Core Exploration Ltd (ASX:CXO) has intersected high-grade lithium spodumene in reverse circulation (RC) drilling at its Finniss Lithium Project in the Northern Territory, indicating the potential to expand the existing mineral resource.
The company is growing the Finniss resource while completing a definitive feasibility study (DFS) for the development of mining and production of high-quality lithium concentrate.
The DFS is expected to be complete during quarter four 2018 and Core aims to finalise regulatory approvals, financing and internal approvals before beginning production at Grants before the end of 2019.
A mineral resource upgrade for the BP33 deposit is underway and will be reported this month, as well as the maiden resource estimate for Sandras.
After the BP33 resource update, Core will be able to finalise the DFS which is based on the mining of the Grants and BP33 deposits.
READ: Core Exploration reveals 42% increase in Grants lithium resource
Core managing director Stephen Biggins said the exploration results demonstrated the significant potential of the Finniss project that the company had yet to fully realise.
“The remainder of 2018 is shaping up to be a very busy one for Core as we continue to progress Grants towards development, grow the existing resource base at BP33 and potentially add new resource at Sandras.
“Core is also maintaining an aggressive exploration program to continue to identify new prospects and better define spodumene pegmatites such as Lees, Booths, Carlton and Hang Gong, which all look very promising as potential additional sources of ore supply.
“We are in the final phases of the DFS for the Finniss project, which for the time being is focused on extraction of the resources defined at Grants and BP33 only, and we look forward to reporting the findings of the DFS in the weeks ahead.”
READ: Core Exploration targets lithium concentrate production at Finniss by late 2019
Drill holes at the northern end of Sandras intersected a greater thickness of mineralised pegmatite than previously modelled, hitting 24 metres at 1.0% lithium from 177 metres, including 2 metres at 2.04% from 182 metres.
RC drilling at the Lees prospect aimed to identify down-dip continuation of the pegmatite and five separate pegmatite sheets are now interpreted, with a number intersected being strongly mineralised.
Highlighted assay results from Lees include: 11 metres at 1.66% lithium from 122 metres; and 8 metres at 1.56% from 117 metres.
Proximity to Darwin port
READ: Core Exploration boosts Napperby uranium deposit
Drilling at the Booths prospect targeted down-dip potential and encountered 5-10-metre thick pegmatites mineralised over narrow intervals.
Best results from Booths include: 6 metres at 1.03% lithium from 154 metres; and 5 metres at 0.95% from 113 metres.
The recent drilling at Lees and Booths suggests a broad northeast-trending synform, or a topographic feature composed of sedimentary layers in a concave formation, with stacking and thickening of pegmatites and an increase in lithium grade in the hinge.
This is interpreted by Core as a possible link between Lees and Booths, which with future drilling may potentially improve the prospectivity of the area.
Core intends to continue its regional exploration at Finniss until the wet seasons begins in late November, including geological mapping, auger mapping, rotary air blast (RAB) drilling and RC drilling.
RC drilling currently underway is testing as many as 12 different prospects on both the northern and southern areas of the project.