REG - Zinnwald Lithium PLC - Proven Viability of Lithium Hydroxide Production

Zinnwald LithiumAnnouncement

08/03/2022 07:00

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RNS Number : 9347D  Zinnwald Lithium PLC  08 March 2022

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

8 March 2022

Zinnwald Lithium plc

("Zinnwald Lithium" or the "Company")

 

Completion Of Pilot Scale Test Work Proves the Viability of Lithium Hydroxide
Production

 

Zinnwald Lithium plc, the German focused lithium development company, is
pleased to confirm that production of battery grade lithium hydroxide ("LiOH")
from Zinnwaldite concentrate is technically and economically viable at its
Zinnwald Lithium Project (the "Project") in Germany, having completed a pilot
scale test work programme.  The test work also confirms the potential to
produce economically significant amounts of commercially saleable co-products,
such as high-purity potassium sulphate ("SOP") and precipitated calcium
carbonate ("PCC").

 

Overview

·    Pivoting the Project to focus on battery-grade lithium hydroxide as a
primary product to better align with the requirements of European off-takers

·    Economic, technical, and commercial analysis of test work undertaken
indicates that annual lithium hydroxide production above 10,000 tons could be
viable from the core Zinnwald Project

·    Test work also confirms that economically significant amounts of
high-quality by-products, SOP and PCC, can be produced

·    The results from the successful tests will be applied in basic
engineering and will be utilised in an updated feasibility study

 

Anton du Plessis, CEO of Zinnwald Lithium, commented: "I am delighted that we
have completed the pilot scale test work necessary to demonstrate that the
Zinnwald Lithium Project is capable of economically producing meaningful
quantities of Lithium Hydroxide. This is consistent with our strategy of
pivoting the Project to focus on the production of mainstream lithium products
that is in increasingly high demand by the European EV and battery sectors.
Notably, the ability of the Project to deliver domestic European supply of
important co-products such as potassium sulphate further strengthens our
investment case, while equally importantly, the test work indicates that the
process does not generate environmentally harmful side products."

 

Details

As previously announced, following an analysis of market trends in battery
chemistry and end-user demand, the Company has refocused the Project on
battery-grade lithium hydroxide as a primary product to better align with the
requirements of European off-takers.

 

Accordingly, test work, conducted in Germany by a leading industry specialist,
K-UTEC AG Salt Technologies ('K-UTEC'), and verified by a third-party
laboratory through chemical and physical analysis, processed Zinnwaldite
concentrate into high purity (above 99.9% purity) Lithium Hydroxide
Monohydrate ('LHM') and high purity SOP.  Furthermore, economic, technical,
and commercial analysis performed indicates that annual lithium hydroxide
production above 10,000 tons could be viable from the core Zinnwald license.
As noted in the Company's recent Chairman's Statement, one of its core plans
for 2022 is to undertake drilling on its satellite license areas with the goal
of expanding the potential size of the Project as a whole.

 

Lithium recovery from the Zinnwaldite concentrate to the lithium-product was
proven to be above 80% and comparable to lithium processes from other types of
lithium resources. Non-saleable side streams were proven to contain very low
amounts of soluble, possibly environmentally problematic elements.

 

In the test programme, calcined Zinnwaldite concentrate was converted into
battery grade LHM in a pilot plant scale test with almost 50kg of battery
grade LHM produced out of several tons of Zinnwaldite concentrate. The level
of impurities in the battery grade lithium salt were in line with, or below,
similar battery grade lithium products available on the market.

 

The process flow sheet, developed by in-house experts and K-UTEC, is based on
traditional, proven industrial processing technology. In the first stage,
Zinnwaldite concentrate is calcinated. The lithium in the calcine is in
water-soluble form and is converted in a solid-state reaction without the use
of acid. After water leaching, the lithium-containing solution is purified,
and after an intermediate step, converted into lithium hydroxide.

 

In addition to battery-grade LHM, commercially significant amounts of
high-quality by-products, SOP and PCC, can be produced.

 

The results from the successful tests will be applied in basic engineering and
will be utilised in an updated feasibility study.

 

*ENDS*

 

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

 

 Anton du Plessis                   Zinnwald Lithium plc      info@zinnwaldlithium.com (mailto:info@zinnwaldlithium.com)
 David Hart/Liz Kirchner            Allenby Capital Limited   +44 (0) 20 3328 5656

                                    Nominated Adviser
 Michael Seabrook                   Oberon Capital Ltd        +44 (0) 20 3179 5300

 Robert Hayward                     Broker
 Isabel de Salis/Catherine Leftley  St Brides Partners Ltd    zinnwald@stbridespartners.co.uk (mailto:zinnwald@stbridespartners.co.uk)

                                    Financial PR

 

Notes

Zinnwald Lithium plc (EPIC: ZNWD.L) is an AIM quoted, German focused lithium
development company focussed on becoming an important supplier to Europe's
fast-growing battery sector. The Company owns 100% of the Zinnwald Lithium
Project in Germany, a late-stage development project with attractive economics
and approved mining licence.  The Project is located in the heart of Europe's
chemical and automotive industries and has the potential to be one of Europe's
most advanced battery grade lithium projects.

 

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