Name of the Project
Finniss lithium project.

Location
Darwin, Northern Territory, in Australia.

Client
Core Exploration.

Project Description
The development of the Finniss project will initially be centred on developing the Grants lithium deposit as an openpit operation, with a 26-month life-of-mine based only on the Grants deposit, which has a mineral resource of 2.03-million tonnes grading at 1.5% lithium oxide (Li₂O).

The project will include the construction of a simple one-million-tonne-a-year dense-media separation (DMS) process plant, producing 225 000 t/y of concentrate grading 5% Li₂O at nameplate capacity. Contract mining services are proposed for the mining operation.

The prefeasibility study (PFS) proposes conventional openpit mining techniques using standard drill-and-blast and conventional excavator and truck fleet methods.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value (NPV), at a 10% discount rate, of $140-million and an internal rate of return (IRR) of 142%, at a concentrate price of $649/t.

At a concentrate price of $895/t, the NPV increases to A$246-million and the IRR to 202%. The project has a payback of less than 12 months.

Value
Preproduction capital is estimated at A$53.5-million, including a 15% contingency.

Duration
Not stated.

Latest Developments
Core Exploration has signed a nonbinding term sheet with a subsidiary of Shanghai-listed Meidu Energy for the offtake of up to 150 000 t/y of lithium concentrate from the Finniss project. Meidu subsidiary RuiFu Lthium, which is one of China’s largest lithium hydroxide and carbonate producers, will supply Core with a $35-million conditional prepayment facility that will be advanced in stages as key development milestones are achieved.

The prepayment agreement will be conditional on Core deciding to mine at the Finniss project and having all the necessary approvals and permits in place.

In addition, RuiFu will increase its shareholding in Core to 10% by subscribing for A$3-million in shares, priced at 5c each. The placement will be undertaken under the company’s placement capacity and will not require shareholder approval.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Core Exploration, tel +61 8 7324 2987 or email info@coreexploration.com.au.