The Core Lithium Ltd (ASX: CXO) share price is edging lower today amid a positive announcement from the company.
At the time of writing, Core Lithium shares are down 0.47% to $1.07 each.
In contrast, the S&P/ASX 200 Index (ASX: XJO) is recovering lost ground after consecutive falls, up 1.1% to 6,504 points.
Core Lithium advances Finniss Lithium Project
Investors are bidding up the Core Lithium share price after the company provided an update on its wholly-owned Finniss Lithium Project in the Northern Territory.
According to its release, Core Lithium advised that mining rates have accelerated at the Grants Stage 1 open pit. This is due to the arrival of the dry season and the commissioning of an additional excavator and trucks to the site.
Previously, the Grants open pit was affected by higher-than-average rainfall and an extended wet season. Ultimately, this led to an increase in fuel consumption for its trucks as well as delays in open-pit mining.
Now crushing contractor CSI Mining Services (CSI) has begun mobilisation to the site as planned.
The company's Dense Media Separation (DMS) plant has been handed over to Primero which has commenced construction activities. The structural steel is being imported from China and is now, along with all DMS components, being shipped to Australia.
Core Lithium also noted it has completed the Finniss site administration and IT complex. This will allow staff to relocate from their temporary facilities to the site-based administration building.
Finally, the company received initial environmental approval for its BP33 mine and submitted the BP33 Mining Management Plan (MMP).
Despite being a two-stage process, it's anticipated the Northern Territory government will give approval during the September 2022 quarter.
The Finniss project is on track for its first production of spodumene concentrate by the end of the 2022 calendar year.
Management commentary
Core Lithium chair Greg English said:
The Finniss project is progressing well with Lucas, CSI and Primero all on site. Practical completion of the new administration and IT complex will allow staff to spend more time at the operation and should lead to productivity improvements in simply reducing travel time alone.
The submission of the BP33 Underground Mine MMP was a great achievement with formal approval anticipated from the NT Government in the coming months.
Core Lithium share price summary
Regardless of tumbling 17% in the past month, the Core Lithium share price has surged by 83% in 2022.
When looking further back, its shares are up an astonishing 369% over the last 12 months.
Based on today's price, Core Lithium has a market capitalisation of approximately $1.87 billion.
