Cadence Minerals PLC announced on Wednesday that a review is underway at the Cinovec lithium project in the Czech Republic.

The London-based mineral resource investor holds 4.9% of the equity in European Metals Holdings Ltd, which has a 49% stake of Geomet, the sole owners of Cinovec.

At the site a project definitive feasibility study conducted by engineering company DRA Global Ltd was scheduled to be complete in February 2023, although this deadline was pushed back again to the first quarter of 2024.

As a result of the engineering work and social and environmental engagement work carried out by DRA Global, several issues were highlighted that if rectified may significantly improve the lithium processing component of the study.

These matters are now undergoing further review and an announcement is to be made in April detailing some of the more significant issues identified.

Geomet considers the review as a significant development in the project which could pave the way for improved economic and social outcomes.

However, the company does not anticipate delays to the overall project timeline as a result of the extended study period.

The company also noted engineering test programmes which continue to improve processing outcomes in relation to recycling, energy and water costs, environmental impact, and throughput.

European Metals Executive Chair Keith Coughlan said: ‘Whilst it is unfortunate not to be able to provide a fully completed DFS at this stage, I am confident that the developments currently being finalised will add significantly to the Project. In particular, permitting and timelines are expected to be positively impacted by the team’s additional work. The Cinovec project remains an important part of the drive to improve critical materials security in the EU.’

Cadence shares were down 9.6% to 5.20 pence each, meanwhile European Metals was down 4.0% to 12.72 pence each in London on Wednesday afternoon.

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