Ready to start drilling under an old lithium* mine in Sweden.
Last mined in the 1940's by Boliden, to maximum depth of 30m.
Located 10kms from Skellefteå, 20kms from existing processing facilities and 50km from a base metals refinery.
Located 50kms from a port that is integrated into the European transport network.
Aiming to produce battery grade lithium chemicals and integrate them into the supply chain of European customers.
Strategy - Lithium
Critical Metals is applying the Western Australia (WA) hard rock lithium resource development model to its 100% owned Varuträsk lithium project.
- WA has a cluster of hard rock lithium mining expertise and is the world's single largest supplier of lithium minerals from hard rock sources
- WA is home to the World's largest Lithium hard rock mine Greenbushes, two new lithium mines have come into production this year (Mt Marion and Mt Cattlin), with two more planning to commence production in 2017
- Mt Marion started out with an Exploration Target of 4-5Mt and has grown to 60Mt through deeper drilling
- Critical Metals aims to take the small historic Varuträsk lithium mine towards a new resource by deeper drilling
If an economic resource is drilled at Varuträsk, Critical Metals has a number of options to develop a cost effective pathway to production because of the project's excellent location.
- Build a new concentrator on site (as has occurred with the new mines in WA)
- Enter into toll treatment arrangements with owners of existing concentrators close to Varuträsk
If transport of Lithium concentrate is needed, transport infrastructure (roads, rail and ports) are world class and the distances short relative to both WA and Canada.
If partnering with owner of electrolysis plant in Sweden to produce Lithium chemicals, cheap power can create cost advantage.
If Critical Metals converts the Varuträsk lithium project into an economic resource there is a clear pathway to the cost effective production of lithium chemicals in Sweden for customers in Europe.
Varuträsk Lithium - Timing is Everything
Vision for Northern Sweden - Electric Vehicles and Storage
Lithium - Location Plan
Varuträsk Lithium is located ~10kms west of Skellefteå, ~20kms south-east of Boliden and ~50kms west of the Port of Skellefteå.
Critical Metals' field office is located in Malå, ~110kms west of Varuträsk and ~800km north of Stockholm
Pahtohavare Copper-Gold and Rakkuri Iron are located ~8km west of Kiruna.
Strategy Example – Drill Beneath an Existing Deposit
The black line highlights the approximate depth of the lowest mined level of the Varuträsk deposit. Every deposit is different and the geometry of one deposit can not be thought to be mirrored by other deposits. This slide is for illustrative purposes only. The message is, 'it is a sensible strategy to drill underneath an existing deposit'. The image above is one section from Area 2W. The Mt Marion Project comprises Area 1, 2, 2W, 4, 5 and 6.
Varuträsk LCT Mine – History
- Small scale open-cut and underground mining completed by Boliden
- Mine produced many minerals but only a few minerals were sold at the time
- Minerals sorted by hand at surface before being loaded into trucks
- Lithium minerals mined – petalite, spodumene, lepidolite and amblygonite
- Other minerals mined – quartz, feldspar, beryl and muscovite
- Flat, trough shaped sheet ~300m*30m*30m
1947 - 1982
- Swedish Geological, on behalf of Boliden, completed quaternary mapping, moraine sampling, trenching and diamond drilling
- New pegmatite lens located ~1km north of the previously mined pegmatite
- Drilling extended the strike length of the main pegmatite to 550m
1985 – 2015
Critical Metals granted exploration permit
Varuträsk Lithium – Location Location Location
Varuträsk is located close to major hydro power stations and a wind farm (100 turbines) owned by Skellefteå Kraft (electricity price ~ USD0.07 per kWh), concentrators owned by Boliden (base metals) and Mandalay Resources (gold), major roads, a City, a refinery (owned by Boliden) and a port.
Varuträsk Lithium – Easy Access
Varuträsk is located close to a major road (but not too close) and is outside nature reserves. The owners of the Skellefteå Adventure Park have approved the planned 5,000m of drilling beneath the historic lithium mine this winter 2016/2017. The permits outlined are owned 100% by Scandinavian Resources AB (a wholly owned subsidiary of Critical Metals Ltd) and all are granted.
Historic Drilling – EOH more than 40m, less than 80m
Historic Drilling – EOH more than 80m
Planned and approved drilling
These holes (green pins) are approved for drilling. Drilling can commence immediately. The planned drilling depth is 150m.
Varuträsk – Historical Sections
Drilling stopped within cms of penetrating the contact – EOH 32m – no drilling beneath the first contact
The majority of this ore has been mined out.
Strategy Example – Drill Beneath an Existing Deposit
The black line highlights the approximate depth of the lowest mined level of the Varuträsk deposit. The red line represents the depth of drilling planned for Varuträsk. Every deposit is different and the geometry of one deposit can not be thought to be mirrored by other deposits. This slide is for illustrative purposes only. The message is, 'it is a sensible strategy to drill underneath an existing deposit'. The image above is one section from Area 2W. The Mt Marion Project comprises Area 1, 2, 2W, 4, 5 and 6.
Knowledge & Technical Assistance Agreement
"In Neometals - which has grown from explorer to producer by developing its Mt Marion lithium deposit from 4Mt to 60Mt and patented a lithium chemical processes - we have found the ideal partner to assist us with implementing our European lithium strategy." - Damian Hicks, Chairman, Critical Metals Ltd
"We believe Neometals can add value to Critical Metals' lithium projects by leveraging off our technical expertise in the lithium industry. We believe Varuträsk has significant potential and we support Critical Metals as a Shareholder and Partner." - Chris Reed, Managing Director, Neometals Ltd
Neometals have the right (but not the obligation) to subscribe for at least 20% of future capital raisings undertaken by Critical Metals. Neometals have a 30 day pre-emptive right to match any third party offer to acquire an interest in Critical Metals' lithium projects located in Europe.
Varuträsk LCT Project – Next Steps
- Introduce Critical Metals and Varuträsk (November-December 2016)
- Drilling to determine potential tonnage and grade (2017)
- Metallurgical testwork to assess ore from drilling (2017)
- Economic assessment following 1st phase exploration (2017)