Core Lithium Ltd Takes Up Option to Buy Six Mining Leases (ASX:CXO)
Core Lithium Ltd [ASX:CXO] share price was up today by more than 7% on early trade after announcing they are buying six ‘highly prospective’ mineral leases located next to their 100%-owned Finniss Lithium Project.
Core Lithium is a lithium developer. Their flagship project is the Finniss Lithium Project, which is located near Darwin in the NT.
An opportunity to extend production at Finniss
In March this year, Core signed an option agreement to buy these six mineral licenses for $5 million along with $500,000 in contingent considerations. The leases have a history of tin and tantalum mining and include over 30 historic pegmatite mines.
During the year, Core did a first-pass drill assessment on five of these leases. They completed a total of 29 reverse circulation holes for 4,530m to test 10 different targets.
Core Lithium has now received the results for 18 of the holes.
Core said it intersected ‘evidence of lithium fertility and spodumene mineralization’ in several of the drill holes. They also found significant levels of tin, tantalum, and niobium.
According to Core, buying the six leases could very well accelerate the opportunity to expand and extend lithium production at Finniss, which would add value to the project.
As Core’s managing director, Stephen Biggins, said:
‘Bringing these MLs into our portfolio supports our previously stated objective of further
increasing the resource and mine life of the Finniss Project and cements our dominant
landholding in this lithium-rich and low-risk mining jurisdiction of the Northern Territory.’
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Lithium demand expected to outstrip supply
Core says they have completed over 4000 assays and will be releasing its exploration and resource updates throughout the rest of this year and into 2022.
After reaching 57 cents today in early trade, shares are trading at 53 cents at the time of writing, the same price as yesterday’s close.
Lithium prices are soaring with demand for lithium expected to ramp up as more electric vehicles hit the markets.
Fastmarkets estimates that lithium production will need to quadruple this decade to meet demand, reaching 2 million tonnes by 2030. So things are looking good for lithium in the near future.
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