Site Visit Presentation
Released
Released
Announcement PDF
corelithium.com.au
Australia’s
newest
lithium
producer
Site visit presentation
Grants operation and BP33
Project
16 November 2023
corelithium.com.au
Important and cautionary notes
This presentation has been prepared by Core Lithium Ltd (“Core”, “Company”) and provides a general overview of the Company and its strategy.
This presentation does not purport to be all-inclusive or to contain all the information that you or any other party may require to evaluate the prospects of the Company. None of the Company, any of its related bodies
corporate or any of their representatives assume any responsibility for, or makes any representation or warranty, express or implied, with respect to the accuracy, reliability or completeness of the information contained in
this presentation and none of those parties have or assume any obligation to provide any additional information or to update this presentation. The information in this presentation should be read in conjunction with Core’s
other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), which are available at www.asx.com.au.
To the fullest extent permitted by law, the Company, its respective affiliates and representatives, related bodies corporate, officers, employees, partners, agents and advisers make no representation or warranty (express or
implied) as to the currency, accuracy, reliability, reasonableness or completeness of the information in this presentation and expressly disclaims all responsibility and liability for any loss or damage arising in respect of your
reliance on the information contained in this presentation (including your reliance on the accuracy, completeness or reliability of that information), or any errors in or omissions from this presentation, including any liability
arising from negligence.
The Finniss Lithium Project as described in this presentation is at the production stage, and potential investors should understand that mineral exploration, development and mining are high-risk undertakings. There is no
guarantee that the Finniss Lithium Project can be economically exploited.
This document contains statements which may be in the nature of forward-looking statements. No representation or warranty is given, and nothing in this presentation or any other information made available by the
Company or any other party should be relied upon as a promise or representation, as to the future condition of the respective businesses and operations of the Company.
Competent Person Statements
Core confirms that it is not aware of any new information or data that materially affects the information included in previous announcements (as may be cross referenced in the body of this announcement) and that all
material assumptions and technical parameters underpinning the Mineral Resource estimates, Ore Reserve estimates, production targets and forecast financial information continue to apply and have not materially
changed. This release contains “forward-looking information” that is based on the Company’s expectations, estimates and projections as of the date on which the statements were made. This forward-looking information
includes, among other things, statements with respect to feasibility studies, the Company’s business strategy, plan, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations,
and Mineral Resources and Reserves.
Currency
Unless otherwise stated, all cashflows are in Australian dollars, are undiscounted and are in real terms (not subject to inflation/escalation factors), and all years are calendar years. C1 Operating Costs references in USD
throughout this presentation have been derived by converting AUD using an exchange rate of 0.70 AUD/USD.
Forward‐looking Statements
Generally, this forward-looking information can be identified by the use of forward-looking terminology such as ‘outlook’, ‘anticipate’, ‘project’, ‘target’, ‘likely’,’ believe’, ’estimate’, ‘expect’, ’intend’, ’may’, ’would’, ’could’,
’should’, ’scheduled’, ’will’, ’plan’, ’forecast’, ’evolve’ and similar expressions. Persons reading this release are cautioned that such statements are only predictions, and that the Company’s actual future results or
performance may be materially different. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or
achievements to be materially different from those expressed or implied by such forward-looking information. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors
set out herein, including but not limited to general business, economic, competitive, political and social uncertainties; the actual results of current exploration, development and construction activities; conclusions of economic
evaluations; changes in project parameters as plans continue to be refined; future prices of lithium; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated;
accident, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. This list is not exhaustive of the
factors that may affect forward-looking information. These and other factors should be considered carefully, and readers should not place undue reliance on such forward-looking information. The Company disclaims any
intent or obligations to or revise any forward-looking statements whether as a result of new information, estimates, or options, future events or results or otherwise, unless required to do so by law. Statements regarding
plans with respect to the Company’s mineral properties may contain forward-looking statements in relation to future matters that can be only made where the Company has a reasonable basis for making those statements.
Past Performance
Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.
