Is Core Lithium’s Finniss Project Poised for a Long-Term Comeback?
Core Lithium Ltd
5 5

Is Core Lithium’s Finniss Project Poised for a Long-Term Comeback?

Core Lithium Ltd (ASX: CXO) has announced a significant update to the Ore Reserves at its Finniss Lithium Project, located in the Northern Territory. The latest reserve estimates reveal a remarkable 223% increase in the BP33 deposit, now standing at 8. 7 Mt with an average lithium grade of 1. 38% Li₂O. This growth underscores BP33’s potential as a cornerstone for Core's strategic reset and future operations.

Paul Brown, Core Lithium’s CEO, highlighted the importance of the BP33 expansion:

“The updated Ore Reserve for our lithium assets around Finniss represents the next step in the reset of our future operating strategy. BP33's high-grade reserve positions us to extend the project’s life significantly, supporting over nine years of production at current processing capacities.

Story Continues.. after this ad because we need some dollarydoos

”

The box cut and site establishment at BP33, which were well advanced before operations were paused, now lay the groundwork for potential development as market conditions evolve.

Grants Open Pit: Adjusting to Depletion

The updated reserve estimate for the Grants Open Pit reflects the impact of depletion and operational changes, resulting in a decrease to 0. 6 Mt at 1. 40% Li₂O. The pit redesign and mining activities have accounted for this adjustment, further focusing Core’s strategy around BP33 and other high-priority areas.

Shift in Ore Reserve Reporting: Focus on Larger Deposits

Several smaller deposits, including Carlton and Hang Gong, no longer report Ore Reserves due to updated modifying factors such as cost and market conditions. The re-evaluation of these deposits emphasizes the company's commitment to optimizing the long-term viability of its core assets. As a result, the total Ore Reserve for the Finniss Project now stands at 9. 3 Mt at 1. 38% Li₂O, ensuring a streamlined and lower-cost operation moving forward.

Finniss Project: A 9. 5-Year Operating Horizon

The updated Ore Reserve, alongside the restart studies, supports the continued development of the Finniss Project, which is expected to have an operational life of approximately 9. 5 years at the current 1Mtpa processing infrastructure. The project’s Mineral Resource base, which includes 48. 2 Mt of material at an average grade of 1. 26% Li₂O, provides a strong foundation for further exploration and potential resource growth.

Tenements and Ownership

Core Lithium holds a substantial portfolio of tenements in the Northern Territory, covering over 500 km². This includes various Exploration Licenses (ELs) and Mining Leases (MLs) across the Finniss Project area, all of which are 100% owned by the company. This extensive landholding positions Core Lithium as a key player in Australia’s emerging lithium sector.

Mineral Resource and Ore Reserve Details

The total Mineral Resources for the Finniss Project stand at 48. 2 Mt at 1. 26% Li₂O, with a contained Li₂O metal content of 608 kilotonnes (kt). The reserves are divided between the BP33 underground deposit and the Grants Open Pit. BP33, now the focal point of Core's operations, accounts for the bulk of the reserves with 8. 68 Mt of proved and probable material at 1. 38% Li₂O, while Grants contributes 0. 57 Mt.

Market Outlook and Future Developments

Core Lithium’s revised Ore Reserve estimate reflects the company's strategic response to changing lithium market conditions. The inclusion of modifying factors—such as updated cost assumptions and long-term spodumene price estimates of US$1,450 per tonne—provides a conservative yet flexible approach to future development.

With drilling activities continuing throughout 2024, Core Lithium aims to further expand its resource base and identify new deposits of a similar scale to BP33. The company’s focus on a simpler, lower-cost, and sustainable operation aligns with its long-term vision of generating value through lithium exploration and mining.

A New Era for Finniss Lithium

The 223% growth in BP33 reserves, coupled with Core Lithium’s streamlined focus on larger deposits, marks a significant milestone in the Finniss Project’s development. As restart studies progress, Core is well-positioned to capitalize on the evolving lithium market while maintaining a robust foundation for future exploration and operational growth.

Promote your business on our growing investor platform: Advertise With Us

Like

Reply 19 Share