Name of the Project
Finniss lithium project.

Location
Darwin, Northern Territory, in Australia.

Client
Core Exploration.

Project Description
The development of the Finniss project will initially be centred on developing the Grants lithium deposit as an openpit operation, with a 26-month life-of-mine based only on the Grants deposit, which has a mineral resource of 2.03-million tonnes grading at 1.5% lithium oxide (Li2O).

The project will include the construction of a simple one-million-tonne-a-year dense-media separation (DMS) process plant producing 225 000 t/y of concentrate grading 5% Li2O at nameplate capacity. Contract mining services are proposed for the mining operation.

The prefeasibility study (PFS) proposes conventional openpit mining techniques using standard drill-and-blast, and conventional excavator and truck fleet methods.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value (NPV), at a 10% discount rate, of $140-million and an internal rate of return (IRR) of 142%, at a concentrate price of $649/t.

At a concentrate price of $895/t, the NPV increases to A$246-million and the IRR to 202%. The project has a payback of less than 12 months.

Value
Preproduction capital is estimated at A$53.5-million, including a 15% contingency.

Duration
Not stated.

Latest Developments
Core Lithium will raise A$3-million through a share placement to accelerate resource expansion and an expanded definitive feasibility study at its Finniss lithium project.

The company has received firm commitments to place about 60-million new shares, at a price of 5c each, to raise the capital.

The company’s offtake partners Yahua and Ruifu have committed to a combined A$1.5-million of new equity, with the balance of the placement going towards sophisticated and professional investors, as well as a number of existing shareholders.
 

Meanwhile, Core Lithium has increased the mineral resource estimate at Finniss to 6.3-million tonnes grading 1.4% Li2O, following the declaration of a maiden inferred mineral resource estimate for the project’s Sandras deposit. The deposit is now estimated to host 1.3-million tonnes of inferred resource grading 1% Li2O.

The new mineral resources have the potential to add substantial upside to the economics of the Finniss project, in addition to the mineral resources already defined.

Core is undertaking a definitive feasibility study at the project, focused on the mining and production of high-grade lithium concentrate. Project development is planned to start in 2019, with production expected to reach 225 000 t/y of lithium oxide concentrate.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Core Exploration, tel +61 8 7324 2987 or email info@coreexploration.com.au.