The Core Lithium Ltd (ASX: CXO) share price has started the week positively.
In morning trade, the lithium miner's shares are up 4% to 39 cents.
Why is the Core Lithium share price rising?
Investors have been bidding the Core Lithium share price higher today after the company released an update on its BP33 deposit at the Finniss Lithium Operation.
According to the release, Core Lithium has upgraded the mineral resource of the BP33 deposit following recent feasibility study resource definition drilling.
The drilling has led to an increase in the proportions of the measured and indicated categories to 9.36Mt, 89% of the total mineral resource estimate. Previously, 6.94Mt was in the measured and indicated categories.
The company notes that these increases in measured and indicated mineral resource, along with the resultant increase in geological confidence, can now be considered for conversion to the BP33 ore reserves.
In addition, infill drilling completed as part of a resource definition program has also led to an increase in the average grade of the mineral resource estimate at BP33 from 10.1Mt at 1.48% lithium oxide to 10.5Mt at 1.53% lithium oxide.
All this bodes well ahead of a final investment decision early next year.
'A significant step.'
Core Lithium's CEO, Gareth Manderson, was pleased with the news. He said:
Increasing the confidence in the BP33 resource is a significant step in the progress of the feasibility study and supports the development of the BP33 mine plan. These results, which include a higher proportion of the Measured and Indicated Resource category can now be considered for conversion to BP33 Reserves.
The early works program and the construction of the covered box cut is progressing well. We remain on schedule to make a Final Investment Decision for BP33 in early 2024.
