'Final investment decision' expected in 2021 for Core Lithium's Finniss mine
Australia-focused Core Lithium (ASX:CXO) announced an updated definitive feasibility study for its proposed Finiss mine today.
Core touted a 30% increase in Ore Reserves to 7.4Mt @ 1.3% Li2O prepared using the JORC Code 2012, underpinning a 8-year life of mine (LOM), with additional Mineral Resource inventory to potentially further increase life of mine.
Initial capital expenditure is peggged at A$89 million (US$66 million).
“The Definitive Feasibility Study confirms Finniss Lithium Project as a simple, low risk and low capital intensity project with high cash generating potential, and puts Core on track to become Australia’s next lithium producer," said Core’s Managing Director Stephen Biggins.
“The study highlights the Project’s attractive combination of high-grade Ore Reserves, simple DMS processing producing a high quality concentrate, and proximity to nearby existing infrastructure including the Port of Darwin.
“With the updated DFS now completed, we aim to finalise funding over the coming months, to allow Core to make a Final Investment Decision in 2021 and fast-track construction. We are also maintaining our exploration momentum, with the aim to more than double the mine life and Resources of the Project."
The definitive feasibility study economics reflected in reserves-backed pre-tax internal rate of return of 53% and pre-tax NPV8 of A$221 million and life-of-mine EBITDA of A$561 million from revenue of A$1.3 billion.
Finiss is located in Northern Territory state, near the port of Darwin.