CPR Main Pints

I have taken the liberty of copying & pasting what I believe are some of the main points from the CPR. I think it's plain to see that, even at this early stage, EMH should be capped WAY ABOVE current levels.

In reality, Cinovec is a large lithium deposit with associated tin and tungsten mineralisation. There does appear to be a spatial distribution of the metals with the highest lithium grades to the north, close to the German border, and nearer the surface. Moreover from an historic mining standpoint, it is likely that much of the production from Cinovec came from the high-grade vein material and not from the low-grade greisen mineralisation which forms the focus of this study.
WAI was able to inspect the core from the three holes drilled in 2014. The three sections of core examined showed broadly similar geology in that all are capped by the rhyolites below which lies the greisen altered granites and derivatives therefrom.
As a general characteristic, the highest lithium grades tend to be associated with the main greisen zones (typically darker and more silicified) which in turn are often broadly coincident with the highest tin values (and usually tungsten). However, these trends are not always seen, so assay grades are important in defining the higher grade zones.
One important feature which has a direct bearing on the resource base is that the highest lithium grades are always located in the upper parts of the intrusion in line with classic greisen formation.
Conclusions & Recommendations
The Cinovec project represents a significant opportunity for the development of a large lithium-tin underground operation with the potential for open pit extraction should surface rights be acquired.
The results of the 2015 Scoping Study clearly showed that given current and forecast metal prices, Cinovec is likely to be a lithium play with by product tin. However, future price fluctuations may change this dynamic.
Given the favourable location of the deposit with respect to local infrastructure, markets and manpower, the extensive knowledge already gleaned on the geology and mineralisation, coupled with the positive results from the limited process testwork done to date, the Cinovec project has the potential to be a significant producer of both lithium and tin (with lesser amounts of tungsten).
Location and Access
The Cinovec deposit lies on the Czech-German border, some one and a half hours drive from Prague, the capital of the Czech Republic (Figure 3.1). Sealed roads pass within one kilometre of the site and the former important border crossing between the two countries lies adjacent to the deposit.
The deposit lies approximately 4km south of the German town of Altenberg which is a small resort offering skiing, hiking and other recreational sports, and some 8km north of Dubi which lies on the outskirts of Teplice, the main town in the region (Photo 3.1). Road access from all these towns is excellent.
The important German industrial city of Dresden is 35km from the deposit, with several of Europe’s largest car manufacturing plants in the vicinity. This concentrated mass of industry should provide a ready market for the tin and lithium that the deposits are capable of producing.
The climate of the area is semi-alpine and is characterised by high precipitation and low temperatures, although this presents no impediments to operating a year-round mine project. Statistics from the German town of Zinnwald-Georgenfeld that lies immediately north of Cinovec show a July average temperature of 13.2oC and winter minimum of -4.6oC. Maximum rainfall is in August at 103mm (Figure 3.2).
Local Infrastructure
The Cinovec Project benefits from being in an historic mining district with a long tradition of underground tin mining, as well as the existing coal mining operations nearby. Thus, a skilled local workforce is likely to be available nearby.
In addition, power (a 22kV transmission line runs to the site), water and communications are all well established in the immediate Project area, supported by the main coal mining and power producing area in the Czech Republic which lies immediately to the south of the deposit.
The local road network is excellent and a rail spur exists approximately 2km to the south of the deposit (Photo 3.3), down the steep slope towards Dubi. This may be of importance for concentrate transport and other bulk transport, but no formal study has as yet been undertaken.
WAI Comment: WAI has seen the renewed permit for Cinovec I and is satisfied that the present permit arrangements are sufficient both in terms of license tenure and area, although it should be noted that WAI has not undertaken a legal due diligence on the permits. In addition, State law appears to offer the holder of an Exploration Permit a clear mandate to proceed to a Mining Permit should the project warrant such action. Thus, the on-going renewal of the Cinovec II permit, in WAI’s opinion, does not present an ownership threat to the property.
WAI Comments: the excellent location of Cinovec in Czech Republic apropos its position in Europe and its easy access to the vast German markets is a significant positive factor for future project development. In addition, the fact that the deposit is located in an area of historic and current mining activity is also seen as highly beneficial given the probable availability of workforce and likely Governmental support to develop the project.
Exploration Potential
The Cinovec mineralised system represents a world-class example of a Sn/W/Li + rare earth metal district which spans the Czech-German border and is part of the larger Erzgebirge metallogenic region.
Previous mining at Cinovec, although extensive, concentrated on the high-grade vein mineralisation which in the Main part of the deposit has been predominantly exhausted. However, the mineralisation identified at Cinovec South remains relatively untouched and comprises veins as well as the more ubiquitous greisen mineralisation.
As the greisen mineralisation was never the principal target of exploration, it is probable that significant tonnages over and above those stated in this report may exist across the site, although considerable exploration will be required to properly delineate these potential additional resources. Over and above the Sn-W-Li mineralisation, samples collected from waste dumps and the tailings at Cinovec indicate promising levels of rare earth elements (Table 4.1) which may provide additional revenue for the project should commercial extraction be possible.
WAI Comment: the geology and mineralisation at Cinovec are reasonably well known through historic mining activity and a thorough records search undertaken by the Group. As such, there is considerable comfort that a sizeable deposit exists. The greisen mineralisation is clearly a target for low grade-large tonnage Sn, W and Li mineralisation which together form an exciting target.
Geological Inspection
The three sections of core examined showed broadly similar geology in that all are capped by the rhyolites below which lies the greisen altered granites and derivatives therefrom (Figure 5.2). As a general characteristic, the highest lithium grades tend to be associated with the main greisen zones (typically darker and more silicified) which in turn are often broadly coincident with the highest tin values (and usually tungsten). However, these trends are not always seen, so assay grades are important in defining the higher grade zones.
One important feature which has a direct bearing on the resource base is that the highest lithium grades are always located in the upper parts of the intrusion in line with classic greisen formation. The increase in mica in the core is often clearly seen (Photo 5.4).
WAI Comment: Grade validation of the model shows that the grades provide a reasonable representation of the drillhole data.