Core Lithium hits world-class high-grade lithium intersection at Finnis Project

Core Lithium Ltd (ASX:CXO) has revealed a world-class intersection of 107 metres at 1.70% lithium oxide at Finniss Lithium Project near Darwin in the Northern Territory. Core managing director Stephen Biggins said the find highlighted the natural advantages of the project. He said: “Core’s announcement of over 100 metres of high-grade lithium mineralisation located 25 kilometres from Australia’s closest port to Asia highlights the natural advantages the Finniss Project has in regard to quality and cost.” “We are confident in having the Finniss Project construction-ready in early 2020, so that we are well-positioned to be Australia’s next sustainable lithium producer as market conditions continue to improve.” Drilling at BP33 This find was a result of a recent deep reverse circulation and diamond drilling program at the BP33 Prospect. The 107-metre intersection comprised of coarse spodumene crystals – enabling high recovery of lithium by simple, gravity dense media separation (DMS). This will eliminate the need for flotation and translate into significantly lower capex, lower processing costs and low start-up risk. Mineral resource upgrade Other holes completed during the drilling program at BP33 also intersected spodumene mineralised pegmatite including 19 metres at 1.35% lithium oxide and 14 metres at 1.02% lithium oxide. These new spodumene pegmatite intersections are outside of, and will substantially extend, the current mineral resource at BP33. The latest results, in combination with previously recently released RC drilling results, will be used to upgrade the mineral resource in February. The update is expected to contribute significantly to an increased mine life at Finniss. Increasing efficiency Early mining studies at BP33 and the nearby Carlton Prospect have also highlighted opportunities for Core to increase mining efficiency and to sustainably extend mine life through cost-efficient underground mining of the wide, near-vertical pegmatite ore bodies that continue at depth at BP33 and Carlton - subsequent to initially developing Grants as a simple open-cut mining operation. Next steps Core will complete mining studies and update the feasibility study in the first half of 2020 and expects to confirm high-grade continuous mineralisation at BP33, and at Carlton, is amenable to efficient underground mining methods. Approvals and financing discussions are continuing with the plan for the project to be construction ready as market conditions improve in 2020. Core has already established binding offtake and is in the process of negotiating further agreements within the lithium battery supply chain and electric vehicle industry. Shares have been up as much as 13% to an intra-day high of 4.4 cents.