Bacanora has a 50% interest in, and joint operational control of, the Zinnwald Lithium Project, in addition to the Falkenhain and Altenberg Licences in southern Saxony, Germany. In June 2019, the Company published the results of the Zinnwald Feasibility Study which confirmed the positive economics for the production of 5,112tpa (~7,285 tpa Lithium Carbonate Equivalent) of battery-grade lithium fluoride at Zinnwald, with pre-tax NPV of €428 million (8% discount rate), IRR of 27.4% and 46% EBITDA margin.
Zinnwald Project is located in southeast Germany, some 35 km from Dresden and adjacent to the border of the Czech Republic and within three km of the town of Altenberg and 50 km of the town of Freiberg. The Zinnwald Project is in a granite hosted Sn/W/Li belt that has been mined historically for tin, tungsten, and lithium at different times over the past 300 years. With an abundant supply of fluorspar/hydrofluoric acid available in the immediate vicinity, Deutsche Lithium has chosen to focus on LiF production. LiF is one of the two key components in the manufacturing process of LiPF6, which is the most important conducting salt in lithium electrolytes and serves as the “shuttle” in the battery electrolyte which “ships” the lithium ion between the cathode and the anode. Approximately 95% of all lithium battery electrolytes use LiPF6, and the percentage used in each cathode is increasing in newer battery types. The strategic location of the Zinnwald Project allows immediate access to the German automotive and downstream lithium chemical industries.
Zinnwald Feasibility Study – Key Indicators
Based on a forecast selling price of €22,000 per tonne LiF, the Zinnwald Feasibility Study demonstrates the attractive economics of Zinnwald and the key findings are shown in the table below:
|Resource Category||Tonnes* (000)||Li Grade (ppm)||Contained LCE** (Tonnes)|
|Total (Measured + Indicated + Inferred)||40,375||3,523||142,240|
(*Vertical thickness ≥ 2m, cut-off Li = 2,500ppm)