Core Lithium Ltd (ASX:CXO) has completed the acquisition of six highly prospective mineral leases (MLs) adjacent to its Finniss Lithium Project near Darwin in the Northern Territory.
The acquisition adds significant value to the Finniss Project, enabling the acceleration of resource and mine-life expansion objectives.
Looking ahead, Core is on-track to deliver its first production of high-quality lithium concentrate from Finniss this year.
“Expansion objectives”
Core managing director Stephen Biggins said: “We are very pleased to have successfully completed the acquisition of these highly prospective mineral leases to add further significant value to the Finniss Lithium Project.
“Our investment in these MLs is in line with our resource and mine life expansion objectives at Finniss and cements our dominant landholding in this lithium-rich and low-risk mining jurisdiction of the Northern Territory.
“With construction progressing at the Finniss Project, Core’s prime directive of delivering first production of high-quality lithium concentrate in 2022, in the midst of a very high lithium price and high operating margin environment, is on track.”
New leases
The company has been notified by the Northern Territory Department of Industry, Tourism and Trade that its application to transfer the six titles to the company had been accepted, with Core having now made a $5 million cash payment to the vendors to close the transaction.
In March 2021, Core entered into an option agreement to acquire these six granted MLs, which have a history of tin and tantalum mining and production from pegmatites with similar chemistry to the pegmatites on Core’s adjacent Finniss Project tenements.
Further, the option was exercised in December 2021, following the completion of a first-pass drill assessment of five of the MLs immediately adjacent to the Finniss Project.
Notably, a total of 29 reverse circulation holes were drilled for 4,530 metres to test 10 separate targets with assays received for 18 of those holes.