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Staff Writer

Leo Lithium Limited (ASX: LLL) has produced its first Direct Shipped Ore (DSO) at the Goulamina Lithium Project in Mali, West Africa.

The first blast on site was initiated earlier this month, with initial DSO mining activities focusing on the Stage 1 starter pit, which contains 1.65Mt of undiluted fresh ore of Measured resource category at an average grade of 1.68% Li2O and 0.73% Fe2O3.

The Stage 1 starter pit is centred on the Main pegmatite domain, which formed part of the recently upgraded Goulamina Mineral Resource. The starter pit will enable the mining process to be optimised and provide reconciliation data that will be integrated into the Ore Reserve update which is scheduled to be completed in August 2023.

The early works and DSO crushing contractor, Corica Mining Services, is methodically ramping up activities on site. The starter pit for the DSO operation has been prepared with the first bench completed, as the crusher and associated equipment performs to a high standard.

The company is set to award contracts for the haulage of the DSO imminently. A robust due diligence process has finalised following the issuance of the trucking tenders in April. The process involved several local contractors of high calibre with a comprehensive site visit completed by the company logistics experts to confirm quality of fleet and capability.

Discussions are also advancing well with the Port of San Pedro in Côte d’Ivoire to act as an additional port option to the Port of Abidjan in Côte d’Ivoire.

The DSO haulage process will give Leo Lithium the insights to define the optimal materials handling solution ahead of spodumene concentrate production, which is on schedule to commence in H1 2024.

First revenue from DSO is on track to be received during Q4 2023, and Leo Lithium anticipates the export of DSO ore for 6 to 9 months in advance of spodumene production.

On an annualised basis, the Company is targeting 185,000 tonnes of DSO exports until spodumene production commences.

“The early start-up of the open-pit mining operations at Goulamina via DSO is a positive milestone that positions the Company to crystalise long-term benefits,” Leo Lithium Managing Director, Simon Hay, said.

“The revenue potential during a solid pricing environment will bolster our balance sheet flexibility, as we continue to progress the Goulamina Project towards spodumene concentrate production over two stages.

“DSO also presents an opportunity for us to optimise our logistics solution as we scale up Goulamina, further de-risking the Project’s development.”

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