European Lithium Ltd (ASX:EUR, OTCQB:EULIF) has strengthened its critical minerals standing in the heart of Europe by completing the acquisition of highly prospective lithium ground in the resource-rich Styria mining district of Austria near its advanced Wolfsberg Lithium Project.
Successful completion of a due diligence process that returned strong lithium oxide (Li2O) values of up to 3.98% in spodumene pegmatites samples has seen the company acquire three projects from 2743718 Ontario Inc., a subsidiary of Richmond Minerals Inc. (TSX-V:RMD)
READ: European Lithium to build on Austrian lithium portfolio with three projects adjacent to Wolfsberg flagship
EUR now holds 100% of the rights, title and interest in the Bretstein-Lachtal, Klementkogel and Wildbachgraben projects and will move quickly to begin initial work on these underexplored areas.
Exploration Licences acquired by European Minerals in Austria.
Moving to exploration
This will target lithium with known occurrences on the projects that consist of 245 exploration licences totalling 114.6 square kilometres in the Styria mining district, around 70 kilometres north of Wolfsberg.
Chairman Tony Sage said: “We are pleased to complete the acquisition and add this highly prospective lithium ground to our portfolio of European projects.
"The company intends to commence initial work focusing primarily on the Bretstein-Lachtal Project area.”
Exploration licence outline and sample locations at Bretstein-Lachtal Project showing Li2O grades (%). The results plotted are those results provided by Richmond Minerals Inc.
Work program
This initial work will include:
- Stakeholder engagement;
- Detailed geological and structural mapping of prospective areas to determine the potential extent of pegmatite veins and lenses;
- Additional trenching and sampling;
- Geophysical investigations; and
- Definition of potential drill targets.
The due diligence sampling strongly supports the vendor’s sample results and has identified four initial prospects within the projects that justify more systematic exploration – Keckgraben, Ebner Quarry, Pusterwald and Hirnkogel.
Distribution of spodumene pegmatites associated with intrusion of Permian leucogranites into the Austro-alpine Crystalline Unit (PANGEO, Austria, 2022; abstracts and field guides).
Strong global presence
Acquisition of these projects along with its proposed Nasdaq listing enhances the company’s presence in the global resources industry.
As well as a US$750 million stake in Critical Metals Corp, which is expected to be one of the leading lithium stocks on the Nasdaq, that will flow from EUR’s Nasdaq listing, the company has the following listed investments:
- 1,180,256,849 shares, representing a 11.5% interest, in Cyclone Metals Ltd (ASX:CLE) (ASX: CLE), which has recently acquired 100% of the Block 103 magnetite iron ore project in the Labrador trough region of Canada. A maiden 7.2 billion tonnes, high-quality magnetite resource has this week been declared for Block 103.
- 15,000,000 shares in CuFe Ltd (ASX:CUF) (CuFe Ltd (ASX:CUF)).
As well as the flagship Wolfsberg Project, the company’s extensive exploration assets include:
- Austrian Lithium Project – Acquisition of 100% of the rights, title and interest in the Bretstein-Lachtal, Klementkogel and Wildbachgraben projects.
- E47/4144 – On September 23, 2020, the company announced that it had secured tenement E47/4144 via ballot under the WA Mining Act. E47/4144 is progressing through the WA Mining Act regulatory application process. The company is continuing discussions with a stakeholder and remaining objector to negotiate access with respect to areas of existing or intended infrastructure.
- John Wally Resources Pty Ltd – The company has a 50% interest in John Wally which has been granted tenements E47/4534 and E47/4532. John Wally has applied for a number of other tenements in Western Australia which are pending.
- Ukraine projects - On February 28, 2023, the company announced that it had renegotiated the terms under which EUR will acquire European Lithium Ukraine LLC, a Ukraine-incorporated company that is applying (through either court proceedings, public auction and/or production sharing agreement with the Ukraine Government) for 20-year special permits for the extraction and production of lithium at the Shevchenkivske Project and Dobra Project in Ukraine. On February 28, 2023, EUR announced the end date to complete the acquisition has been extended to November 2, 2025.
Positive developments
Completion of the Austrian lithium projects acquisition is the latest in a series of positive developments for EUR as it looks to capitalise on Europe’s strengthening push for a domestic critical minerals industry to serve the continent’s burgeoning electric vehicle and decarbonisation drive.
READ: European Lithium inks key agreement with Obeikan for lithium hydroxide plant in Saudi Arabia
These include the signing this month of an agreement with Saudi-based Obeikan Group to establish a lithium hydroxide plant in Saudi Arabia.
This new agreement marks a significant milestone for the company, as the JV aims to convert lithium concentrate into lithium hydroxide, meeting the specifications of a long-term supply agreement with BMW.
Earlier this year, EUR demonstrated the robust nature of its flagship Wolfsberg Project by way of a definitive feasibility study that outlined an NPV of US$1.5 billion and an IRR of 33.3%.
READ: European Lithium buoyed by robust Wolfsberg DFS with NPV of US$1.5 billion and IRR of 33.3%