Zinnwald Lithium (LSE:ZNWD) shares rose 6% on Monday, rising to 6.2p, after the company was granted a construction permit for an exploration tunnel to access the ore body underpinning its Zinnwald Lithium Project.
The decline is intended to provide direct underground access, improve geotechnical, seismic and hydrogeological understanding, give practical insight into mining conditions and enable a representative bulk sample of up to 2,000 tonnes for large‑scale metallurgical testwork.
"Obtaining the permit to construct the exploration tunnel is an important step in the ongoing de‑risking of the Zinnwald Lithium Project," Anton du Plessis said.
The Project hosts one of Europe’s largest hard‑rock lithium resources, underpinned by a published Mineral Resource Estimate of 193.5Mt (Measured and Indicated) and a Proven and Probable Reserve of 128.1Mt, and is being developed with the aim of producing battery‑grade lithium hydroxide.
The permit is valid until 31 December 2027 with the potential to be extended and does not confer the right to mine, as future production will require further permits including completion of an environmental impact assessment and public consultation.
As described in the company’s pre‑feasibility study, the exploration decline may be incorporated into permanent mine access subject to development approval and the bulk sample will support detailed process engineering and product qualification ahead of a final investment decision.
