Essential unveils 50% to increase to Dome North lithium Indicated Resource - The Pick Online Magazine

Essential Metals (ASX:ESS) has reported significant growth to the Dome North Lithium Project Indicated Resource as it continues to progress a Scoping Study for the WA project.

Highlights

• Lithium within the higher confidence Indicated Resource category has increased from 5.4Mt @ 1.3% Li2O containing 70,000 tonnes of lithium to 8.6Mt @ 1.23% Li2O containing 105,000 tonnes, an increase of 50%.

• An impressive 81% of the total contained lithium within the Mineral Resource has now been upgraded to the higher confidence Indicated Category, reflecting the thick, high grade and out-cropping nature of the deposits.

• Metallurgical test work has confirmed minimal oxidation of the spodumene at Cade with excellent recoveries demonstrated from the shallow mineralisation.

• The total lithium Mineral Resource was little changed, updated to 11.2Mt @ 1.16% Li2O containing 129,000 lithium tonnes (from 136,000 lithium tonnes).

• The upgraded Mineral Resource will be used to complete a mining optimisation study based on three open pits. The pit optimisation outcomes will then be incorporated into the Scoping Study due for completion in January.

• All exploration targets generated from the structural review are on track to have been field checked by early January. Assays from field samples will be received during January and February.

 “The work undertaken this year to improve the quality and confidence of the Dome North lithium Mineral Resource has paid off and we are now positioned to move into feasibility studies to determine the optimal development pathway,” Managing Director, Tim Spencer, said.

“This work, which entailed drilling and metallurgical test work focussed on the Mineral Resource, allows the Company and its Scoping Study manager, Primero, to complete a scoping study that will assist in attracting a project partner that is prepared to help fund development of the Project in return for offtake rights.

“We will of course be considering all development options including fast-tracking Direct Shipped Ore (DSO) cargoes as a means to bring forward cashflow.”

The 450 sq. km Pioneer Dome Project (ESS: 100%) is in the core of Western Australia’s lithium corridor in the Eastern Goldfields, approximately 130km south of Kalgoorlie and 275km north of the Port of Esperance. A Mineral Resource of 11.2Mt @ 1.16% Li2O has been defined at Dome North in the northern area of the Project.

The southern Yilgarn area is recognised as being well-endowed with spodumene deposits, including the Pioneer Dome, Bald Hill Mine, the Mt Marion Mine, the Manna Project and the Buldania Project, all of which are located within a circle with a 90km radius. The world-class Greenbushes Deposit, the Mt Holland Mine and the Mt Cattlin Mine are located further west, south-west and south-south-west, respectively.

Upcoming events

December 2022

• Receipt of non-binding expressions of interest (EOI) from parties seeking a financing and off-take partnership to assist with advancing the Pioneer Dome Lithium Project into production.

January 2023

• Completion of the Pioneer Dome Lithium Project Scoping Study.

• Short-listing of EOI interested parties to negotiate final offered terms then ESS selecting its preferred

project partner and enter into binding term sheets covering offtake and project funding.

February 2023

• Update on exploration activities at Pioneer Dome following field reconnaissance work focussed on the 40+ targets generated from the structural interpretation completed in November.

March 2023

• Commence detailed feasibility studies.

https://www.essmetals.com.au/