Advanced lithium developer Core Lithium (ASX: CXO) has provided its quarterly activities report for the period ended 30 September 2020. During the September quarter, Core was focused on a number of initiatives aimed at further enhancing the value and potential of its wholly-owned Finniss lithium project, located near Darwin in the Northern Territory.
Received an Environmental Impact Assessment extension at Grants to match a seven-year operation;
Recommenced Mineral Resource expansion drilling at Finniss;
Identified exciting gold results and new prospects at the Adelaide River Gold Project;
Identified new gold prospects at the Bynoe Gold Project; and
The NT EPA progressed an environmental impact assessment of Core’s proposed BP33 Underground Mine.
Core is positioned to be Australia’s next lithium producer through the development of its flagship Finniss Lithium Project (Finniss, Project), one of Australia’s most capital efficient and lowest cost lithium projects, located close to Darwin Port, Australia’s closest port to Asia.
Core’s 2019 Definitive Feasibility Study (DFS) on Finniss highlighted production of 175,000tpa of high-quality lithium concentrate at competitive operating costs and low capex through simple DMS (gravity) processing of some of Australia’s highest-grade lithium resources (ASX: CXO 17/4/19 “Finniss Definitive Feasibility Study and Maiden Ore Reserve”).
The low capital cost is primarily a function of the coarse-grained pegmatites, which only require DMS processing, rather than the more expensive flotation circuits required by West Australian lithium producers.
Core has reported substantial increases to Mineral Resources, Ore Reserves and minelife ahead of project construction and lithium production, subject to financing and regulatory approvals.
The Finniss Lithium Project has arguably the best supporting infrastructure and logistics chain to Asia of any Australian lithium project. The Finniss Lithium Project is within 25km of port, power station, gas, rail and 1 hour by sealed road to workforce accommodated in Darwin and importantly to Darwin Port.
Core has already established binding and non-binding offtake agreements and is in the process of negotiating further agreements within the lithium battery supply chain and electric vehicle industry.