REG - Cadence Minerals PLC - European Metals Holdings– Cinovec Project Update

Cadence MineralsAnnouncement

31/07/2024 10:15

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RNS Number : 5733Y  Cadence Minerals PLC  31 July 2024

Cadence Minerals Plc

 

("Cadence Minerals", "Cadence", or "the Company")

 

European Metals Holdings- Cinovec Lithium Project Update

 

Cadence Minerals (AIM: KDNC) is pleased to note the announcement by European
Metals Holdings Limited (ASX & AIM: EMH) ("European Metals" or the
"Company regarding the Cinovec Lithium Project (Cinovec). EMH advises that the
timeline for the completion of the Definitive Feasibility Study ("DFS") and
therefore construction of the Cinovec lithium processing plant continue to be
worked on.

 

Given the change to the location of the lithium processing plant from Dukla to
Prunéřov, additional geotechnical work is currently underway to confirm the
optimal construction method and layout at the new site. Results from this
geotechnical work are expected to be available at the end of September. DRA
Global is then expected to provide a detailed timeline and begin the DFS
finalisation program of work.

 

EMH will provide a further update to the market once it has received a revised
timeline for completion of the DFS.

 

The Project team continues to progress several DFS-related programs on the
Front-End Comminution and Beneficiation circuit ("FECAB") and Lithium Chemical
Plant circuit ("LCP") to improve the overall flowsheet which are expected to
positively impact Project economics.

 

Process Flowsheet Improvements - FECAB

EMH previously announced changes to the FECAB process flowsheet from
beneficiation based entirely on magnetic separation to a process incorporating
both magnetic separation and flotation. This improvement yielded a total FECAB
lithium recovery of >87%, with 7-8% lost to the fines fraction and the
balance of 5-6% losses due to process inefficiency. By mass, the proportion of
the ore recovered to concentrate achieved was 30% of the total feed and the
grade of the concentrate entering the LCP was 1.198% lithium (2.58% Li(2)O).

 

To improve FECAB performance, targeting a higher-grade concentrate, additional
flotation testwork has been carried out. Representative ore samples were
utilised, milled to P80<150μm and tested without removing the <20μm
slimes fraction before flotation.

 

Results, benefits and impacts of this testwork are:

·      Potential for complete elimination of the magnetic separation
step from the FECAB flowsheet;

·      Flotation process without desliming has been successfully
optimised, which improves the recovery of zinnwaldite from the <20μm
fraction whilst not impacting reagent consumption or other process
beneficiation performance factors;

·      A capability to deliver overall FECAB lithium recovery
improvements from >87% to >94.7%, proven on a repeated basis;

·      Uplift in concentrate grade from 1.198% Li (2.58% Li(2)O) to
produce almost pure zinnwaldite concentrate with average grade of 1.46% Li
(3.14% Li(2)O);

·      The grades of concentrate produced in the flotation testwork are
the highest to date, based on the recoveries achieved and mass rejection (of
gangue) of 80% on average;

·      The flotation testwork program was carried out at neutral pH and
there was no need for chemical addition to adjust pH;

·      The above results are from repeated locked cycle testwork;

·      The locked cycle testwork achieved optimisation of recirculation
in the flotation circuit, such that the final circuit contained only a single
recirculation stream;

·      The improved lithium grade and purity of concentrate recovered
are expected to significantly impact both the operating costs per tonne
("Opex/t") of battery-grade end-product as well as the capital expenditure per
tonne ("Capex/t") for the LCP;

·      The results of this recent testwork have translated into impacts
on the DFS which include re-sizing of kilns for roasting the concentrate and
reagent and energy consumption reductions for the same overall process
outputs, with the intensive magnetic separation plant Capex/t and Opex/t
eliminated;

·      Expected economic improvements include a reduction in roasting
reagents (gypsum, limestone and sodium sulphate) required for the same output;

·      The purity of the flotation concentrate achieved further supports
production of exceptionally clean battery-grade end products for Cinovec;

·      A flotation-only process simplifies the FECAB operationally (in
addition to reducing Capex/t and Opex/t);

·      The measured Particle Size Distribution ("PSD") of the flotation
concentrate is close to the ideal PSD for kiln feed.  As a result, the need
for a concentrate regrind mill currently in the process flowsheet is being
re-assessed.

