viewCore Lithium Ltd

Core Lithium considers sale of non-core high-grade silver assets

Given the potential to expand high-grade silver mineralisation in conjunction with the prevailing silver price, the company is considering and exploring options including an asset sale.

Core Lithium Ltd -
Previous drilling intersected up to 1,000 g/t silver and 17% zinc and lead

Core Lithium Ltd (ASX:CXO) has received a number of expressions of interest for the non-core high-grade silver asset at Blueys project in the Northern Territory and is considering options to realise value.

A sale would also enable the company to fully focus on developing the flagship Finniss Lithium Project also in the NT.

The company has previously discovered high-grade silver, lead and zinc within the Blueys Project, with drilling intersecting up to 1,000 g/t silver and 17% zinc and lead.

Core also found very high grades of 4,500 g/t silver and 10% copper in rock chips at the surface.

Considering best course of action

Core managing director Stephen Biggins said: “We’re pleased to have received this interest in our non-core silver assets and will carefully consider the best course of action with a view to generating the maximum value out of these assets for our shareholders.

“As we have stated, we remain committed to progressing activities at our flagship Finniss Lithium Project in the Northern Territory, which was recently the subject of a $5 million concessional Finance Facility through the NT Government’s Local Jobs Fund.

“We look forward to updating shareholders once we have carefully explored our options for these silver assets.”

Expansion potential

In 2014, drilling by Core intersected silver mineralisation over a 500-metre long zone at the nearby Inkheart prospect that included 3 metres at 198g/t silver and 4.1% lead, and 3metres at 177 g/t silver and 4.1% lead.

Core believes there is significant potential to infill and expand high-grade silver mineralisation at Blueys to define a maiden JORC silver mineral resource.

Given the prospectivity of these silver assets in conjunction with the prevailing silver price, the company is considering and exploring options for the Blueys Silver Project, including an asset sale or restructuring,

The intention is to generate the best value for shareholders and concentrate more fully on Finniss.

Blueys Silver Project is within a 1.5-hour drive by bitumen road to the town of Alice Springs.

Finniss project

Recently the company announced plans to update the definitive feasibility study for Finniss, recognising several opportunities to add value to the project after recently announced increases to resources, reserves and the life of mine (LOM).

The updates include:

  • Increasing Finniss’ production capacity, based on growing offtake interest and expanded LOM, with an only minor change to start-up capex;
  • Assessing the growth potential of the Grants prospect;
  • Optimising the balance between initial Grants open pit and new Grants underground mining operation to minimise strip ratio and start-up capex;
  • Assessing grid connection for the Finniss Project to reduce power cost and emissions footprint; and
  • Further increases to resource, reserve and LOM.

Core will update the June 2020 PFS to DFS level in quarter one 2021 to include these opportunities.

Quick facts: Core Lithium Ltd

Price: 0.04 AUD

Market: ASX
Market Cap: $39.77 m

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