The 5-year exploration licence was issued to Deutsche Lithium by the Saxony State Mining Authority (Sächsisches Oberbergamt) in accordance with §7 of the German Mining Act (Bundesberggesetz). As is standard practise in Germany, the granting of the licence is subject to there being confirmation of no valid objection to its granting and the Company anticipates this confirmation being received by end-July 2023.
The Bärenstein Licence lies adjacent to, and directly to the north-east of, the Altenberg-DL licence and almost completely encloses the Falkenhain licence, both of which the company already holds (please see overview map above). By being granted this exploration licence, the Company has closed the gap between Falkenhain and Altenberg-DL licences, which also contains valuable geo-logical targets and areas for planned future development of the Zinnwald mining operation.
The lithium and tin endowment of the area is tied to the presence of granitic intrusions of certain geological ages, as well as structural corridors that have carried mineralising fluids. Utilising geological knowledge Zinnwald Lithium has gained from working in the immediate area, the Company is planning to undertake further greenfield exploration on the Bärenstein Licence and expand its resource base locally. The ‘Sachsenhöhe’ area has been identified as an especially promising exploration target, as it is known for historic mining activities for tin and silver since the 15th century.
Furthermore, the Company continues to investigate the broader Bärenstein area as a location for future mining and processing operations. To also hold the mineral rights for these areas has therefore been a priority to maintain planning flexibility as well as legal certainty.
The Company’s key focus remains the development of its principal asset, the 100% owned advanced Zinnwald Lithium Project in Germany, where it is progressing the work for a new Bankable Feasibility Study. By consolidating mineral rights in the Zinnwald area, the Company maintains the aim to become an important supplier to Europe’s fast-growing lithium sector. One of the Company’s primary immediate goals is the completion of its on-going infill drilling campaign on the Zinnwald Licence to support the delivery of an updated MRE in 4Q23. To date, the Company has completed 61 drill holes totalling more than 20 000m of drill core.
Deutsche Lithium plans to investigate the Bärenstein Licence over the next five years and to assess its potential to enhance the Project.