It was a significant quarter for Leo Lithium, which saw a substantial resource upgrade at the Goulamina project and strategic placement being executed with Ganfeng.
The Goulamina lithium project saw great success during the June quarter, with highlights such as a significant mineral resource upgrade increasing the total Goulamina resource base by 68.7 megatons (Mt) to 211 Mt at 1.37 per cent lithium oxide.
Leo Lithium also executed both a strategic placement and a transformational cooperation agreement with Ganfeng, which is China’s largest lithium producer and Leo Lithium’s joint venture partner for the Goulamina project.
Goulamina’s construction activities now remain on track, with engineering and drafting approximately 80 per cent complete, and the first run of mine ore having been produced and stockpiled in preparation for Stage 1 production.
The company remains on schedule for producing the first spodumene product by the June 2024 quarter, with the project recently producing its first direct shipped ore.
As of June 30, Leo Lithium held cash at $67.1 million, and the Goulamina project held cash of $US60.5 million ($97 million).
Leo Lithium halted trading on the ASX on July 18 and actioned a voluntary suspension on July 20 due to ongoing incomplete discussions with the Mali Government on correspondence sent to Leo Lithium.
Leo Lithium managing director Simon Hay said the June quarter was a period of significant progress for the company.
“Our Goulamina lithium project remains on schedule and construction activities are underway,” Hay said.
“Mining has commenced with initial mining activities focused on the Stage 1 starter pit, leading to production and stockpiling of our first run of mine ore.
“The recent significant resource upgrade confirms the outstanding scale, high-grade nature, and further growth potential of the Goulamina project. We anticipate further positive developments with the latest mineral resource setting the foundation for an updated ore reserve estimate in August.”
Hay said that the Goulamina project is one of the largest lithium spodumene projects in the world.
“Given our high grades, relatively low costs of production and capital costs, we believe these characteristics make Goulamina an important strategic asset for the world’s growing demand for lithium chemicals,” Hay said.