Core Lithium's BP33 Ore Reserves Surge by 223%
CORE LITHIUM LTD (CXO) Share Update September 2024 Tuesday 24th
Core Lithium Announces Significant Increase in BP33 Ore Reserves
Core Lithium Ltd (ASX: CXO) has announced a substantial update to its Ore Reserves at the Finniss Lithium Project, highlighting a remarkable 223% increase in the BP33 Ore Reserve.
Instant Summary:
- BP33 Ore Reserve increased by 223% to 8.7Mt @ 1.38% Li2O.
- Grants Open Pit Ore Reserve reduced to 0.6Mt @ 1.40% Li2O.
- Total Finniss Ore Reserves now stand at 9.3Mt @ 1.38% Li2O.
- Projected operating life of 9.5 years at 1Mtpa processing rate.
- No Ore Reserves reported for Carlton and Hang Gong deposits.
Ore Reserve Update
Core Lithium Ltd (ASX: CXO) has provided an update on the Ore Reserves at its Finniss Lithium Project in the Northern Territory. The BP33 Ore Reserve has seen a significant increase of 223%, now totaling 8.7 million tonnes at a grade of 1.38% Li2O. This update is a result of extensive drilling and study work conducted throughout 2023 and 2024.
The Grants Open Pit has been updated to reflect mining depletion and operational adjustments, resulting in a reduced reserve of 0.6 million tonnes at 1.40% Li2O. The overall Finniss Ore Reserves now stand at 9.3 million tonnes at 1.38% Li2O, aligning with the restart study areas of focus on BP33 and Grants.
Project Details
The Finniss Lithium Project is located within the Bynoe Pegmatite Field, approximately 88 kilometers by road from the Darwin Port. The updated Ore Reserve Estimate was developed by independent consultant OreWin, with assistance from Core Lithium.
Core CEO Paul Brown commented, 'The updated Ore Reserve for our lithium assets around Finniss in the Northern Territory represents the next step in the reset of our future operating strategy. This estimate reflects the changes in lithium market conditions since our last Ore Reserves update and is consolidated around the high-grade BP33 deposit.'
Future Plans
The box cut and site establishment of BP33 were well underway before operations were paused earlier this year. The overall 9.3 million tonnes Ore Reserve, which includes a small contribution from the Grants open pit, is based on a Measured and Indicated Mineral Resource of approximately 28 million tonnes. This represents a subset of the Group Mineral Resource of 48.2 million tonnes, containing more than 600,000 tonnes of Li2O metal.
Core Lithium's current drilling activities are targeting further resource growth and the discovery of new deposits of a similar scale to BP33. The new Ore Reserve supports the company's strategy for a simpler, lower-cost, and more sustainable operating platform. Restart studies are progressing to develop the execution plan.
The significant increase in BP33 Ore Reserves is a positive development for Core Lithium, potentially boosting investor confidence and stock value. The updated reserves provide a strong foundation for future operations and align with the company's strategic focus on high-grade deposits. However, the reduction in Grants Open Pit reserves and the exclusion of smaller deposits like Carlton and Hang Gong may temper some of the optimism.
Investor Reaction:
Analysts are likely to view the substantial increase in BP33 reserves positively, as it strengthens the project's long-term viability. The market may react favorably to the news, although the overall impact will depend on broader lithium market conditions and the company's ability to execute its restart plans effectively.
Conclusion:
Investors should keep an eye on Core Lithium's progress with its restart studies and ongoing drilling activities. The significant increase in BP33 Ore Reserves is a strong indicator of the project's potential, and successful execution of the company's plans could lead to substantial long-term gains.