Core Exploration Ltd (ASX: CXO
) an emerging Australian lithium developer, is happy to make to announcement regarding new exploration drill results from the Lees, Booths and Sandras prospects. The company also had a number of other prospects which lies within its Core 100%-owned Finniss Lithium Project situated in the Northern Territory (“Finniss”).
CXO’s Finniss lithium project is showing certain potential in the expansion of the existing substantial resources. Evaluations based on the Sandras and Lees prospects, near Darwin in the Northern Territory confirms there is a widespread lithium mineralization within the project premises. This has potential to increase the project value as well as the potential of the resource.
The project holds a current global mineral resource of 4.3 million tonnes at 1.4% lithium oxide. Once the announcement is made about the estimation of the both prospects, the company is hopeful that it will further enhance the global mineral resources.
The drilling done at the Sandras project was the best amongst the other drillings done. Based on the 24 meters of drilling, the project was able to extract 1.02% lithium oxide, 1.02% lithium oxide from 177 meters, and approximately 2.04% lithium oxide from 182 meters.
There was an incomplete test performed below 160 meters drilled vertically. The data gathered for the Sandras project by the company was sufficient enough to start definition of a maiden resource estimate this month.
In order to understand the geology and identification of down-dip continuation of the northern-most pegmatite, there were eight reverse circulation holes drilled at Lees project.
A best outcome was received from prospect which was 11m at 1.66% lithium oxide from 122m. This also includes 8m at 1.56% lithium oxide from 117 meters of drilling.
Stephen Biggins who is the managing director of CXO states that Lees has potential by making shallow dips and extract a large deposit of stacked pegmatites. Based on the drilling reports, the result showed that there are more sheets of pegmatite than it was expected.
The five sheets that were identified in the recent drilling proved that these sheets have significant consistency that is extending beyond the drilling area.
There were another four holes drilled down-dip nearby Booths prospect in order to target the potential which was indicated by the previous drilling. The best results came from 154 meters deep drilling which include 6 meters at 1.03% of lithium oxide, a distinguished 5m at 0.95% lithium oxide from 113m narrow 7m-wide pegmatite.
The company has shown a negative performance of -72.95% since its inception. The one year and 5 years performance of the company is -5.88% and 26.32%. For the year ended 30 June 2018, the company made a net loss of $2,094,330. The total asset of the company is $27,034,359 and total liabilities of $836,980. This indicates that the company has a strong potential to clear long term obligations. The total shareholders equity is worth $26,197,379. The net cash used in the operating activities is $1,280,803. The net cash used in investing activities was $7,849,473 and the net cash from the financing activities is $11,010,888. The cash and cash equivalent at the end of the year is $8,003,629.
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