Grants Mine Plan Shift: Can Core Lithium Deliver Faster Production Amid Market Pressures?
Core Lithium has unveiled an updated mine plan for its Grants deposit at the Finniss Lithium Project, increasing the Ore Reserve by 33% and cutting pre-production capital costs by up to $45 million.
- Grants Ore Reserve increased to 1.53 million tonnes at 1.42% Li2O
- Pre-production capital reduced by $35–$45 million via open pit start
- Mining to commence with open pit, transitioning later to underground
- First ore delivery accelerated to within one month of mobilisation
- Update supports strategic funding and leverages extensive technical studies
Optimising Grants for Faster Production
Core Lithium Ltd (ASX – CXO) has announced a significant update to its Grants mine plan within the Finniss Lithium Project in the Northern Territory. The company’s revised strategy involves initially mining Grants as an open pit before transitioning to underground operations. This shift not only accelerates the timeline for first ore delivery to within one month of mobilisation but also slashes pre-production capital expenditure by an estimated $35 to $45 million.
Ore Reserve Expansion and Economic Implications
The updated Ore Reserve estimate for Grants now stands at 1.53 million tonnes grading 1.42% lithium oxide (Li2O), marking a 33% increase in tonnage and a 44% uplift in contained lithium metal compared to previous estimates. This enhancement is underpinned by a comprehensive geotechnical reassessment and mine design optimisation, supported by independent consultants and Core’s competent persons.
By deferring the more capital-intensive underground infrastructure and leveraging existing surface infrastructure, Core Lithium reduces capital intensity and brings forward revenue generation. The economic analysis, conducted to a pre-feasibility level, confirms positive net present value outcomes even under sensitivity scenarios, with commodity price fluctuations being the most impactful variable.
Technical and Operational Details
The open pit design optimises pit slopes and geometries to reach a depth of approximately 145 meters below ground level, accessing an additional 740,000 tonnes of ore. The underground phase will employ long hole open stoping with rock backfill, a method well-suited to the orebody’s geometry and ground conditions. Processing will continue to utilise dense media separation complemented by gravity recovery circuits, building on prior operational experience and metallurgical test work.
Importantly, no changes have been made to the overall Mineral Resource estimates, which remain robust and unchanged since the May 2025 update. The company also continues to explore regional targets within the Finniss Project, including Blackbeard, BP33, and Carlton, which hold promising exploration potential.
Strategic Outlook and Regulatory Status
Core Lithium’s CEO Paul Brown highlighted that the updated mine plan strengthens the project’s appeal to strategic investors by lowering upfront capital requirements and accelerating cash flow. The company anticipates all necessary regulatory and environmental approvals will be secured in time to support the development schedule. Concentrate transport logistics remain established via the Cox Peninsula Road to Darwin Port.
Bottom Line?
Core Lithium’s Grants update sharpens Finniss’s competitive edge, but market watchers will watch closely for regulatory green lights and commodity price swings.
Questions in the middle?
- How will the reduced pre-production capital impact Core Lithium’s funding strategy and timeline?
- What are the risks and contingencies if regulatory approvals face delays?
- Could further exploration at regional targets materially extend the Finniss Project’s mine life?
