PLS Group’s updated Ore Reserve for Pilgangoora represents a material strengthening of the operation’s long-term production base. The company announced a 31% increase in contained lithium at the asset, bringing total lithium content to 3.1 million tonnes of Li2O. The Ore Reserve itself reached 249.2 million tonnes at 1.24% Li2O, representing a 23% increase in tonnes from the previous reserve. The net addition of 46.5 million tonnes of ore reflects management’s confidence in the P2000 expansion, which was announced concurrently and commits the company to substantially higher production rates.
The reserve expansion reflects improved metallurgical understanding and processing capability rather than new mineral discoveries. The company’s P2000 Feasibility Study demonstrated that its ore sorting and processing plants can economically recover material containing up to 35% waste, a tolerance that was previously uneconomical. This advance enabled a reduction in the pegmatite cut-off grade to 25%, converting previously marginal material into mineable ore. The reference point for reserve reporting was shifted from run-of-mine material to coarse ore stockpile after crushing-and-sorting, providing greater clarity on what will actually feed the wet processing plants. These technical refinements support the higher reserve estimate without requiring new discoveries.
Beneath the existing open pits, PLS has established a maiden Underground Ore Reserve of 46.5 million tonnes at 1.50% Li2O. This higher-grade inventory adds meaningful optionality to the operation. The company states the combined open pit and underground reserve supports more than 25 years of mine life at the planned processing rates, compared to around 20 years from the open pit alone. This extension provides valuable optionality, allowing the company to manage extraction sequencing and respond to market conditions over a longer timeframe. The underground feasibility study was conducted by AMC Consultants and identified overhand longhole stoping as the preferred mining method.
The updated mineral resource has been recast to 403 million tonnes at 1.33% Li2O, an 8% reduction in tonnes but with higher average grade. This reflects a revised assessment of what is economically extractable under the updated parameters rather than a change to the underlying geological model or estimation methodology. The deposit continues to support substantial scale, positioning Pilgangoora as a world-class asset. The company notes that the reserve remains robust to price and cost sensitivities, with a 20% swing in commodity prices and operating costs still supporting positive project economics.
Investors should monitor PLS’s execution of the regulatory approvals process, which remains a key path item. The company flagged that expanded pit designs, underground mining operations, and increased water abstraction will require referrals under both Western Australian and Commonwealth environmental legislation. PLS expressed confidence in obtaining approvals within assumed timeframes, but any material delays could affect the reserve schedule. The company also plans staged multi-year drilling campaigns starting in March 2027 to test the Bridge Zone and other unclassified pegmatites, which could materially increase the resource and exploration target over time. This announcement is price sensitive and has been flagged as material by the ASX.
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About PLS Group Limited (ASX: PLS)
PLS Group Limited is a global producer of lithium materials that explores, develops, and operates mineral resources with a focus on lithium extraction. The company owns and operates the Pilgangoora lithium mine in Western Australia’s Pilbara region and the Colina Project in Brazil, with spodumene concentrate primarily exported to lithium chemical converters in China. The company is also integrated into the lithium value chain through a joint venture with POSCO in South Korea for battery-grade lithium hydroxide production.
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