Core Lithium (ASX:CXO) reports that its Finniss Lithium Operation in the Northern Territory, is an attractive, low-cost asset with a 20-year mine life.
This news comes after the company conducted a restart study, which provides a high confidence production plant with 94% of the first 10 years backed by ore reserves.
As a result of the study, mining costs have been reduced by 40% to $63-72 per tonne, as well as processing costs by 33% to $40-46 per tonne. Unit operating costs are also $690-785 per tonne, placing Finniss among the most competitive global spodumene operations.
The study also reveals Finniss has a pre-production capital expenditure reduction of 29% to between $175 and $200 million from $282 million, as well as a free cashflow of $1.2 billion.
Core Lithium, which has a market capitalisation of $156.44 million, says the updated mine plan for Finniss is based on underground mining, and as a result, has more than doubled the Grants ore reserve.
CEO Paul Brown says the plan capitalises on the project’s strengths and delivers a plan that is more robust, more efficient and built for the long term.
“At BP33, we are developing a large-scale underground mine,” Brown says.
“Grants will shift to underground mining, cutting costs and doubling its mine life. Carlton will use Grants’ surface infrastructure, supporting a 20-year mine life. Blackbeard offers further potential to extend mine life and expand operations.
“Our plant upgrades will improve recovery and reduce contaminants, whilst keeping capital costs low. These improvements include enhanced screening, with more affordable crushing and the addition of a gravity circuit.”
The company has identified a range of opportunities and is considering multiple funding pathways. Core is focused on securing an option that minimises dilution.
In conjunction, Core has also increased the ore reserve and resource estimate for the project, which reflects the revised operating strategy adopted in the study and underpins the first 10-years of production.
At Grants, the reserve has been increased by 100% to 1.15 million tonnes with a move to underground mining to access greater material and reduce costs.
Meanwhile, when combined with the updated BP33 ore reserve, the total Finniss ore reserve now totals to 10.73 million tonnes @ 1.29% lithium oxide. The overall project resource estimate has increased by 0.6% to 48.5 million tonnes @ 1.26% lithium oxide.
The Finniss Operation is a hard-rock lithium asset on the Cox Peninsula, located 88km south-west from the Darwin Port.
Write to Aaliyah Rogan at Mining.com.au
Images: Core Lithium
