EUROPEAN LITHIUM LIMITED Tanbreez Project Update: 90MT Dual Mineral Resource Fuels US$7.2B Forecast Revenue

Thursday, May 29, 2025
at
9:22 am
Article header image

EUROPEAN LITHIUM LIMITED has clarified its Tanbreez Project disclosures, confirming sampling work and resource estimates for industrial feldspar and arfvedsonite. The detailed responses support its production targets and forecast financial information, enhancing transparency for emerging opportunities in Greenland.

European Lithium Limited has detailed responses to a series of regulatory queries concerning its Tanbreez Project in Greenland. The company clarified that while the original Maiden Mineral Resource Estimate did not include estimates for arfvedsonite or feldspar, an addendum issued on 29 May 2025 now provides a mineral resource estimate for both minerals prepared in line with Chapter 5 of the Listing Rules. The addendum shows a total resource of 90 million tonnes for each of these industrial minerals, split between 51 million tonnes of indicated resource and 39 million tonnes of inferred resource. Given that arfvedsonite and feldspar are industrial minerals, no grade is reported. The responses also address key aspects of the Scoping Study Announcement. Although this announcement did not include new resource or reserve estimates, European Lithium Limited confirmed that sufficient sampling—including studies of the Kakortokite unit—has been undertaken to assess ore quantities. The company emphasized that production targets and forecast financial information are based on robust data from the addendum and earlier drilling results. The Kakortokite unit itself is characterized as a layered formation with a modal mineralogy of 40% feldspar, 40% arfvedsonite, and 20% eudialyte. This composite mineralogy forms the basis for the project’s long-life mine plan spanning 25 years and underpins forecast revenues of approximately US$2.67 billion for arfvedsonite and US$4.54 billion for feldspar. In addition, European Lithium Limited discussed the basis for its arfvedsonite pricing assumption of US$50 per kilogram. This assumption is supported by discussions with the Mineral Licence and Safety Authority of Greenland, the Greenland Government, and local industry representatives. While the local market for arfvedsonite concentrate is not yet active, the pricing reflects a strategic viewpoint for tapping into emerging markets in Greenland and Europe. Market sentiment can be viewed from two angles. On the bullish side, the detailed resource disclosure and comprehensive sampling approach, together with strong regulatory compliance, lend confidence that European Lithium Limited has a firm basis for its production targets and revenue forecasts. Such robust technical underpinnings and a clear plan for mine development over the next 25 years provide a positive long-term outlook for the project. Conversely, the bearish perspective arises from the inherent cautionary notes associated with the Kakortokite unit. The company stresses that the host rock does not guarantee economic mineralization and that the production target disclosures are based partly on inferred resources and conceptual estimates, which may add uncertainty for risk-averse investors. Overall, the announcement reinforces that European Lithium Limited is taking significant steps towards de-risking the Tanbreez Project while navigating strict regulatory standards, making it a subject of interest for investors watching emerging mining ventures in the rare earth and industrial minerals space.

Document

Recent Articles