Firefinch’s Morila gold project is a growing elephant
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Firefinch expects to start mining at the Morila Super Pit (MSP) in the current quarter, which will deliver production growth and meet its 2022 guidance of 100,00oz of gold.
Start-up of the MSP, which will become a consistent and primary source of ore in the second half of 2022, comes after the company produced 10,874oz of gold in the March quarter – at the top end of its previous guidance of between 10,000oz and 11,500oz.
The company intends to focus on completing an update to the Morila resource and completing updates to reserves across the project using data from its 2021 and 2022 drill programs.
Updated resources will then be used to optimise current mining plans for Morila and the satellite deposits as well as in further studies into the potential for underground operations.
It will also continue regional exploration until the onset of the wet season.
During the March quarter, the company started mine development activities at the MSP and the N’tiola pit, both of which will feature centrally in the mine production plan as ore sources.
Mining also continued at the Viper satellite pit, which has provided a reliable source of open pit mine feed following ramp up in the fourth quarter of 2021.
Over at its Goulamina lithium joint venture with China’s Ganfeng, which is being demerged into Leo Lithium, the company received US$130m of equity funding from its Chinese partner during the March quarter.
Design and engineering work is continuing with a focus on the long lead procurement packages and the accommodation camp.
Firefinch also expects to issue tenders, adjudicate and award contracts for the ball mill, crushing equipment, thickeners and for the supply of accommodation buildings and central facilities in the current quarter.
Meanwhile, the upgrade of the existing public road will be completed and additional water bores will be installed.
The company will also finalise the route for the water pipeline from the Selinque Dam to site while continuing the drill program at Sangar and Danaya.
Goulamina will be one of the largest hard rock lithium projects in the world, with Stage 2 expansion expected to take its production profile up to an enormous 880,000tpa.
The project has a mineral resource of 109Mt at 1.45% Li2O for 1.57Mt contained Li2O comprising 8.4 million tonnes at 1.57% Li2O in the measured category, 56.2 million tonnes at 1.48% Li2O in the indicated category and 43.9 million tonnes at 1.45% Li2O in the inferred category.
This article was developed in collaboration with Firefinch, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.