Lithium’s Core mine is located south of Darwin. (FLEET SPACE TECHNOLOGIES)
Australia’s new lithium mine is using what could be the “holy grail” of exploration technology as it tackles the extreme conditions of the High End.
Lithium, a key ingredient in electric vehicle batteries and energy storage, is a hot commodity amid the push for practical ways to run the clean economy.
Known as “white gold” because of its rising price and color, prospectors first look for pegmatite.
A historic field test using ground extraction technology has identified large crystal-shaped rock bodies that indicate lithium deposits down to a depth of more than 500 meters at the Finniss Core Lithium Project south of Darwin.
A device developed by Adelaide-based nano-satellite company Fleet Space Technologies could revolutionize the exploration of vast and complex terrain by providing secure, fast, accurate data to power exploration dreams.
“Core has been looking for geological technology to help detect pegmatites for many years,” the company’s exploration manager Andy Bennett told AAP.
“We tested conventional magnets, gravity and passive seismic, and so on.”
Although useful information was obtained, none of the methods were able to detect pegmatite directly.
“The general consensus among geophysicists was that detecting pegmatite directly was impossible, and doing so would be tantamount to finding the holy grail,” said Mr Bennett.
“When Fleet Space approached us with their ideas, I started doing basic research.”
He realized that if the speed of the pegmatite – measured by the rate of waves hitting the survey equipment – was different from the surrounding rock, it could work.
“So we bought a sonic velocity tester and tested our sample,” he said.
“Sure enough, we got the speed difference.”
Later, Core conducted a field test on a known deposit and found a low-velocity zone that is “simple” exactly where pegmatite occurs.
“Now, with the ability to detect pegmatites and do so almost in real time during exploration, we can see the potential to modify our exploration programs and discover new pegmatites, especially those buried under cover,” Mr Bennett explained.
Fleet Space expects Exosphere’s technology to support mineral discovery in the energy transition and changes required in the mining industry.
Vast swaths of Australia have been drilled, mined and abandoned.
“We created the ExoSphere to provide a sustainable, faster and more economical alternative to current exploration practices,” said Fleet founder Matt Pearson.
The technology can help meet growing global demand, and support cleaner air transportation and more sustainable industrial practices, he said.
Analysts at Fitch Solutions expect lithium prices to “remain very high” in 2022 and 2023 on accelerating demand for lithium-ion batteries and tight supply.
“In the long term, lithium prices are likely to be affected by green fees due to the high priority of sustainable lithium production techniques,” Fitch said in a research report this week.
It predicts the “lithium shortage” will continue until 2031 but also expects an increase in the market in the coming years led by new sources from Australia, Canada and the United States.
“Australia remains one of the most attractive mineral markets in the world, has a government funded to support the development of the lithium and key minerals industry, and the best commercially-available spodumene reserves at present. ,” according to Fitch.
Federal Resources Minister Madeleine King said Australia’s potential for key minerals was huge.
They support almost every important technology that will support the transition to net zero carbon emissions, she told a mining audience in Brisbane on Thursday.
The International Energy Agency predicts that 60 more mines will be needed by 2030 to meet global carbon and electric vehicle targets.
Core’s chief financial officer Simon Iacopetta, speaking at the recent Diggers and Dealers Mining Forum, said he expects the first shipment by the end of the year and commercial production to begin in the first half of 2023.
Chinese producer Ganfeng Lithium and Sichuan industrial group Yahua are on board – each securing a supply of 300,000 tonnes over four years in excess contracts.
A four-year deal was also signed with electric car company Tesla worth up to 110,000 tonnes.
Some 88km up the road from the port of Darwin, Core Lithium has more than 500sqkm of what it says is the largest potential lithium site in the Northern Territory.
With operations still under construction, it is predicted to become the fourth largest lithium miner on the ASX, behind Pilbara Minerals, Allkem and Liontown Resources.
But the CEO of Core Exploration is trying not to get too excited, saying the company is “cautiously optimistic”.
“Despite the early promise, it’s still early days, so it remains to be seen what geometries we can discover,” said Mr Bennett.
Meanwhile, Core Lithium’s share price has almost doubled in the past month.
