Core Lithium Ltd (ASX:CXO) (OTCMKTS:CXOXF) has drilling contracts signed with major lithium exploration and resource drilling programs set to begin in coming weeks at the Finniss Lithium Project near Darwin in the Northern Territory.
The company has recently awarded key drilling contracts to enable the company’s drill service providers to plan and mobilise to site.
Core’s geological team is on-site preparing drill access and site logistics, ahead of the most extensive exploration and drilling campaign in the company’s history.
“Right time to amp up” lithium drilling
The company believes early assessment of historical drilling information in 3D looks very promising and Core expects to update the market on the new Leviathan acquisition shortly.
It aims to complete the purchase of these assets in 2021 and to significantly increase mineral resources and potentially increase the Finniss Project’s life of mine.
Managing director Stephen Biggins said: “Core has been looking forward to recommencing lithium exploration and resource expansion drilling at Finniss this year with great anticipation.
“We are about to launch the largest exploration and resource drilling campaigns in the company’s history with the aspiration of more than doubling Core’s lithium resources and Finniss Project’s Life of Mine.
“Our lithium exploration and resource drilling budgets have been heavily capital restrained over recent years – and now it is the right time to amp up our lithium drilling alongside accelerating lithium prices.”
Largest shareholder to double lithium output
Core’s largest shareholder and a key supplier to Tesla – China’s Sichuan Yahua Industrial Group – is planning to more than double its lithium hydroxide production capacity.
Yahua revealed this week that it will invest to increase the output of its Yaan plant from 20,000 tonnes per annum to 50,000 tonnes of battery-grade lithium hydroxide.
Yahua and Tesla signed an agreement in December 2020 for Tesla to purchase US$630 million to US$880 million of battery-grade lithium hydroxide over a five-year period.