Zinnwald Lithium PLC on Friday said new resource estimates from its project in Germany revealed a potential 50% increase in possible production.

The Germany-focused lithium producer previously forecasted initial first phase lithium production of 12,000 tonnes per annum at its operation in Saxony.

The updated estimates now anticipate production between 16,000tpa to 18,000tpa of battery grade lithium, reflecting a 50% increase at the higher end of the range.

Chief Executive Officer Anton du Plessis said: ‘Our strategy is focused on developing a low risk, scalable project... We have already completed many workstreams, with several more underway or nearing completion. Key upcoming milestones include ongoing metallurgical testwork, detailed mine planning, permitting and commercial activities.’

In light of the revised estimate, Zinnwald said it will conduct a pre-feasibility study to optimise the enlarged project and evaluate the potential for the second phase of production.

The study will further assess ways in which the the impact on the environment and local communities can be minimised, while also examining technical test work and trade-offs.

With a current cash position of €9.3 million, Zinnwald said the project remains well financed.

Although the company is now seeking German federal and state government support after receiving an invitation in June to apply for grant funding as part of a new programme to support the development of climate-neutral and strategically important technologies.

If successful, 70% of the grant will be provided by the federal government with the remaining 30% put forward by the State of Saxony which has already expressed support for the battery-chain project.

The extent of the funding is yet to be disclosed and the invitation does not guarantee that financing will be secured.

Zinnwald Lithium shares were down 1.9% to 7.70 pence each in London on Friday morning.

Copyright 2024 Alliance News Ltd. All Rights Reserved.