Core Exploration Ltd (ASX:CXO) has commenced a drilling program to expand the lithium resource at its Finniss Lithium Project in the Northern Territory.
The drilling is aimed at substantially growing the current resource of 3.45 million tonnes at 1.4% lithium oxide to underpin a potential long-life lithium mining and production operation.
The company will use four drill rigs for the drilling program which will include over 40,000 metres of drilling over the next 12 months.
Core’s drilling will initially target easily accessible areas around the Grants and BP33 deposits and will progressively expand to testing known spodumene pegmatites and newly identified targets.
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In parallel with drilling focussed on resource expansion, Core is in the final stages of completing a pre-feasibility study (PFS), which is expected to be delivered later this month.
The PFS is focused on the development of a spodumene concentrate and direct shipping ore operation (DSO) from the Grants Lithium Deposit.
Subject to a positive PFS and a full feasibility study, Core is aiming to complete regulatory approvals, financing and internal approvals, before commencing production at Grants by the end of 2019.
Steady news flow over the course of 2018
The first rig has already commenced drilling lithium pegmatite targets near the Grants resource.
Core managing director Stephen Biggins said: “The commencement of the 2018 exploration season will see a significant step up in news flow regarding Finniss over the coming months.
“With the PFS due shortly, environmental and regulatory approvals processes underway, advanced metallurgical test work about to commence and now the drilling, shareholders and investors should expect a steady flow of news over the course of 2018.”