The company says that with this milestone it is on the way to becoming the Australian state’s first lithium producer.
Core Lithium (ASX:CXO) has locked down a major milestone for its Finniss lithium project with the receipt of a mineral lease for the project’s Grants deposit.
The company announced Monday (January 21) that it has received a mineral lease — set to last 20 years — from Northern Territory government officials. According to the statement, this marks the first lithium-focused mineral lease ever awarded in the Northern Territory.
Acting Minister for Primary Industry and Resources Dale Wakefield commented on the matter, highlighting the asset’s potential for the local workforce.
“Creating jobs is the number one priority of this government and this is an important milestone for this project,” Wakefield said. “[T]his mine could not only provide direct jobs for Territorians on site, but also flow-on effects for Territory businesses through contracts and tenders.”
Finniss is Core’s flagship asset, with the Grants deposit being one of two “integral components” of the project, alongside the BP33 deposit. The project is located in the Northern Territory’s Bynoe pegmatite field and its granted tenements span over 500 square kilometers.
“As we continue on our path towards becoming Australia’s first lithium producer outside of Western Australia, it’s important that we don’t let any of these important milestones pass us without reflecting on both their significance and importance for Core,” Managing Director Stephen Biggins commented.
“With the mineral lease secured for Grants, Core is now well on the way towards becoming the Northern Territory’s first lithium producer.”
Going forward, the company is working to complete a definitive feasibility study (DFS) for Finniss, expected to be completed by the end of the March quarter.
Following that, Core expects first production to happen by the end of this year. Finniss has mineral resources of 3.45 million tonnes at 1.4 percent lithium oxide.
Core’s share price grew 7.14 percent on Monday following the announcement, closing the trading day on the ASX at AU$0.06.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.