Nov 6, 2024

Core Lithium Hits 63m @ 1.67% Li2O at Blackbeard Prospect, Finniss Project, Northern Territory

Introduction:

Core Lithium Ltd (ASX: CXO) has reported significant lithium intercepts from its Blackbeard prospect at the Finniss Lithium Project in Northern Territory, Australia, highlighted by 63m at 1.67% Li2O from 166m, including 20m at 2.09% Li2O from 208m.

Drill Results:

63m @ 1.67% Li2O from 166m (including 20m @ 2.09% Li2O from 208m) (NRC269)
24m @ 0.70% Li2O from 188m (NRC270)
22m @ 0.68% Li2O from 135m (including 6m @ 1.25% Li2O from 208m) (FRC488)
10m @ 0.91% Li2O from 108m (NRC269)
Previous results include 41m @ 1.63% Li2O (SRC117) and 59m @ 1.54% Li2O (SRC118)

Project Overview:

The Blackbeard prospect is part of Core Lithium's 100%-owned Finniss Lithium Project, located within 20km of the company's Grants processing facility. The prospect is situated on a granted Mining Lease (MLN1148), which could potentially expedite future development.

The Blackbeard-Centurion trend now demonstrates a mineralised strike length of over 600m, making it one of the larger pegmatite trends discovered to date within the Finniss Project area. The primary mineralised pegmatite body at Blackbeard is steeply dipping, up to 45m in true thickness, and remains open at depth.

Program Details:

The current exploration program at Finniss is focused on testing large-scale pegmatite targets with potential for lower-cost production. The results presented are from 27 drill holes totaling 4,880m across various prospects within 20km of the Grants Processing Facility. At Blackbeard, drilling has identified a main pegmatite body and a smaller subparallel pegmatite to the north, both of which show lithium mineralization.

Understanding These Results:

The intercepts reported from Blackbeard represent significant widths of lithium mineralization, with grades typical of economic spodumene deposits. The inclusion of higher-grade zones, such as the 20m at 2.09% Li2O within the broader 63m intercept, is particularly noteworthy.

The fact that the deepest hole (NRC269) returned the largest and highest-grade intersection suggests potential for the mineralization to improve at depth. The location within an existing mining lease and proximity to processing infrastructure enhances the economic potential of this discovery.

Management Commentary:

Paul Brown, Core Lithium CEO:

“The results from Blackbeard are highly encouraging and indicate we have discovered a large, highly mineralised pegmatite within a short distance of our processing infrastructure, consistent with the key objective of our 2024 field season. Blackbeard is up to 45 metres wide and open at depth. Further drilling will be completed to determine the ultimate scale of the system. This will support a future Mineral Resource Estimate and have potential to be incorporated into our ongoing restart studies.”

Next Steps & Catalysts:

Drilling is continuing at several high-priority pegmatite targets across the Finniss Project, including further drilling of targets adjacent to Blackbeard. Results from these programs are expected next month.

Core Lithium plans to conduct additional drilling at Blackbeard after the wet season in early 2025. This program will target depth extensions and potentially collect geotechnical information and samples for preliminary metallurgical test work. Successful results could lead to the inclusion of Blackbeard in the company's restart strategy and longer-term mine plan discussions.

Commodity Outlook:

Lithium remains a critical mineral for the global transition to electric vehicles and renewable energy storage. Australia is a leading producer of lithium, and new discoveries in established mining jurisdictions like the Northern Territory are strategically important for meeting growing global demand.

Conclusion:

The latest results from Core Lithium's Blackbeard prospect represent a significant discovery within trucking distance of existing infrastructure. With wide, high-grade intercepts and mineralization open at depth, Blackbeard has the potential to meaningfully impact the company's resource base and future production plans at the Finniss Lithium Project.

Sources:

CXO Drill Results Announcement

Additional Figures:

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ASX

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Jan 16, 2022