Core Lithium is gearing itself up to restart the Finniss lithium operation in Northern Territory when market conditions allow.
The company released the outcomes of a Finniss restart study, demonstrating a 20-year mine life backed by a high-grade underground mine at BP33.
“The plan we’ve outlined capitalises on the project’s strengths, including established infrastructure, high-grade orebodies well-suited to low-cost underground mining and a process plant with proven recoveries and further scope for optimisation,” Core Lithium chief executive officer Paul Brown said.
“We’ve undertaken a rigorous, bottom-up review of every aspect of the operation. The study brings together our operating experience to deliver a plan that is more robust, more efficient and built for the long term.”
As Core Lithium develops the BP33 underground mine, the Grants deposit will shift to underground mining, which the company said will cut costs and double the mine life. The Carlton deposit will use Grants’ surface infrastructure, while the Blackbeard prospect offers further potential to expand operations.
Core plans to implement plant upgrades to improve recovery while keeping capital costs low. The company plans to implement enhanced screening processes, with more affordable crushing and the addition of a gravity circuit.
A key goal for Core is to grow Finniss into a more resilient operation that can deliver a reliable source of spodumene concentrate during all market cycles.
Core expects to generate free cashflow of $1.2 billion from a revised operating plan, representing a six-fold return on pre-production capital. The company is considering multiple funding pathways to benefit its mission.
“Our focus is to secure an option that minimises dilution and maximises value for shareholders,” Brown said. “Finniss remains an important project for the Northern Territory. While no restart decision has been made, there is the potential to create several hundred jobs, many of which would be residential.
“We’ve had strong support from the NT Government and look forward to continuing that collaboration.”
