Communicators

FINAL DRILLING RESULTS

European Metals Holdings Limited (“European Metals” or “the Company”) 10 February 2017, is pleased to announce analytical results for the final three drillholes completed under the recently finished drilling programme at the Cinovec Main sector of the deposit.

A revision of the resource model is now underway and will form the basis of the soon to be completed Preliminary Feasibility Study. It is anticipated this resource model will be completed and announced in February 2017.

Key Points:

-        Analytical results for further three drillholes at Cinovec Main confirmed or exceeded the expected lithium content and mineralisation widths.

-        The drillholes CIW-25, CIW-27 and CIW-06 are located in a central part of the deposit, filling a gap between the western edge of the Cinovec deposit and the historic vein deposit Cinovec-Central.

-        Hole CIW-25 contains the Company's longest Li intercept to date of 361.5m averaging 0.43% Li2O, incl. a high grade Li interval of 14.7m averaging 0.93% Li2O. Moreover, significant intervals of Sn and W are included: 2m@1.67%Sn and 0.216% W and 2m@0.76%Sn, 0.319% W.

-        Hole CIW-27 retuned Li intercept of 235m averaging 0.49% Li2O, incl. high grade zones of 14m@0.97% Li2O and 2m@1.79%Li2O.

-        Hole CIW-06 intercepted a Li interval of 258.5m averaging 0.44% Li2O, containing high grade intercepts of 3m@1.11%Li2O, 2.75m@0.91%Li2O and 2m@1.03%Li2O.

-        The updated drill database and geologic model for Cinovec has been completed and provided to Widenbar and Associates.  The block model will be updated within the next fortnight, as all the analyses of core from the drilling program have been received. The block model and resource calculation will be part of the Preliminary Feasibility Study.

European Metals CEO Keith Coughlan said: “I am very pleased to report results from the last three drillholes from the 2016 drilling program at Cinovec Main.  These results continue to either confirm or exceed our expectations with regards to lithium content and mineralisation width. The sheer size of Cinovec is highlighted with the 361m intercept being in a league of its own in the lithium space.  I am also pleased to report that we have completed the geologic model to a high degree of accuracy and that we have commissioned Widenbar and Associates to upgrade the resource estimate for the PFS study. I am looking forward to receiving and reporting these results in the near future.”

Drill Programme

The drill holes CIW-25, CIW-27 and CIW-06 were collared in the central part of Cinovec main, filling a gap between the historic Cinovec-Central mine and the western edge of the Cinovec deposit (see Figure 1). 

The current drill programme at Cinovec Main has been planned to confirm and delineate near surface lithium and tin mineralisation that would provide initial feed to the mill. Other goals are the conversion of resources from the Inferred to Indicated category, and delivery of material for metallurgical testing.  A total of 17diamond core holes have been completed.  Visual inspection and logging indicates that the geology in these holes is as expected. Drill details are listed in Table 1 below.

After geological logging, drill core is cut in half with a diamond saw.  Quarter core samples are selected (honouring geological boundaries) and dispatched to ALS (Romania) for preparation and assay; the 3/4 of the core is returned to the core box and stored securely on site.  Samples are being prepared and analysed by ALS using ICP and XRF techniques following standard industry practice for lithium and tin deposits.  Strict QAQC protocols are observed, including the insertion of a Li standard in random fashion for every 10 core samples, as well as the insertion of blank and duplicate samples.

Table 1 – Completed drillholes, Cinovec Main

Hole locations are recorded in the local S-JTSK Krovak grid, all coordinates are surveyed.

Mineralised Intercepts and Lithology

The drillholes CIW-25 and CIW-06 were located on the NW edge of the Cinovec-main deposit, both were collared in the lithium bearing granite, and are about 60 meters apart in N-S direction at surface, increasing with depth as their core angles are discordant.

