Drilling at Morila. Source: Firefinch
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  • Firefinch (FFX) recaps a busy June quarter which focussed on the Morila Gold Mine and Goulamina Lithium Project in Mali
  • Firefinch increased Morila’s global resource which supported a new life-of-mine plan with an annual production of up to 200,000 ounces of gold by 2030
  • Quarterly production increased to 12,555 ounces of gold which was in line with the upper end of Firefinch’s guidance
  • Additionally, the company entered a binding term sheet with Jiangxi Ganfeng Lithium who’ll acquire a 50 per cent stake in the Goulamina Lithium Project
  • Firefinch ended the quarter with $61.8 million in cash, equivalents and bullion — marking a significant increase from the $20.3 million at the end of March
  • Company shares are trading steady at 39.5 cents

Firefinch (FFX) has recalled a busy June quarter which focused on the Morila Gold Mine and Goulamina Lithium Project.

Morila Gold Mine

Firefinch, formerly Mali Lithium, acquired the Morila Gold Mine in November last year and since then has progressed drilling activities and production.

At the start of May, Firefinch increased the mineral resource estimate (MRE) at the satellite prospects by 80 per cent which led to the global resource increasing to 50.5 million tonnes at 1.5 grams of gold per tonne (g/t) for 2.43 million ounces.

A few days later, the company released a new life of mine plan (LOMP) for the Mali-based project which detailed its planned operations through to 2030.

The LOMP was supported by the increased MRE and outlined an annual production rate of up to 200,000 ounces of gold for a total of 1.45 million ounces by 2030.

The updated plan was based on a probable ore reserve of 23.8 million tonnes at 1.4g/t gold for 1.07 million ounces that will be mined and processed over an initial seven-year reserve life at an all-in sustaining cost (AISC) of US$1124 (A$1525) per ounce.

Importantly, quarterly production totalled 12,555 ounces of gold which was in line with the upper end of Firefinch’s guidance. Production also represented an increase from the 9970 ounces produced in the March quarter.

In June alone, production totalled 5019 ounces which marked a gold production record for the company. It expects production for the September quarter to be in the range of 13,000 to 15,000 ounces.

Towards the end of June, Firefinch raised $47 million to fund increased production and drilling programs at the Morila Gold Mine. The money is also being utilised for the demerger of its Goulamina Lithium Project into a separate company.

Goulamina Lithium Project

In mid-June, the company entered a binding term sheet with Jiangxi Ganfeng Lithium to establish a 50:50 joint venture to develop and operate the Mali-based project.

Ganfeng is set to invest up to US$194 million (A$263.1 million) into Goulamina’s development and production.

US$130 million (A$176.4 million) will be invested in three stages comprising a US$2.5 million (A$3.4 million) deposit which has already been paid, an initial subscription of US$39 million (A$52.9 million) and a final subscription of US$91 million (A$123.4 million).

The Goulamina Definitive Feasibility Study (DFS) outlined an average production rate of 436,000 tonnes of spodumene concentrate per annum for an initial 23 years. This equates to around 64,700 tonnes of lithium carbonate equivalent per annum. According to Firefinch, this production profile will make the project one of the world’s ‘premier’ lithium producers.

To provide additional support, Ganfeng agreed to offtake up to 100 per cent of spodumene concentrate produced from the project across its entire mine life.

At the end of the quarter, Firefinch had cash, cash equivalents and bullion of $61.8 million which marks a significant increase from the $20.3 million at the end of the March quarter.

Company shares were trading steady at 39.5 cents at 10:53 am AEST.

FFX by the numbers
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