Cinovec Project’s Concept Study Suggests 29,000+ tpa Lithium Capacity Increase

Clarification on Concept Study Results

European Metals Holdings Limited (ASX: EMH) has issued a clarification regarding its Concept Study for the Cinovec lithium project, originally announced on 20 December 2024. The company has retracted the production targets previously implied by that study, emphasizing that these remain conceptual and should not be relied upon by shareholders. The economic viability of any potential production increase is still unknown and subject to confirmation in the upcoming Definitive Feasibility Study (DFS), expected by mid-2025.

Potential for Increased Production Capacity

The Concept Study explored scenarios to increase run-of-mine (ROM) ore processing capacity beyond the Prefeasibility Study (PFS) baseline of 29,386 tonnes per annum of lithium product. Notably, this potential expansion could be achieved without enlarging the underground mine footprint or altering the mine portal location, preserving environmental parameters. The study suggests that the larger Prunéřov EPRI site, replacing the previously planned Dukla processing plant site, can accommodate the increased processing capacity, enabling economies of scale that may improve project economics.

Mining methods remain consistent with the PFS, utilizing sub-level longhole open stoping with backfill, but with an expanded fleet to support faster mining rates. The Concept Study also incorporates Inferred Resources in the latter years of the mine plan, which could extend production life but carries geological uncertainty. The company notes a strong track record of upgrading Inferred Resources, which adds some confidence to this approach.

Economic and Strategic Implications

While the Concept Study indicates technical feasibility for increased capacity, European Metals cautions that the economic benefits require further evaluation in the DFS. The project’s strategic importance remains clear, as it is the largest hard rock lithium deposit in Europe and positioned to support the European Union’s critical raw materials agenda and lithium self-sufficiency goals by 2030.

Executive Chairman Keith Coughlan highlighted the ongoing efforts to optimize the project’s economics during the extended DFS timeline. The company’s collaboration with Bara Consulting and DRA Global Limited underscores a rigorous approach to advancing the project’s development.

Next Steps and Market Outlook

The DFS, scheduled for release mid-2025, will provide definitive insights into the viability of the increased production scenarios and their impact on project economics and life of mine. Until then, shareholders and analysts are advised to disregard the earlier Concept Study production targets and await the more comprehensive DFS results.

European Metals’ Cinovec project benefits from excellent infrastructure, strong ESG credentials, and proximity to European battery manufacturers, positioning it well to capitalize on the growing demand for lithium in the energy transition.