VANCOUVER, British Columbia, Nov. 21, 2018 (GLOBE NEWSWIRE) — European Electric Metals Inc. (TSX-V: EVX) (“EVX” or “Company”) is pleased to announce that it has engaged the services of the Nordmin Group of Companies (“Nordmin”) to undertake a site inspection and to comment on the apparent condition of the surface and underground infrastructure and equipment of Skroska mine in Albania. The Company expects the technical team of Nordmin to be on site in December 2018.
The Nordmin Group of Companies is a 100% North American owned and operated provider of comprehensive EPC and EPCM solutions worldwide to industrial sectors spanning resource and project definition through construction and site closure. They provide a diverse portfolio of sustained services in engineering, procurement, contract management, and construction execution for a complete and co-ordinated deliverable. The group includes Nordmin Engineering, Nordmin Constructors and Nordmin Operators, and is based in Thunder Bay, Ontario with offices in Sudbury, Ontario, Kamloops, British Columbia and Salt Lake City, Utah.
The site inspection will allow Nordmin to comment on whether the existing underground workings and mine equipment appear to be able to be used if the operations at the Skroska mine are restarted at present capacity of approximately 200 tonnes per day (“tpd”) or what would be required to support increased production if its capacity is expanded to a certain level or levels.
The Skroska Mine
The Skroska deposit had a historic resource of 22.4 million tonnes of laterite grading 0.99% Ni, 49.13% Fe (not 50% Fe as earlier reported) and 0.065% Co. The resource is historic in nature (see note below). The laterite deposit is estimated to range from 2 meters to 10 meters in thickness and to average approximately 6 meters thick. It occurs between the ultramafic rocks (serpentinized) below and limestone on top or as a capping. The limestone is a competent rock which makes it an excellent candidate for use as a natural roof for the open stope underground mining method employed in the mine historically and proposed for the future. Records indicate that approximately 1.15 million tonnes of laterite ore was mined between 1985-1990 (by the state-owned mining enterprise) and between 2008-2013 (by a local private company). The Company is acquiring the Skroska mine from the local company as reported previously (see EVX news release dated October 11, 2018).
Based on the visits completed by EVX staff up to its recent sampling program, the mine openings (haulage, development and production areas) were observed to be accessible and free of major blockages. Electrical power supply to the underground areas was available while major mine equipment both inside the underground works and on the surface were observed to appear to be in good condition and are reported to appear to be operational.
Note: The tonnage and grade estimates stated above are historic in nature and were obtained from the records at the Albanian Geological Survey. The estimates done, using Russian Style Polygon method, are roughly equivalent to the National Instrument 43-101 inferred category. No qualified person (within the meaning of NI 43-101) has done sufficient work to classify the historical estimates as current mineral resources. EVX considers the historical estimates relevant in guiding exploration efforts and planning although EVX is not treating the historical estimates as current mineral resources. EVX will need to undertake a comprehensive review of available data, and to complete further drilling, to verify the historic estimates and to be able to classify them as current resources. There is no assurance that such verification or classification can or will be completed.
Cobalt and Nickel in Skroska
Skroska was mined in the past for nickel and iron. Cobalt (“Co”) grade was estimated to be very low (0.065% Co) and was not historically recovered with the nickel-iron products. However, in recent sampling by EVX, the cobalt grade in such samples was higher, being up to 0.54% Co with higher nickel (“Ni”) grades of up to 1.92% Ni (see Company news release dated October 11, 2018). EVX aims to be able to recover cobalt and nickel and take advantage of the primary roles these metals have in the electric vehicle revolution.
Jose Mario Castelo Branco, EuroGeol, a Qualified Person within the meaning of Canadian National Instrument 43-101 and Chief Geologist of the Company, is responsible for the technical content of this news release.
About European Electric Metals Inc.
European Electric Metals Inc. is a Canadian listed public company, with a focus on electrification themed projects in Europe. A major shareholder of EVX is the European Bank for Reconstruction and Development. The goal of EVX is to become a major source of battery metals such as copper, nickel and cobalt, and the Company seeks to do so within safe, stable and logistically attractive European jurisdictions. The Company’s projects are ideally located with excellent road, port and grid power availability, and near European countries that are poised to experience significant growth in the electric-vehicle-manufacturing industry. There is a strong battery-manufacturing industry within Europe with many more projects in the pipeline.
On behalf of the Company,
Fred Tejada, Chief Executive Officer and Director
Forward-Looking Statements. This news release contains “forward-looking” statements and information relating to the Company and Skroska are based on the beliefs of Company management, as well as assumptions made by and information currently available to Company management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including but not limited to, without limitations, estimated mineral grades, estimated mining rates, exploration and development risks, expenditure and financing requirements, general economic conditions, changes in financial markets, the ability to properly and efficiently staff the Company’s operations, the sufficiency of working capital and funding for continued operations, title matters, community relations, operating hazards, political and economic factors, competitive factors, metal prices, relationships with vendors, governmental regulations and oversight, permitting, seasonality and weather, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. The Company does not undertake to update forward-looking statements or forward-looking information, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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