Leo Lithium has assured Goulamina’s first spodumene concentrate production remains on schedule for the second quarter of 2024 (Q2 2024).
Leo Lithium received correspondence from the Malian Ministry of Mines on July 17, resulting in the Ministry directing Lithium du Mali SA (LMSA), a supplier to Goulamina, to suspend DSO activities at the project while discussions between Leo Lithium and the Ministry of Mines were pending.
Leo Lithium said despite the directive received, Goulamina is not delayed.
“Mining continues as per the pre-existing plan and mined ore is being stockpiled ahead of first spodumene concentrate production in Q2, 2024, which remains on schedule,” the company said.
“The company submitted information to the (Mali) Government explaining the DSO operations, the broader lithium industry and the benefits to the State of Mali from DSO sales.
“The Government continues to assess the submission and no formal response has been received. The company, therefore, withdraws its prior guidance on 2023 and 2024 DSO production and sales and will advise on future DSO activities only if and when approval is received from the Government.”
Leo Lithium managing director Simon Hay said that Goulamina remains a technically and financially robust lithium project, even without the addition of early DSO product.
“While Leo Lithium had a preference to bring Goulamina DSO product to market in advance of our expected spodumene concentrate production in the first half of 2024, it is not necessary for a successful project, and we did not consider a DSO opportunity in our feasibility studies,” Hay said.
“We will continue to engage with the Ministry of Mines and advance our world-class spodumene project. We anticipate further positive developments with the latest mineral resource setting the foundation for an updated ore reserve estimate later this month.”
In its June 2023 quarter report, Leo Lithium reported a significant mineral resource upgrade for Goulamina, increasing its total resource base by 68.7 megatons (Mt) to 211 Mt at 1.37 per cent lithium oxide.