Ore Resources Limited has released a scoping study for the Kangaroo Hills Lithium Project in Western Australia, shifting the 100%-owned asset from an exploration prospect into a modeled direct shipped ore operation.

The scoping study outlines a capital-lite development plan requiring A$24.9 million in upfront capital costs. The operation is designed to mine and truck 1.19 million tonnes of direct shipped lithium pegmatite ore at an average grade of 1.07% Li2O over a 16-month mine life. The study models a pre-tax real net present value at an 8% discount rate of A$220.8 million and pre-tax net cash flow of A$237.5 million, based on a lithium direct shipped ore price input of A$430 per tonne on a CIF basis.

The economic assessment coincides with the declaration of an initial Mineral Resource for Kangaroo Hills totaling 3.10 million tonnes at 1.01% Li2O, containing 31,200 tonnes of contained Li2O at a 0.40% Li2O cut-off. Previous company announcements focused on reporting drill intercepts across the Big Red and Potoroo pegmatite systems without an established resource base.

“On behalf of the team at Ore Resources, I am delighted to present this capital-lite and short-lead production plan for the Kangaroo Hills Lithium Project. The Study demonstrates that a contractor-led DSO development pathway at Kangaroo Hills offers a low-cost, rapid pathway to substantial free cashflow generation, underpinned by robust technical and operating outcomes.”

— Nick Rathjen, Managing Director and CEO

Ore Resources is targeting a Final Investment Decision for the project in mid-2027, subject to receiving necessary mining and environmental approvals and finalizing project financing. The company is advancing discussions with potential strategic and commercial offtake partners to secure a non-dilutive prepayment funding solution.

Read the full announcement: DSO Study Fast-Tracks Kangaroo Hills Lithium Cash Flow