Global Lithium Resources managing director Ron Mitchell says the company’s Manna project is ideally placed to capitalise on the looming improvement in the lithium market.
Spodumene prices dipped below US$1000 per tonne earlier this year after trading as high as US$6000/t in late 2022.
In recent weeks, producers Pilbara Minerals, Albemarle Corporation and Mineral Resources have reportedly sold spodumene cargoes at above spot prices.
“The floor is probably now 4-5 weeks behind us,” Mitchell told the Tribeca Future Facing Commodities Conference in Singapore last week.
“We’re seeing now sustained improvement and consistency in pricing and I’d expect that to continue to improve through the third quarter and leading into the back end [of the year].”
Global Lithium is working on a definitive feasibility study at Manna, 100km east of Kalgoorlie.
The DFS is advanced and is expected to be completed this year.
“We’re one of only a handful of companies on the planet in lithium at the DFS stage,” Mitchell said.
“This is a ripping project.”
Global Lithium is working with SRK Consulting and GR Engineering Services to review the key inputs to the DFS.
“When we do deliver this project to market it will be bullet-proof and competitive,” Mitchell said.
Manna has a resource of 36 million tonnes at 1.13% lithium oxide, based on just one year of drilling.
A resource update, incorporating 60,000m of drilling, is due in the current quarter.
Most of the drilling has been infill.
“What we’ve found is the grade is lifting and we’re getting great continuity, and the resource is still open,” Mitchell said.
“The under cover part of the orebody to the south is showing great potential.”
The 2024 drilling program will begin this quarter alongside the DFS and permitting work.
Mitchell said the company is hoping to receive the “holy grail”, a mining lease, in the September quarter.
“It positions us perfectly for when we do see sustained improvement,” he said.
Mitchell said the company’s three main advantages was that it owned 100% of its projects, had no royalties over the projects, and still had 70% of its offtake uncommitted.
“We’re in no rush to do offtake – it’s a weapon for us,” he said.
Global Lithium also has strategic partnerships with Australian producer Mineral Resources and China’s Canmax, the latter which it has an offtake deal with.
“The reality is in this market, in the next 2-3 years, if you want to make money in the lithium industry, you have to have a toe in China,” Mitchell said.
Global Lithium has A$36 million in cash.
“We’re fully funded all the way through to the final investment decision in the next 24 months,” Mitchell said.
