Core Lithium (ASX:CXO) is committing up to $50 million to early-stage works at its BP33 underground mine within its Finniss Lithium Project in the Northern Territory.
The lithium big-cap says its board has approved the expenditure, which will go towards the development of a covered box cut, improved access to the site, and some associated surface works for water management.
Core has signed on Northern Territory-based contractor Northern Australian Civic (NAC) to undertake these early works.
The company says subject to the timing of the wet season in the Northern Territory and modelled geotechnical and groundwater estimates, it expects to complete the early BP33 works before the end of March 2024. Core is targeting a Final Investment Decision (FID) for the BP33 mine around this same time.
According to the company, this timeline gives it ample opportunity to deliver a detailed feasibility study in parallel with the early works and to begin mine decline development soon after its FID.
Core Lithium CEO Gareth Manderson says: “We are pleased to announce this positive, incremental investment decision that allows initial works to be undertaken while the feasibility study is completed for BP33, our potential next mine at the Finniss Lithium Operation.
We will continue to focus on the safe ramp-up of the Grants open pit and concentrate production through the DMS plant.
“We will aim to provide final project expenditure and other project metrics once we have incorporated the increased resources into our studies by Q1 CY24″
We will aim to provide final project expenditure and other project metrics once we have incorporated the increased resources into our studies by Q1 CY24.”
The approved early works expenditure of between $45 million and $50 million is more than double the $20 million Core originally estimated in September 2022. Core says the estimated cost of the early works was based on the 2022 mineral resource model for BP33, but in March 2023, the company increase this resource by 131% to 10.1 million tonnes @ 1.48% Li2O.
In any case, Core says the final capital expenditure, as well as the development and production timing for the BP33 mine, cannot be reliably determined before the company completed further studies, testwork and mine sequencing options associated with a potentially extended mining area.
ASX-listed Core Lithium is busy constructing Australia’s next lithium mine, the Finniss Lithium Project, on the outskirts of Darwin.
Alongside its flagship Finniss Project, Core owns a string of other Australian assets, including the Shoobridge, Anningie, and Barrow Creek Lithium Projects, the Jervois Domain Copper Project, the Blueys and Inkeart Lead/Silver Project, the Bynoe Gold Project, and the Napperby Uranium Project in the Northern Territory. Outside of the Northern Territory, Core owns the SA Zinc Projects and the Fitton Uranium Project in South Australia.
Write to Joshua Smith at Mining.com.au
Images: Core Lithium Ltd
