TIDMZNWD
RNS Number : 1773O
Zinnwald Lithium PLC
30 January 2023
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
30 January 2023
Zinnwald Lithium plc
("Zinnwald Lithium" or the "Company")
Assay Results Highlight Potential for Significant Lithium
Resource at Falkenhain
Zinnwald Lithium plc, the German focused lithium development
company , is pleased to provide an exploration update regarding its
100% owned Falkenhain license ("Falkenhain") in Germany. These new
results confirm the historic drill data, indicating the potential
for an additional economic lithium resource that could provide a
possible feed source for the Company's integrated lithium hydroxide
project, as it advances a Bankable Feasibility Study ("BFS")
towards completion by the end of 2023. The Falkenhain license area
is located 2.5km from the proposed Zinnwald processing
facility.
HIGHLIGHTS
-- Assay results for new drill hole LiSH-001 at Falkenhain show
significant intercepts of thick high-grade lithium (Li), tin (Sn)
and tungsten (W) mineralisation including:
o 114m - 194m (80m); Average 2,879 ppm Li; 492 ppm Sn and 271
ppm W
-- Including 140m - 191m (51m); Average 3,421 ppm Li; 519ppm Sn
and 361 ppm W
o 334m - 344m (10m); Average 3,206 ppm Li; > 1,924 ppm Sn and
83 ppm W
-- Drill Hole "LiSH-001" is a twinned drill hole of the
historical exploration drill-hole "SnFhiDi047" from 1974, which
targeted tin and tungsten mineralisation at Falkenhain. Geological
and geochemical results align well with the available data of the
historic hole.
-- The Company has reviewed an extensive historic dataset from
previous exploration campaigns, which will be leveraged in
combination with modern data arising from this and future drill
programmes.
-- A review of historic drill data and surviving drill core
indicates the potential for a high-grade lithium resource at the
Falkenhain license area, which has the potential to provide plant
feed to the Company's flagship Zinnwald Project.
-- Falkenhain lies within 2.5km of the processing site under
consideration for the Zinnwald Project.
Zinnwald Lithium CEO, Anton du Plessis, said: "I am delighted
that the initial results from our exploration campaign at
Falkenhain support the review of historic data from the license
area demonstrating the clear potential for a significant additional
lithium resource. While our key focus remains advancing the
Zinnwald Project towards a BFS by the end of the year, the
proximity to our key Zinnwald Deposit and likely similarity of the
geology suggests that Falkenhain could ultimately represent an
exciting adjunct to the Zinnwald Project adding to its scale and
importance as a domestic German supplier of lithium hydroxide to
the growing European battery sector."
DETAILS
Background
The Falkenhain exploration license is located 7km to the north
of the Company's flagship Zinnwald license and comprises the
Schenkenshöhe and Hegelshöhe deposits. As early as the 16th
century, tin bearing veins were mined on the eastern side of the
Hegelshöhe. Systematic exploration for tin and tungsten at these
deposits primarily dates back to between 1964 and 1990, motivated
by the need for these strategic metals within the former German
Democratic Republic ("GDR"). Whilst lithium was not the focus of
previous exploration, historic data shows some intersections with
exceptionally high lithium grades and extensive academic research
points to the geology of Falkenhain being comparable to that of
Zinnwald as Li-Sn-W greisen type deposits.
The Company has now completed its review of the available
exploration data, including re-logging of historic drill core
related to the license area. The Saxony Mining Authority recently
extended the Falkenhain exploration for another three years to
31(st) December 2025. The license area is interesting in terms of
Li / Sn / W - resource potential and is also close to the primary
site being considered for the main processing facility of the
Zinnwald Project.
Following extensive geological analysis of historic data related
to the license area, the Company executed its first exploration
drill hole at the Schenkenshöhe deposit last year. The target of
this hole was to verify a historical drill-hole SnFhiDi047 from
1974 and gain new geochemical data, focused on lithium, to
determine grades and continuity.
Geology
The Schenkenshöhe and Hegelshöhe are Li-Sn-W greisen satellite
deposits of the main Zinnwald/Cinovec Li-Sn-W greisen deposits in
the Eastern Erzgebirge. The deposits are characterised by several
granite intrusions and greisen mineralisation comparable to the
occurrence in the Zinnwald Deposit, also hosted in volcanic
successions of the regional volcanic complex.
'Greisenisation' is caused by hydrothermal fluids and changes to
the mineralogy and geochemistry of the rocks adjacent to fluid
pathways. A key characteristic at Falkenhain are the distinct
greisen-types within the surrounding host rocks (exo-contact
greisen) and the granites (endo contact greisen). The greisen ore
bodies show different generations of Li-Sn-W mineralisation caused
by the various granitic intrusions. These are represented by
different highly specialised granite types enriched in incompatible
elements like Li, Sn, W, and others.
Results from Drill hole LiSH-001 (2022)
The purpose of the drill hole was to verify the historic
drill-hole SnFhiDi047, which was undertaken in 1974. LiSH-001 was
drilled to a total depth of 600.3m and subsequently logged and
assayed using the same standards as have been applied for the
Zinnwald Lithium Project. The observed lithology is identical to
the historic core log of the twinned hole. Assay results have shown
a very similar grade distribution to results from Zinnwald and in
general a high degree of grade continuity in both exo- and
endo-contact greisens.
