The European Lithium Ltd (ASX: EUR) share price is dropping today, despite releasing a positive update to the market.
During early trade, the lithium miner's shares were in positive territory, reaching an intraday high of 8.4 cents. However, the European Lithium share price has since fallen to 7.2 cents at the time of writing, down 6.9%.
What did European Lithium announce?
The European Lithium share price is seesawing today after providing a progress update of its flagship asset.
In its release, European Lithium advised it's on track with the definitive feasibility study of its Wolfsberg Lithium Project.
Dorfner, selected to undertake metallurgical test-work at the mine, received samples from the company's 1500 tonne bulk sample stockpile. Currently, the raw materials are being carefully analysed, with leading engineering group DRA Global overseeing the process.
European Lithium it would receive a full and final report oN the metallurgical results within the coming months. Together, along with other works completed by the company, the report will be used for a final definitive feasibility study.
European Lithium highlighted that completing the metallurgical test-work will allow it to optimise the design for its hydrometallurgical production facility. In turn, this will save significant costs and time in fine-tuning the plant to maximise efficiency for future production lines.
Quick take on the Wolfsberg Project
Located 270km south of Vienna in Austria, the Wolfsberg Project aims to become first local lithium supplier for European batteries. The company believes that its late-stage project is well placed to target the largest lithium import markets in the European Union.
Most notably, the European automobile industry is rapidly transitioning to electric vehicles, thus requiring lithium to power its batteries. With an existing mining permit, and strategically placed in the heart of Europe, the company is poised to take advantage of the growing market. It expects that the Wolfsberg Project mine will be in production in 2023.
Management commentary
European Lithium chair Tony Sage highlighted the company's assets to move into production, saying:
European Lithium has the major advantage of an existing permitted working mine in central Europe, to provide Dorfner with the tonnage needed to build a pilot plant and produce samples for met testing.
Successful metallurgical testwork progresses our strategy toward the DFS that will see the company advance towards becoming a near term, high quality battery-grade lithium hydroxide (LiOH) producer.
About the European Lithium share price
The European Lithium share price has gone on a rollercoaster ride over the past 12 months. Its shares fell heavily in March after reaching highs of around 8.6 cents the month before. During May, the company's share rocketed to 9 cents, and again nosedived to COVID-19 lows.
Since hitting a 52-week low of 3.5 cents in October, the European Lithium share price accelerated to 13 cents this month. Currently, its shares are swapping hands for 7.3 cents.
