Leo progresses lithium project

Leo Lithium has reached first production of direct shipped ore at its Goulamina hard-lock lithium project in West Africa after its first blast earlier this month. 

The Simon Hay-led company completed its first blast on site earlier this month with its initial direct shipped ore (DSO) mining activities focused on its starter pit at the Mali-based project. 

West Perth-based Leo owns the Goulamina hard-rock lithium project, located in the geopolitically tense Mali region, in a joint venture with major Chinese battery company Ganfeng Lithium.

"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," Leo said in an ASX statement.

The miner said spodumene concentrate production was on schedule to commence in the first halt of 2024.

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

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

Leo said its DSO crushing contractor Corica Mining Services, based in Africa, was ramping up activities on site and that it would imminently award contracts for the haulage of direct shipped ore.

“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,” Mr 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.”

This morning’s announcement led to a 6.25 per cent increase in Leo Lithium’s share price to trade at $1.062 at 12:14PM AWST.