Pilbara Minerals Lithium resource cracks 155m tonnes
The giant Pilgangoora Lithium resource near Port Hedland has increased in size yet again after more drilling success by Pilbara Minerals and the acquisition of the neighbouring Lynas Find deposit from Dakota Minerals.
The company has announced a 22% increase in the total measured, indicated and inferred resource to 156.3 Mt, grading 1.25% Lithium Oxide and 128ppm Tantalum Oxide.
The resource now contains 1.965Mt of Lithium Oxide and 44.2 million pounds of Tantalum Oxide with 1.26m tonnes of Lithium Oxide and 27.3m pounds of Tantalum Oxide now sitting at measured and indicated status.
Interestingly, Pilbara drilled a total of 89,631m of RC and 4,974m of diamond drilling to find the resource.
He said, “From a standing start following the acquisition of the project in 2014, the Pilbara Minerals exploration team has delivered a series of resource upgrades, establishing what is now without question one of the biggest hard rock Lithium-Tantalum resources in the world.”
“With the Pilgangoora development pathway already clearly established through the DFS completed in September 2016, much more of our recent drilling has been designed for sterilization purposes and to assist with the mine and infrastructure development. Even this drilling has exceeded our expectations, resulting in the discovery of several new areas and further substantially increasing the overall resource inventory.”
The company also said that Pilgangoora remained on track for commissioning by the end of 2017, following the recent awarding of the major engineering, procurement and construction contract.
The balance of the project funding is expected to be secured this quarter.
Mr Brinsden added “With well over 100,000m of RC and diamond drilling completed on the combined project area for resource and feasibility works, Pilgangoora clearly has a sufficiently large resource inventory to underpin a world-class, low-cost mining operation for decades to come.”
Pilbara’s Definitive Feasibility Study was based on a resource of just 128.6m tonnes and it is not yet clear what economic impact the increase to 156m tonnes will have on the project.
However the company has however already published a feasibility study into doubling production from 2m tonnes per annum to 4m tonnes and the recent resource upgrade will obviously assist with that decision.
The DFS showed a stellar set of numbers that will see Pilgangoora reap AUD$9.23b in revenue and AUD$4.2b in EBITDA over the projected 36 year mine life.
Pilbara Minerals (PLS)
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