High-Grade Lithium Assays Point to Significant Upgrade to Resource Confidence at Grants Lithium Deposit
High-Grade Lithium Assays Point to Significant Upgrade to Resource Confidence at Grants Lithium Deposit
Adelaide, April 6, 2018 AEST (ABN Newswire) - Australian lithium developer, Core Exploration Ltd (ASX:CXO) ("Core" or the "Company") is pleased to announce that new assay results received from RC and diamond core infill drilling continue to demonstrate the remarkable consistency of high-grade spodumene intersections at the Grants Deposit, within Core's 100% owned Finniss Lithium Project near Darwin in the NT.

HIGHLIGHTS

- Multiple new high-grade lithium intersections from Grants Deposit include:

o 41.1m @ 1.77% Li2O from 71.3m in FRCD009

-- including 10m @ 2.29% Li2O
-- including 1m @ 3.03% Li2O

o 41.0m @ 1.59% Li2O from 115m in FRC124

-- including 7m @ 2.07% Li2O

o 13m @ 2.19 % Li2O from 103m & 26m @ 1.56% Li2O from 122m in FMRD006

-- including 1m @ 3.35% Li2O

o 37m @ 1.57% Li2O from 114m in FRC121

-- including 5m @ 2.19% Li2O

- This RC and diamond drilling reaffirms the excellent high-grade continuity and thickness of the spodumene mineralisation at Grants Lithium Deposit, near Darwin in the NT

- Detailed analysis of drill core shows narrow intervals of very high grade, up to 3.35% Li2O, consistent with visual estimates

- All assay results from the 2018 infill drilling programme at Grants are now being processed as part of a revised Mineral Resource, expected to culminate in a significant boost to the Indicated Resource category at Grants

- Grants Lithium Project Pre-Feasibility Study (PFS) to be completed shortly after Grants Resource update

- 2018 exploration and resource expansion drill programs across several other high priority targets within the Finniss Project to commence in May, as dry season commences

Three multipurpose RC and diamond core rigs have been drilling at Grants since the start of February 2018 to upgrade the confidence level of the initial high-grade lithium Mineral Resource announced in 2017. This drilling programme has been highly successful, with 49 out of the 50 resource definition holes drilled since discovery being consistently mineralised with high grade spodumene from the eastern wall to western wall of the pegmatite orebody at Grants (see Figures 1 & 2, Table 1 in link below).

The presence of narrow, but very high-grade intervals, grading up to 3.35% Li2O, is also becoming apparent in the assays of drill core. These very high-grade zones reflect the concentration and large size of the spodumene crystals that are present in the Grants pegmatite, which should provide advantages for processing of the ore to concentrate.

The key objective of the recently completed infill drill program has been to convert the existing Mineral Resource to mostly Indicated and Measured level of confidence at Grants.

With the resource drilling completed and assay results received, evaluation of an updated Mineral Resource estimate has commenced. Core anticipates that these new drill results will substantially add to the proportion of the Mineral Resource in the Indicated and Measured categories at Grants, which will in turn enable calculation of the Mining Inventory in the PFS.

Subsequent to the Grants Resource update, Core will focus on estimation of a maiden Mineral Resource at the nearby BP33 prospect (only 5kms away from Grants), which is expected to be reported in the next few weeks. Resource growth to be delivered by BP33 will be an initial step along the strong resources growth profile expected to grow mine life from the broader Finniss Lithium Project.

The Pre-Feasibility Study (PFS) supporting the development of the Grants deposit is currently underway. Core is planning to complete the PFS shortly after the Mineral Resource studies are completed as soon as due consideration is given in the PFS evaluation and modelling.

Drill Results from Grants

Multiple new high-grade lithium intersections from Grants are summarized in Table 1 (see link below) and are highlighted by:

o 41.1m @ 1.77% Li2O from 71.3m in FRCD009

-- including 10m @ 2.29% Li2O from 72m
-- including 1m @ 3.03% Li2O from 79m

o 41.0m @ 1.59% Li2O from 115m in FRC124

-- including 7m @ 2.07% Li2O from 139m

o 13m @ 2.19 % Li2O from 103m & 26m @ 1.56% Li2O from 122m in FMRD006
-- including 1m @ 3.35% Li2O from 126m

o 37m @ 1.57% Li2O from 114m in FRC121
-- including 5m @ 2.19% Li2O from 144m

Photo 1 (see link below) shows an example of a high grade spodumene interval in drill core from Grants, where spodumene makes up of 40-50% by volume of the rock mass. The lithium mineralisation at Grants presents itself consistently as coarse-grained green/grey spodumene, with the pegmatite comprised of roughly equal proportions of spodumene, feldspar and quartz.

The remarkable consistency of grade and thickness of the pegmatite is positive for mining and processing of ore, which is reflected in the outstanding metallurgical results received to date from Grants (refer ASX announcement 30 March 2017).

Only one hole of the 50 resource definition holes drilled since discovery triggers the 3m at <0.4% Li2O dilution threshold. This hole is amongst those reported here, FMRD006, where 6m @ 0.18% Li2O "waste" divides two broad intervals of higher-than-average grade - 13m @ 2.19% Li2O from 103m & 26m @ 1.56% Li2O from 122m. The remaining 49 of 50 holes are mineralised from the eastern wall zone to western wall zone, an example shown in Figure 2 (see link below).

The southern strike and plunge potential of the pegmatite remains untested at Grants (see Figure 1 in link below). The one hole that was drilled in that area (FRC109) failed to reach the target depth due to poor ground conditions and was abandoned at 103m. Consequently, Core is considering extending FRC044 to the test this zone. Core is also planning a number of exploration holes to test the down-dip potential at the southern end of Grants later in 2018.

The Company has undertaken a five-hole, HQ diameter core drilling program for metallurgical studies that will feed into Feasibility Study in 2018. Assays from these holes also form part of the Mineral Resource drilling reported here.

Geotechnical drilling and assessment is well-advanced now at Grants and will feed into detailed mine engineering and design to be included in the 2018 Feasibility Study.

Finniss Lithium Project Background

Core has established one of Australia's highest-grade lithium Mineral Resources at the Grants Deposit within the Finniss Lithium Project near Darwin Port, Australia's closest port to China.

Core has recently entered into a binding lithium Offtake Agreement and, a conditional US$20 million Pre-payment Agreement with one of China's largest lithium producers. It has also established an agreement (HOA) to export spodumene products from Darwin Port.

Core is progressing the regulatory and feasibility steps to drive the Grants Lithium Deposit through development and into production. In parallel, aggressive exploration and resource drilling programs are planned in 2018 to increase the project resource base to support long-life spodumene production from its large tenement holding located near grid power, gas and rail infrastructure and the skills and services of Darwin.

The capital city of Darwin also provides an ideal industrial, infrastructure and transport hub for potential downstream processing of lithium products as the EV and lithium battery industry continues to expand into the future.

To view tables and figures, please visit:
http://abnnewswire.net/lnk/216F7R5G


About Core Exploration Ltd

Core Exploration ASX:CXOCore Exploration Ltd (ASX:CXO) aims to grow shareholder value through the exploration for and discovery of commercially robust base metal and uranium deposits in South Australia and the Northern Territory. Core Exploration's projects have been carefully acquired in geology which hosts world-class mines and within some of the most prospective geological terrains for base metals and uranium in Australia.

    


Contact

For further information please contact:
Stephen Biggins
Managing Director
Core Exploration Ltd
T: +61-8-7324-2987
E: info@coreexploration.com.au

For Media and Broker queries:
Andrew Rowell
Cannings Purple
T: +61-400-466-226
E: arowell@canningspurple.com.au



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