First Lithium Unveils Strong Testwork and Nears Maiden Resource in Mali

• Outstanding metallurgical testwork yields 6.8% Li2O concentrate at 80% recovery
• Maiden Mineral Resource Estimate nearing finalisation
• License renewal applications submitted and progressing with Mali government
• Cash balance stands at $0.6 million as of December 2024
• Exploration expenditure of $632,000 year-to-date

Metallurgical Breakthroughs Signal Project Potential

First Lithium Limited (ASX: FL1) has delivered a robust update for the December 2024 quarter, highlighting outstanding metallurgical testwork results that bolster confidence in the quality of its lithium deposits at the Blakala project in Mali. The company achieved a lithium concentrate grade of 6.8% Li2O with an 80% recovery rate through flotation testwork, a significant benchmark for spodumene concentrate quality suitable for global markets.

The testwork, conducted on composite samples from twelve drill holes spanning 1.3 kilometres of pegmatite veins, confirmed spodumene as the dominant lithium-bearing mineral, with heavy liquid separation tests indicating a 93% spodumene content in the concentrate fraction. These results align closely with industry standards and compare favourably to neighbouring projects such as Leo Lithium, which recently commanded a valuation of approximately $1.3 billion.

Maiden Mineral Resource Estimate on the Horizon

Concurrent with metallurgical testing, First Lithium has been advancing its maiden JORC-compliant Mineral Resource Estimate (MRE) for the Blakala project. The company’s Managing Director, Venkatesh Padala, expressed optimism that the MRE, having undergone thorough internal review, will be finalised and released shortly. This milestone is critical for transitioning the project from exploration to development phases and will provide the market with a clearer picture of the resource’s scale and economic potential.

Navigating Regulatory Terrain with License Renewals

On the regulatory front, First Lithium has lodged renewal applications for its key exploration permits at Faraba and Blakala within the mandated timeframes. While formal renewal processes have been temporarily paused due to Mali’s adoption of a new Mining Law, the company remains in active dialogue with government authorities. The local team managing these interactions anticipates that renewals will be granted early in 2025, a crucial step for securing tenure and enabling ongoing exploration and development activities.

Financial Position and Operational Outlook

As at 31 December 2024, First Lithium reported a cash balance of $0.6 million with no debt, reflecting prudent financial management amid active exploration spending. Year-to-date exploration and evaluation expenses totalled $632,000, primarily directed towards metallurgical testwork, laboratory assays, geological mapping, and reconnaissance fieldwork. The company’s recent capital raising of $2.16 million in June 2024 has supported these activities and provided working capital, although the current cash runway is estimated at just over one quarter based on recent expenditure rates.

Looking ahead, the company plans to reduce net cash outflows as it focuses on delivering the maiden JORC resource. Drilling activities are expected to recommence later in 2025, contingent on permit renewals and market conditions. First Lithium’s management remains confident in the project’s prospects and the strategic importance of its Mali assets within the global lithium supply chain.

Bottom Line?

With metallurgical success and resource clarity imminent, First Lithium’s next steps will be pivotal in unlocking value amid regulatory and funding challenges.

Questions in the middle?

• When exactly will the maiden Mineral Resource Estimate be released and what size might it reveal?
• How will the Mali government’s new Mining Law impact the timing and terms of license renewals?
• What are First Lithium’s plans to secure additional funding beyond the current cash reserves?