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 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
Ganfeng Lithium, one of the world's biggest lithium producers, has said that it will pay $130-million for a stake in the Goulamina project and take at least half of its first-phase output.

The acquisition marks the Chinese firm's first investment in lithium mining in Africa, as it seeks to expand production for the commodity used in electric-vehicle batteries.

Ganfeng will take a 50% stake of a special purpose vehicle set up by Goulamina's Firefinch, which will fully own operating company Lithium du Mali.

The filing has said that the Mali government has the right to take 10% of the equity free of charge and pay in cash for up to 10% more.

Ganfeng has said it will acquire offtake rights of up to 50% of first-phase production capacity of 455 000 t/y of spodumene concentrate, but may obtain 100% if it helps Lithium du Mali raise debt or gives financial assistance.

The Chinese company might help raise at least $64-million from banks or other financial institutions for development and construction of the mine, and might also opt to provide up to $40-million in direct financial assistance.

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.