Core Lithium (ASX: CXO) has released its annual report to the market, reflecting on the significant milestones achieved at the Company’s flagship Finniss Lithium Project in the Northern Territory, notwithstanding the COVID-19 pandemic.
Core Chairman Greg English said: “This year we safely and significantly advanced our growth strategy by progressing the development of the Finniss Lithium Project. During FY20, we achieved the following significant milestones:
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Increased Finniss ore resources by +50%, ore reserves by +150% and extended the mine life to seven years.
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Test work confirmed that we could produce a 6.0% Li2O concentrate at an overall lithium recovery of 71% (6.3mm crush size).
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All regulatory approvals in place for Grants and permitting of BP33 commenced.
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Signed offtake agreements with new partners.
“A significant focus during the first half of this calendar year has been managing the risks introduced by COVID-19, while at the same time maintaining business continuity. The Company responded to the coronavirus pandemic (COVID-19) by focusing on managing the health and safety of our people and contractors, while at the same time maintaining focus on business continuity.
“We were able to maintain continuity of operations throughout other areas of our business by reducing people movements through the implementation of extended operational rosters and working from home arrangements.
“While we did not experience any material disruption, COVID-19 restrictions hindered our short-term ability to explore the Finniss Lithium Project and our other Northern Territory tenements. However, recent government changes have meant that we are now able to explore our tenements, and we recommenced fieldwork and exploration activities in August.
“During the past six months, we have secured a new non-binding long-term spodumene concentrate offtake agreements with Transamine Trading and Xinfeng. These offtake agreements supplement Core’s existing binding offtake agreement with Yahua.
“The three offtake agreements collectively represent approximately 85% of our first three years of annual spodumene production from the Finniss Lithium Project. We aim to convert the Xinfeng and Transamine agreements to legally binding offtake agreements with the possibility of project finance.
“Core is pleased to have a supportive relationship with offtake partners such as Yahua, Transamine and Xinfeng.”
