REG - Zinnwald Lithium PLC - Potential for Significant Li Resource @ Falkenhain

Zinnwald LithiumAnnouncement

30/01/2023 07:00

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RNS Number : 1773O  Zinnwald Lithium PLC  30 January 2023

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

30 January 2023

Zinnwald Lithium plc

("Zinnwald Lithium" or the "Company")

Assay Results Highlight Potential for Significant Lithium Resource at
Falkenhain

 

Zinnwald Lithium plc, the German focused lithium development company, is
pleased to provide an exploration update regarding its 100% owned Falkenhain
license ("Falkenhain") in Germany. These new results confirm the historic
drill data, indicating the potential for an additional economic lithium
resource that could provide a possible feed source for the Company's
integrated lithium hydroxide project, as it advances a Bankable Feasibility
Study ("BFS") towards completion by the end of 2023.  The Falkenhain license
area is located 2.5km from the proposed Zinnwald processing facility.

 

HIGHLIGHTS

·    Assay results for new drill hole LiSH-001 at Falkenhain show
significant intercepts of thick high-grade lithium (Li), tin (Sn) and tungsten
(W) mineralisation including:

o  114m - 194m (80m); Average 2,879 ppm Li; 492 ppm Sn and 271 ppm W

§ Including 140m - 191m (51m); Average 3,421 ppm Li; 519ppm Sn and 361 ppm W

o  334m - 344m (10m); Average 3,206 ppm Li; > 1,924 ppm Sn and 83 ppm W

·    Drill Hole "LiSH-001" is a twinned drill hole of the historical
exploration drill-hole "SnFhiDi047" from 1974, which targeted tin and tungsten
mineralisation at Falkenhain. Geological and geochemical results align well
with the available data of the historic hole.

·    The Company has reviewed an extensive historic dataset from previous
exploration campaigns, which will be leveraged in combination with modern data
arising from this and future drill programmes.

·    A review of historic drill data and surviving drill core indicates
the potential for a  high-grade lithium resource at the Falkenhain license
area, which has the potential to provide plant feed to the Company's flagship
Zinnwald Project.

·    Falkenhain lies within 2.5km of the processing site under
consideration for the Zinnwald Project.

 

Zinnwald Lithium CEO, Anton du Plessis, said: "I am delighted that the initial
results from our exploration campaign at Falkenhain support the review of
historic data from the license area demonstrating the clear potential for a
significant additional lithium resource. While our key focus remains advancing
the Zinnwald Project towards a BFS by the end of the year, the proximity to
our key Zinnwald Deposit and likely similarity of the geology suggests that
Falkenhain could ultimately represent an exciting adjunct to the Zinnwald
Project adding to its scale and importance as a domestic German supplier of
lithium hydroxide to the growing European battery sector."

 

DETAILS

 

Background

 

The Falkenhain exploration license is located 7km to the north of the
Company's flagship Zinnwald license and comprises the Schenkenshöhe and
Hegelshöhe deposits. As early as the 16th century, tin bearing veins were
mined on the eastern side of the Hegelshöhe. Systematic exploration for tin
and tungsten at these deposits primarily dates back to between 1964 and 1990,
motivated by the need for these strategic metals within the former German
Democratic Republic ("GDR"). Whilst lithium was not the focus of previous
exploration, historic data shows some intersections with exceptionally high
lithium grades and extensive academic research points to the geology of
Falkenhain being comparable to that of Zinnwald as Li-Sn-W greisen type
deposits.

 

The Company has now completed its review of the available exploration data,
including re-logging of historic drill core related to the license area. The
Saxony Mining Authority recently extended the Falkenhain exploration for
another three years to 31(st) December 2025. The license area is interesting
in terms of Li / Sn / W - resource potential and is also close to the primary
site being considered for the main processing facility of the Zinnwald
Project.

 

Following extensive geological analysis of historic data related to the
license area, the Company executed its first exploration drill hole at the
Schenkenshöhe deposit last year. The target of this hole was to verify a
historical drill-hole SnFhiDi047 from 1974 and gain new geochemical data,
focused on  lithium, to determine grades and continuity.

 

Geology

 

The Schenkenshöhe and Hegelshöhe are Li-Sn-W greisen satellite deposits of
the main Zinnwald/Cinovec Li-Sn-W greisen deposits in the Eastern Erzgebirge.
The deposits are characterised by several granite intrusions and greisen
mineralisation comparable to the occurrence in the Zinnwald Deposit, also
hosted in volcanic successions of the regional volcanic complex.

 

'Greisenisation' is caused by hydrothermal fluids and changes to the
mineralogy and geochemistry of the rocks adjacent to fluid pathways. A key
characteristic at Falkenhain are the distinct greisen-types within the
surrounding host rocks (exo-contact greisen) and the granites (endo contact
greisen).  The greisen ore bodies show different generations of Li-Sn-W
mineralisation caused by the various granitic intrusions. These are
represented by different highly specialised granite types enriched in
incompatible elements like Li, Sn, W, and others.

