Allkem Limited (ASX: AKE) has released an ore reserve update for its Mt Cattlin lithium operation in Western Australia.
Highlights
• Ore Reserve tonnage increased 34% to 7.8Mt at 1.20% Li2O and 130ppm Ta2O5 at a cut-off grade of 0.4% Li2O.
• The Ore Reserve and planned mining schedule suggests a projected Life-of-Mine for the next four to five years (2027-2028) via open pit mining methods. The Ore Reserve has increased with higher grade despite mining depletion to support production. The recent category upgrades in the latest Mineral Resource Estimate, and substantial increases in revenue pricing for spodumene concentrate have contributed to the increase in Ore Reserves.
• The next mining stage (Stage 4) consists of two separate cutbacks (Stage 4-1 and 4-2) to optimize ore presentation. A mining proposal for Stage 4 has been submitted to WA regulators and is anticipated to be received by the end of CY23.
• The Board has approved mining of the first cutback (Stage 4-1) of the open pit, which will result in continued spodumene production into 2026.
• In the second cutback (Stage 4-2), the increasing waste/ore strip ratio at depth via open pit mining methods is being evaluated against an alternate underground mining option. The company sees significant opportunity in transitioning to an underground mine including the unlocking of greater orebody extension potential and prolonging the life of mine.
• An underground Feasibility Study is expected to be delivered by Q1 CY24. It will enable a variety of scenarios to be modelled and will ensure an optimize future mining method is selected.
The Mt Cattlin Ore Reserve estimate is based on the Mineral Resource Estimate of 12.8Mt at 1.3% Li2O grade and 179ppm Ta2O5, released on 17 April 2023.
The Mineral Resource was updated after the completion of a major infill drilling program which successfully upgraded Inferred Mineral Resources with 92% of the total Mineral Resource tonnage now classified as Indicated Mineral Resources.
For further information please visit: https://www.allkem.co/
