Name of the Project
Goulamina lithium project.

Location
Southern Mali, about 50 km west of Bougouni.

Project Owner/s
Lithium du Mali, a wholly owned subsidiary of Firefinch.

Project Description
A definitive feasibility study (DFS) has confirmed Goulamina as one of the world’s highest-quality lithium assets that will deliver a long-life, large-scale, low-cost openpit project.

The project has proved and probable reserves of 52-million tonnes grading 1.51% and mineral resources of 108.5-million tonnes grading 1.45%.

Average spodumene concentrate production is estimated at 436 000 t/y.

A standard openpit mining operation of drill, blast, excavation and truck haulage is envisaged for the project. Contractors will be employed for mining operations. Given the nature of the deposit, the pegmatites will be mined from footwall to hanging wall, rather than selectively using a cutoff grade.

The DFS testwork demonstrates that Goulamina ore may be processed using froth flotation after comminution to produce a spodumene concentrate, with an average lithium grade of 6% and an average iron oxide grade of 0.56%, and mica content of less than 1%. The overall lithium recovery achieved was 77%, which includes losses from desliming, magnetic separation mica removal and flotation.

The process plant is designed to treat ore at the rate of 2.3-million tonnes a year.

The project has a mine life of 23 years, and the conversion of additional mineral resources to ore reserves will likely extend this.

During the DFS, a scoping study was completed to evaluate the potential of further processing spodumene concentrate to produce a lithium sulphate product. This study identified some promising aspects to the downstream strategy; however, further work is required before this can be properly evaluated as a viable option.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $1.2-billion and an internal rate of return of 55.8%, with a payback of 1.7 years.

Capital Expenditure
Initial capital costs are estimated at $194-million.

Planned Start/End Date
Not stated.

Latest Developments
Firefinch has unveiled details of its $130-million transaction with the world’s biggest lithium developer, Jiangxi Ganfeng Lithium Co, to establish a joint venture (JV) at the Goulamina project.

Under the terms of the agreement, Ganfeng will make a $130-million cash investment in Mali Lithium, which holds Firefinch’s interest in the Goulamina project, in return for a 50% interest in the project vehicle.

Ganfeng will also secure up to $64-million in debt funding that will bring the Goulamina project into production.

Firefinch chairperson Dr Alistair Cowden has said that the transaction will deliver several benefits for Mali, providing a clear pathway for the country to host the first spodumene concentrate operation in West Africa, thereby exposing Mali to further investment, focused on the battery metals and renewables space.

Moreover, the transaction supports the creation of local employment opportunities, the establishment of local infrastructure and the fast-tracking of community engagement plans to assist the needs of local communities.

Meanwhile, Ganfeng has also agreed to enter into an offtake agreement for up to 100% of the spodumene concentrate product produced at Goulamina across the project’s mine life.

The JV partner will receive offtake rights for up to 50% of the offtake on a final investment decision and the receipt of a final investment.

To ensure that the project is developed in a timely manner, the remaining 50% of the offtake will be assigned to Ganfeng, subject to the provision of debt and Goulamina’s reaching commercial production within four years of the transaction being completed.

The transaction is subject to a number of conditions, including Chinese regulatory approval, the applicable Malian government approval and shareholder approval from both companies.

Firefinch previously flagged the potential demerger of the Goulamina asset into a separately listed ASX entity. However, the company has said this demerger will occur only once Ganfeng has made its initial investment, after which Firefinch will assign the newly publicly listed demerged company with its rights to manage the Goulamina project. 

Key Contracts, Suppliers and Consultants
Cube Consulting (mining and reserves); Majesso Consulting (mining costs); Nagrom (metallurgical testwork); Land & Marine Geological services (tailings storage facility); Peter O’Bryan and Associates (geotech); Lycopodium (process and nonprocess infrastructure, process design and capital and operating costs); AQ2 (surface hydrology); DRA Global (process design) and Model Answer (financial modelling).

Contact Details for Project Information
Firefinch, tel +61 8 6149 6100 or email info@firefinchltd.com.