 

The flotation testwork has yielded excellent results and the Project team is
now considering the full ramifications in bulk materials handling, tailings
storage and backfilling, should a positive decision be made to change the
FECAB process flowsheet to 100% flotation beneficiation. EMH will provide an
update when a decision has been made.

 

Process Flowsheet Improvements - Lithium Chemical Plant

The principal roasting reagents mixed with lithium-bearing ore (zinnwaldite)
concentrate, as stated above, are gypsum, limestone and sodium sulphate. The
LCP process produces a waste stream of mixed sulphate, including sodium
sulphate, potassium sulphate, rubidium sulphate, with a residual component of
lithium sulphate derived from lithium which is not converted into lithium
phosphate during its first pass through the lithium phosphate reactor tank.

 

EMH has recently managed locked cycle tests that demonstrate the effects of
replacing sodium sulphate roasting reagent entirely with the mixed sulphate
waste stream, targeting reduced overall reagent consumption.

 

Nine locked cycles were performed with fully-representative zinnwaldite
concentrate roasted in each test. This testwork was undertaken at Nagrom
Laboratories in Perth, WA.

 

These tests have been successful, with the overall lithium recovery in the LCP
circuit remaining in the previously announced range of 88-93%.

 

The recycling of this mixed sulphate waste stream is a key component of the
patent pending for the Cinovec LCP process.

 

The benefits and impacts of this optimisation testwork of the LCP circuit are:

·      Elimination of sodium sulphate as a roasting reagent, reducing
Opex/t for the  project;

·      Lithium not recovered in its first pass through the lithium
phosphate reactor tank circuit is reprocessed, enabling higher overall lithium
recovery. Modelling, based on the results of cycles 5 and 6 of the 2022 Locked
Cycle Test program assuming fresh, pure (>98%) sodium sulphate addition
upfront, estimates the amount of lithium lost to the mixed sulphate waste
stream as 1.2%. This is now available for recovery in the revised LCP circuit
design; and

·      Reduction in the overall mixed sulphate waste stream required to
be onwards-treated has been achieved, further reducing Opex/t of the
end-product.

 

The updated LCP circuit design with recycling of mixed sulphate into the roast
mix results in recycling of approximately 50% of the total mixed sulphate
produced. The remaining mixed sulphate will be reprocessed as waste.

 

Land Acquisition at Dukla Transport Hub

Geomet s.r.o., the Cinovec Project holding company, has acquired the land and
buildings of the disused Lesní Brana railway station, proximate to the
proposed Dukla transport hub. This site is expected to be cleared and used for
the control room for rail operations in and out of the Dukla transport hub,
which will handle run-of-mine crushed ore (<70mm) onto trains for transport
to the Prunéřov lithium processing plant site and, in the reverse direction,
handle backfill material to then be transported by conveyor to the mine portal
area for use as mine backfill.

 

The DFS continues to work towards optimising and maximising the planned mine
production and ore transfer by rail to the change of Cinovec processing plant
site away from Dukla to Prunéřov. This has enabled the Project team to
review maximising the mine outputs and ore transfer by rail utilising only a
small proportion of the area available at Dukla and not disturbing existing
industrial users at Dukla. This optimisation is not expected to result in an
increase in the rail fleet as reagent deliveries are no longer required at the
Dukla site.

