The Core Lithium Ltd (ASX: CXO) share price is edging lower on Tuesday.
In morning trade, the lithium developer's shares are down 1% to $1.24.
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Why is the Core Lithium share price falling today?
The Core Lithium share price is falling on Tuesday despite the release of a business update.
According to the release, the Finniss Lithium Project is close to making its first shipment of spodumene.
Management advised that preparations are underway for Core's first shipment of direct ship ore spodumene from the project before the end of 2022.
The company is planning to follow the lead of Pilbara Minerals Ltd (ASX: PLS) by selling this shipment via a tender process using a digital exchange platform. The company decided to go down this route due to the "high level of interest in Finniss ore."
Drilling update
Also failing to lift the Core Lithium share price today was news that high grade spodumene bearing pegmatite has been intersected in multiple holes at the BP33 prospect, up to 830 metres below surface.
This is promising as the proposed BP33 underground mine will be the second mine at the Finniss project.
Core has already been granted environmental approval for BP33 from the Environmental Protection Authority (EPA). The next goal is getting the Mine Management Plan approved. It has been submitted to the Department of Industry, Tourism and Trade, which represents the final step to complete the approvals process.
Core's CEO, Gareth Manderson, was pleased with recent developments. He commented:
Core Lithium continues to demonstrate progress towards building a great lithium business through the delivery of the Finniss Project to production and the ongoing work to prove up our resources to support future operations. Finniss will come online at a time of high lithium demand.
Core has significantly increased exploration and resource expansion funding to grow the resource at Finniss. The diamond drilling results from BP33, the second lithium mine planned at Finniss, demonstrates the value of this investment. Spodumene bearing pegmatites were intersected in multiple holes at BP33. Importantly, these intersections sit well outside of the current BP33 Mineral Resource and will likely contribute to a positive Mineral Resource update.
