Eye on Lithium: Core adds another 18,500 tonnes of spodumene to offtake deal with Yahua

• Core adds to offtake deal with Sichuan Yahua for another 18,500 tonnes of spodumene
• Red Mountain Mining plans exploration at NT project in the dry season
• Winsome flags more high-grade assays from drilling at its Adina project in Canada

All your ASX lithium news for Thursday, March 23

Lithium producer Core Lithium (ASX:CXO) has reached an agreement with Sichuan Yahua for the sale of additional spodumene concentrate from its Finniss Lithium Operation. 

Yahua has agreed to buy the first spodumene concentrate from the project of in two parcels of around 3,500 tonnes – expected to be shipped by the end of April – plus 15,000 tonnes of concentrate from ore mined from the Grants pit, to total 18,500 tonnes.

Payment for 80 per cent of this volume is scheduled in April 2023, with the balance due upon shipment. 

Pricing for both cargoes is linked to the Fastmarkets (spodumene 6% CIF China) price with no floor or ceiling. 

“The prepayment provides additional working capital and assists Core to manage our cash flow as we continue to ramp up operations,” CEO Gareth Manderson said.

“Commencement of concentrate production early this year and the agreement for the first sale of concentrate from the Finniss mine demonstrates that Core continues to deliver against its milestones.” 

Notably, the agreements for these tonnes are in addition to the existing binding agreement to sell Yahua 300,000 tonnes over four years, signed in 2019.

CXO share price today:

Here’s how ASX lithium stocks were tracking today:

A total of 29 stocks were in the green, 48 were flat and 59 were red.

Who else has news out today? 

RED MOUNTAIN MINING (ASX:RMX)

The company has completed the initial field investigation of tenement EL 33346 at its Charlotte lithium project in the Northern Territory ahead of more extensive exploration planned in the dry season in May.

The preliminary field mapping identified 4 pegmatite outcrops over accessible parts of the tenement and 3 pegmatite trends.

While access to the central and eastern areas of the tenement were restricted by access issues associated with the current wet season, the company says the areas remain prospective for exploration and will be further investigated during the dry season.

WINSOME RESOURCES (ASX:WR1)

The explorer has flagged further high-grade assay results from drilling at its Adina project in Quebec, Canada, including 2.40% Li2O over 9.0m from 49.0m and 1.92% Li2O over 18.0m from 48.0m. 

“Results from drilling are demonstrating that Adina is a robust lithium project well placed for development to supply future North American demand,” MD Chis Evans said.

“We have intersected mineralisation on every drill section over a 700-metre strike length.

“More importantly the consistency of grade and width through the core of the deposit is very encouraging and gives encouragement for the future development of the project.” 

A third drill rig will be mobilised to the project in coming weeks to further investigate potential strike length and depth extension of main pegmatite body and follow up on other gravity targets. 

AUSMON RESOURCES (ASX:AOA)

The WA Department of Mines Industry Regulations and Safety (DMIRS) has granted the company’s subsidiary AUSBCM two tenements totalling 275.8 km2 for five years.

“The company is planning to commence field exploration program in the second half year 2023 to evaluate the potential for lithium that has not been previously explored for in those areas,” Chief Technical Officer Mark Derriman said.

The plan is to determine if these pegmatites belong to the Lithium Caesium Tantalum (LCT) variety that is associated with lithium mineralisation currently being mined as several operations within Western Australia. 

RMX, WR1 and AOA share prices today: 

LIGHTNING MINERALS (ASX:L1M)

The company reported an elevated lithium-in-soil anomaly over a broad ~8km2 area at its Dundas project in WA – including a peak result of 218ppm lithium. 

Planning of follow-up exploration is underway including infill soil and auger sampling programs at a tighter grid spacing. 

The company says this will add further confidence to an initial drill program targeting the identified area. 

ARGONAUT RESOURCES (ASX:ARE)

The company has commenced a 3,000m RC drilling program targeting LCT pegmatites at the Darson prospect within its 80% held Higginsville project in Western Australia.

Initial drilling is targeting a major geochemical anomaly with accompanying outcropping pegmatites at Darson South.

The program is expected to be completed in three weeks. 

SCORPION MINERALS (ASX:SCN)

RC drilling at the Youanmi project has confirmed shallow east dipping LCT pegmatites along 3km of strike, and that mineralisation extends to a minimum of 175m below surface – deeper than initially anticipated.

“We have now extended the lithium corridor at Youanmi to over 850m, which provides us with significant momentum as we scale up our drilling and exploration efforts in the region,” executive chairman Bronwyn Barnes said.

L1M, ARE and SCN share prices today:

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