European Lithium posts strong quarter as it assesses critical minerals potential of Tanbreez and Wolfsberg projects

European Lithium Ltd had a robust March quarter on several fronts, capped off by a 45 million tonne maiden resource at its flagship Tanbreez Rare Earth Project in Greenland.

The company also made further progress across its European and global critical minerals portfolio, including infrastructure expansion at its Wolfsberg Project in Austria, and enters the June quarter well positioned to capitalise on growing demand for rare earths and lithium from and for Western markets.

Tanbreez mineral bounty

At Tanbreez, Critical Metals Corp, in which European Lithium holds a controlling stake, confirmed a maiden JORC 2012-compliant mineral resource of 45 million tonnes grading 0.38% total rare earth oxides (TREO), with a significant 27% heavy rare earth element (HREE) component. 

The company also reported high-grade deep drilling results from the Fjord prospect, including assays up to 0.44% TREO and HREE content as high as 28%.

All these results from Tanbreez give the company confidence in an extended mine life and increased resource scale and formed the basis for a preliminary economic assessment and scoping study, released in April. 

The study highlighted the Net Present Value (NPV) of approximately U$2.4 billion – U$3 billion at a 8%-10% discount on an Internal Rate of Return (IRR) of 162% before Tax.

Drillhole collar positions for deep diamond holes DX-O1 to 338m, D7-14 to 243m and A1-24 to 40m with the average assays results from surface. The length between drill holes is 1549 meters from A1-24 to DX-01 and 1037m from DX-01 to D7-14 with a 372m width between DX-01 and D7-14.

Gallium opportunity

The company also discovered strong levels of Gallium Oxide, which give it further confidence in the Tanbreez Project’s immense value. 

According to the CSIRO, despite gallium being as abundant on earth as copper, it never occurs at high enough concentrations to mine. It occurs in bauxite which is the main ore source of alumina and may come from zinc smelters. 

At the moment, around 98% of the world's gallium production is sourced from China, while some South American bauxite deposits contain up to 80 ppm of the mineral. 

A report by the Business Research Company states the gallium market has experienced notable growth in recent years, with its value rising from US$2.32 billion in 2024 to an estimated US$2.91 billion in 2025. This represents a compound annual growth rate (CAGR) of 25.4%, driven by rising demand across multiple industries, including electronics, medical technologies, solar energy, and the aerospace and defence sectors.

Critical Metals Corp is busy exploring this opportunity, with plans to investigate the mineralogy of the gallium in this zone and assess its potential as a viable by-product.

A favourable aspect for the company is the Chinese government’s ban on exports to the United States of critical minerals, including gallium, germanium and antimony, a development that underscores the potential of the gallium discovery at the Tanbreez project.

Alongside the resource update, CRML completed a US$24.5 million equity placement during the quarter to support the development of Tanbreez and the Wolfsberg Lithium Project in Austria. 

Hatch Ltd continued engineering work on a lithium hydroxide refinery in Saudi Arabia under a joint venture with Obeikan Investment Group.

European Lithium maintains strategic positioning on Ukraine projects amid ongoing conflict

EUR has reaffirmed its strategic interest in the Shevchenkivske and Dobra lithium projects in Ukraine, following the renegotiation of acquisition terms for European Lithium Ukraine LLC—formerly known as Petro Consulting LLC—earlier this year.

Location of the Deposit Shevchenkivske and Dobra in Ukraine.

European Lithium Ukraine is looking to secure 20-year special permits for the extraction and production of lithium at the Shevchenkivske and Dobra projects. These applications are being pursued through a combination of court proceedings, public auction, and/or production sharing agreements with the Ukrainian government.

Despite the significance of these assets, no desktop studies or fieldwork were undertaken during the March quarter due to ongoing safety concerns stemming from the conflict in Ukraine. 

Any easing of the Russia-Ukraine conflict could help EUR and facilitate progress at Dobra, which hosts a JORC-compliant mineral resource of 90 million tonnes at 1.36% lithium oxide (Li₂O).

With greater regional stability on the horizon, EUR is increasingly optimistic about accelerating development of the Dobra asset, a key lithium project for European battery supply chains.

Austrian lithium expansion

In Austria, European Lithium finalised the planning and technical layout of the energy supply corridor for the Wolfsberg Project and confirmed the project is not subject to full environmental assessment, streamlining its pathway to development. 

Austrian Lithium Projects location.

The project also maintains a long-term supply agreement with BMW AG for battery-grade lithium hydroxide.

Exploration activities continued at the company’s Austrian and Irish lithium assets. 

In Austria, detailed mapping identified drill targets at spodumene-bearing pegmatite zones, while in Ireland, groundwork is underway across the Leinster Project's highly prospective East Carlow Deformation Zone.

In Western Australia, tenement E47/4144 continued to progress through the regulatory application process, with stakeholder objections resolved.

Financials

Financially, consolidated operating cash outflows for the quarter totalled A$2.96 million, including A$2.24 million attributed to CRML. 

Investment cash outflows included A$2.82 million in project expenditure and A$500,000 for a placement in Moab Minerals Ltd, where the company now holds a 9.6% interest. 

European Lithium’s holding in Critical Metals Corp was valued at US$103.6 million (A$161.6 million) as at April 28, 2025.