ASX-listed Core Lithium has reported a 52% increase in the mineral resource estimate for its Finniss lithium project, in the Northern Territory.

The project is now estimated to host 15-million tonnes of resource, grading 1.3% lithium oxide.

The measured and indicated resource has increased by 150%, to 7.62-million tonnes, at 1.41% lithium oxide, adding significant potential to increase the mine life of the newly approved project, Core said on Monday.

Core MD Stephen Biggins told shareholders that the increase in the resource estimate was a further validation of the enormous potential that the project holds.

“We are very pleased to have reached a global mineral resource of 15-million tonnes for the project and are excited to see the life-of-mine significantly improve as a result of this, when mining studies are completed later this month.

“We continue to be encouraged by the ongoing confidence in lithium demand and project support, as recently demonstrated in both our successful capital raising and in the securing of our first Europe-based offtake partner, notwithstanding the current challenging environment as we progress towards construction, commissioning and production.”

A previously completed prefeasibility study into the Finniss project estimated a pre-production capital requirement of A$53.5-million to develop a one-million-tonne-a-year operation producing 225 000 t/y of lithium concentrate.

Core recently inked its first European offtake agreement for 50 000 t/y, in addition to an existing offtake for 75 000 t/y with one of China’s largest lithium producers, ahead of the 2021 production start.