PERTH (miningweekly.com) – Lithium developer Leo Lithium has reported a 33.8-million tonne increase to the resource estimate at its Goulamina lithium project, in Mali.

Following a resource definition drilling campaign in the second half of last year, the Goulamina project is now estimated to host a mineral resource of 142.3-million tonnes, at 1.38% lithium oxide, a 31% increase in on the previous estimate.

“We are pleased to report a considerable resource upgrade which confirms the outstanding scale, high-grade nature, and further growth potential of the Goulamina project. An increase in Danaya of 33.8-million tonnes from a moderate drilling campaign of approximately 12 700 m, is a fantastic outcome,” said Leo Lithium MD Simon Hay.

“These results continue to reveal high-grade, thick intercepts and confirm our expectations of multiple, wide mineralised pegmatite zones. Also, the deposit remains open at depth and along strike, creating new drilling targets for the team. This significant upgrade also supports the possible extension of the 23-year mine life of the Goulamina project.

“Resource definition drilling continues on the North east Domain with drilling results to be announced shortly, and a mineral resource estimate subsequently set to be restated in the current half year. These results are also encouraging ahead of first spodumene concentrate product in the second quarter of 2024 and the early revenue opportunity from the targeted export of direct shipped ore in the second half of 2023.”

A final investment decision on the Goulamina project was taken in January last year, and Leo is aiming to start mechanical construction and electrical installation in the second half of 2023, with commissioning and start-up slated for the first half of 2024.

It is estimated that the project would require an initial $225-million investment for the Stage 1, 2.3-million tonne a year development, producing 506 000 t of spodumene concentrate a year, increasing to 880 000 t/y in Stage 2, for a further investment of $70-million.