Core Exploration Ltd (ASX:CXO) has received updated metallurgical test work results showing improved lithium recoveries for samples from its Finniss Lithium Project in Northern Territory.
High grade 5.5% lithium concentrate was produced at an elevated recovery of 79%.
The new results are expected to further enhance the already robust economics demonstrated in the June 2018 pre-feasibility study (PFS).
Test work demonstrates the viability of a simple gravity separation plant using industry standard dense media separation (DMS).
Notably, the further test work demonstrates a DMS circuit can easily produce a 6.1% lithium concentrate at good commercial recoveries of 69%.
READ: Core Exploration’s pre-feasibility study delivers robust economics for Grants Lithium Deposit
Core’s managing director Stephen Biggins said: “Core’s metallurgical test work completed to date shows that Core can produce high quality, spodumene concentrates with good recoveries through a simple, low capital cost DMS processing circuit, therefore avoiding the much higher capex requirements of a large flotation circuit.
“The high-grade lithium concentrate produced by Core is showing to be of excellent quality with low iron and low in other impurities being premium characteristics for customers.
“These new improved grades and recoveries in the recent test work are likely to have a significantly positive affect on economics of the project and will be considered by feasibility study numbers that is underway and scheduled for completion later in the year.”
READ: Core Exploration enters lithium off-take term sheet with US$35 million prepayment, share rise
Core recently entered into a non-binding term sheet with one of China’s largest lithium producers, Shandong RuiFu Lithium Co Ltd.
Notably, the term sheet outlines a US$35 million pre-payment facility alongside the 150,000 tonnes per annum lithium concentrate agreement for the Finniss Lithium Project.
The term sheet provides that Core and RuiFu intend to negotiate in good faith with the aim of entering into legally binding agreements.
Notably, the agreement with RuiFu is in addition to the binding agreement with Yahua.