 

Just Transition Fund

Representatives of Geomet met with the Regional Standing Conference ("RSK"),
in the Czech Republic which is one of the bodies that approves and recommends
Just Transition Fund ("JTF") support,

 

Geomet has submitted an initial application for funding of a part of the
project (called a "sub-project"), which initially included the preliminary
mine portal area works - a box-cut (mine entrance), an exploration adit, work
on a portal access road. These construction works are able to take place under
the existing exploration licenses and not requiring an Environmental Impact
Assessment ("EIA").  The total initial grant requested from the JTF has in
turn been reduced from CZK 1.12 billion to CZK 0.8 billion (approximately EUR
31 million).

 

The RSK meeting has recommended the sub-project for JTF support. The next step
will be the final funding approval by the Ministry of Environment.

 

Link here
(https://www.londonstockexchange.com/news-article/EMH/cinovec-lithium-project-update/16595017)
to view the full EMH announcement

 

Cinovec Lithium/Tin Project

 

Geomet s.r.o. controls the mineral exploration licenses awarded by the Czech
State over the Cinovec Lithium/Tin Project. Geomet has been granted a
preliminary mining permit by the Ministry of Environment and the Ministry of
Industry. The company is owned 49% by EMH and 51% by CEZ a.s. through its
wholly owned subsidiary, SDAS. Cinovec hosts a globally significant hard rock
lithium deposit with a total Measured Mineral Resource of 53.3Mt at 0.48% Li2O
and 0.08% Sn, Indicated Mineral Resource of 360.2Mt at 0.44% Li2O and 0.05% Sn
and an Inferred Mineral Resource of 294.7Mt at 0.39% Li2O and 0.05% Sn
containing a combined 7.39 million tonnes Lithium Carbonate Equivalent and
335.1kt of tin.

 

Cadence Minerals holds approximately 2.52% per cent of the equity in European
Metals Holdings.

 

 For further information contact:

 Cadence Minerals plc                                         +44 (0) 20 3582 6636
 Andrew Suckling
 Kiran Morzaria

 Zeus Capital Limited (NOMAD & Broker)                        +44 (0) 20 3829 5000
 James Joyce
 Darshan Patel

 Isaac Hooper

 Fortified Securities - Joint Broker                          +44 (0) 20 3411 7773
 Guy Wheatley

 Brand Communications                                         +44 (0) 7976 431608
 Public & Investor Relations
 Alan Green

 

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information
contained in this announcement. Kiran holds a Bachelor of Engineering
(Industrial Geology) from the Camborne School of Mines and an MBA (Finance)
from CASS Business School.

 

Cautionary and Forward-Looking Statements

Certain statements in this announcement are or may be deemed to be
forward-looking statements. Forward-looking statements are identified by
their use of terms and phrases such as "believe", "could", "should",
"envisage", "estimate", "intend", "may", "plan", "will", or the negative of
those variations or comparable expressions including references to
assumptions. These forward-looking statements are not based on historical
facts but rather on the Directors' current expectations and assumptions
regarding the company's future growth results of operations performance,
future capital, and other expenditures (including the amount, nature, and
sources of funding thereof) competitive advantages business prospects and
opportunities. Such forward-looking statements reflect the Directors' current
beliefs and assumptions and are based on information currently available to
the Directors.  Many factors could cause actual results to differ materially
from the results discussed in the forward-looking statements, including risks
associated with vulnerability to general economic and business conditions,
competition, environmental and other regulatory changes actions by
governmental authorities, the availability of capital markets reliance on key
personnel uninsured and underinsured losses and other factors many of which
are beyond the control of the company. Although any forward-looking statements
contained in this announcement are based upon what the Directors believe to be
reasonable assumptions. The company cannot assure investors that actual
results will be consistent with such forward-looking statements.

 

The information contained within this announcement is deemed by the company to
constitute Inside Information as stipulated under the Market Abuse Regulation
(E.U.) No. 596/2014, as it forms part of U.K. domestic law under the European
Union (Withdrawal) Act 2018, as amended. Upon the publication of this
announcement via a regulatory information service, this information is
considered to be in the public domain.

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