Atlantic Lithium sees more high-grade drill results from Ewoyaa, Ghana
(), an Africa-focused lithium explorer, announced further positive drilling results from its flagship Ewoyaa Lithium Project in Ghana.
Atlantic received more assay results from its 18,500m 2023 exploration programme at Ewoyaa for 6,150m of infill and reverse circulation (RC) drilling, 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.
The new assay results extend mineralisation at the Ewoyaa South-2 and Ewoyaa North-East deposits, outside the project's current 35.3 Mt @ 1.25% Li2O Mineral Resource Estimate (MRE). Additional intersections were reported at the Kaampakrom Ewoyaa Main and Ewoyaa North-West deposits, also outside the current estimate.
Atlantic reported high-grade intersections at Ewoyaa South-2, Ewoyaa North-East, Ewoyaa Main, and Ewoyaa North-West as downhole intercepts, including the following highlights at a 0.4% Li2O cut-off and maximum 4m of internal dilution:
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More good assay results from Ewoyaa, confirming mineralisation continuity and extending mineralisation at depth, outside of the current 35.3 Mt @ 1.25% Li2O MRE. The results detailed more high-grade intersections at Ewoyaa South-2 and Ewoyaa North-East, including 48m at 1.13% Li2O from 137m at Ewoyaa South-2, where mineralisation remains open along strike and at depth.
Atlantic plans a total of 18,500m of infill, extensional, and exploration RC drilling at Ewoyaa in 2023, aiming to grow and improve the confidence of the resource. By now investors have become accustomed to positive results from Ewoyaa, particularly from outside its current MRE. Only last month Atlantic reported more material high-grade intercepts at Ewoyaa South-2 and Ewoyaa North-East, and we expect more such results to follow before the end of 2023 to further boost the economics of the project.
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.
The DFS also included modular DMS units and an 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. An MOU was recently signed with the University of Mines and Technology (UMaT) to conduct a Definitive Feasibility Study aiming to evaluate the potential for producing feldspar, quartz, and muscovite as by-products of spodumene production at Ewoyaa.
Feldspar production should strengthen the project's ESG credentials, helping Atlantic maintain the support of the Ghanaian mining authorities after the introduction of the country's Green Minerals Policy last month. Atlantic said 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, and that the award of a mining license is on track as the country seeks to become Africa's first lithium-producing nation.
shares gained 2% on today's announcement.
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