Highlights
Core Lithium (ASX:CXO) reveals a robust restart study for its Finniss Lithium Operation in the Northern Territory.
Revised mine plan based on underground mining leads to extended mine life and cost efficiencies.
Ore reserves increased and resource estimates upgraded as part of the updated operational strategy.
Core Lithium Ltd (ASX:CXO), part of the materials sector on the ASX 200 index, has repositioned its Northern Territory-based Finniss Lithium Operation as a long-life, cost-effective project. The move comes following a detailed restart study focused on enhancing operational efficiency and sustaining production for the long term.
Operational Cost Reductions and Infrastructure Optimisation
The company’s new strategy has led to significant decreases in both mining and processing costs. With a strong emphasis on underground mining, Core Lithium has identified key measures to streamline its operations, including improved use of existing surface infrastructure and technological upgrades in the processing plant. Enhancements to screening systems, integration of gravity circuits, and cost-effective crushing methods form part of the initiative to optimise recoveries and reduce impurities.
Enhanced Reserve and Resource Estimates Strengthen Long-Term Planning
As a result of the new plan, Core Lithium has doubled the ore reserve at its Grants deposit and increased the overall ore reserve at Finniss. The updated resource estimate reflects the company’s revised approach to underground extraction, with key figures supporting the first decade of planned production. The total ore reserve and resource growth reinforce the viability of Finniss as a major contributor to the hard-rock lithium supply chain.
Mine Plan Focuses on Underground Development
The company’s updated mine plan includes the transformation of the Grants site into an underground operation, extending its lifecycle while achieving cost efficiencies. BP33 is being developed into a large-scale underground mine, while the Carlton deposit will benefit from existing infrastructure at Grants. Additionally, the Blackbeard deposit has been identified as a strategic area for further expansion, supporting the broader operational horizon.
Capital Efficiency and Free Cash Flow Forecast
Core Lithium’s revised strategy has also yielded a marked decrease in projected capital expenditure for pre-production activities. The streamlined capital plan is accompanied by a robust free cashflow outlook, reflecting the operational and financial discipline embedded in the restart study. The company has indicated that a range of funding options are under consideration to support future development while aiming to reduce shareholder dilution.
Strategic Positioning of a Key ASX Mining Asset
Located on the Cox Peninsula, near Darwin Port, the Finniss Lithium Operation remains a critical component of the company’s growth strategy in the lithium sector. With increased reserves, reduced operational costs, and a focus on long-term extraction, Core Lithium reinforces its standing on the ASX 200 as a forward-focused mining entity. The new plan aligns with broader developments in the lithium market, securing Finniss as a cornerstone of sustained production.