsche Lithium has been granted the Bärenstein Licence, which covers circa
4,933.9 ha in the Erzgebirge or Ore Mountains region of Saxony, Germany and is
valid until 30 June 2028. The 5-year exploration licence was issued to
Deutsche Lithium by the Saxony State Mining Authority (Sächsisches
Oberbergamt) in accordance with §7 of the German Mining Act
(Bundesberggesetz). As is standard practise in Germany, the granting of the
licence is subject to there being confirmation of no valid objection to its
granting and the Company anticipates this confirmation being received by
end-July 2023.

 

The Bärenstein Licence lies adjacent to, and directly to the north-east of,
the Altenberg-DL licence and almost completely encloses the Falkenhain
licence, both of which the company already holds (please see overview map
above). By being granted this exploration licence, the Company has closed the
gap between Falkenhain and Altenberg-DL licences, which also contains valuable
geological targets and areas for planned future development of the Zinnwald
mining operation.

 

The lithium and tin endowment of the area is tied to the presence of granitic
intrusions of certain geological ages, as well as structural corridors that
have carried mineralising fluids. Utilising geological knowledge Zinnwald
Lithium has gained from working in the immediate area, the Company is planning
to undertake further greenfield exploration on the Bärenstein Licence and
expand its resource base locally. The "Sachsenhöhe" area has been identified
as an especially promising exploration target, as it is known for historic
mining activities for tin and silver since the 15th century.

 

Furthermore, the Company continues to investigate the broader Bärenstein area
as a location for future mining and processing operations. To also hold the
mineral rights for these areas has therefore been a priority to maintain
planning flexibility as well as legal certainty.

 

The Company's key focus remains the development of its principal asset, the
100% owned advanced Zinnwald Lithium Project in Germany, where it is
progressing the work for a new Bankable Feasibility Study. By consolidating
mineral rights in the Zinnwald area, the Company maintains the aim to become
an important supplier to Europe's fast-growing lithium sector. One of the
Company's primary immediate goals is the completion of its on-going infill
drilling campaign on the Zinnwald Licence to support the delivery of an
updated MRE in Q4 2023.  As at today's date, the Company has completed 61
drill holes totalling more than 20,000m of drill core.

 

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

 

*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.

 

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