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Core Lithium confident Finniss Project well-placed to cater for post-COVID demand for lithium

Core Lithium Ltd (ASX:CXO) has progressed development of the Finniss Lithium Project during 2020 as it prepares to cater for an expected surge in demand for lithium in the post-COVID economy.

During FY20, the company received a non-binding indicative term sheet with the Local Jobs Fund (LJF) from the Northern Territory Government for a $5 million concessional Finance Facility to help fund development of the project.

With project approvals now in place and the mine management plan approved by the Northern Territory Government, the next steps are to finalise the definitive feasibility study (DFS) and project financing.

Offtake agreements secured[hhmc]
During the past six months, the company has signed offtake agreements with its first European Offtake MOU with Geneva-based Transamine for 50,000 tonnes per annum and an MOU for 20,000-30,000 tonnes per annum with Xinfeng, which are in addition to a binding offtake for 75,000 tonnes per annum with Sichuan Yahua.

Core chairman Greg Engli..

Core Lithium Ltd (ASX:CXO) has progressed development of the Finniss Lithium Project during 2020 as it prepares to cater for an expected surge in demand for lithium in the post-COVID economy.

During FY20, the company received a non-binding indicative term sheet with the Local Jobs Fund (LJF) from the Northern Territory Government for a $5 million concessional Finance Facility to help fund development of the project.

With project approvals now in place and the mine management plan approved by the Northern Territory Government, the next steps are to finalise the definitive feasibility study (DFS) and project financing.

Offtake agreements secured


During the past six months, the company has signed offtake agreements with its first European Offtake MOU with Geneva-based Transamine for 50,000 tonnes per annum and an MOU for 20,000-30,000 tonnes per annum with Xinfeng, which are in addition to a binding offtake for 75,000 tonnes per annum with Sichuan Yahua.

Core chairman Greg English said: “The three offtake agreements collectively represent approximately 85% of our first three years of annual spodumene production from the Finniss Lithium Project.

“We aim to convert the Xinfeng and Transamine agreements to legally binding offtake agreements with the possibility of project finance.”

World map of Darwin port relative to existing and potential offtake partners.

DFS pending


The company has delivered successive resource upgrades, increasing the Finniss ore resources by more than 50%, ore reserves by in excess of 150% and extended the mine life to seven years.

English said: “Over the past two years, we have completed several technical studies to support the development of the Finniss Lithium Project and to integrate new and expanded mining operations at BP33 and Carlton.

“The inclusion of underground mining at BP33 and Carlton improves the overall economics of the Finniss Lithium project and allows Core to extend the mine life to seven years.”

Test-work to date has confirmed that the project could produce a 6.0% Li2O concentrate at an overall lithium recovery of 71% (6.3 millimetre crush size).

The company is in the process of completing a DFS for the more extensive operation and this is expected to enhance the prospects of the project.

Exploration ongoing


While the company did not experience any material disruption, COVID-19 restrictions hindered its short-term ability to explore the project and other Northern Territory tenements.

However, recent government changes have seen the company recommence fieldwork and exploration activities.

English said: “Our recent exploration activity has been focused on the Finniss Lithium Project, and this work has led to significant discoveries at BP33, Carlton, Sandras and Hang Gong.

“Regional exploration was limited to our newly acquired Adelaide River Gold Project where we have undertaken some reconnaissance rock chip and associated low impact exploration activities.

“While we remain focused on developing the Finniss Lithium Project, we believe that our Adelaide River project, Napperby uranium and Blueys silver project hold considerable value and will look for opportunities to realise value from these projects.”

Spodumene price outlook


English noted that the COVID-19 pandemic had led to adverse economic conditions and a general worldwide economic downturn which had caused softer market conditions in China and weaker customer demand for lithium raw materials.

This not only impacts spodumene prices but prices across the entire lithium raw materials and chemicals product suite.

He said: “Many market analysts expect spodumene prices to recover soon as the demand increases for lithium-ion batteries and green energy products.

“Current modelling shows that the Finniss Lithium Project offers attractive returns for shareholders with the scope and economic potential of this operation will take more precise shape as we complete the DFS.”

Benchmark Mineral intelligence Q2 2020 forecast.Read More – Source

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Australia

Argonaut Resources directors show faith in company by participating in oversubscribed SPP

Argonaut Resources NL (ASX:ARE) directors have demonstrated their faith in the company’s copper-zinc strategy by participating in the recently closed share purchase plan (SPP).

Independent non-executive chairman Patrick Elliot purchased more than 4.465 million shares at 0.55 cents per share in an indirect interest.

He now holds 5,876,159 shares in that interest with another 20,324,574 held in a separate indirect interest.

Independent non-executive chairman Malcolm Richmond acquired more than 5.454 million shares in a direct interest, increasing the number held in this interest to almost 15 million with another 1 million held in an indirect interest.

Overwhelming response to SPP[hhmc]
The company was overwhelmed by the response to its SPP which closed early and more than twice oversubscribed with the target subsequently increased to $2.5 million from $1.2 million.

Subscriptions in excess of $3 million were received and as a result, the SPP was closed with immediate effect.

Money ..

Argonaut Resources NL (ASX:ARE) directors have demonstrated their faith in the company’s copper-zinc strategy by participating in the recently closed share purchase plan (SPP).

Independent non-executive chairman Patrick Elliot purchased more than 4.465 million shares at 0.55 cents per share in an indirect interest.

He now holds 5,876,159 shares in that interest with another 20,324,574 held in a separate indirect interest.

Independent non-executive chairman Malcolm Richmond acquired more than 5.454 million shares in a direct interest, increasing the number held in this interest to almost 15 million with another 1 million held in an indirect interest.

