Pure-play lithium developer Leo Lithium (ASX:LLL) has awarded a $520 million open-pit mining services contract for its Goulamina Project to Corica Mali, a subsidiary of Corica Mining Services.
Leo, which has a $1.43 billion market capitalisation, says the contract encompasses 6 months of pre-production activities at Goulamina followed by a fixed 5-year term.
This contract award follows the completion of a ‘competitive’ tender process and ‘extensive’ due diligence based on safety, experience capability, equipment availability, and cost.
Leo notes the scope of the contract comprises grade control, drill and blast, load and haul, and plant ore feed services, with a planned material movement target of between 18 million to 20 million tonnes per annum over the term.
With this contract now awarded, Corica is reported to have already mobilised to site under an early works contract and has moved forward with undertaking pre-strip and direct shipped ore (DSO) mining and crushing services.
Addressing the contract, Leo Lithium Managing Director Simon Hay says: “We are delighted to appoint Corica as our mining services contractor following an intensive tender process. Corica has a long history and strong presence in Mali and will bring substantial local employment and supplier opportunities to the region.
“With the mining contractor now in place, Leo Lithium has taken another major step towards realising its target of first spodumene concentrate production in H1 2024″
With the mining contractor now in place, Leo Lithium has taken another major step towards realising its target of first spodumene concentrate production in H1 2024. We look forward to working with Corica over the long term, commencing with DSO activities this quarter.”
Leo Lithium is an ASX-listed developer focused on its world-class Goulamina Lithium Project in Mali. According to the company, the project represents the next lithium project of ‘significant’ scale to enter production and is poised to be the first of its kind in West Africa.
Leo Lithium had $71.2 million cash at hand of 31 March 2023, as stated in its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Leo Lithium Ltd
