A preliminary economic assessment (PEA) of the development of TSX-V-listed Euro Manganese's Chvaletice project, in the Czech Republic, demonstrates the resilience of the project and the potential to generate significant returns, the company reports.

The PEA estimates the post-tax internal rate of return at 13.8% and the post-tax net present value at $492-million. The project is expected to produce about 150 000 t/y of high-purity manganese sulphate monohydrate over a 26-year mine life.

Euro Manganese is planning a staged development at the project, with Phase 1 capital estimated at $627.5-million and Phase 2 capital at $197.8-million.

"The publication of these PEA results marks another important milestone for the Chvaletice project. Our recent optimisation work has delivered measurable improvements in recovery, confirming both the strength of our technical strategy and the reliability of our process. To enhance capital efficiency and align investment with market demand, we have adopted a phased construction approach that maximises value while reducing execution risk. The addition of by-product revenue stream further incrementally strengthens the economics of the project.

"This disciplined approach, coupled with conservative product pricing assumptions, supports a robust project profile with a strong operating margin of 48%, underscoring the project's ability to perform through market cycles. Despite the challenging market and pricing conditions, the PEA results demonstrate the strength and resilience of the project," says Euro Manganese president and CEO Martina Blahova.

Chairperson Rick Anthon adds that, with no operating manganese mines in Europe and as the only integrated high-purity manganese producer in Europe and North America, the Chvaletice project is positioned to become a cornerstone of Europe's emerging battery materials supply chain.

"The project's strategic relevance, combined with its strong environmental credentials and growing commercial traction, reinforces our confidence in its long-term value. We believe the foundations are now firmly in place for Chvaletice to move toward the next stage of development and deliver meaningful returns for shareholders," he comments.

Euro Manganese will now advance the project further towards a full feasibility study, which is set to be completed in the first half of 2027.

In addition, the company remains focused on securing funding for the project; completing the acquisition of the remaining land surface rights needed for the full project development; strengthening the project's regulatory foundation through the continuous advancement of permitting; and maximising non-dilutive capital by actively pursuing grants and incentives available from the EU and the Czech State.