Core Applies for Mineral Lease to Develop Lithium Mine
Adelaide, Oct 19, 2017 AEST (ABN Newswire) - Core Exploration Limited (
ASX:CXO) ("Core" or "the Company") is pleased to announce that it has applied for a Mineral Lease ("ML") over its 100 per cent owned Grants Lithium Deposit, one of Australia's highest grade lithium deposits.
HIGHLIGHTS
- Core has applied for a Mineral Lease over its 100 per cent owned Grants Lithium Deposit
- Grants Lithium Deposit is one of highest grade Resources in Australia
- Development of Grants is also supported by one the best logistics chain to China of any Australian Lithium Project in Australia
- The Mineral Lease is a key step in Core's aspirations to develop the Grants Lithium Project
- Preliminary Mining Study shows strongly positive outcomes for potential development of DSO Spodumene Operations from Grants Resource
- Company is negotiating offtake agreement with leading Chinese lithium producer Sichuan Yahua Industrial Group Co. Ltd
Core is focussed on developing the Grants Lithium Deposit which is located close to Darwin's key support and logistics infrastructure. Results from the initial high-grade Resource and preliminary mining study have highlighted the strong positive outcomes for the potential development of Grants, suggesting a strong case for a standalone Direct Ship Ore ("DSO") project.
The ML application is for the mining and development of the Grants Lithium Project and is a significant milestone for the Company.
The Grants Lithium Project will include an open pit, waste rock dump, ore stockpile and processing infrastructure. The deposit contains an estimated 1.8 million tonnes of high grade spodumene, the standard lithium mineral used by the lithium industry as a feedstock for lithium chemicals to produce a range of end products including contributing to the production of lithium ion batteries. Core intends to ship the lithium product from Darwin Port to customers in China to meet their growing demand for lithium and fuel the renewable energy boom.
To support the development of Grants, Core has a Heads of Agreement with Darwin Port to export up to one million tonnes per annum of ore from East Arm Wharf. The Company also recently announced the signing of a framework agreement to negotiate a DSO offtake agreement with leading Chinese lithium producer Sichuan Yahua Industrial Group Co. Ltd.
Core's Managing Director, Stephen Biggins, commented:
"We are pleased with this milestone step towards the development of Grants. Rechargeable lithium ion batteries will play a key role in the growing market for renewable and clean energy technologies.
"China is the largest producer of lithium batteries in the world and is Core's key market.
"Core is well-funded and in an ideal position to meet China's demand with a high-quality resource, excellent logistics and a relatively simple mining proposition with limited environmental impacts.
Strong demand is expected to support high lithium prices over the next decade, so we are well-placed to develop the Northern Territory's lithium export opportunities."
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About Core Lithium Ltd
Core Lithium Ltd (ASX:CXO) is an emerging lithium producer focused on development of its Finniss Project near Darwin in the Northern Territory. Core owns 100% of Finniss, a major developing project that lies close to existing infrastructure such as the Darwin Port, grid power, gas and rail infrastructure.
The Finniss Project covers a 500km2 tenement holding and 25 historic pegmatite mines. The project area is about 80km from Darwin Port. Exploration work has generated a near term development timeline, with feasibility studies to be completed over the course of 2018 ahead of receipt of approvals in early 2019 and planned first production during 2019.
An aggressive exploration program is under way, which has confirmed the high quality prospectivity across much of the Finniss Project area. Core's stated ambition is to upgrade Finniss' resource base to fast-track commercialisation options.
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