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 proven 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 for 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
First production at Goulamina will be accelerated, and is now expected in 2023.

Latest Developments
Firefinch has announced plans to bring production forward at the Goulamina lithium project, having signed a suite of full form legal agreements to progress its joint venture (JV) with lithium developer Jiangxi Ganfeng Lithium Co.

The two companies earlier this year struck an agreement, under which Ganfeng would make a $130-million cash investment in return for a 50% interest in the project vehicle, and would also secure up to $64-million in debt funding that would bring the Goulamina project into production.

The JV will be called Leo Lithium, and will be listed on the ASX.

“Another significant milestone has been achieved in progressing Goulamina towards construction and production. Formal documentation has been completed, and satisfaction of the remaining conditions precedent to completing the $194-million Ganfeng deal is well under way,” Firefinch MD Dr Michael Anderson has said.

In consultation with Ganfeng, Firefinch has also agreed to bring forward the final investment decision to the end of 2021. Following a positive decision, Firefinch will be in a very strong position to demerge Goulamina into a new ASX-listed lithium player and list in early 2022.

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.