LONDON (ShareCast) - (Sharecast News) - European Metals Holdings said on Monday that measured resource drilling had started at the Cinovec Lithium-Tin Project, with a total of 19 resource drill holes to be completed during the campaign, for a total of 5,550 metres.
The AIM-traded firm said the first hole was "well-advanced", with a further two hydro-geological drill holes and four geotechnical drill holes planned once resource drilling is completed.

It said the programme would provide around 10 tonnes of drill core, for further metallurgical testing and to generate samples.

EMH said the start of the drilling programme came after it received permission from the statutory authorities in the Czech Republic for the year's planned diamond drilling campaign.

It said drilling was aimed at converting a sufficient portion of the existing indicated mineral resource to the measured resource category, and subsequently to a mineral reserve, to cover the first two years of the scheduled mining plan and to obtain a sufficient amount of ore samples for the next phase of metallurgical testing.

The majority of the material would be used in the pilot scale testing for the front-end engineering design (FEED) study.

"It is very pleasing to be able to get back to drilling on the project," said executive chairman Keith Coughlan.

"There are no Covid-19 related movement restrictions or limitations and the drilling is progressing well."

Coughlan said the aim of the campaign was to convert the initial year's mining into the proven reserves category.

"Following consultations with potential lenders, we expect that this will assist greatly in the securing of more attractive debt finance for the Project once we enter that stage of operations."

At 0904 BST, shares in European Metals Holdings were up 0.64% at 15.7p.

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