Atlantic Lithium reports more high-grade drill results from Ewoyaa project in Ghana
() , an Africa-focused lithium explorer, announced further positive results from its flagship Ewoyaa Lithium Project in Ghana.
Atlantic received more assay results from its exploration programme at Ewoyaa for 5,444m of infill and reverse circulation (RC) drilling, part of a broader 18,500m 2023 drilling programme. The new results infill mineralisation at the Ewoyaa South-2 deposit, part of the project's 35.3Mt @ 1.25% Li2O Mineral Resource Estimate (MRE), and extend mineralisation to depth at the Ewoyaa North-East deposit, outside of the current resource estimate.
The infill drilling is designed to convert Inferred Resources to higher-confidence Indicated Resources at the Ewoyaa South-2 deposit for future mine sequencing optionality, and to grow the MRE where mineralisation remains open at depth or along strike.
Multiple high-grade drill intersections were reported as downhole intercepts, including highlights at a 0.4% Li2O cut-off and a maximum 4m of internal dilution. See notable results in the figure below:
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Atlantic continues to deliver solid high-grade results at Ewoyaa, including significant widths and grades from relatively shallow depths. Today's assay results from the Ewoyaa South-2 and North-East deposits are part of a large 18,500m exploration programme aiming to convert Inferred to Indicated resources to further bolster the project's resource estimate.
Despite the positive news, markets today have chosen to focus on media speculation regarding the introduction of a new Green Minerals Policy by the government of Ghana, seeking to increase the government's involvement in the mining and production of lithium in the country. Potential implications from the policy are changes to the mining royalty rate and the state's carried interest in minerals projects.
Atlantic announced yesterday that it has been in regular discussions with Ghana's Minerals Commission regarding the establishment of a framework that is attractive for mining companies while delivering maximum value to Ghana. Atlantic did not disclose details of the early-stage discussions, but investors should expect news in the coming months. In our view, Atlantic is still very likely to receive a mining license given the strong support it has garnered in Ghana so far in facilitating its becoming Africa's first lithium-producing nation.
Today's assay results nicely complement Atlantic's recently published Definitive Feasibility Study for Ewoyaa, which reaffirmed the project's robust economics and profitability potential. Using conservative pricing, the DFS outlined 3.6Mt concentrate production over a 12-year mine life, delivering US$6.6bn in revenues with a post-tax NPV8 of US$1.5bn and an IRR of 105%. Moreover, the study indicated payback within only 19 months, maintaining low capital intensity of US$64/t of annualised throughput.
It should be noted that the increase in capex from Ewoyaa's earlier pre-feasibility study comes from the inclusion of modular DMS units and the increased throughput of 2.7Mtpa. Early revenue generated by the modular DMS units will reduce the peak funding requirement for the mine build, which is Atlantic's justification for choosing the technology.
Stage 2 of Ewoyaa's development will also incorporate a feldspar circuit. Feldspar is a by-product of the DMS process that Atlantic intends to supply to the Ghanaian ceramics market.
The project also benefits from close proximity to operational infrastructure, a low-water and low-energy plant, and proximity to potential off-takers. "Due to its grade, the Project's coastal location and against the backdrop of the global decarbonisation movement, demand from off-takers for product from Ewoyaa has been strong." said Keith Muller, CEO of Atlantic Lithium.
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