The NT Independent is providing an update of resource news from across the Northern Territory. Highlights this week include the Territory’s mineral exploration funding hitting the highest levels in more than a decade, TNG saying it still cannot give estimates on pre-production capital expenditure for its Mount Peak project, PNX starting drilling at its Glencore gold deposit, ELE to make the first shipment of magnetite to China, plus more.

Core Lithium-Tesla deal lapses 

Core Lithium’s (CX0) take-off deal with electric vehicle manufacturer Tesla to supply the latter with 110,000 dry metric tonnes of lithium spodumene concentrate has lapsed without any final agreement being completed.

CXO, early this year proclaimed a term sheet for a definitive product purchase agreement to supply Tesla with lithium spodumene concentrate from its Finnis lithium project in the Territory over four years.

The company said that despite the agreement with Tesla lapsing, it remains well-positioned to take advantage of the strong global lithium demand brought about by constrained lithium supply. Core Lithium CEO Gareth Manderson said he looked forward to maintaining an “open and ongoing” dialogue.

Territory’s mineral exploration funding hits highest levels in more than a decade

Expenditures on mineral explorations in the Territory for the June quarter of this year surged up 26 per cent to $51 million, the highest quarterly expenditure recorded since 2011, data from the Australian Bureau of Statistics (ABS) show.

Year-on-year, mineral exploration costs in the Territory also shot up by 34 per cent to $171.5 million for the 2021/22 fiscal year, from $128.3 million recorded for the 2020/21 financial year. The Territory’s 34 per cent growth was higher than the nationwide rise of 22 per cent for the period in review.

This fiscal year’s petroleum exploration expenditure for the Territory rocketed up 103 per cent to $185.2 million from last year’s $91.3 million. Petroleum exploration costs, on the whole, went up 15 per cent to $1.15 billion for this financial year.

As of June, this year, the Territory Government awarded a total of $3.06 million in funding to 29 projects from 23 companies under the Geophysics and Drilling Collaboration program—which is part of the $9.5 million yearly Resourcing the Territory Initiative intended to attract and support mineral exploration.

PNX Metals now drilling at Glencoe

PNX Metals (PNX) has commenced drilling at its Glencore gold deposit in the Territory, via a 2,000-metre reverse circulation drilling program designed to test three targets for extensions to surface mineralisation and gold-bearing quartz veins. A productive drilling program will see substantially enhanced project economics at the nearby planned Fountain Head gold development. The company’s drilling program and its assay are expected by mid-November this year.

The company said the development hosts a mineral resource estimation of 2.1 megatons at 1.2 grams per tonne of gold for 79,000 ounces of gold. Of this, 77.4 per cent is in the measured and indicated categories. The deposit contains discreet lodes over a 1.5-kilometre strike and remains open in all directions.

“If this next round of drilling is successful, it will then significantly enhance project economics at the company’s proposed Fountain Head gold development which lies just three kilometres south,” PNX managing director James Fox said

TNG is still undecided on Mount Peake’s pre-production CAPEX

TNG said it still cannot give estimates on pre-production capital expenditure for this Mount Peak project in the Territory which will be developed to be a fully-integrated operation producing vanadium, titanium and iron for export.

The company earlier anticipated it would have to put in around $824 million of pre-production capital, with extra costs to be funded by third parties.

The Mount Peake Project was recently purportedly to be one of the largest undeveloped vanadium-titanium-iron projects in the world and was awarded major project status by both the Territory and Australian governments. TNG aims to develop the project into a combined, fully integrated mining and processing operation to produce vanadium pentoxide, titanium dioxide and iron oxide for export using its TIVAN process.

TNG expects the completion of work by mid-next year when it is in a position to make a final investment decision.

Territory’s mineral exploration funding hits highest levels in more than a decade

Expenditures on mineral explorations in the Territory for the June quarter of this year surged up 26 per cent to $51 million, the highest quarterly expenditure recorded since 2011, data from the Australian Bureau of Statistics (ABS) show.

Year-on-year, mineral exploration costs in the Territory also shot up by 34 per cent to $171.5 million for the 2021/22 fiscal year, from $128.3 million recorded for the 2020/21 financial year. The Territory’s 34 per cent growth was higher than the nationwide rise of 22 per cent for the period in review.

This fiscal year’s petroleum exploration expenditure for the Territory rocketed up 103 per cent to $185.2 million from last year’s $91.3 million. Petroleum exploration costs, on the whole, went up 15 per cent to $1.15 billion for this financial year.

As of June, this year, the Territory Government awarded a total of $3.06 million in funding to 29 projects from 23 companies under the Geophysics and Drilling Collaboration program—which is part of the $9.5 million yearly Resourcing the Territory Initiative intended to attract and support mineral exploration.

Elmore makes the first magnetite shipment from Peko to China

Elmore Ltd (ELE) is set to make the first shipment of magnetite from its Peko project in the Territory after it has earlier started loading 25,000 tonnes of ore onto a ship bound for China. ELE said this first shipment will provide both revenue and know-how enabling the company to transport an estimated 30,000 tonnes. Elmore is targeting one shipment monthly after the completion of a ramp at the project site early next year.

The magnetite has been purchased under an off-take agreement with Hong Kong’s Royal Advance in July.

Elmore managing director David Mendelawitz said the shipment marks the start of the company’s path as a business focusing on cash generation.

“This shipment is a steep learning curve for all involved. From optimising the plant and loading the trains, to building the stockpile in the port shed,” Mr Mendelawitz said. “These invaluable lessons will move Elmore forward with the confidence that the infrastructure and the Peko project can deliver what we have set out to achieve.”