Atlantic Lithium unveils Ewoyaa development plan
( ), an Africa-focused lithium explorer, issued an update on the Definitive Feasibility Study (DFS) for its flagship Ewoyaa lithium project in Ghana, and unveiled a multistage development plan for the project.
The DFS will be based on Atlantic's upgraded mineral resource estimate for Ewoyaa of 35.3 Mt @ 1.25% Li2O, announced on 1 February 2023. The DFS is included in Atlantic's multistage development plan for the project, featuring mine throughput scenarios.
Stage 1 of Atlantic's plan for Ewoyaa involves crushing and screening to three size fractions (1-10mm) to improve cycle performance, retaining sales of natural occurring fines as a DSO byproduct, and modeling mine throuhgput scenarios.
Ewoyaa Stage 1 flowsheet
Stage 2 involves scoping studies, comprising of 3 separate streams: evaluation of early SC6 production opportunities to capitalise on current SC6 prices, later-stage beneficiation of natural occuring fines to SC6, and production of feldspar byproduct to reduce waste and supply Ghana's growing ceramics industry.
Atlantic noted that the front-end engineering design (FEED) and DFS for Ewoyaa were "well progressed", and the DFS remained on track for release in Q2 2023.
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Atlantic's staged project development plan for Ewoyaa should enhance the project's economics by optimising processes along the chain of production. Ewoyaa has already benefitted from a much improved MRE announced in February of 35.3Mt at 1.25% Li2O, including 79% in the high-confidence Measured and Indicated categories. We expect further MRE upgrades in the future, resulting from Atlantic's recently announced 2023 work programme for Ewoyaa.
The definitive feasibility study (DFS) will be based on the new MRE and is still targeted for release in Q2 2023.
The DFS will be based on the aforementioned stage 1 flow sheet (see image above), focused on improved plant efficiency and increased metal recovery. The flow sheet details a crushing and screening process that produces 3 size fractions with a maximum size of 10mm. Utilising this method significantly improves cyclone performance and in turn metal recoveries at the processing plant.
Atlantic will also conduct studies on the use of modular DMS units to potentially shorten the timeline to initial production and take advantage of the currently high price of lithium. It will also examine the potential to supply feldspar - a byproduct of lithium production - to the Ghanaian ceramics market, enhancing Ewoyaa's economics further.
While the DFS is targeted for release next quarter, Ewoyaa's pre-feasibility study (PFS) was announced in January. The PFS forecast significant profitability potential for a 2 Mtpa operation, producing an average of 255,000 tpa of 6% Li2O spodumene concentrate (SC6) over a 12.5-year life of mine (LOM), based on the maiden MRE.
Specifically, the pre-feasibility study delivers LOM revenues exceeding US$4.84bn, a post-tax NPV8 of US$1.33bn, and IRR of 224% over 12.5 years. Capital costs were US$125m with a short payback period of less than 5 months , and average LOM EBITDA was US$248m/year. The study used average annualised US$1,359/dry metric tonne SC6 pricing and US$1,200/dry metric tonne long-term pricing.
Both the DFS and Front-End Engineering Design (FEED) are "well progressed" according to Atlantic, representing major steps toward mine build. With a pre-feasibility study delivered, a mining license application submitted, FEED contract awarded, and US$103m funding from Piedmont Lithium in place, Atlantic is on track to achieve production in the near term.
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