The Core Lithium Ltd’s [ASX:CXO] share price is up 2.17% at time of writing after it defined a new exploration target at their key lithium project, Finniss. Shares are trading at 23.5 cents, up from yesterday’s close of 23 cents.
Core Lithium is a lithium developer. Their flagship project is the Finniss Lithium Project, located near Darwin in the Northern Territory, of which they own 100%.
Core aiming to double Finniss resources and mine life
Core Lithium said they’ve established a new lithium exploration target at Finniss.
The new exploration target is of 9.8 to 16.2 million tonnes at a grade of between 0.8 to 1.4% lithium oxide. The target expands across seven different prospects and is on top of the mineral resource estimate already defined by Core at Finniss of 15 Mt @1.3% Li2O.
Core said that the new target is supported by historical drilling, trenching and exploration results, and could potentially increase the life of the mine.
Yet, Core has also said that the potential quantity and grade in the exploration target is all very much ‘conceptual in nature’. So far, there hasn’t been enough exploration to estimate a mineral resource and they aren’t sure that more exploration will end up in the estimation of a Mineral Resource.
Core’s Managing Director Stephen Biggin said:
‘Core has a clear pathway to achieve our goal of more than doubling resources and mine life at Finniss.
‘Core’s exploration and resource drilling should provide a regular flow of news as webuild the expansion potential and financeabilityof Finniss,and move into construction of Australia’s next lithium project later this year.
‘It’s pretty simple maths to add the ET to our existing Mineral Resources to see where Core is headed, and our other well-funded exploration work ramping up at Finniss should add more tonnes on top of that.’
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What could happen next to the CXO Share Price?
Core has received drilling approval from the NT government in the new exploration target, and expansion drilling should start in the coming weeks. The goal is to convert a high proportion of the exploration target to Mineral Resources this year.
It could prove a good move by Core to try to expand their resource with EVs rolling out and demand for lithium rising along with lithium prices. GlobalData expects global demand for lithium to double by 2024.
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