Core Lithium Ltd (ASX: CXO), an emerging northern territory lithium developer, has announced the global Mineral Resource for the Company’s Finniss Lithium Project has increased to now total 7.1 Mt @ 1.4% Li2O with the addition of a new Mineral Resource Estimate (MRE) at the Carlton Deposit in the Northern Territory.
The new lithium Mineral Resource at Carlton is located within a few hundred meters of the proposed mine and processing facility at Grants and the same Mining Lease application area as the Grants Lithium Deposit. The Mining Lease covering both Grants and Carlton is expected to be granted in the next month.
Mined historically for tin and tantalum, the spodumene pegmatite at Carlton is defined at the surface by a shallow, 200m long and 15m-20m wide pit. The body is much longer and closer to 300m long as defined by Core’s recent drilling, the regular shape of the existing pit is consistent with the downhole drilling.
To the east of the main pegmatite body at Carlton, several Core’s drill holes also intersected battered pegmatite which opens the possibility that there are other concealed pegmatites close to the currently identified main body at Carlton and will be a target for future drilling.
The maiden Mineral Resource Estimate at Carlton is in confidence category with the next round of resource drilling and is expected to be upgraded in scale. To begin the Carlton project during January 2019, the next phase of RC and diamond resource drilling is planned. As new Mineral Resource Estimates are announced at Hang Gong and the Lees-Booths Link in January 2019, the Finniss Project resource is expected to increase further in coming weeks materially.
Expected to be confirmed by the DFS work that is currently underway, the increasing global Mineral Resource improves the potential for the Finniss Project to deliver strong returns. The company is targeting the beginning of mining and construction in mid-2019 subject to financing, and regulatory approvals and first production of high-quality spodumene concentrate in late 2019.
The core is in the process of negotiating and has established offtake and prepayment agreements. It is also finalizing further agreements with some of Asia’s largest lithium producers that finance and support the Project’s modest CapEx requirements and the Company into production in 2019.
Dr. McDonald developed a geological interpretation based on cross sections as part of the preparation of the Resource Estimate generated a 3D geological interpretation from interpreted cross sections, developed a block model of the deposit, created domain interpretations for lithium undertook a geostatistical analysis of the data and estimated lithium grades.
Core Lithium Ltd traded at a market price of $0.059 after dropping -3.279% or $0.002 on the day, and the stock has seen a performance change of 38.64% in the past six months.
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