Core Exploration Ltd (ASX:CXO) has strengthened its executive team with the recruitment of experienced mining finance officer Erik Palmbachs as chief financial officer (CFO). The key appointment comes as the company establishes the capabilities to move into development and production of high-quality lithium concentrate from its Northern Territory project over the next 12 months. Extensive experience as CFO Palmbachs has served as CFO during the development, start and operation of a number of mining and mineral processing projects over the past 20 years. These include mining projects in the Northern Territory, Western Australia and internationally. Notably, he was CFO at Catalpa Resources Ltd in the lead-up to the merger to create Evolution Mining Ltd (ASX:EVN) as the market cap grew from $15 million to $400 million. Jarek Kopias will continue as company secretary Jarek Kopias has served in a part-time capacity as Core's CFO since 2011 and will continue as company secretary. Core's board has thanked Kopias for his commitment to the company in the part-time CFO role. READ: Core Exploration targets lithium concentrate production at Finniss by late 2019 The company is on the path to low-capex lithium concentrate production by late 2019 at its Finniss Lithium Project near Darwin in the Northern Territory. Core aims to complete regulatory approvals, financing and internal approvals before commencing production at the Grants deposit by the end of 2019. READ: Core Exploration enters lithium offtake term sheet with US$35 million prepayment, share rise A pre-feasibility study (PFS) clearly demonstrates the Finniss project economics to be compelling, with globally competitive cash costs that result in high operating margins and rapid capital payback. Grants is a key component of the project and is expected to generate a net present value (NPV) of $140 million (pre-tax) with an internal rate of return (IRR) of 142% at an average concentrate price of US$649 per tonne. Interestingly, the NPV is anticipated to increase to $246 million if the recent spot concentrate price of US$895 per tonne is realised. Finniss comprises more than 500 square kilometres of tenements across the Bynoe Pegmatite Field, with exploration results confirming that ore-grade lithium mineralisation is widespread. Core's 2018 drilling is aimed at growing the resource to underpin a potential long-life lithium mining and production operation. The company is focused on completing a definitive feasibility study later this year.
