Name of the Project
Finniss lithium project.

Location
The project is located near Darwin, in the Northern Territory, in Australia.

Client
Core Exploration.

Project Description
The development of the Finniss project will initially be centred on developing the Grants lithium deposit as an openpit operation, with a 26-month life-of-mine based only on the Grants deposit.

The Grants deposit has a mineral resource of 2.03-million tonnes grading at 1.5% lithium oxide (Li₂O).

The project will include the construction of a simple one-million-tonne-a-year dense-media separation (DMS) process plant, producing 225 000 t/y of concentrate grading 5% Li₂O at nameplate capacity.

Contract mining services are proposed for the mining operation. The prefeasibility study (PFS) proposes conventional openpit mining techniques using standard drill-and-blast and conventional excavator and truck fleet methods.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value (NPV), at a 10% discount rate, of $140-million and an internal rate of return (IRR) of 142%, at a concentrate price of $649/t.

At a concentrate price of $895/t, the NPV increases to A$246-million and the IRR to 202%. The project has a payback of less than 12 months.

Value
Preproduction capital is estimated at A$53.5-million, including a 15% contingency.

Duration
Not stated.

Latest Developments
Based on the positive outcomes of the PFS, Core has resolved to immediately progress to a definitive feasibility study (DFS) on the Grants deposit.

The DFS is expected to be delivered later this year, allowing for a development decision in early 2019 and rapid transition to construction and production status in the same year as a result of the simple, low technical risk operation.

The PFS has paved the way for Core Exploration to advance its offtake and financing discussions, and project permitting to ensure that the company is positioned to start development and construction in 2019 and will be delivering spodumene concentrate to customers by the end of 2019. In parallel with the DFS, permitting, offtake and financing discussions, Core will maintain an aggressive regional exploration campaign focused on expanding the resource base of the Finniss project to support a long-life mining operation.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Core Exploration, tel +61 8 7324 2987 or email info@coreexploration.com.au.