The Core Lithium Ltd (ASX: CXO) share price is sliding this morning despite the company announcing a positive update.
At the time of writing, the lithium producer’s shares are swapping hands at $1.33, down 5%.
It’s possible the dip may be part of a broader fall across the All Ordinaries Index (ASX: XAO), which is trading 1.6% lower at 7,601 points at the time of writing. This follows a disappointing finish on Wall Street on Friday, with all major indices deep in the red.
Let’s take a closer look at what Core Lithium released to the ASX.
Core Lithium progresses on Finniss Lithium Project
In today’s release, Core Lithium announced a crushing services contract with CSI Mining Services (CSI) for the Finniss Lithium Project.
Based in Western Australia, CSI is a wholly-owned subsidiary of mining services giant Mineral Resources Ltd (ASX: MIN).
Core Lithium said the process would involve feeding the stockpiled run of mine ore into the CSI crusher circuit. The crushed ore would then be “stockpiled before being processed by the dense media separation plant to make spodumene concentrate for export”.
While crusher civil works are nearing completion, the company expects plant and equipment to be mobilised to the site next month.
Core Lithium is building Australia’s most advanced lithium project, with the first production of lithium concentrate scheduled in Q4 2022.
Once online, the Finniss Lithium Project will be the first Australian lithium-producing mine outside Western Australia.
Core Lithium managing director Stephen Biggins commented:
The award of the crushing contract is another significant step in the development of the Finniss Lithium Project. Core staff have done a great job getting the site ready for CSI to start work next month.
Regardless of the positive news, the Core Lithium share price has come under selling pressure today.
About the Core Lithium share price
In the past year, Core Lithium has surged close to 400% and is up around 130% year to date.
The company’s share price reached an all-time high of $1.675 earlier this month before taking a breather.
Based on valuation grounds, Core Lithium has a market capitalisation of roughly $2.33 million.