Grant of New Exploration Licence at Liebenau
Zinnwald Lithium plc / EPIC: ZNWD.L / Market: AIM / Sector: Mining
7 April 2025
Zinnwald Lithium plc
('Zinnwald Lithium' or the 'Company')
Grant of New Exploration Licence at Liebenau
Zinnwald Lithium plc, the European focused lithium company developing the advanced Zinnwald Lithium Project (the 'Project') in Germany, is pleased to announce that its 100%-owned subsidiary, Zinnwald Lithium GmbH, has been granted an additional exploration licence (the 'Liebenau Licence') covering approximately 2,997 hectares ('ha') in the Erzgebirge region of Saxony, Germany. The Liebenau Licence covers the area identified in the Company's recently published Pre-Feasibility Study ('PFS') as the site for the planned processing plant for the Project. The Liebenau Licence extends Zinnwald Lithium's continuous licence coverage from its main ore body in Zinnwald to Liebenau.
HIGHLIGHTS
· Completes the licence coverage area for the Project's planned operations identified in the PFS and includes the site identified for the processing plant and tailings storage facility.
· Adds a substantial land area to the mineral exploration titles of the Company in the region that now stands at combined 12,933 ha.
· Facilitates the ability to access sites required for geo-technical and hydrogeological drilling to support the Project's next phase of work to complete a Definitive Feasibility Study ('DFS').
· Potential to further expand the Company's lithium resources which could ultimately contribute to production.
· The location of the Liebenau Licence is based on the boundaries of previously granted exploration licences and takes into account the findings of extensive exploration work by the state geological institutions of the former GDR and the data obtained therein. These indicate that granite- and greisen-associated Li-Sn-W mineralisation extend into the proposed exploration area.
· The Company has recently published a PFS for the Project that showed a pre-tax NPV of €3.3 billion and IRR of 23.8% on a phased project initially producing 18,000 tonnes per annum of lithium hydroxide scaling up to a peak production of 35,100 tonnes with a mine life in excess of 40 years.
Zinnwald Lithium CEO, Anton du Plessis, commented: "The Liebenau Licence is an important addition to our licence area, as it includes geological structures through which the planned tunnel connection between Zinnwald and the site of our planned processing plant and tailings storage facility will pass. The new licence complements our existing licence holdings by ensuring we have exploration and access rights for the entire area envisioned for the Project's development. Our near-term plans for the licence will be to undertake the necessary geo-technical and hydrogeological drilling required to support our DFS work."
DETAILS
Zinnwald Lithium has been granted the Liebenau Licence, which covers circa 2,997 ha in the Erzgebirge or Ore Mountains region of Saxony, Germany and is valid until 1 April 2030. The 5-year exploration licence was issued to Zinnwald Lithium GmbH by the Saxony State Mining Authority (Sächsisches Oberbergamt) in accordance with §7 of the German Mining Act (Bundesberggesetz).
The Liebenau Licence lies adjacent to, and directly to the north-east of, the Bärenstein licence (please see overview map above). By being granted this exploration licence, the Company has extended the licence coverage to include the planned tunnel connection between the future mine site and the processing plant and tailings storage facility detailed in the recent PFS.
The lithium and tin endowment of the area is tied to the presence of granitic intrusions of certain geological ages, as well as structural corridors that have carried mineralising fluids. Utilising geological knowledge Zinnwald Lithium has gained from working in the immediate area, the Company is planning to undertake further greenfield exploration on its various exploration licenses (see table below) and expand its resource base locally.
|
License |
No |
Interest |
License category |
License expiry date |
License area (m²) |
Comments |
|
Zinnwald
|
2960 |
100% |
Mining |
31 December 2047 |
2,564,800 |
Development in progress |
|
Falkenhain |
1686 |
100% |
Exploration |
31 December 2025 |
2,957,000 |
Exploration in progress |
|
Altenberg |
1698 |
100% |
Exploration |
20 February 2027 |
42,252,700 |
Exploration in planning |
|
Sadisdorf |
1706 |
100% |
Exploration |
30 June 2026 |
2,249,000 |
Exploration in planning |
|
Barenstein |
1713 |
100% |
Exploration |
30 June 2028 |
49,339,000 |
Exploration in planning |
|
Liebenau |
1733 |
100% |
Exploration |
01 April 2025 |
29,970,000 |
Exploration in planning |
|
Total |
|
|
|
|
129,332,500 |
|
The Company's key focus remains the development of its principal asset, the 100% owned advanced Zinnwald Lithium Project in Germany. It has recently published its PFS for the Project that showed a pre-tax NPV of €3.3 billion and IRR of 23.8% on a phased project initially producing 18,000 tonnes per annum of lithium hydroxide scaling up to a peak production of 35,100 tonnes with a mine life in excess of 40 years. This confirms the Project's economic viability and paves the way for further project planning and development.
The Company has also recently received a strong statement of support from the Saxon government and confirmation that it will actively support the Project and has designated it a high priority. This commitment is formally acknowledged in the coalition agreement between the CDU and SPD in the Free State of Saxony. Additionally, the Saxon State Government remains committed to advocating at the federal level for strong support of lithium mining in Saxony, reinforcing the Project's status as a key initiative.
Zinnwald Lithium plans to investigate the Liebenau Licence over the next five years and to assess its potential to further enhance the Project.
*ENDS*
To engage with us directly via our investor hub, please sign up at
https://investors.zinnwaldlithium.com/auth/signup
For further information visit www.zinnwaldlithium.com or contact:
|
Anton du Plessis Cherif Rifaat |
Zinnwald Lithium plc |
|
|
David Hart Dan Dearden-Williams |
Allenby Capital (Nominated Adviser) |
+44 (0) 20 3328 5656 |
|
Michael Seabrook Adam Pollock |
Oberon Capital Ltd (Joint Broker) |
+44 (0) 20 3179 5300 |
|
Richard Greenfield Charles Bendon |
Tamesis Partner LLP (Joint Broker) |
+44 (0) 20 3882 2868 |
|
Isabel de Salis Paul Dulieu |
St Brides Partners (Financial PR) |
zinnwald@stbridespartners.co.uk
|
Notes
AIM quoted Zinnwald Lithium plc (EPIC: ZNWD.L) is focused 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.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 2 hours ago Frasers Group
- 2 hours ago Cavendish Financial
- 2 hours ago Diaceutics
- 2 hours ago AB Dynamics
- 15 hours ago Johnson Matthey