REG - Zinnwald Lithium PLC - Grant of New Exploration Licence at Liebenau

Zinnwald LithiumAnnouncement

07/04/2025 07:00

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RNS Number : 8195D  Zinnwald Lithium PLC  07 April 2025

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

7 April 2025

Zinnwald Lithium plc

('Zinnwald Lithium' or the 'Company')

 

Grant of New Exploration Licence at Liebenau

 

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, Zinnwald Lithium GmbH, has been
granted an additional exploration licence (the 'Liebenau Licence') covering
approximately 2,997 hectares ('ha') in the Erzgebirge region of Saxony,
Germany.  The Liebenau Licence covers the area identified in the Company's
recently published Pre-Feasibility Study ('PFS') as the site for the planned
processing plant for the Project.  The Liebenau Licence extends Zinnwald
Lithium's continuous licence coverage from its main ore body in Zinnwald to
Liebenau.

 

HIGHLIGHTS

·    Completes the licence coverage area for the Project's planned
operations identified in the PFS and includes the site identified for the
processing plant and tailings storage facility.

·    Adds a substantial land area to the mineral exploration titles of the
Company in the region that now stands at combined 12,933 ha.

·    Facilitates the ability to access sites required for geo-technical
and hydrogeological drilling to support the Project's next phase of work to
complete a Definitive Feasibility Study ('DFS').

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

·    The location of the Liebenau Licence is based on the boundaries of
previously granted exploration licences and takes into account the findings of
extensive exploration work by the state geological institutions of the former
GDR and the data obtained therein. These indicate that granite- and
greisen-associated Li-Sn-W mineralisation extend into the proposed exploration
area.

·    The Company has recently published a PFS for the Project that showed
a pre-tax NPV of €3.3 billion and IRR of 23.8% on a phased project initially
producing 18,000 tonnes per annum of lithium hydroxide scaling up to a peak
production of 35,100 tonnes with a mine life in excess of 40 years.

 

Zinnwald Lithium CEO, Anton du Plessis, commented: "The Liebenau Licence is
an important addition to our licence area, as it includes geological
structures through which the planned tunnel connection between Zinnwald and
the site of our planned processing plant and tailings storage facility will
pass.  The new licence complements our existing licence holdings by ensuring
we have exploration and access rights for the entire area envisioned for the
Project's development.  Our near-term plans for the licence will be to
undertake the necessary geo-technical and hydrogeological drilling required to
support our DFS work."

 

DETAILS

Zinnwald Lithium has been granted the Liebenau Licence, which covers circa
2,997 ha in the Erzgebirge or Ore Mountains region of Saxony, Germany and is
valid until 1 April 2030. The 5-year exploration licence was issued to
Zinnwald Lithium GmbH by the Saxony State Mining Authority (Sächsisches
Oberbergamt) in accordance with §7 of the German Mining Act
(Bundesberggesetz).

 

The Liebenau Licence lies adjacent to, and directly to the north-east of, the
Bärenstein licence (please see overview map above). By being granted this
exploration licence, the Company has extended the licence coverage to include
the planned tunnel connection between the future mine site and the processing
plant and tailings storage facility detailed in the recent PFS.

 

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 its various exploration
licenses (see table below) and expand its resource base locally.

 

 License     No    Interest  License category  License expiry date  License area (m²)   Comments
 Zinnwald    2960  100%      Mining            31 December 2047     2,564,800           Development in progress

 Falkenhain  1686  100%      Exploration       31 December 2025     2,957,000           Exploration in progress
 Altenberg   1698  100%      Exploration       20 February 2027     42,252,700          Exploration in planning
 Sadisdorf   1706  100%      Exploration       30 June 2026         2,249,000           Exploration in planning
 Barenstein  1713  100%      Exploration       30 June 2028         49,339,000          Exploration in planning
 Liebenau    1733  100%      Exploration       01 April 2025        29,970,000          Exploration in planning
 Total                                                              129,332,500

 

 

The Company's key focus remains the development of its principal asset, the
100% owned advanced Zinnwald Lithium Project in Germany.  It has recently
published its PFS for the Project that showed a pre-tax NPV of €3.3 billion
and IRR of 23.8% on a phased project initially producing 18,000 tonnes per
annum of lithium hydroxide scaling up to a peak production of 35,100 tonnes
with a mine life in excess of 40 years.  This confirms the Project's economic
viability and paves the way for further project planning and development.

 

The Company has also recently received a strong statement of support from the
Saxon government and confirmation that it will actively support the Project
and has designated it a high priority. This commitment is formally
acknowledged in the coalition agreement between the CDU and SPD in the Free
State of Saxony. Additionally, the Saxon State Government remains committed to
advocating at the federal level for strong support of lithium mining in
Saxony, reinforcing the Project's status as a key initiative.

 

Zinnwald Lithium plans to investigate the Liebenau Licence over the next five
years and to assess its potential to further enhance the Project.

 

*ENDS*

 

To engage with us directly via our investor hub, please sign up at

https://investors.zinnwaldlithium.com/auth/signup
(https://investors.zinnwaldlithium.com/auth/signup)

 

 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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