Core Lithium Ltd (ASX:CXO) has commenced exploration and resource growth drilling at the Finniss Lithium Project near Darwin in the NT.
Funds received from the recently completed $3.3 million share purchase plan (SPP) and $8.1 million non-dilutive funding from Lithium Royalty Corporation (LRC) will be used to progress Finniss Lithium Project development plans, near-term resource growth and focused exploration to improve the production profile and extend mine life.
READ: Core Lithium to receive $8.1 million for 2.5% royalty at Finniss
Core’s exploration team mobilised to site last week and a reverse circulation (RC) drill rig and diamond drill rig have now commenced drilling at Finniss.
Drilling over coming months will be conducted at a number of prospects aimed at making new discoveries, expanding existing resources and adding additional ore reserves and mine life at the Finniss Lithium Project.
Core has increased the resource base of the project by 500% since the start of last year and in 2019, the company is aiming to continue significant resource growth and making new substantial discoveries through active and well-funded exploration and drilling campaigns.
Reserve, resource, resource expansion and exploration targets
The Bynoe Pegmatite Field near Darwin comprises hundreds of lithium-rich pegmatites that haven’t yet been tested.
Core has tested 30 pegmatites to date, of which six now have a resource or an exploration target.
The company’s exploration work comprising soil geochemistry, mapping and shallow scout drilling has identified 50 more pegmatite targets to test and prioritise.
Core has the potential to make a large, step change discovery of spodumene pegmatites as it tests the huge number of pegmatites covered by its dominant 500 square kilometre tenement holding in the area.
READ: Core Lithium exceeds share purchase plan target by 65%, raising $3.3 million
The company is also actively working on several material goals that, once achieved, are likely to have a significant impact on the project, including:
• Expanding lithium resources, ore reserves and mine life at Finniss;
• NT Govt regulatory approval to achieve full approval for mine and plant construction;
• Binding offtake along with customer finance support for remaining lithium concentrate;
• Fine lithium offtake agreements; and
• Project financing for Finniss.
Lithium resources and pegmatite prospects
Core managing director Stephen Biggins said: “With the recent SPP and LRC funding, Core is in a great position to refocus on building lithium Mineral Resources and Ore Reserve expansion and exploration drilling to grow upside for shareholders.
“The strong economics of the Finniss Project, as recognised by LRC, are underwritten by the low capex development of high-grade lithium Mineral Resources with robust margins and the best logistics connection to Asia of any Australian lithium project.
“With the DFS complete, approvals, additional offtake and project finance advancing and being finalised, Core is well placed to be Australia’s next lithium producer.”