Next Investors logo grey

European Lithium quickly kicks into gear at Wolfsburg project


Published 26-SEP-2016 12:47 P.M.


4 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

European Lithium (ASX:EUR), formerly Paynes Find Gold, announced on Monday morning that it had appointed Dorfner Anzaplan, to undertake metallurgical test work aimed at optimising the process design for its Wolfsburg lithium project located in Austria.

This represents an important phase in bringing the project into production from a number of perspectives. Not only will it confirm the most suitable technical processing treatment for the Wolfsburg project, but it will also determine the potential for recovering by-products such as feldspar, quartz and mica which could potentially be sold into Central European markets for use in the burgeoning glass and ceramics industries in that region.

As management pointed out, the end markets that can be targeted by EUR are very different to those open to producers or emerging producers in Western Australia and Canada where end markets for these by-products don’t exist.

The historical owners of the Wolfsburg project, Austrian State company Minerex, conducted extensive metallurgical studies in the 1980s by the Mineral Research Laboratory of the State University of North Carolina (MRL).

This work concluded that a 6% lithium dioxide spodumene concentrate could be obtained from the Wolfsburg pegmatites and marketable specifications of feldspar, quartz and mica could be recovered, such that 74% of the ore treated was saleable.

Since the original test work there have been a number of technological developments that could be applicable to the Wolfsburg deposit including the use of sensor-based/optical sorting to separate the dark waste rock from the light-coloured pigment type.

If EUR were able to apply this separation process to ore sourced from its Wolfsburg project it could minimise waste dilution in the ore feed to the concentrator, effectively maximising lithium grades.

Management said that Dense Media Separation (DMS) was another technology that could be applicable to the Wolfsburg deposit. This represented a relatively simple process of crushing, screening and DMS in order to obtain a spodumene concentrate.

The establishment of such a facility would represent a small and low capital cost facility. Once again, by-products from the DMS processing technique could be marketed to the glass and ceramic producers in Europe that are currently importing spodumene concentrate from Australia and lithium carbonate from South America.

As this is an early play, any uptake from marketing activities is yet to be determined and as such if you require further information about this stock you should seek professional financial advice.

If the company were successful in putting one of these strategies into place it would be a significant development from a financial perspective as it would generate cash flow while the rest of the processing facilities is being constructed.

The aforementioned scenarios will be investigated by Dorfner Anzaplan and a decision made on the optimum processing procedure. Another task being undertaken by the consultant will be the analysis of two 4 tonne samples extracted from pegmatite veins in host rocks at Wolfsburg.

Samples and specifications of the spodumene concentrate and by-products will also be used to present to potential off-takers. EUR chairman, Tony Sage said, “We are focused on the aggressive development of the project, and with the fundraising and ASX listing successfully completed, the company can concentrate on the potential to fast track production”.

Indeed, management set fairly tight timelines for the consultant with the expectation that a pilot plant will be in operation to produce larger quantities of spodumene concentrate which will be used for downstream testing of the conversion to lithium carbonate and lithium hydroxide for both technical and battery use by the end of the first quarter of calendar year 2017.

With Europe being the second largest consumer of lithium behind China and recent announcements by Samsung, Nissan, Tesla and a number of high profile motor vehicle producers that are considering plans to build lithium battery plants in Europe, the likely uptick in demand for battery grade lithium products for local markets augurs well for EUR’s future.



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.