Core Lithium Advances Restart Study with Strong Cash and Drilling Results

Restart Study Progress and Operational Readiness

Core Lithium Ltd (ASX: CXO) has provided a comprehensive update on its December 2024 quarter activities, highlighting steady advancement of the Restart Study for the Finniss lithium project. The study remains on schedule for completion in the June quarter, focusing on optimising mining and processing operations to deliver a more efficient, lower-cost, and resilient operation aligned with current market dynamics.

CEO Paul Brown emphasised the company’s commitment to operational readiness, with ongoing geotechnical monitoring, water management preparations for the wet season, and infrastructure improvements at the Finniss site. Safety and environmental stewardship continue to be priorities, with no significant incidents reported during the quarter.

Financial Position and Expenditure Discipline

Core Lithium ended the quarter with a robust cash balance of approximately $50 million, down from $61 million in the previous quarter, primarily due to a one-off $3.5 million payment related to final quotation period adjustments for FY24 shipments. The company maintained strict budget discipline, with expenditures focused on site care and maintenance, exploration, and corporate costs. A foreign exchange gain of $2.7 million partially offset cash outflows.

The company holds a stockpile of around 5,000 wet metric tonnes of spodumene concentrate and 75,000 wet metric tonnes of lithium fines, which remain available for sale should market conditions improve.

Exploration Success at Blackbeard and Shoobridge

Exploration drilling delivered encouraging results, notably at the Blackbeard lithium prospect located 20km from the Finniss processing plant. Significant intercepts included 63m at 1.67% lithium oxide (Li2O), with a high-grade zone of 20m at 2.09% Li2O. The mineralised trend at Blackbeard and nearby Centurion extends over 600m and remains open at depth, offering substantial growth potential within a granted mining lease.

Gold exploration at the Shoobridge project also yielded promising results, with high-grade intercepts such as 6m at 5.12 g/t gold and 12m at 2.93 g/t gold. The project lies within a prolific gold province hosting multiple million-ounce deposits. Follow-up drilling completed during the quarter aims to further delineate mineralisation, with results expected in the March quarter.

Corporate Developments and Governance

In a strategic governance move, Core Lithium appointed Alicia Sherwood as a Non-Executive Director. Sherwood brings over 25 years of experience in stakeholder management and leadership, including prior executive responsibility for Core’s Finniss operations. Her appointment strengthens the board’s expertise in operational and community engagement within the Northern Territory.

Core’s capital structure remains stable, with over 2.1 billion ordinary shares on issue and performance rights and options outstanding. The company confirmed no material changes to its mineral resource estimates or production targets since prior announcements.

Looking Ahead

Core Lithium’s December quarter report underscores a disciplined approach to advancing the Finniss project restart while preserving financial strength and delivering exploration upside. The company’s methodical testing of mineralisation at Blackbeard and Shoobridge, combined with ongoing optimisation of mining and processing, positions it well for a potential operational restart aligned with evolving lithium market conditions.