 

Results from Drill hole LiSH-001 (2022)

 

The purpose of the drill hole was to verify the historic drill-hole
SnFhiDi047, which was undertaken in 1974. LiSH-001 was drilled to a total
depth of 600.3m and subsequently logged and assayed using the same standards
as have been applied for the Zinnwald Lithium Project. The observed lithology
is identical to the historic core log of the twinned hole. Assay results have
shown a very similar grade distribution to results from Zinnwald and in
general a high degree of grade continuity in both exo- and endo-contact
greisens.

 

However, in comparison to Zinnwald, the greisen mineralisation at Falkenhain
extends beyond the Albite granite intrusion and into the volcanic host rocks.
Additionally, whilst tin and tungsten mineralisation occur at both the
Zinnwald and Falkenhain projects, recent and historic drilling results
demonstrate notable high-grade zones of tin and tungsten, pointing to further
upside potential at Falkenhain.

 

The first assay result includes long mineralised intersections above 1,500 ppm
Li such as:

·    114m - 194m (80m); Average 2,879 ppm Li; 492 ppm Sn and 271 ppm W

o  Including 140m - 191m (51m); Average 3,421 ppm Li; 519 ppm Sn and 361 ppm
W

·    226m - 243m (17m); Average 2,486 ppm Li; 804 ppm Sn and 79 ppm W

o  Including 237m - 243m (6m); Average 2,842 ppm Li; 1,398 ppm Sn and 49 ppm
W

·    251m - 261m (10m); Average 1,788 ppm Li; 912 ppm Sn; 21 ppm W

·    287m - 299m (12 m); Average 2,283 ppm Li; 264 ppm Sn and 106 ppm W

·    308m - 327m (19 m); Average 2,796 ppm Li; 648 ppm Sn and 228 ppm W

·    334m - 344m (10m); Average 3,206 ppm Li; > 1,924 ppm Sn and 83 ppm
W

o  Including 334 m - 341 m (7m), Average 3,851 ppm Li, > 2,641 ppm Sn and
64 ppm W

 

(Assay intervals with values for Sn marked with ">" indicate outstanding
assay results for samples where the upper detection limit of 10,000 ppm Sn was
exceeded and ore grade assay results are outstanding. These average values for
selected intervals are therefore expected to increase further.)

 

Geological interpretation of the results

 

The positive results indicate the presence of lithium within the
Schenkenshöhe deposit. The extent and shape of the lithium mineralisation
needs to be further explored by additional drilling. The corresponding
geological setting for Schenkenshöhe and Hegelshöhe suggests that the
geological potential for greisen style Li / Sn / W mineralisation is analogous
and warrants further definition.

 

Whilst Falkenhain type greisen mineralisation is broadly comparable to
Zinnwald type greisen ore, the Company intends to test the processing
characteristics of this material further in upcoming test-work campaigns.

 

Based on historic work, and from initial mineralogical studies undertaken by
the Company, the main lithium bearing mineral at Falkenhain belongs to the
Zinnwaldite Mica Group, while Cassiterite and Wolframite are respectively the
main tin and tungsten ore minerals.

 

Planned Exploration Campaign

 

As part of the Falkenhain exploration drill campaign, nine more drillholes are
planned and have already been approved by the relevant authorities.

 

In addition, intervals of historical drill cores are being sampled for assay
and analysed using hyperspectral scanning at TheiaX GmbH (Freiberg Germany).
The results will be utilised to prepare a 3D geological model and help to
ultimately define a first modern style mineral resource estimate of the
Schenkenshöhe and Hegelshöhe deposits.

 

Ongoing BFS work and In-fill Drill Programme

 

The Company remains focused on advancing its BFS, including the ongoing
in-fill drill campaign at the Zinnwald license supported by further test work
related to mineral and chemical processing. Objectives include support
for detailed mine design planning, as well as investigating the potential to
include lithium contained in the Albite Granite lithology into an updated
Mineral Resource Estimate.  Presently, the Company is operating three drill
rigs at Zinnwald and has completed 19 drill holes and 6,158 metres of drill
core since the start of the in-fill drill campaign in 2022.

 

The technical information in this announcement has been reviewed on behalf of
Zinnwald Lithium by Martin Pittuck CEng, FGS, MIMMM of SRK Consulting. Mr
Pittuck is a Corporate Consultant of SRK Consulting Ltd. Mr Pittuck has
sufficient experience relevant to the style of mineralisation and type of
deposit under consideration, and to the activity which he is undertaking to
qualify as a Competent Person in accordance with the guidance note for Mining,
Oil & Gas Companies issued by the London Stock Exchange in respect of AIM
Companies, which outlines standards of disclosure for mineral projects. Mr
Pittuck consents to the inclusion in this announcement of the matters based on
his information in the form and context in which it appears.

 

*ENDS*

 

 For further information visit www.zinnwaldlithium.com or contact:

 

 Anton du Plessis       Zinnwald Lithium plc  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           (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 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, and has the potential to be one of
Europe's more advanced battery grade lithium projects.

 

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