European Lithium Ltd (ASX:EUR) (FRA:PF8) (VIE:ELI) is restarting its drilling program to increase the resource at its Wolfsberg Lithium project in Austria.
The current measured and indicated resource at Wolfsberg is 6.3 million tonnes at 1.17% lithium oxide.
READ: European Lithium increases lithium resources significantly
This resource is being used as the basis of reserve estimation and mine design for the pre-feasibility study (PFS) that is scheduled for completion in Q1 2018.
A contract has been awarded to the drilling company GEOPS which is prepared for drilling activities in winter conditions.
They have mobilised and will start site preparation on 5 February 2018 and aim to complete the outstanding six drill holes in Zone 2 totalling 1,250 metres by early April 2018.
More resources to support a higher production rate
Apart from the potential of Zone 2 there is additional potential deeper in the amphibolite hosted pegmatites of Zone 1.
The drilling in Zone 2 and the new amphibolite area of Zone 1 will be conducted from surface.
European Lithium’s intention is to increase the measured and indicated resources that can support a higher production rate than currently considered for the PFS.
This higher production rate would then be the basis for a definitive feasibility study (DFS).
European Lithium is well funded with circa $6.8 million in cash as at 31 December 2017 following a successful capital raise in December 2017.