It’s been 12 months of milestones for the only Australian spodumene concentrate producer outside of WA – and one year to the day since Core Lithium (ASX: CXO) CEO Gareth Manderson stepped into the role.
Mr Manderson used his Diggers and Dealers Mining Forum presentation to spell out the success of the minimum viable project strategy that saw Finniss fast-track to production of first concentrate and early revenue less than two years since Core made a final investment decision.
It was Mr Manderson’s debut at Diggers & Dealers and followed Core’s maiden presentation last year.
The Grants pit got Finniss up and running but it is the BP33 underground project that has the company excited as the next potential mine and the operation’s cornerstone asset. In May, Core’s board approved an early works budget of $45-50 million in parallel to the completion of a feasibility study that will incorporate a 130 per cent upgrade to BP33’s mineral resource, which now sits at 10.1Mt grading 1.48% Li2O.
Mr Manderson told delegates he was targeting a FID in Q1 2024 and, assuming a positive decision, the company would launch the next phase of capital works – decline development, early stope development, ventilation infrastructure, water management and power infrastructure. First production from BP33 is slated for 2026.
The second prong of Core’s strategy is resource development and exploration. The company’s drilling pedigree has delivered 198 tonnes of resource inventory per metre drilled, at a cost of about $1.95 per tonne of resource added.
The 2022 drilling campaign was the largest in the still-young company’s history. A spend of $13 million saw the global Finniss resource increased 62 per cent to 30.6Mt at 1.31% Li2O. This year’s $25 million budget dwarfs last year’s while Core has allocated $45 million for 2024 to focus on near-mine and regional targets.
It means investors have plenty of newsflow to look forward to.
To the north of the Finniss tenement, the Carlton, Hang Gong and Ahoy prospects are emerging as standout resources for potential future mine development – all within trucking distance from the Finniss concentrator plant.
Mr Manderson said the production of the third parcel of concentrate was well underway and would be feeding into offtakes with quality long-term partners Sichuan Yahua and Ganfeng.
