Core Lithium Ltd (ASX:CXO) has significantly upgraded its mineral resource estimate (MRE) at BP33, a key deposit for the Finniss Lithium Operation in the Northern Territory of Australia.
The completion of drilling at Finniss led Core to more than double its MRE at BP33 to 10.1 million tonnes at 1.48% Li2O from 4.37 million tonnes at 1.53%.
It’s all systems go for the company which last week produced its first volumes of high-quality spodumene concentrate from the Dense Media Separation (DMS) plant at the Finniss operation.
BP33 is the second proposed mine at Finniss that is awaiting development approval.
Extension potential
Core received results from 11 drill holes targeting extensions along strike and down dip to the existing BP33 orebody, with results reinforcing the potential for extension of the BP33 mine design at depth. It remains open down-plunge.
“This upgrade is a credit to our exploration and technical teams, who are systematically exploring the Finniss tenements while the business moves into production,” Core Lithium CEO Gareth Manderson said.
“These results provide further confirmation of the prospectivity of Core Lithium’s ground holding. Importantly, BP33 remains open at depth.
"Exploration to extend mine life at Finniss and identify growth opportunities is a priority for the business, with an expanded drilling program for CY23."
Importantly, there are now 6.94 million tonnes of the global mineral resource at 1.50% Li2O within the measured and indicated categories. This represents 69% of the total MRE.
Core has embarked on an aggressive drill program for 2023 and has set its sights on significant growth opportunities beyond currently modelled resource domains at Carlton, Ah Hoy, Hang Gong and Sandras.
An update to the global mineral resource and ore reserve estimate for Finniss has begun.
Recognising the updated BP33 resource, investors have sent CXO shares almost 12% higher this morning on the ASX to $A1.075 while the company's market cap is approximately A$1.9 billion.
Determining grade and thickness
The drilling was done to determine the continuity of grade and thickness down-plunge of the currently modelled mineralisation domains.
The BP33 mineralisation appears open down plunge and along strike and has potential for increases to the BP33 mineral resource in future drilling programs.
Core is also expecting drill results to come from its 2022 program, which will also feed into the updated global mineral resource and ore reserve estimate.
Core is looking to identify and define additional mineral resources and ore reserves that lead to the development of mining options across its Finniss tenements.