Atlantic Lithium pre-feasibility study confirms robust economics for Ewoyaa Project in Ghana
( ), an Africa-focused lithium explorer, has announced final assay results from its work programme at Ewoyaa Lithium Project in Ghana.
Atlantic said final assay results were received for another 10km of exploration and infill diamond core (DD) drilling and reverse circulation (RC) drilling at Ewoyaa. The results are part of Atlantic's now completed 47km resource evaluation and exploration RC and DD programme at the site.
The assay results confirmed new mineralised pegmatites at the Grasscutter North, Kaampakrom North, and Assan targets, outside the currently defined 30.1Mt @ 1.26% Li2O Ewoyaa JORC resource. Some notable high-grade drill intersections reported at Kaampakrom North and Grasscutter North include 6m at 1.23% Li2O from 42m and 20m at 1.62% Li2O from 44m.
Furthermore, notable results from the Assan target approximately 3km north-east of the northern-most current pit design include 6m at 1.49% Li2O from 66m and 6m at 1.44% Li2O from 45m, demonstrating further potential within the mineralised pegmatite swarm.
Location of reported assay results with notable drill intersections
Lennard Kolff, Interim CEO, commented on the results and the company's position heading into 2023:
"Drilling continues to deliver high-grade drill intersections outside the current MRE.
...
We have now reported all assay results for the approximate 47,000m drilling programme, with a Resource upgrade targeted for Q1 2023 and a DFS targeted for completion mid-2023.
With the Pre-Feasibility Study delivered, the Mining Licence application submitted, the FEED engineering contract awarded and the funding agreement with our partner Piedmont Lithium in place, we feel the Company is ideally positioned to benefit from the ongoing lithium demand expected over the coming years."
View from Vox
Atlantic has again delivered solid final assay results from Ewoyaa lithium project, wrapping up its 47km exploration programme at the site. The new batch confirms significant near-surface mineralisation outside the current MRE of 30.1Mt @ 1.26% Li2O.
Based on these results, investors should expect a resource upgrade for Ewoyaa in 1Q 2023, followed by a definitive feasibility study (DFS) by mid-2023.
Ewoyaa's recently announced pre-feasibility study already demonstrated significant profitability potential for a 2 Mtpa operation, producing an average of 255,000tpa of 6% Li2O spodumene concentrate (SC6) over 12.5 years with an average life of mine (LOM) EBITDA of US$248m/year. The study showed LOM revenues exceeding US$4.84bn, a post-tax NPV8 of US$1.33bn, and IRR of 224% with estimated capital costs of US$125m and a short payback period of 5 months.
Last month, Atlantic awarded a FEED contract to Primero to "optimise the project's flow sheet, identify long lead items, maximise the project's long-term profitability, [and] reduce execution risk".
Primero has extensive experience delivering large-scale construction contracts. The company has provided services for a number of lithium projects with comparable flow sheets to Ewoyaa's, including Bald Hill (Tawana Resources), Pilgangoora (Pilbara Minerals), Finnus Lithium (Core Lithium), Mt Holland (Covalent Lithium), and Xuxa (Sigma Lithium).
Atlantic stock rose 2% on today's news and remains up 22.5% over the past year as investors have supported the company's aggressive schedule to production. With demand for lithium and critical metals on the rise, we recommend investors interested in renewable energy Atlantic Lithium as the company and its partner work to deliver Ghana's first lithium mine.
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