2
Australia's newest lithium producer
October 2022
Commissioning of Crushing Plant
December 2022
DSO Sale
February 2023
First concentrates produced
May 2023
First Concentrate Sale
corelithium.com.au |
3
corelithium.com.au
Sustainability
• Critical Risk Management implementation
across site, projects and exploration
• Establishment of emergency response
capabilities
o agreement in place with CareFlight
• Health monitoring
o dust and noise exposure
• Wet season update
• Community Grants scheme commenced
o over 20 local recipients in 2023
o next round to be released in Feb
2024
• Sponsorship of Darwin Festival
• Sponsorship Charles Darwin University
Student passes to Mining the
Territory Conference
o $11M capital works program to
increase storage
• Engagement of Kenbi Rangers for on
country activity and environmental
activities
o high efficiency sediment basins
conversions
• Attendance at local markets
o water quality monitoring
• Land management
o fire and weed control
• Engagement with local schools
• Engagement with NTG on environment,
roads and infrastructure
• Quarterly newsletters distributed to
community
“We embrace our role in the
energy transition and
acknowledge our responsibility
to sustainably manage our
operations to contribute to a
lower carbon future. As we
grow in maturity, Core’s focus
is on safe, reliable, and
sustainable operations that
consider the wellbeing of our
people, the environment and
the community in which we
operate.”
corelithium.com.au
Excellent logistics chain close to Darwin City and Port
88km by Road from Darwin Port
Darwin Port is 88km by sealed road – Australia's closest port to China
•
existing bulk handling facilities
Capital City of Darwin
•
international airport
•
all services and contractors
•
drive-in / drive-out workforce
Potential LiOH Plant
Well established relationships with the Northern Territory Government
Darwin CBD
N
Aerial view of Darwin, the Port of Darwin and
the Grants Lithium development
corelithium.com.au
Mining
Conventional blast, load and haul open pit
mining, improvement projects underway
Mining performance improved ending
October strongly
• mining productivity improvement
led to an 8% increase in Q1 TMM
compared to previous quarter
• blasting and dig unit availability
improvement led to record ore
extraction in September
• the plant saw a more consistent
ore feed with improved
operations in the pit
Grants pit wall stability is managed by
Fleet
• 4 x excavators
• 2 x Liebherr 19200
• 2 x Liebherr 9150
• 18 x 100t haul trucks
• 5 x dozers
Focus on ROM build
• 248,000t at 13 November
Suite of improvement projects
• Hot seating
• two IDS Hydra radars
• Pre-start improvement
• prism monitoring
• Critical spares management
• manual extensometers
• drone imagery
• laser scanning
• Additional drill rig
• Increased ROM storage
capacity and stockpile
corelithium.com.au
Ability to draw on a skilled workforce – 300+ local
92%
100%
96%
100%
100%
NOTE
The third-party local employment rates are at August 2023. Throughout the project there has been interstate employment to assist with short falls.
corelithium.com.au
Processing
Flowsheet now being optimised
Grants Open Cut Mine
Crush to 10mm topsize
Reagent medium– FeSi
Dense spodumene separates well
from lighter quartz/feldspar using
gravity separation
corelithium.com.au
Improvements in wet season preparedness
Improving surface water and mine water management
• Additional mine water dams
• Additional sediment basins
• Installation of monitoring gauge stations, water level sensors
• Additional pumps, piping infrastructure
• Additional manning for water management
• Increased space on ROM pad
• Road sheeting with imported rock
Recovery improvement trials seeing uplift
Improvement projects
Trial sales of fines product (complete)
Process control optimisation (underway)
Crusher screen change out (complete)
Stage crushing optimisation (initiated)
Met test work (underway)
Ultrafines DMS reconfiguration (underway)
Mica classifier commissioned (complete)
Rolls crusher refurbishment (underway)
Product quality/grade projects (underway)
TOMRA for Fe rejection (underway)
Study feasibility of installing a filter or belt press (initiated)
Flotation study in progress (initiated)
Assess merits of selling DSO (not commenced)
corelithium.com.au
10
corelithium.com.au
Recovery improved to 56% in October
Recoveries continue to improve in November
Spodumene concentrate production
(tonnes) vs recovery (%), (RHS)
Note: Ave con grade for October was 4.5%
11
BP33: Site works well underway
corelithium.com.au
12
3D Design for BP33 Box Cut
• Box cut length 288m
• Box cut depth 40m (design)
• 354,390t excavated (393,348t total)
• All 2,062 steel tunnel segments for the
covered box cut have been delivered to
site
• Box cut – Tunnel Liner foundations
under construction (October 2023)
• Wide end of BP33 Box Cut (October
2023)
• 800t of steel reinforcing for arch footings
• Concrete batch plant (with cooling) now
on site. Footings for tunnel liners now
being installed.
