Name of the Project
Finniss lithium project.

Location
South of Darwin port, in the Northern Territory, Australia.

Project Owner/s
Lithium developer Core Lithium.

Project Description
The updated definitive feasibility study for Stage 1 of the Finniss project has confirmed that Core Lithium is well positioned to be the next lithium producer in Australia. The project has been recognised by the Australian and Northern Territory governments as being significant to the economy, and holds major project status.

Finniss has total ore reserves estimated at 7.4-million tonnes grading 1.3% lithium oxide, supporting an eight-year mine life. This is based on using openpit mining methods at the Grants and Hang Gong deposits, and underground mining methods at the Grants, BP33 and Carlton deposits.

Stage 1 of the project will involve mining the high-grade spodumene pegmatite deposit from multiple openpit and underground sources; the transfer of the spodumene pegmatite ore to a run-of-mine pad adjacent to the Grants openpit; water-based, dense-medium separation (DMS) to produce a high-quality spodumene (lithium) concentrate product; and the transport of the lithium concentrate product to the Port of Darwin by sealed public road for overseas export.

Potential Job Creation
About 250 jobs will be created during the construction and operations of the Finniss project.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$221-million and an internal rate of return of 53%, with a two-year payback.

Capital Expenditure
The project has a modest preproduction capital expenditure of A$89-million.

Planned Start/End Date
On-site process plant construction activities are scheduled to start in March 2022, with DMS plant commissioning and first concentrate production anticipated in the fourth quarter of 2022.

Latest Developments
Finniss is on track to ship its first spodumene concentrate by the end of the year.

Mining activities have accelerated with the arrival of the dry season, and the commissioning of an additional excavator and trucks to site.

Early-stage mining operations at the Grants openpit had been impacted on by materially higher rainfall and an extended wet season, resulting in a temporary increase in fuel consumption and delays in openpit mining.

Contractor CSI Mining Services has started mobilisation to the site as planned, following the award of a crushing services contract. The DMS site handover to Primero is now complete, and construction activities have started.

The structural steel for the DMS plant  has been sourced from Shanghai and, owing to Covid-19 restrictions in Shanghai, there were delays in the manufacture and delivery of the structural steel.

Primero has successfully facilitated the export of the steel and all DMS components are being shipped.

The practical completion of the new administration and IT complex will enable staff to spend more time at the operation and should lead to productivity improvements, even if only because of reduced travel time.

Further, the submission of the BP33 underground mine management plan is a “great achievement”, Cor Lithium chairperson Greg English has said, with formal approval anticipated from the Northern Territory government in the coming months.

Government approval for the BP33 underground mine is a two-stage process, and formal approval is expected in the September 2022 quarter.

The Grants openpit will be the initial source of ore for the DMS plant until BP33 and other mines are brought online.

Key Contracts, Suppliers and Consultants
Lucas Total Contract Solutions (openpit mining services); Primero Group (engineering, procurement and construction) and CSI Mining Services (contractor).

Contact Details for Project Information
Core Lithium, tel +61 8317 1700 or email info@corelithium.com.au.