The Core Lithium board has approved expenditure for $45-50 million worth of early works for the BP33 underground project, updating earlier estimates presented in September 2022.
This approval comes after the BP33 project was granted all necessary mine authorisation approvals from the Northern Territory Government.
Northern Territory-based contractor, Northern Australian Civil (NAC), has been appointed to undertake the early works civil construction for the BP33 project – applying its prior experience in box-cut development.
Core Lithium is aiming to develop the Finniss Lithium Project via several satellite deposits within trucking distance of the Dense Media Separation (DMS) plant located at the Grants Mine Operation.
Due to its scale, the recent Northern Territory Government approvals being granted, and the study work conducted to date, BP33 has been selected as the next potential mine to be developed, this work is expected to be complete by end of the first quarter, CY24.
This approach allows a detailed feasibility study to be completed in parallel and enable mine decline development to begin soon after a positive final investment decision (FID). These early works have been approved based on the 2022 Mineral Resource model for BP332.
In March 2023, Core announced it had increased its Mineral Resources by 131 per cent to 10.1Mt at 1.48 per cent Li₂O₃ .
Final capital expenditure, development and production timing for the BP33 underground mine cannot be reliably determined before the company completes further studies that include the new BP33 resources, further metallurgical test work, additional geotechnical studies, mine sequencing options and cost estimates associated with a potentially extended mine area.
Following completion of the early works and subject to a positive FID and board approval to proceed with the BP33 underground mining operations, subsequent work required before BP33 ore production commences is expected to include decline development, early stope development, ventilation infrastructure, water management and power infrastructure and further civil site works.
To date, Core Lithium’s Grants Mining Operation has spent over $120 million with local suppliers and employs over 300 local people through its contracting partners.
Core Lithium recently established a community Grants Program to provide mutual benefits to those communities close to where it operates and will continue to focus on local procurement, employment, and community benefits as the company expands its operations in the Finniss region.
Core Lithium CEO, Gareth Manderson, said the company is pleased to announce this positive, incremental investment decision that allows initial works to be undertaken while the feasibility study is completed for BP33, the potential next mine at the Finniss Lithium Operation.
“Core would like to acknowledge the support of the Government of the Northern Territory. We have been able to bring on the Finniss operations at a time in the market when it can deliver benefits for the NT and all its stakeholders due to the professional and efficient processes for approvals. The BP33 approval is another example of this,” Mr Manderson said.
“I am pleased the civil works contract has been awarded to a successful locally based business, Northern Australian Civil. NAC currently provides civil construction activities at Grants Operations and is a fantastic local contracting partner which employs local Darwin and Northern Territory residents and invests back into the Territory.
“We will continue to focus on the safe ramp up of the Grants open pit and concentrate production through the DMS plant.
“We will aim to provide final project expenditure and other project metrics once we have incorporated the increased resources into our studies by Q1 CY24.”
