Zinnwald Lithium Announces 445% Increase in Mineral Resource Estimate
Why we think this is good
The RNS announcement from Zinnwald Lithium is positive overall, as it highlights a significant 445% increase in the company's mineral resource estimate for its Zinnwald lithium project in Germany. This establishes the project as the second largest hard rock lithium project in the EU, which is a major strategic achievement. The inclusion of a broader zone of mineralized granite in the resource estimate also suggests the potential for more efficient mining and potentially higher lithium production. However, the lack of financial information and the lower metallurgical confidence in the broader mineralized zone are potential concerns that temper the overall positive sentiment.
Key Points
- 445% increase in Measured and Indicated mineral resources
- Project now the second largest hard rock lithium project in the EU
- Broader mineralized granite zone included, allowing for more efficient mining
- Further metallurgical testwork required to increase confidence in broader mineralized zone
Summary
Zinnwald Lithium plc has announced a substantial 445% increase in the Mineral Resource Estimate (MRE) for its 100% owned Zinnwald lithium project in Germany. The updated MRE establishes the project as the second largest hard rock lithium project by both resource size and contained lithium in the European Union. The inclusion of a broader zone of mineralized granite in the resource estimate is expected to allow for more efficient bulk underground mining techniques and potentially increase lithium production. However, the company has noted that further metallurgical testwork is required to increase confidence in the broader mineralized zone, which is currently classified as Indicated rather than the higher Measured category.