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Production Modelled to Increase to 22,500 TPA LCE
Production Modelled to Increase to 22,500 TPA LCE.
About this update from European Metals Holdings Ltd
[{"type":"text","content":"\n \nRNS Number : 2709U European Metals Holdings Limited 11 July 2018 \n\nFor immediate release\n11 July 2018\nEUROPEAN METALS HOLDINGS LIMITED\nCINOVEC PRODUCTION MODELLED TO INCREASE TO 22,500 TPA \nOF LITHIUM CARBONATE\n \nEuropean Metals Holdings Limited (\"European Metals\" or \"the Company\") (ASX & AIM: EMH) is pleased to report that it has completed roast optimisation testwork and that improved recoveries have resulted in modelled lithium carbonate production from the Cinovec Lithium-Tin Project (\"the project\" or \"Cinovec\") increasing to 22,500 tpa. \n \nHIGHLIGHTS\n \n\n\n\n\n· Average lithium carbonate production is modelled to increase from 20,800 tpa to 22,500 tpa due to improved recoveries in the leach circuit of 94% being modelled. \n\n\n\n\n· Increased lithium production results in increased cash margins of approximately 10%.\n\n\n\n\n· Proposed use of low cost waste gypsum from local power plants as a roasting reagent is a significant positive environmental outcome for the region and a reagent cost benefit to the project.\n\n\n\n\n· Locked cycle testing and larger scale roasting technology confirmation work to commence imminently.\n\n\n\n\n· Preparation of 2 tonnes of lithium concentrate via magnetic separation for lithium carbonate pilot plant trials almost complete.\n\n\n\n\n \nAll recent roast/leach tests have reliably achieved lithium extractions in the region of 94% recovery. The significance of these results is that a 7% increase in lithium recovery is predicted over that used in the Preliminary Feasibility Study (\"PFS\") completed last year which in turn would lead to an increase to 22,500tpa of lithium carbonate production from the project.\n \nThis modelled increased production would result in approximately a 10% increase in EBITDA margins for the project which will have obvious positive effects to the project returns which the definitive feasibility study will re-model.\n \nWhilst achieving these excellent results the Company is pleased to report that the optimised reagent mix developed during the testwork as compared to that reported in the PFS has seen the elimination of all high cost inputs to the roast predicted previously. T...