PERTH (miningweekly.com) – Lithium miner Core Lithium has set a spodumene production target of between 80 000 t and 90 000 t for the 2024 financial year, and a sales target of 90 000 t to 100 000 t.

The company on Monday also set a maiden C1 cost guidance of A$1 165/t to A$1 250/t following 14 weeks of plant operations on a campaign basis at its Finniss operation near Darwin.

“This quarter marks an important new phase in the life of our emerging operating and development company. We have now been through our first quarter with periods of integrated mining and processing operations and have successfully produced, transported and sold our first cargoes of spodumene concentrate,” said CEO Gareth Manderson.

“Since joining Core in August 2022, the team has successfully brought the Finniss operation into production on time and within two years of commencing construction. In parallel, we have continued to explore and grow our mineral resources as we work to determine the true potential of the Finniss mineralised district.”

During the quarter ended December, Core produced 14 685 t of spodumene at a C1 cost of A$902/t, with production in the 2023 financial year reaching 18 274 t at a C1 cost of A$1 230/t.

A maiden 5 500 t of spodumene concentrate was shipped in April, and a second 13 100 t was shipped in early July.

“Our operation remains in its start-up phase. In aggregate the team has achieved a combined 14 weeks of plant operations on a campaign basis since first concentrate was produced and access to the pit, uninterrupted by rain events, was achieved in mid-April,” said Manderson.

“Using this early operating experience, we have undertaken a thorough budgeting and forecasting process and provided production and cost guidance for 2024 and an early view of the 2025 production outlook. Production forecasts are lower than what was anticipated in the July 2021 definitive feasibility study and cost expectations are higher. Following this review, we are working through a suite of improvement projects to drive Finniss operating performance to deliver higher mining rates, improve lithia recoveries and commercialise the fines products.”

The Stage 1 Finniss project was initially expected to produce 175 000 t/y from a one-million-tonne-a-year plant.

While at this stage definitive guidance for 2025 could not be provided, Core expected monthly mining and processing rates to be above 2024 levels while the company continues mining in the Grants openpit.

However, overall production in 2025 is expected to be below 2024, owing to a three-month gap in ore feedstock supply from the mine and processing plant capacity constraints, which result in a run-of-mine (RoM) pad stockpile building at the conclusion of 2025. The company is evaluating options to optimise its production outlook which includes increasing the RoM pad stockpile over time such that the processing plant can have more reliable ore feedstock after considering mine scheduling and the wet season, increasing the dense media separation (DMS) plant throughput and/or direct shipping sales to bring forward revenue into 2025.

“As is common during the project start-up phase, we are continuing to better understand the Finniss ore processing characteristics and mine performance with several key learnings being implemented. Grants remains the starter operation which is delivering near-term cashflow to fund our growth. BP33 is the next mine to be developed and the more significant operation which underpins the business,” said Manderson.

Core has approved a A$45-million to A$50-million spend for early works for the BP33 underground mine.

BP33 is located within trucking distance of the Grants openpit, crusher and DMS plant and has a current mineral resource of 10.1-million tonnes at 1.48% lithium oxide.

A revised feasibility study for the underground project is expected in the first quarter of 2024.