Atlantic Lithium reports good Q1 progress at Ewoyaa, targets construction for 2024
() , an Africa-focused lithium explorer, issued a quarterly activities and cashflow report for Q1 ended March 31, 2024.
Atlantic reported assay results from another 9,734m of drilling completed at its flagship Ewoyaa lithium project in Ghana. The results are from the new Dog-Leg target, Okwesi, Anokyi and Ewoyaa South-2 deposits, which sit outside the current 35.3Mt @ 1.25% Li2O mineral resource estimate for the project. The results represent the final numbers for the 2023 drilling season, with a total of 25,89m drilled during the year.
The new results revealed multiple high-grade and broad drill intersections, including at Dog-Leg where drilling found a shallow-dipping, near-surface mineralised pegmatite body with true thicknesses of up to 35m. Intersection highlights include 69m at 1.25% Li2O from 45m and 83m at 1% Li2O from 36m at Dog-Leg. Further assays are pending from Dog-Leg from RC and DD resource growth drilling.
The results from 2023 and results pending for 2024 are to be incorporated into an MRE upgrade, targeted for H2 2024.
In terms of project development, Atlantic reported strong local community support at the EPA scoping public hearing for Ewoyaa. has also completed and submitted Ewoyaa's feldspar and downstream conversion studies to Ghana's Minerals Commission, as agreed under the terms of the mining lease for the project.
Post period-end, Atlantic said it received final approval to commence field work at its newly-granted Senya Beraku prospecting licence.
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Atlantic continues to report positive assay results, new targets, and steady operational progress at Ewoyaa as the project moves closer to shovel readiness. The last 2023 numbers and pending 2024 results will be incorporated into a material MRE upgrade, expected later this year. Construction is targeted for H2 2024, with initial production expected the following year.
Atlantic has already begun engaging engineering firms with experience in Ghana, ahead of the tender process for the award of an EPCM contract for construction of the project. Permits are advancing on schedule, helped by strong local community support. The expected additions of downstream conversion and feldspar production should materially boost the value of the project. Simultaneously, further targets are being identified in the newly secured Bewadze and Senya Beraku licences.
Interest in Ewoyaa lithium is high as positive results continue to come in and the project moves steadily toward production. Atlantic has received multiple offers from a range of industry players as part of its ongoing competitive offtake partnering process to secure funding for a portion of the remaining 50% available feedstock from Ewoyaa. Formal bids are expected in the coming weeks ahead of final negotiations.
Ewoyaa's development cost is estimated at US$185m. Atlantic's main partner on the project is US-based Piedmont Lithium who has committed US$70m and 50% thereafter of the total capex. Additionally, Ghana's Mineral Income Investment Fund has agreed to invest US$32.9m (US$5m already invested), and the aformentioned offtake partnering process is due to complete in 2024. As it stands, once in production Atlantic will own 40.5% of Ewoyaa, Piedmont will own an equal 40.5%, Ghana's Mineral Income Investment Fund will own 6%, and the government of Ghana will own 13%.
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