Atlantic Lithium commences infill drilling at Ewoyaa lithium project
( ), an Africa-focused lithium explorer, updated markets on the ongoing 2023 exploration and drilling programmes at its Ewoyaa lithium project and broader 560km2 Cape Coast lithium portfolio in Ghana.
Atlantic said infill drilling of its planed 3,000m infill reverse circulation (RC) and diamond drilling (DD) programme had commenced at the Ewoyaa South 2 deposit. The drilling programme aims to convert Inferred resources into the higher-confidence Indicated category.
Additionally, a passive seismic geophysical survey is underway within the immediate Ewoyaa mineral resource estimate (MRE) footprint. The survey will test the potential for concealed pegmatite targets. A soil geochemistry survey is also underway over Atlantic's broader Cape Coast licence.
Atlantic reported auger drilling to test and define pegmatite footprints within the project and broader area was "progressing well", with 7,900m drilled to date and new targets being tested west of the MRE footprint.
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Atlantic's Ewoyaa lithium project aims to become Ghana's first lithium-producing mine, having secured a US$103m funding via a partnership with US-based Piedmont Lithium. The project, located approximately 100km southwest of the capital Accra, has proven to produce a premium SC6 product suitable for conversion to battery-grade lithium carbonate and hydroxide. The project is low capex, low opex, with excellent infrastructure connections and short timeline to production.
As announced in March 2023, Atlantic has commenced its 2023 exploration and resource drilling programmes at Ewoyaa with three main objectives: target and test for potential concealed pegmatites, improve resource confidence and add potential tonnes to the MRE, and expand the regional exploration pipeline of targets.
With those objectives, infill drilling has now commenced at Ewoyaa South 2, marking the start of the planned approx. 3,000m RC and DD programme. On completion, the drill rig will begin a 7,000m resource extension programme at Ewoyaa Main, Ewoyaa North-East, and Kaampakrom targets (see map below) for potential further resource growth. Seismic geophysical surveying has also begun testing for concealed targets for follow-up drilling.
Overview of planned 2023 exploration and resource programmes' targets
The extensive infill drilling programme and related surveys should further desrisk and enhance Ewoyaa's resource confidence and/or MRE. 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.
A definitive feasibility study (DFS), based on the latest MRE, is still targeted for release in Q2 2023. Atlantic has clarified that its 2023 work programmes will not impact delivery of the DFS.
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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