Shares in Germany-focused Zinnwald Lithium (LSE: ZNWD) soared on Wednesday after it posted a 445% increase to resources at its the namesake project in the eastern state of Saxony.
The update makes of Zinnwald the second largest hard rock lithium project in the European Union (EU) by both resource size and contained lithium, chief executive Anton du Plessis said in a statement.
Europe’s largest hard rock lithium deposit and the world’s fourth-largest non-brine asset is the Cinovec lithium project in the Czech Republic, owned by European Metals (LSE: EMH; ASX: EMH) and state-controlled utility CEZ.
Zinnwald’s stock climbed more than 41% on the news, closing at 7.55 pence on Wednesday. This leaves the company a market capitalization of £35.84 million (US$45.2 million).
The project’s latest resource estimate incorporates 26,911 metres of new diamond core drilling across 84 drill holes and a reinterpreted and updated geological model since the previous estimate, released in 2018, the company said.
The project, located in the heart of Europe’s chemical and car industries, about 35 km from Dresden, is expected to produce battery grade lithium carbonate, lithium hydroxide and lithium fluoride (Li2CO3, LiOH, LiF) or a combination of them.
Prices for lithium are down more than 80% from their 2022 peak due to slowing growth in electric vehicle sales, including in the top EV consumer China, and a market oversupply.
Be the first to comment on "Zinnwald lithium project in Germany now EU’s 2nd largest"