Zinnwald Lithium (ZNWD ) said its 50%-owned subsidiary, Deutsche Lithium, has been granted a five-year exploration licence in Saxony which covers around 225 hectares.
The German-focused lithium development firm said the licence, also known as the 'Sadisdorf Licence', is located in the Erzgebirge or Ore Mountains in Saxony, Germany.
The granting of the licence is subject to there being confirmation of no valid objection to its granting and the Company said it anticipates this confirmation being received by mid-July.
The Company believes the Sadisdorf Licence, which is in line with its strategy to become an important supplier to Europe's fast-growing lithium sector, has the potential to provide additional resource upside to its advanced Zinnwald Lithium Project (the "Project").
The Sadisdorf Licence, which has historically been mined for tin and copper and includes a significant lithium resource, will further increase Deutsche Lithium's resource base and potentially the lifetime of the planned mine and mineral processing operations, it noted.
To date, historical exploration work at the Sadisdorf Licence by previous licence holders has resulted in a 2017 historic JORC compliant inferred mineral resource of 25 million tons with an average grade of 0.45% Li2O (average 2,053 parts per million ('ppm') lithium head grade).
Shares in Zinnwald Lithium have increased by over 15% in value since the beginning of 2021. The stock was trading 2.08% lower this morning at 11.75p following the announcement.
Zinnwald’s key focus is the development of its principal asset, the Project, where it is advancing a defined development plan aimed at constructing and operating a mine and processing plant to become an important supplier to Europe's fast-growing lithium sector.
The Company continues to advance other key work streams on the Project in Germany ‘so as to capitalise on the strong market conditions driven by the green metals revolution.’
Commenting on the licence Zinnwald Lithium’s Chief Executive, Anton du Plessis, said: "The Sadisdorf Licence is an excellent addition to the Company which, following further work we will undertake in due course, has the potential to increase the resource base and lifetime of the planned mine and mineral processing facilities related to our Project.”
He added, “Given that the lithium-ion battery is most likely to lead the EV transition, we are ideally positioned to contribute to this fast-evolving market with an advanced asset in the centre of Europe."
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