Overwhelming response to SPP


The company was overwhelmed by the response to its SPP which closed early and more than twice oversubscribed with the target subsequently increased to $2.5 million from $1.2 million.

Subscriptions in excess of $3 million were received and as a result, the SPP was closed with immediate effect.

Money raised under this SPP and from the recently completed $2.7 million share placeRead More – Source

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Australia

Strickland Metals shares jump 39% ahead of drilling base metal target near DeGrussa

Strickland Metals Ltd (ASX:STK) shares surged 39% today ahead of its maiden drilling program at the Doolgunna Project, which will include a diamond drilling program that is likely to begin by the end of this month.

As a part of the program, a minimum of four diamond holes will be drilled to a depth of 500 metres to test a VMS target similar to the nearby DeGrussa deposit of Sandfire Resources (ASX:SFR).

Heritage survey[hhmc]
Exploration activity has recommenced on the Doolgunna Project following completion of heritage surveys to allow land access to areas where the company wishes to complete exploration drilling.

The target for drilling is a compelling base metal prospect that exhibits geological characteristics that are interpreted to be similar to Sandfire Resources’ DeGrussa deposit about 30 kilometres to the east of the project.

The prospect has a 3-kilometre-long electromagnetic conductor that lies below an outcropping copper-zinc gossan that has been mapped over a 1.2-kilomet..

Strickland Metals Ltd (ASX:STK) shares surged 39% today ahead of its maiden drilling program at the Doolgunna Project, which will include a diamond drilling program that is likely to begin by the end of this month.

As a part of the program, a minimum of four diamond holes will be drilled to a depth of 500 metres to test a VMS target similar to the nearby DeGrussa deposit of Sandfire Resources (ASX:SFR).

Heritage survey


Exploration activity has recommenced on the Doolgunna Project following completion of heritage surveys to allow land access to areas where the company wishes to complete exploration drilling.

The target for drilling is a compelling base metal prospect that exhibits geological characteristics that are interpreted to be similar to Sandfire Resources’ DeGrussa deposit about 30 kilometres to the east of the project.

The prospect has a 3-kilometre-long electromagnetic conductor that lies below an outcropping copper-zinc gossan that has been mapped over a 1.2-kilometre strike.

Diamond core drilling


The company plans to start the diamond core drilling by the end of this month.

A multi-purpose drill rig has been contracted to enable the minimum planned program wRead More – Source

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Australia

Pan Asia Metals has positive discussions on plans for Thai lithium project

Pan Asia Metals Ltd (ASX:PAM) has had positive discussions with authorities in Phang Nga Province, Thailand, including the provincial government, for its Reung Kiet Lithium Project.

PAM has submitted a presentation covering all aspects of the project including methods of ongoing exploration, conceptual mining and concentrate production, and the potential for downstream value-adding industries in Phang Nga and Thailand.

The presentation and subsequent discussions were aimed at assisting Phang Nga Provincial Government in their considerations for the proposed mining and industrial development areas.

Provincial Government discussions[hhmc]
Pan Asia was recently invited by the chief executive officer of the Phang Nga Provincial Administrative Organisation (PAO), a Phang Nga Provincial Government coordinating body, to represent PAM and the Reung Kiet Lithium Project.

The meeting was also attended by the head of Phang Nga Provincial Industry along with the representatives of the Phang Ng..

Pan Asia Metals Ltd (ASX:PAM) has had positive discussions with authorities in Phang Nga Province, Thailand, including the provincial government, for its Reung Kiet Lithium Project.

PAM has submitted a presentation covering all aspects of the project including methods of ongoing exploration, conceptual mining and concentrate production, and the potential for downstream value-adding industries in Phang Nga and Thailand.

The presentation and subsequent discussions were aimed at assisting Phang Nga Provincial Government in their considerations for the proposed mining and industrial development areas.

Provincial Government discussions


Pan Asia was recently invited by the chief executive officer of the Phang Nga Provincial Administrative Organisation (PAO), a Phang Nga Provincial Government coordinating body, to represent PAM and the Reung Kiet Lithium Project.

The meeting was also attended by the head of Phang Nga Provincial Industry along with the representatives of the Phang Nga Provincial Public Works and Town Planning Office.

Phang Nga Provincial Industry head has been appointed by the Phang Nga governor as chairman of the Phang Nga New Town Planning Committee.

During the meeting, the chairman of the committee conveyed its support for the Reung Kiet Lithium Project.

PAO wants to ensure that the requirements of the Reung Kiet project are incorporated into the town planning committee’s zoning plans to ensure that the project can progress once exploration and feasibility results prove positive.

“Can bring opportunities”


PAM managing director Paul Lock said: “We have been working hard in Phang Nga province and we are very happy with the positive reception that the Reung Kiet Lithium Project is receiving from the Phang Nga Provincial Government and surrounding communities.

“Reung Kiet is strategically located and based on peer feasibility work the project is positioned to potentially be one of the lowest-cost suppliers of lithium chemicals in the global peer group.

“This is a project that can bring substantial opportunities and value to Phang Nga and Thailand.”

Pan Asia is planning its second Reung Kiet drilling program with expectations that this will begin in the coming months following the conclusion of the current Khao Soon drilling program.

Potential cost curve leader


Reung Kiet is a hard rock project with lepidolite rich pegmatites chiefly composed of quartz, albite and lepidolite with minor cassiterite and tantalite as well as other accessory minerals including some rare earth.

Lepidolite does not require roasting and has a suite of by-products which are recoverable at the concentrator and processing stages of the flow sheet.

Peer feasibility work has Read More – Source

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