After completing an extensive drilling program in 2022, Core Lithium Ltd (ASX:CXO) (Core Lithium Ltd (ASX:CXO)) has unveiled a 62% increase to the mineral resource estimate (MRE) at its Finniss lithium operation in the Northern Territory of Australia.
The Finniss MRE now measures 30.6 million tonnes at 1.31% lithium oxide, compared to the previous estimate of 18.9 million tonnes at 1.32% lithium oxide that was announced in July last year.
All up, a total of 39,600 metres of reverse circulation and diamond drilling was completed — the company’s largest campaign to date — targeting known deposits and new prospects within the Bynoe pegmatite field.
READ: Core Lithium ready to export maiden Finniss spodumene concentrate shipment
Potential for extensions
Located 15 kilometres south of Darwin, the Bynoe pegmatite field measures up to 70 kilometres in length and 15 kilometres in width and comprises up to 100 known pegmatites.
“Through the targeted and systematic drilling of known and emerging deposits, the company has further highlighted the prospectivity of our landholding in the Bynoe pegmatite field and the strong potential for life of mine extensions at the Finniss lithium operation,” Core Lithium chief executive Gareth Manderson said.
“Our exploration team returns to Finniss in 2023 with a pipeline of new and existing deposits.”
Investors have responded positively to the MRE update with shares as much as 9.73% higher to A$1.015 on the ASX on strong volume of more than 25 million shares in the first hour of trading.
Further exploration
Bolstered by the success of last year’s work, Core Lithium has already launched its 2023 program — with a near-doubled exploration budget of A$25 million — to deliver further resource expansion and provide options for future development.
In support of the expanded program, Core recently appointed a study manager to identify a clear growth pipeline at Finniss, focusing initially on the Carlton and Northern Area regions.
The targets will then be evaluated using ambient noise tomography (ANT) geophysical surveys — specifically designed to target large pegmatite bodies — before being drill tested in the second half of the year.
Fieldwork at Core’s other lithium projects, including Shoobridge and Anningie-Barrow Creek, will also begin in the coming months.
- By Oliver Gray