Name of the Project
Goulamina lithium project.

Location
Southern Mali, about 50 km west of Bougouni.

Project Owner/s
Firefinch.

Project Description
A definitive feasibility study (DFS) has confirmed Goulamina as one of the world’s highest-quality lithium assets that will deliver a long-life, large-scale, low-cost openpit project.

The project has proved and probable reserves of 52-million tonnes grading 1.51% and mineral resources of 108.5-million tonnes grading 1.45%.

Average spodumene concentrate production is estimated at 436 000 t/y.

A standard openpit mining operation of drill, blast, excavation and truck haulage is envisaged for the project. Contractors will be employed for mining operations. Given the nature of the deposit, the pegmatites will be mined from footwall to hanging wall, rather than selectively using a cutoff grade.

The DFS testwork demonstrates that Goulamina ore may be processed using froth flotation after comminution to produce a spodumene concentrate, with an average lithium grade of 6% and an average iron oxide grade of 0.56%, and mica content of less than 1%. The overall lithium recovery achieved was 77%, which includes losses from desliming, magnetic separation mica removal and flotation.

The process plant is designed to treat ore at the rate of 2.3-million tonnes a year.

The project has a mine life of 23 years and conversion of additional mineral resources to ore reserves will likely extend this.

During the DFS, a scoping study was completed to evaluate the potential of further processing spodumene concentrate to produce a lithium sulphate product. This study identified some promising aspects to the downstream strategy; however, further work is required before this can be properly evaluated as a viable option.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $1.2-billion and an internal rate of return of 55.8%, with a payback of 1.7 years.

Capital Expenditure
Initial capital costs are estimated at $194-million.

Planned Start/End Date
Not stated.

Latest Developments
Firefinch has announced plans to demerge its Goulamina lithium project into a separate lithium-focused company, which will list on the Australian bourse.

Firefinch has reported that a strategic review has found that the Goulamina project is materially undervalued in the Firefinch share price, and will require a distinct, separate focus to release the value of the project.

The company has noted that the creation of a new lithium-focused company in a strong lithium market is the optimal way to realise value for shareholders.

Firefinch executive chairperson Dr Alistair Cowden has said that the separation of the asset will permit each project vehicle to appropriately resource and focus on its project, while progressing organic and other value accretive growth opportunities in their respective sectors.

The demerger will also allow for Firefinch shareholders to better share in the uplift expected from the lithium and electric vehicle thematic by attracting shareholders seeking this exposure, while also providing investors with a unique investment proposition, diversification across investment assets, mitigation of commodity risk and a greater investment choice.

Firefinch shareholders are expected to receive a pro-rata allocation of shares in the new lithium company, and a dedicated senior executive and board will be recruited to provide a clear focus on delivering shareholder value through the demerged lithium company, securing the financial and industrial support to deliver the hard rock lithium project.

The new lithium vehicle will enter into service agreements with Firefinch, enabling it to benefit from Firefinch’s proven operating capacity in Mali, and to share corporate resources.

Key Contracts, Suppliers and Consultants
Cube Consulting (mining and reserves); Majesso Consulting (mining costs); Nagrom (metallurgical testwork); Land & Marine Geological services (tailings storage facility); Peter O’Bryan and Associates (geotech); Lycopodium (process and nonprocess infrastructure, process design and capital and operating costs); AQ2 (surface hydrology); DRA Global (process design) and Model Answer (financial modelling).

Contact Details for Project Information
Firefinch, tel +61 8 6149 6100 or email info@firefinchltd.com.