Advanced Australian lithium developer Core Lithium (ASX: CXO) has announced that exploration and Mineral Resource growth drilling has commenced at the Finniss Lithium Project near Darwin in the NT. Core’s exploration team mobilised to site last week and a reverse circulation drill rig and diamond drill rig have now begun drilling.
Advanced Australian lithium developer Core Lithium (ASX: CXO) has announced that exploration and Mineral Resource growth drilling has commenced at the Finniss Lithium Project near Darwin in the NT.
· Core has commenced Mineral Resource growth and exploration drilling at Finniss Lithium Project near Darwin in the NT
· RC and Diamond Drill rigs are on site to undertake a number of drilling campaigns for the remainder of 2019
· Exploration drilling is underway, targeting the discovery of new lithium-rich pegmatites at Finniss
· Resource expansion drilling aimed at increasing Mineral Resources and Ore Reserves
· Board focussed on maximising shareholder value ahead of decision to mine, including strategic investment in near-term Mineral Resource conversion and focused exploration to improve the production profile further and extend the mine life
· Strong newsflow expected over the coming weeks and months:
· Mineral Resource and Exploration Drilling at Finniss
· Rapid Mineral Resource Growth
· Ore Reserve and Mine Life Growth
· Binding Concentrate Offtake
· Fine Lithium Offtake
· Full Project Approval o Project Financing
Funds received from the recently completed $3.3 million Share Purchase Plan (SPP) and $8.1M non-dilutive funding from Lithium Royalty Corporation (LRC) will be used to progress the Company’s flagship Finniss Lithium Project development plans, near-term Mineral Resource growth and conversion and focused exploration to improve the production profile further and extend mine life within the broader Finniss Lithium Project.
Core’s exploration team mobilised to site last week and a Reverse Circulation (RC) drill rig and Diamond drill rig have now commenced drilling at Finniss.
Drilling over coming months will be conducted at a number of prospects aimed at making new discoveries, expanding existing Mineral Resources and adding additional Ore Reserves and mine life at the Finniss Lithium Project.
Core has increased the Mineral Resource base of the project by 500% since the start of last year and in 2019, the Company is aiming to continue significant Mineral Resource growth and making new substantial discoveries through active and well-funded exploration and drilling campaigns.
The Bynoe Pegmatite Field near Darwin comprises hundreds of lithium-rich pegmatites that haven’t yet been tested. Core has tested 30 pegmatites to date, of which 6 now have a Mineral Resource or Exploration Target. Core’s exploration work comprising soil geochemistry, mapping and shallow scout drilling has identified 50 more pegmatite targets to test and prioritise.
The Company has the potential to make a large, step change discovery of spodumene pegmatites as it tests the huge number of pegmatites covered by Core’s dominant 500km2 tenement holding in the area. Core will update the market with significant drill results and Mineral Resource growth progress over coming weeks and months.
Core is also actively working on several material goals that, once achieved, are likely to have a significant impact on the Project.
Core will update shareholders in due course as significant progress on these goals is achieved, including:
· Expanding lithium Mineral Resources, Ore Reserves, and mine life at Finniss
· NT Govt regulatory approval to achieve full approval for mine and plant construction
· Binding Offtake along with Customer Finance support for remaining lithium concentrate
· Fine lithium offtake agreements
· Project Financing for Finniss
Core’s Managing Director, Stephen Biggins, commented: “With the recent SPP and LRC funding, Core is in a great position to refocus on building lithium Mineral Resources and Ore Reserve expansion and exploration drilling to grow upside for shareholders.
“The strong economics of the Finniss Project, as recognised by LRC, are underwritten by the low capex development of high-grade lithium Mineral Resources with robust margins and the best logistics connection to Asia of any Australian lithium project.
“With the DFS complete, approvals, additional offtake and project finance advancing and being finalised, Core is well placed to be Australia’s next lithium producer.”