Not even a substantial resource upgrade could help Core Lithium (ASX: CXO) escape the broad-based selloff across lithium stocks on Tuesday. The company's stock is down -6.5% at noon.
Ongoing drilling and exploration efforts has extended the flagship Finniss Lithium Project’s Life of Mine to 12 years.
The project's Stage 1 Definitive Feasibility Study announced last July outlined an initial Life of Mine of 8 years.
Measured and Indicated mineral resource increased by 61% to 13.3m tonnes 1.40% Li2O
Approximately 70% of the mineral resource estimate is in the higher confidence Measured and Indicated categories
Ore Reserves Estimate increased by 43% to 10.6m tonnes at 1.3% Li2O
Construction and mining activities are ramping at the Finniss project, with its first lithium shipment slated for the end of 2022.
It's a sea of red for lithium stocks on Tuesday, with most names down between 1-5%.
Another covid outbreak in China has tempered the demand outlook for commodities. At least 6 cites have widespread restrictions, with approximately 30 million citizens facing covid curbs, according to Bloomberg.
Fears of another lockdown has rattled EV shares, with Tesla and Nio down a respective -6.6% and -9% overnight.
Risk sectors such as tech and discretionary headlined losses on Wall Street ahead of the closely watched US inflation report on Wednesday.
In turn, the Rare Earth/Strategic Metals ETF fell -5.4% overnight to a fresh 13-month low.
The ETF is comprised of several major Chines and ASX-listed battery metal stocks and a useful indicator for lithium sector performance and sentiment.
It's not a good look when the ETF undercuts recent lows during a time when most ASX-listed names are clinging on recent selloff lows.
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