The increase was confirmed via an Underground Pre-Feasibility Study conducted in parallel to a Scoping Study, which enabled Core to confidently assess the true project potential and help direct immediate resource conversion and resource extension drilling efforts across its sites.
The studies examined underground mining of the mineral resources for the Grants, BP33 and Carlton deposits. The Grants, BP33 and Carlton deposits are located within a 3km radius and ore from all mines would be trucked to the Grants processing plant before fulfilling offtake agreements overseas.
Core’s Managing Director, Stephen Biggins, said the studies significantly strengthen the potential for Finniss to be a major and long-term contributor to the Northern Territory’s economy, job market, and Australia’s role in global renewable energy solutions.
“This is a major development for Core. The increases in reserves and mine life allows us the chance to seriously leverage the Finniss Project’s strength of location and production capacity to fully embrace such infrastructure as grid connection to power.
“The updates – along with other key inputs – will be used to update Finniss’ complete Feasibility Study as we move towards a Final Investment Decision (FID) and our goal of being construction-ready later this year.
The resource increases follow in quick succession of more positive news for Core, including regulatory project approval in April from the NT Government and the signing of Core’s first European Offtake MOU with Geneva-based Transamine for 50,000tpa. This is in addition to an existing binding offtake for 75,000tpa with one of China’s largest lithium producers, Szechuan Yahua.
“The downstream lithium battery supply chain and project financiers have recognised the significance of our recent regulatory approvals and the now extended feasible production capacity,” Mr Biggins said.
Importantly, while the LOM of the Finniss Project has doubled, Core will not require substantial increases to the start-up capital to move ahead.
“We expect to be engaging with project financiers in the second half of 2020 to reach FID and we are well engaged with a number of parties globally for the remaining offtake of Core’s high-quality lithium concentrate.
“In the context of the substantial increases, coupled with additional demand for offtake, Core is also likely to consider expanding production and revenues from the Finniss Project above the current concentrate production capacity of 175,000tpa,” he concluded.