Core Lithium Ltd (ASX: CXO) shares are pushing higher on Friday morning.
At the time of writing, the lithium miner's shares are up 3% to $1.14.
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Why is the Core Lithium share price charging higher?
Investors have been bidding Core Lithium shares higher today after the company released a positive announcement.
According to the release, the company's board has approved the funding of the early works for the BP33 underground project. Core Lithium expects to spend a total of $45 million to $50 million on the early development of the next proposed mine at the Finnis project. This will cover the complete development of a box-cut and preliminary site establishment.
The full development costs for the project will not be known until further studies are complete and include the new BP33 resources.
Subject to a potential early wet season, modelled geotechnical and groundwater impacts, Core Lithium expects the early work to be complete by end of the first quarter of 2024. Around the same time, it expects to be in a position to make a final investment decision on the project.
Management commentary
Core Lithium's CEO, Gareth Manderson, commented:
We are pleased to announce this positive, incremental investment decision that allows initial works to be undertaken while the feasibility study is completed for BP33, our potential next mine at the Finniss Lithium Operation.
I am pleased the civil works contract has been awarded to a successful locally based business, Northern Australian Civil. NAC currently provides civil construction activities at Grants Operations and is a fantastic local contracting partner which employs local Darwin and NT residents and invests back into the Territory.
We will continue focus on the safe ramp up of the Grants open pit and concentrate production through the DMS plant. We will aim to provide final project expenditure and other project metrics once we have incorporated the increased resources into our studies by Q1 CY24.
