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Core Lithium Ltd (ASX:CXO) upgraded its mineral resource estimate for the Finniss Lithium Project in the Northern Territory on the back of 38% growth in Mineral Resource Estimate (MRE) at the Carlton Deposit.
The news flags the Finnissâ global mineral resource estimate to now total 8.8Mt at 1.3% Li2O with the 38% increase in the Mineral Resource at Carlton to 1.1Mt @ 1.3% Li2O in 3 months that includes 42% in the Indicated category.
Managing Director of Core Lithium, Stephen Biggins stated âThe global Mineral Resource for the Finniss Project has increased rapidly from 1.8Mt at the start of 2018 to 8.85Mt at present. Coreâs management is of the view that the global Mineral Resource is likely to grow even further over coming weeks.â
The company expects its Finniss Project Mineral Resource to materially increase further in coming weeks as an upgraded Mineral Resource Estimate is announced at Hang Gong and a new Mineral Resource Estimate is announced at Lees-Booths Link. It is expected that the announcement may come later in March.
The report read that the updated lithium Mineral Resource at Carlton is located within the same granted Mining Lease area as the Grants Lithium Deposit and one kilometre from the proposed mine and processing facility at Grants. The company secured the Mineral Lease covering both Carlton and Grants in January 2019.
Further, the company is undertaking a DFS for the development of a spodumene concentrate operation at the Finniss Project and is aiming to build on the strong financial outcomes highlighted in the PreFeasibility Study. It targets to commence the mining and construction in Q3 2019 and to ramp up commercial scale production of high-quality spodumene concentrate in early 2020, subject to financing and regulatory approvals.
The spodumene pegmatite at Carlton is reportedly defined at the surface by a shallow, 200m long and 15m20m wide pit mined historically for tin and tantalum. As per the companyâs information, the regular shape of the existing pit is consistent with the downhole drilling, but the body is much longer and closer to 300m long as defined by the companyâs recent drilling.
On the financial front, Core has established offtake and prepayments agreements and now is in talks for negation to finalise further agreements with some Asiaâs largest lithium producers. These agreements would add a financial muscle to the projectâ capital expenditure requirement. Moreover, Core continues its focus on resource and exploration drilling for the 2019 field season, scheduled to commence in mid Q2 2019.
Mr Biggins concluded that these new Mineral Resources have the potential to add substantial upside to the Finniss Lithium Project, in addition to the lithium Mineral Resources already defined.
In todayâs trading session, Core Lithiumâs stock price has declined by 3.448% to last trade at $0.056 on 12 March 2019. Over the past 12 months, the stock has witnessed a negative price change of 10.77% despite the surge of 7.41% recorded in the past three months.
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