.
corelithium.com.au
Appendix
13
corelithium.com.au
Q1 2024 summary
14
Ramp up continuing - improvements in both mining and
processing
Management commentary
• Concentrate production of 20,692t at an average 5.0% Li2O grade with all products
meeting customer specification
Quarterly Operating Performance
• Grants pit wall stability monitoring continues with second radar installed
Production
• Wet season preparedness is well progressed and includes haul road upgrades and
investment in water storage facilities and new dewatering equipment
Spodumene concentrate produced
tonnes
Recovery
%
• As at 31 October there were 248,000t of ore on the ROM pad
• Recovery of 50% achieved for the quarter compared to 49% previous quarter with
adjustments to screen sizing, reagent set points and other process parameters
Q3 FY23
Q4 FY23
Q1FY24
3,589
14,685
20,692
47
49
50
Sales
DSO Shipments
tonnes
14,774
–
–
–
5,423
23,424
n/a
5.4
5.2
–
–
15,002
• Agreement finalised with one customer to allow acceptance of concentrate with a
minimum grade of 4.5%. A similar agreement is being finalised with our second for the
FY24 period.
Spodumene Concentrate Shipments
tonnes
Concentrate grade shipped
%
• Test work and trials to improve plant recoveries continued as a priority
Lithium fines shipped
tonnes
corelithium.com.au
Finniss operational update…cont.
Costs broadly in line, cash impacted by shipment timing
and QP adjustment
Quarterly Operating Performance
•
C1 unit costs of $904/t were broadly in line with the previous quarter
•
The build up in ore on the ROM pad, resulted in $985/t being deferred to inventory
Cost of production
•
Before inventory movements, cash operating unit cost of $1,889/t were 11% higher than
the previous quarter, due to a lower strip ratio, resulting in a higher proportion of the
mining costs being expensed (rather than capitalised)
Cash operating unit cost
•
Closing cash of $202.1 million included $107.9 million in proceeds from the equity raise
and SPP in August
•
The operating cash outflow of $25.97 million reflects:
•
o
the timing of shipments, with 8,527t of concentrate at the Darwin port at 30
September, which was included in the early October shipment; and
o
the repayment of $27.7 million to Yahua, in respect of a QP adjustment. The QP
adjustment resulted from the significant fall in the lithium spodumene price between
the date of prepayment and the end of the quotational period.
Excluded from the cashflows in the quarter are the cash receipts relating to the 13,100t
shipment in July. These tonnes were part of the prepayment arrangement with Yahua with
the cash received in Q4FY23.
15
Q3 FY23
Q4 FY23
Q1FY24
A$/t
2,386
1,691
1,889
Inventory and other (non-cash)
A$/t
(198)
(789)
(985)
C1 unit cost
A$/t FOB
2,188
902
904
C1 unit cost plus royalties
A$/t FOB
2,323
1,416
1,067
16
BP33: SITE WORKS
Box Cut – Tunnel Liner foundations under construction (October 2023)
Concrete batch plant (with cooling) now on site. Footings for tunnel liners now being installed.
