Core Exploration Ltd (ASX:CXO) has discovered significant extensions to the Grants Lithium Deposit, part of its Finniss Lithium Project near Darwin in the Northern Territory.
The new drilling results include a 73-metre intersection of spodumene pegmatite outside the existing defined resource at Grants.
New extension drill intersections
These new results are significant and highlight the potential to immediately grow the currently defined resource at Grants which underpinned the strong economics of the recent pre-feasibility study (PFS).
READ: Core Exploration’s pre-feasibility study delivers robust economics for Grants Lithium Deposit
The PFS clearly demonstrates Finniss Project economics to be compelling, with globally competitive cash costs that result in high operating margins and rapid capital payback.
Core’s Grants lithium deposit is expected to generate a net present value (NPV) of $140 million (pre-tax) with an internal rate of return (IRR) of 142% at an average concentrate price of US$649 per tonne.
Interestingly, the NPV is anticipated to increases to $246 million if the recent spot concentrate price of US$895 per tonne is realised.
Adding to the existing lithium resource
All 10 holes drilled in this recent phase of drilling intersected pegmatite extensions to the Grants resource.
Most of the pegmatite intersections included spodumene pegmatite, with the spodumene content being typically higher in the thicker parts of the pegmatite and lower where the pegmatite is thinner.
These new intersections are expected to add to the resource at Grants and highlights that the spodumene pegmatite orebody at the deposit is still open to the south along strike and at depth.
Drilling will recommence at Grants later this month to test for further depth and strike extensions once the current phase of drilling at BP33 is completed.
Similarly, the current drilling at BP33 is also targeting extensions to the initial resource.
Assays from the recently completed phase of drilling at Grants are expected toward the end of July.