is planning to begin a new drilling campaign at to convert its existing Mineral Resource to a Mineral Reserve. The Reserve will cover the first two years of mining.

The Cinovec tin-lithium project has been under development for some time; a scoping study was completed in 2015. But the project has progressed rapidly since CEZ Group, a major energy group based in the , invested in late 2019.

The Cinovec deposit has a JORC-compliant Resource of 695.9 Mt at 0.038% Sn, and a Probable Reserve of 34.5 Mt at 0.09% Sn. European Metals are looking to upgrade part of the Indicated Resources to a Mineral Reserve.

The planned drilling campaign is comprised of 19 drill holes covering 5,500 metres. The resulting drill cores will be used to upgrade the Resource and to obtain ore samples for the next phase of metallurgical testing.

A further four geotechnical holes will be drilled in the campaign. These will trace the planned decline route for the mine and will be used to develop final designs for the declines.

Our view: European Metals is beginning to plan for the start of Cinovec, despite not yet having completed a Definitive Feasibility Study for the mine. However, the company is strongly backed financially and is part of a European move to enter the lithium supply chain. European Metals has already received a preliminary mining permit for Cinovec, although no date has been set for the project to come online.

In terms of tin, although Cinovec has more than 260,000 tonnes of contained tin as a resource, current estimations indicate that production will not be significant. Based on an average ore production of 1.68 Mtpa at a grade of 0.09% Sn and recoveries of around 75%, Cinovec will produce around 1,000 tonnes of tin-in-concentrate annually. However, Cinovec is projected to be one of the lowest cost tin operations in the world due to the significant lithium by-product credits.