The upper part of the drill hole CIW-25 is formed by albite granite with several quartz veins and thin near-vein greisen bodies. The initial interval of massive greisen starts at depth of 104.25m and hosts a high grade intercept of 14.7m averaging 0.93% Li2O and high Sn and W intercepts (incl. 2m@1.67% Sn). The interval of intensive gresenization is terminated by an albite (± sericite) granite (173.5-204.6m). Below this zone, a long interval of greisenized granite and greisen was intersected. The base of the lithium mineralisation, the so called is low-mica granite, is at a depth of 373m. Apparent core angles of narrow greisen contact were measured at 55-70 degrees. The drillhole was angled 70 degree West and the core was not oriented; therefore, the mineralised intercepts may not represent true widths.

The hole CIW-06 is angled 80 degrees to the North. It starts in albite granite and is intersected by several quartz veins with high Sn and W grades. Greisen and greisenized granite zones are more frequent with depth. This upper sequence of the core is interpreted as a continuation of the vein domain from the historic Cinovec-Main deposit (4 historic stopes were intercepted in the hole). Interval of massive greisenization starts in depth 127.5m. The base of the Li mineralisation is presented by low-mica granite at a depth of 270m. As the angle of the hole is perpendicular to quartz veins and greisen bodies, the mineralised intercepts in the hole CIW-06 can be considered of true, or near true, widths.

Drill hole CIW-27, located some 160m W of CIW-06, is collared in the barren porphyry. The contact with the lithium bearing granite is at 102.8m. Immediately below the contact a massive greisen with quartz veins was intersected. The main mineralised interval is formed by greisenized granite and greisen, locally with quartz veins and zones of albite (± sericite, hematite) granite. The base of the main mineralised interval occurs at 339m where the low-mica granite is intersected.  Measured core angles in the drillhole CIW-27 are subhorizontal, the hole is vertical, therefore the mineralised intercepts can be considered of true, or near true, widths. 

The Tables below list the mineralised intercepts for the three drillholes. 

Table summarizing mineralised intercepts in CIW-25

Table summarizing mineralised intercepts in CIW-27

Table summarizing mineralised intercepts in CIW-06

Figure 1 - A geological map showing the Company’s drill holes against surface geology and subsurface greisen bodies projected to surface (in green). Historic UG workings and drill holes not shown.

Geologic Model

The 3D geological model has been updated in-house using Leapfrog Geo software (Aranz Geo Ltd.).  The mode is based on a robust database that includes collars, surveys, lithologic codes and assays from historic exploration and updated EMH drilling information amounting to94,666m of drill holes and 21.5km of underground workings

Additionally, 42 historic sections, 3 level plans and large amount of detail geological maps (scale 1:200, 1:500, 1:2,000) from historic reports were used as source of structural and lithological information.

The model was restricted by the international border with Germany. Topographical surface was created from a contour shapefile with a 5m resolution, procured from the official Geoportal of the Czech Office for Surveying, Mapping and Cadastre. The base of the model was arbitrary set at the level 0 m a.s.l., which is about 50m below the deepest EMH drill hole.

BACKGROUND INFORMATION ON CINOVEC

PROJECT OVERVIEW

Cinovec Lithium/Tin Project

European Metals owns 100% of the Cinovec lithium-tin deposit in the Czech Republic. Cinovec is an historic mine incorporating a significant undeveloped lithium-tin resource with by-product potential including tungsten, rubidium, scandium, niobium and tantalum and potash. Cinovec hosts a globally significant hard rock lithium deposit with a total Indicated Mineral Resource of 232.8 Mt @ 0.45% Li2O and a total Mineral Resource of 606.8 Mt @ 0.43% Li2O containing a combined 6.46 million tonnes Lithium Carbonate Equivalent.

This makes Cinovec the largest lithium deposit in Europe and the fourth largest non-brine deposit in the world.

Within this resource lies one of the largest undeveloped tin deposits in the world, with total Indicated Mineral Resource of 28.6 Mt @ 0.23% Sn and a total Mineral Resource of 70.5 Mt grading 0.20% Sn for a combined total of 141.2 kt of contained tin. The Mineral Resource Estimates have been previously released on 23 November 2016. The deposit has previously had over 400,000 tonnes of ore mined as a trial sub-level open stope underground mining operation.

