Core Lithium Ltd’s (ASX:CXO) (OTCMKTS:CXOXF) latest drill results from the Grants Deposit are expected to strengthen the current resource at the company’s wholly-owned Finniss Lithium Project in the Northern Territory.
They are expected to strengthen the current resource model with regard to size and reserves, with a high conversion of inferred resources to indicated resources and add reserves to life of mine (LOM).
New resource upgrade
Core managing director Stephen Biggins said: “Core’s targeted drilling at Grants is expected to be successful in adding more tonnes to the overall Finniss Project at a pretty decent lithium grade.
“Importantly, this drilling will enable Core to be able to convert a high proportion of the inferred resource at Grants to indicated and reserves, and add further reserves to the life of mine.
“We are currently completing geological and geotechnical logging of the recently drilled core samples and should receive the remaining drill assays later this month.
“In due course, we expect to announce a new resource upgrade as a lead-in to the updated definitive feasibility study, and we will also look to ramp up lithium exploration and resource growth drilling in the first half of 2021.”
Drill results
New indicated mineral resources at Grants should positively contribute to ore reserves and significantly increase the LOM in Core’s updated DFS in the second quarter of 2021.
A large number of holes were also drilled outside the current resource and results to date suggest they will likely result in an increase in the mineral resource estimate for the project.
The best results include:
- 31 metres at 1.65% from 197 metres, including 16 metres at 2.02% from 207 metres;
- 36 metres at 1.34% from 183 metres, including 3 metres at 3.38 % from 188 metres;
- 13 metres at 1.68% from 263 metres, including 8 metres at 2.04% from 263 metres, and 12 metres at 1.60% from 280 metres;
- 13 metres at 0.62% from 309 metres;
- 33 metres at 1.49% from 181 metres; and
- 17 metres at 1.52% from 238 metres.
In addition, recently completed drill hole FRCD022 intercepted an around 55 metres downhole interval of pegmatite, over half of which is strongly mineralised, and is outside the current resource model.
New resource estimate
Once the final assay results have been received in the coming weeks, Core will complete a new resource estimate, expected to be finalised next month.
Core has had three drill rigs operating over the past three months to intersect the Grants orebody to a maximum downhole depth of 375.8 metres.
Drilling achieving excellent core recovery throughout with a majority of the planned targets intersected as planned.
Geotechnical diamond drilling at Grants and BP33 that will contribute to the DFS has now been completed and logging will be completed later this month.