How Core Lithium’s New Mine Plan Accelerates Grants Ore and Cuts Costs

Optimised Mine Plan Drives Early Revenue

Core Lithium Ltd (ASX, CXO) has reported a strong December quarter, highlighting a reconfigured mine plan for its Grants deposit within the Finniss Lithium Project. This revised approach will see the mine initially operated as an open pit, enabling first ore delivery within a month of operations commencing. This acceleration not only brings forward revenue but also trims pre-production capital requirements by an estimated $35 to $45 million, a significant cost saving for the project.

The updated mine plan also incorporates a shift to underground mining with waste backfilling techniques, maximising recovery and operational efficiency. This strategic pivot reflects Core’s commitment to de-risking the project and enhancing its economic profile ahead of a Final Investment Decision (FID).

Ore Reserves and Technical Progress

Alongside the mine plan update, Core announced an increase in its Ore Reserve Estimate for the Finniss Project to 15.6 million tonnes at 1.27% lithium oxide (Li2O). This represents a 33% increase in tonnage and a 44% increase in contained lithium metal at the Grants deposit alone, underscoring the resource’s growing value.

Technical studies supporting the FID are advancing on schedule, focusing on final engineering designs and operational readiness. These efforts aim to position the Finniss project for a timely restart, capitalising on improving spodumene concentrate prices and a more favourable investor sentiment in the lithium sector.

Financial Strength and Strategic Moves

Core’s financial position strengthened during the quarter, with cash reserves rising to $48.7 million from $35.9 million at the previous quarter’s end. This improvement was bolstered by a $5 million divestment of non-core uranium assets to Elevate Uranium Ltd, which included both cash and shares, plus a 1% net smelter royalty on the Napperby Project.

The company also resolved all prior offtake agreements, including those with Tesla, through a confidential settlement, leaving future lithium production unencumbered and flexible to market conditions. Core’s management is actively progressing strategic funding discussions with multiple high-quality partners, aiming to secure the capital necessary for project advancement.

Exploration and Sustainability Efforts

Exploration activities continued with plans for diamond drilling at the Blackbeard prospect and regional gold sampling at the Shoobridge Gold Project, reflecting Core’s broader resource ambitions. Sustainability remains a priority, with no safety or environmental incidents reported and proactive water management measures implemented ahead of the wet season.

Core Lithium enters 2026 with a clear focus on operational readiness and funding finalisation, setting the stage for a potential restart of the Finniss Lithium Operation that could capture the upside of a recovering lithium market.