A Scoping Study conducted by specialist independent consultants indicates the deposit could be amenable to bulk underground mining. Metallurgical test work has produced both battery grade lithium carbonate and high-grade tin concentrate at excellent recoveries with the Scoping Study. Cinovec is centrally located for European end-users and is well serviced by infrastructure, with a sealed road adjacent to the deposit, rail lines located 5 km north and 8 km south of the deposit and an active 22 kV transmission line running to the historic mine. As the deposit lies in an active mining region, it has strong community support.

CONTACT

For further information on this update or the Company generally, please visit our website at www. http://europeanmet.com or contact:

Mr. Keith Coughlan
Managing Director

European Metals Holdings Limited

ARBN 154 618 989

Suite 12, Level 1

11 Ventnor Avenue

West Perth WA 6005

PO Box 52

West Perth WA 6872

Phone + 61 8 6141 3500 

Fax + 61 6141 3599

Website:  www.europeanmet.com

Directors

David Reeves

Non-Executive Chairman

Keith Coughlan

Managing Director

Dr Pavel Reichl

Non-Executive Director

Kiran Morzaria

Non-Executive Director

Company Secretary

Ms Julia Beckett

Corporate Information

ASX:  EMH

AIM:  EMH

Frankfurt:  E861.F

CDIs on Issue:  129M

COMPETENT PERSON

Information in this release that relates to exploration results is based on information compiled by European Metals Director Dr Pavel Reichl. Dr Reichl is a Certified Professional Geologist (certified by the American Institute of Professional Geologists), a member of the American Institute of Professional Geologists, a Fellow of the Society of Economic Geologists and is a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and a Qualified Person for the purposes of the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009. Dr Reichl consents to the inclusion in the release of the matters based on his information in the form and context in which it appears. Dr Reichl holds CDIs in European Metals.

The information in this release that relates to Mineral Resources and Exploration Targets has been compiled by Mr Lynn Widenbar. Mr Widenbar, who is a Member of the Australasian Institute of Mining and Metallurgy, is a full time employee of Widenbar and Associates and produced the estimate based on data and geological information supplied by European Metals. Mr Widenbar has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the JORC Code 2012 Edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Widenbar consents to the inclusion in this report of the matters based on his information in the form and context that the information appears.

CAUTION REGARDING FORWARD LOOKING STATEMENTS

Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on the company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the company’s business and operations in the future. The company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the company or management or beyond the company’s control.

Although the company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

LITHIUM CLASSIFICATION AND CONVERSION FACTORS

Lithium grades are normally presented in percentages or parts per million (ppm). Grades of deposits are also expressed as lithium compounds in percentages, for example as a percent lithium oxide (Li2O) content or percent lithium carbonate (Li2CO3) content.

Lithium carbonate equivalent (“LCE”) is the industry standard terminology for, and is equivalent to, Li2CO3. Use of LCE is to provide data comparable with industry reports and is the total equivalent amount of lithium carbonate, assuming the lithium content in the deposit is converted to lithium carbonate, using the conversion rates in the table included below to get an equivalent Li2CO3 value in percent. Use of LCE assumes 100% recovery and no process losses in the extraction of Li2CO3 from the deposit.

Lithium resources and reserves are usually presented in tonnes of LCE or Li.

To convert the Li Inferred Mineral Resource of 532Mt @ 0.20% Li grade (as per the Competent Persons Report dated May 2016) to Li2O, the reported Li grade of 0.20% is multiplied by the standard conversion factor of 2.153 which results in an equivalent Li2O grade of 0.43%.

The standard conversion factors are set out in the table below:

Table: Conversion Factors for Lithium Compounds and Minerals

WEBSITE

A copy of this announcement is available from the Company’s website at www.europeanmet.com.

Here is the link to the full and original Press Release of European Metals Holding: http://www.asx.com.au/asxpdf/20170210/pdf/43fx97nxpnn76l.pdf