Core Lithium has announced its first quarterly production results, signalling the first full quarter of operations at the Finniss lithium mine in Northern Territory.
The company produced 14,685 tonnes of spodumene concentrate at between 5.35 and 5.6 per cent lithium oxide in the June quarter, with 18,274 tonnes produced in the 2022–23 financial year (FY23).
A maiden 5500-tonne spodumene shipment was made in April, with a second 13,100-tonne shipment following in early July.
Core’s FY24 guidance is for the sale of 90,000–100,000 tonnes of spodumene and the production of 80,000–90,000 tonnes of spodumene at a C1 (direct production) cost of between $1165–1250 per tonne.
“This quarter marks an important new phase in the life of our emerging operating and development company,” Core chief executive officer Gareth Manderson said.
“We have now been through our first quarter with periods of integrated mining and processing operations and have successfully produced, transported, and sold our first cargoes of spodumene concentrate.”
Given mining first commenced at the Grants open pit in September 2022, with the first parcel of direct shipping ore (DSO) produced in December 2022, the mine is still in start-up phase.
Manderson said Core’s operating experience so far has enabled the company to undertake a thorough budgeting and forecasting process to support the company’s maiden production and cost guidance for FY24.
He admitted that production predictions are less than what was projected in the 2021 definitive feasibility study, but there are processes in place to offset this.
“We are working through a suite of improvement projects to drive Finniss operating performance to deliver higher mining rates, improve lithia recoveries and commercialise the fines products,” Manderson said.
“As is common during the project start-up phase, we are continuing to better understand the Finniss ore processing characteristics and mine performance with several key learnings being implemented.
“Grants remains the starter operation which is delivering near-term cash flow to fund our growth. BP33 is the next mine to be developed and the more significant operation which underpins the business.”
Core is currently advancing a revised feasibility study for the BP33 deposit, which remains on track for a final investment decision (FID) in the first quarter of 2024.
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