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- Core Lithium (CXO) has reported increased ore reserves and an upgraded definitive feasibility study for its Finniss Lithium Project in the Northern Territory
- Ore reserves have been upped to 7.4 million tonnes at 1.3 per cent lithium oxide and an eight-year mine life
- The study also indicated a pre-tax net present value of $221 million and life of mine, pre-tax, pre-financing free cash flows of $344 million
- The company says it can now begin finalising funding options over the coming months ahead of a final investment decision later this year
- Core Lithium shares are up 2.63 per cent, trading at 29.3 cents at 11:52am AEST
Core Lithium (CXO) has reported increased ore reserves and a subsequently upgraded definitive feasibility study for its Finniss Lithium Project in Northern Territory.
The company reported a 30 per cent increase in ore reserves to 7.4 million tonnes at 1.3 per cent lithium oxide. It estimates this could underpin the production of 197,000 tonness per annum over an eight-year mine life.
The study indicated a pre-production capital expenditure of $89 million which Core said could be repaid within two years from the sale of its first concentrate, estimated for late 2022.
In terms of finance, the project has a forecast pre-tax internal rate of return of 53 per cent, pre-tax net present value of $221 million and life of mine, pre-tax, pre-financing free cash flows of $344 million.
Core Lithium Managing Director Stephen Biggins outlined upcoming plans for the resource.
“With the updated DFS now completed, we aim to finalise funding over the coming months to allow Core to make a Final Investment Decision in 2021 and fast-track construction,” he said.
“We are also maintaining our exploration momentum, with the aim to more than double the mine life and Resources of the project.”
Core touted a “substantial drilling budget” for 2021 and 2022 and is tipped to commence stage one construction at the project before the end of the year.
Core Lithium shares were up 2.63 per cent, trading at 29.3 cents at 11:52am AEST.
