Leo Lithium Limited announced the production of its first Direct Shipped Ore (DSO) at the Goulamina Lithium Project in Mali.
The first blast was fired earlier this month, with early DSO mining activities centred on the Stage 1 starter pit, which includes 1.65Mt of undiluted fresh ore of the Measured resource category with an average grade of 1.68% Li2O and 0.73% Fe2O3. The Stage 1 beginning pit is centred on the Main pegmatite domain, which was recently renovated as part of the Goulamina Mineral Resource. The starter pit will enhance the mining process and provide reconciliation data included in the Ore Reserve update, expected to be finished in August 2023.
According to Leo Lithium, Corica Mining Services, the early works contractor, is expanding site activities by building a start-up pit for DSO operations and finishing the first bench.
“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,” Leo Lithium Managing Director Simon Hay said.
The Company expects to award contracts for DSO haulage shortly. Following the issuing of transportation bids in April, a thorough due diligence procedure was completed. The procedure included numerous high-quality local contractors and a full site inspection done by the Company’s logistics specialists to ensure fleet quality and competence.
Discussions with the Port of San Pedro in Côte d’Ivoire to serve as an extra port option to the Port of Abidjan in Côte d’Ivoire are also doing well.
The DSO hauling process will provide Leo Lithium with insights on the best materials handling solution before starting spodumene concentrate production in H1 2024.
The first revenue from DSO is expected in Q4 2023, and Leo Lithium expects to export DSO ore 6 to 9 months ahead of spodumene production.
“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,” Hay stated.
The Company plans to export 185,000 tonnes of DSO annually until spodumene production begins.
