THE DRILL SERGEANT: Core Exploration (ASX: CXO) released a substantial Mineral Resource upgrade for the BP33 lithium deposit at the company’s Finniss lithium project in the Northern Territory.
Core Exploration announced the Mineral Resource tonnes have grown by 51 per cent in size at BP33 to 2.15 million tonnes and the already high-grade has increased to 1.5 per cent lithium oxide (Li2O).
The company indicated the resource confidence classification has also improved to Indicated and Inferred, having previously only announced an Inferred Mineral Resource.
Core Exploration declared the increase in the size, grade and confidence of the estimate of the BP33 Resource, together with the recently announced 42 per cent increase in resources at the Grants lithium deposit, enhances the potential for the Finniss project to deliver robust returns, which the company expects to be confirmed by the current Definitive Feasibility Study (DFS).
The BP33 Lithium Mineral Resource estimate currently comprises 2.15 million tonnes at 1.5 per cent Li2O and is claimed by Core to be one of the highest-grade spodumene resources in Australia.
The global Mineral Resource for the Finniss project is now 5 million tonnes at 1.5 per cent Li2O, however Core anticipates this to grow further in coming weeks when a new Mineral Resource estimate is announced at Sandras.
Additional drilling at BP33, targeting both an increase in resource confidence and size is planned for the near future.
“The excellent results from BP33 confirm our expectations that the Finniss lithium project will have extremely robust economics,” Core Exploration managing director Stephen Biggins said in the company’s announcement to the Australian Securities Exchange.
“We look forward to publishing the DFS in late November.”
Core is in the final stages of completing a DFS for the development of a spodumene concentrate operation from the Finniss lithium project where it is targeting commencement of mining and construction mid-2019 and first production of high-quality spodumene concentrate in late 2019.
The company expects the DFS to build on strong financial outcomes highlighted in the Pre-Feasibility Study while factoring in substantially expanded Mineral Resources and longer mine life, optimised recoveries and increased grade of product as well as committed offtake and customer prepayment finance.