Exploration/Development, Finance, Lithium, News

Core Lithium welcomes hard-fought lithium development

lithium, flynn gold Image: Shutterstock / Steve Morfi

Core Lithium has progressed early works for BP33 at its recently operational Finniss lithium mine in the Northern Territory.

Core Lithium has now measured and indicated 89 per cent of the mineral resource at the BP33 proposed mine, which is the second proposed mine at Finniss.

“There is now 9.36 million tonne (Mt) of the mineral resource (at 1.52 per cent lithium oxide, up from 6.94Mt at 1.50 per cent lithium oxide) within the measured and indicated categories,” the company told the market.

“These increases in the measured and indicated categories can now be considered for conversion into ore reserves for BP33. Modelling is underway that will use this to inform a revision of the mine plan as part of the BP33 feasibility study.”

Infill drilling completed as a part of the resource definition also led to an increase in the average grade of the mineral resource estimate at Bp33. The average grade from to 10.5Mt at 1.53 per cent lithium oxide from 10.1Mt at 1.48 per cent lithium oxide.

The update follows a rough couple of months for the lithium miner following its June quarterly. The report forecasted lower that estimated production for the 2024 financial year, including higher production costs.

The company dropped from around $0.95 per share in June to around $0.36 per share in October.

The company recently turned to shareholders and institutional investors for a combined $111.4 million equity injection in the form of a placement and share purchase plan. Proceeds from the placement were dedicated to near-term growth projects at Finnis, such as the progression of BP33.

Despite a challenging period, the newly launched Finniss generated maiden revenue of $50.6 million, and $14 million in earnings before interest, taxes, depreciation and amortisation for Core Lithium.

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