GCIAtlantic Lithium kicks of 2023 drilling season as it progresses towards definitive feasibility study
(), an African-focused lithium exploration and development company, has released initial assay results from its drilling program at the Ewoyaa Lithium Project in Ghana, West Africa. The company aims to establish Ghana's first lithium mine.
The assay results relate to 2,208 meters of infill reverse circulation (RC) drilling, which is part of the broader 18,500-meter drilling program planned for 2023. These results confirm the continuity of mineralization within the Ewoyaa South-2 deposit, a component of the Ewoyaa JORC (2012) Compliant Mineral Resource Estimate. The drilling is designed to upgrade the resource classification from Inferred to Indicated, which would provide more flexibility in future mine sequencing.
Several high-grade drill intersections were reported, with true widths estimated in the intersections table. Noteworthy results include GRC0892 with 57 meters at 1.17% Li2O from 45 meters, GRC0899 with 54 meters at 1.14% Li2O from 3 meters, and GRC0900 with 41 meters at 1.16% Li2O from 73 meters. These findings indicate the presence of significant lithium mineralization at relatively shallow depths.
Atlantic Lithium's drilling and regional exploration programs are ongoing, as stated in previous announcements. The company is also on track to release the Definitive Feasibility Study by the end of the second quarter of 2023.
The approval for the consolidation of the Mankessim license, necessary for the mining lease application, is pending. This consolidation aims to streamline the approval process and simplify the operational structure of the proposed mine and processing plant site. The company anticipates no major amendments to the application and expects the Mining Lease for the project to be granted in the coming months.
Neil Herbert, Executive Chairman of Atlantic Lithium, emphasized the potential for further converting Inferred resources to Indicated category resources. This conversion would provide more flexibility for mine scheduling and the relocation of overhead powerlines.
The eagerly awaited DFS builds upon Ewoyaa's pre-feasibility study (PFS) 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 showed 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.
Atlantic's 2023 exploration and resource drilling programme for Ewoyaa is even more ambitious than its 2022 programme, 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.
Alongside the DFS, Atlantic is also preparing the Front-End Engineering Design (FEED) and is in regular contact with the Ghanaian government including its Minerals Commission Technical Committee.
With a pre-feasibility study delivered and DFS in progress, 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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