Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Leo Lithium has produced its first direct shipping ore (DSO) material at its Goulamina lithium project, in Mali.
First revenue from DSO is on track to be received during the fourth quarter, and Leo Lithium anticipates the export of DSO ore for six to nine months in advance of spodumene production. On an annualised basis, the company is targeting 185 000 t of DSO exports until spodumene production starts.
Spodumene production is currently targeted for the first half of 2024.
“The early startup of the openpit mining operations at Goulamina via DSO is a positive milestone that positions the company to crystalise long-term benefits,” said MD Simon Hay on Friday.
“The revenue potential during a solid pricing environment will bolster our balance sheet flexibility, as we continue to progress the Goulamina project towards spodumene concentrate production over two stages. DSO also presents an opportunity for us to optimise our logistics solution as we scale up Goulamina, further de-risking the project’s development.”
The first blast on site was initiated earlier this month, with initial DSO mining activities focusing on the Stage 1 starter pit, which contains 1.65-million tonnes of measured resource.
Leo Lithium said on Friday that trucking contractors for the DSO are set to be appointed shortly. The offtake process for the DSO material will also start shortly.