Core Lithium a step closer to becoming the NT’s first lithium producer

Core Lithium a step closer to becoming the NT’s first lithium producer

Core Lithium (ASX: CXO) has firmed as Australia’s next lithium producer with the release of a definitive feasibility study for its Finniss lithium project in the Northern Territory.


Core Lithium (ASX: CXO) has firmed as Australia’s next lithium producer with the release of a definitive feasibility study for its Finniss lithium project in the Northern Territory.

The DFS confirmed the robust economics of the Finniss project, with a low risk, open pit mining operation mining of high-grade ore reserves of 1.4 per cent Li2O combined with exceptional spodumene metallurgy allowing Core to produce high quality, coarse concentrate using simple gravity DMS processing.

The DFS outlines a proposed operation processing up to 180,000 tpa of high-quality lithium concentrate generating a Pre-Tax Nominal IRR of 80%, an NPV of $114 million and free cash flows of $158 million from revenue of $501 million.

Core’s managing director, Stephen Biggins, said the DFS highlighted the significance of the Finniss project and put Core on track to become the Northern Territory’s first lithium producer.

The DFS confirms Finniss as a simple but high value operation, in part due to the minimal spend required on infrastructure thanks to high grade spodumene reserves in close proximity to Darwin Port,” Mr Biggins said.

“With the DFS now completed, we are aiming to finalise funding over the coming months so that construction can commence as soon as practicable. We are also maintaining our exploration momentum, with the aim of materially increasing the potential mine life of Finniss before we commence first production.

“We look forward to the Final Investment Decision for Finniss in the coming months.”

With the DFS completed, Core will now look to advance its offtake and financing discussions as well as project permitting with an aim of commencing development and construction in 2019, and commercial production of spodumene concentrate in the first half of 2020.

Core also plans to infill drill, expand and announce Mineral Resources at the Hang Gong, Booth-Lees and Carlton prospects within the project over the course of 2019, with the intention of converting these to Ore Reserves. Core aims to produce an updated economic assessment of the Finniss Project towards the end of 2019 that potentially includes these additional prospects as additional ore sources.

At the start of the month, Yahua and Core agreed to expand the lithium concentrate offtake commitment by 50 per cent, to 75,000 tonnes per annum of 5.5 per cent Li2O concentrate.

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