corelithium.com.au | 16
17
FINNISS MINERAL RESOURCES
Mineral Resource Estimate for the Finniss Lithium Operation (0.5% Li2O cut-off)
Mineral Resource
Measured
Indicated
Inferred
Total
Tonnes
(Mt)
Li2O
%
Tonnes
(Mt)
Li2O
%
Tonnes
(Mt)
Li2O
%
Tonnes
(Mt)
Li2O
%
Contained Metal (kt)
Grants*
1.93
1.50
0.61
1.49
0.37
1.27
2.91
1.47
42.7
BP33*
2.85
1.44
6.51
1.55
1.14
1.59
10.50
1.53
160.1
Carlton
2.20
1.38
2.69
1.39
1.29
1.37
6.18
1.38
85.5
Hang Gong
-
-
1.51
1.18
1.95
1.14
3.46
1.16
40.0
Sandras
-
-
1.17
0.92
0.57
0.82
1.73
0.89
15.4
Lees#
-
-
0.88
1.24
0.35
1.05
1.23
1.19
14.6
Ah Hoy
-
-
0.67
1.16
0.38
1.17
1.05
1.16
12.2
Booths#
-
-
0.80
1.05
0.70
1.06
1.50
1.05
15.8
Bilatos
-
-
-
-
1.92
1.03
1.92
1.03
19.9
Penfolds
-
-
-
-
0.57
1.04
0.57
1.04
5.9
Total
6.98
1.44
14.8
1.37
9.20
1.18
31.10
1.33
412.1
Li2O
Note: Totals within this table are subject to rounding. * Net decrease due to mining depletion. # Re-classified with no additional data.’ The above Mineral resource is current at the time of release on 18 April 2023 for all resources apart from BP33 which is current as at 16 October 2023.
ASX Release: "Significant increase to Finniss Mineral Resources" dated 18 April 2023. Total Mineral Resources of 30.6Mt @ 1.31% Li2O. Measured Mineral Resource 6.98Mt @ 1.45% Li2O / Indicated Mineral Resource 12.4Mt @1.33% Li2O. Inferred Mineral Resource 11.3Mt @ 1.21% Li2O.
Core Lithium confirms that the Company is not aware of any new information or data that materially affects the Mineral Resource Estimates cross referenced in this report and confirms that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially
changed. "BP33 Mineral Resource Upgrade" dated 16 October 2023. Core Lithium confirms that the company is not aware of any new information or data that materially affects the Mineral Resource Estimates cross referenced in this report and confirms that all material assumptions and technical parameters
underpinning the estimates continue to apply and have not materially changed.
corelithium.com.au | 17
18
PROJECT PIPELINE AND SUSTAINING GROWTH
Near-term priority
Project
Discovery
Resource Definition
Development
Grants
Resources: 2.91Mt @ 1.47% Li2O
Production until late CY25
Progress open pit expansion study
Grants Open pit extension / underground
Resource included in Grants
Progress study work and reserve
definition drilling
BP33
Resources: 10.5Mt @ 1.53% Li2O
Complete FS / Early works. Infill drilling planned to convert
inferred resources to measured and indicated.
Targeting FID Q1 CY24 and first production in CY26
Carlton
Resources: 6.2Mt @ 1.38% Li2O
Drilling ongoing at Carlton to support
additional resource definition. Study work
expected to be completed by end of CY24
Hang Gong
Resources: 3.5Mt @ 1.16% Li2O
Progress study work / further drilling
Lees-Booths
Resources: 2.7Mt @ 1.11% Li2O
Progress study work / further drilling
Sandras, Bilatos, Penfolds, Ah Hoy
Resources: 5.3Mt @ 1.01% Li2O
Finniss District, Shoobridge,
Anningie-Barrow Creek
Production / Extension
Drilling to expand resource
Exploration drilling
NOTES
1 ASX Release: "Significant increase to Finniss Mineral Resources" dated 18 April 2023. Total Mineral Resources of 30.6Mt @ 1.31% Li2O. Measured Mineral Resource 6.98Mt @ 1.45% Li2O / Indicated Mineral Resource 12.4Mt @1.33% Li2O. Inferred Mineral Resource 11.3Mt @ 1.21% Li2O.
Core Lithium confirms that the Company is not aware of any new information or data that materially affects the Mineral Resource Estimates cross referenced in this report and confirms that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. "BP33 Mineral Resource Upgrade" dated 16 October
2023. Core Lithium confirms that the company is not aware of any new information or data that materially affects the Mineral Resource Estimates cross referenced in this report and confirms that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. For full details refer to slide 19.
corelithium.com.au | 18
Q1 FY24 Quarterly Update
corelithium.com.au
19
Share your feedback
Discover