However, in comparison to Zinnwald, the greisen mineralisation
at Falkenhain extends beyond the Albite granite intrusion and into
the volcanic host rocks. Additionally, whilst tin and tungsten
mineralisation occur at both the Zinnwald and Falkenhain projects,
recent and historic drilling results demonstrate notable high-grade
zones of tin and tungsten, pointing to further upside potential at
Falkenhain.
The first assay result includes long mineralised intersections
above 1,500 ppm Li such as:
-- 114m - 194m (80m); Average 2,879 ppm Li; 492 ppm Sn and 271 ppm W
o Including 140m - 191m (51m); Average 3,421 ppm Li; 519 ppm Sn
and 361 ppm W
-- 226m - 243m (17m); Average 2,486 ppm Li; 804 ppm Sn and 79 ppm W
o Including 237m - 243m (6m); Average 2,842 ppm Li; 1,398 ppm Sn
and 49 ppm W
-- 251m - 261m (10m); Average 1,788 ppm Li; 912 ppm Sn; 21 ppm W
-- 287m - 299m (12 m); Average 2,283 ppm Li; 264 ppm Sn and 106 ppm W
-- 308m - 327m (19 m); Average 2,796 ppm Li; 648 ppm Sn and 228 ppm W
-- 334m - 344m (10m); Average 3,206 ppm Li; > 1,924 ppm Sn and 83 ppm W
o Including 334 m - 341 m (7m), Average 3,851 ppm Li, > 2,641
ppm Sn and 64 ppm W
(Assay intervals with values for Sn marked with ">" indicate
outstanding assay results for samples where the upper detection
limit of 10,000 ppm Sn was exceeded and ore grade assay results are
outstanding. These average values for selected intervals are
therefore expected to increase further.)
Geological interpretation of the results
The positive results indicate the presence of lithium within the
Schenkenshöhe deposit. The extent and shape of the lithium
mineralisation needs to be further explored by additional drilling.
The corresponding geological setting for Schenkenshöhe and
Hegelshöhe suggests that the geological potential for greisen style
Li / Sn / W mineralisation is analogous and warrants further
definition.
Whilst Falkenhain type greisen mineralisation is broadly
comparable to Zinnwald type greisen ore, the Company intends to
test the processing characteristics of this material further in
upcoming test-work campaigns.
Based on historic work, and from initial mineralogical studies
undertaken by the Company, the main lithium bearing mineral at
Falkenhain belongs to the Zinnwaldite Mica Group, while Cassiterite
and Wolframite are respectively the main tin and tungsten ore
minerals.
Planned Exploration Campaign
As part of the Falkenhain exploration drill campaign, nine more
drillholes are planned and have already been approved by the
relevant authorities.
In addition, intervals of historical drill cores are being
sampled for assay and analysed using hyperspectral scanning at
TheiaX GmbH (Freiberg Germany). The results will be utilised to
prepare a 3D geological model and help to ultimately define a first
modern style mineral resource estimate of the Schenkenshöhe and
Hegelshöhe deposits.
Ongoing BFS work and In-fill Drill Programme
The Company remains focused on advancing its BFS, including the
ongoing in-fill drill campaign at the Zinnwald license supported by
further test work related to mineral and chemical processing.
Objectives include support for detailed mine design planning, as
well as investigating the potential to include lithium contained in
the Albite Granite lithology into an updated Mineral Resource
Estimate. Presently, the Company is operating three drill rigs at
Zinnwald and has completed 19 drill holes and 6,158 metres of drill
core since the start of the in-fill drill campaign in 2022.
The technical information in this announcement has been reviewed
on behalf of Zinnwald Lithium by Martin Pittuck CEng, FGS, MIMMM of
SRK Consulting. Mr Pittuck is a Corporate Consultant of SRK
Consulting Ltd. Mr Pittuck has sufficient experience relevant to
the style of mineralisation and type of deposit under
consideration, and to the activity which he is undertaking to
qualify as a Competent Person in accordance with the guidance note
for Mining, Oil & Gas Companies issued by the London Stock
Exchange in respect of AIM Companies, which outlines standards of
disclosure for mineral projects. Mr Pittuck consents to the
inclusion in this announcement of the matters based on his
information in the form and context in which it appears.
*ENDS*
For further information visit www.zinnwaldlithium.com or
contact:
Anton du Plessis Zinnwald Lithium info@zinnwaldlithium.com
Cherif Rifaat plc
David Hart Allenby Capital
Dan Dearden-Williams (Nominated Adviser) +44 (0) 20 3328 5656
---------------------- --------------------------------
Michael Seabrook Oberon Capital Ltd
Adam Pollock (Broker) +44 (0) 20 3179 5300
---------------------- --------------------------------
Isabel de Salis St Brides Partners zinnwald@stbridespartners.co.uk
Paul Dulieu (Financial PR)
---------------------- --------------------------------
Notes
AIM quoted Zinnwald Lithium plc (EPIC: ZNWD.L) is focussed on
becoming an important supplier of lithium hydroxide to Europe's
fast-growing battery sector. The Company owns 100% of the Zinnwald
Lithium Project in Germany, which has an approved mining licence,
is located in the heart of Europe's chemical and automotive
industries, and has the potential to be one of Europe's more
advanced battery grade lithium projects.
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