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Atlantic Lithium announce final Ewoyaa infill drilling results

Published by
Global Mining Review,


Atlantic Lithium Ltd , a fully-funded African-focused lithium exploration and development company on track to become West Africa's first lithium producing mine, has announced final high-grade infill drilling results from the December 2021 campaign at the Ewoyaa Lithium Project in Ghana, West Africa, where the company recently announced an updated scoping study and increased JORC compliant mineral resource estimate (MRE) of 21.3 million t at 1.31% Li2O, resulting in a significant improvement in project economics and life of mine (LOM).

Highlights

  • Final programme of high-grade infill and extensional resource drilling assay results from the approximately 37 500 m drilling programme completed in December 2021 reported for diamond core (DD) and reverse circulation (RC) holes, including highlights at a 0.4% Li2O cut-off and maximum 4 m of internal dilution of:
    • GRDT0453: 30 m at 1.5% Li2O from 85.6 m.
    • GRC0574: 29 m at 1.35% Li2O from 150 m.
    • GRDT0479: 23 m at 1.7% Li2O from 114 m.
    • GRDT0505: 27.7 m at 1.15% Li2O from 53.8 m.
    • GRC0596: 21 m at 1.47% Li2O from 45 m.
    • GRC0600: 19 m at 1.61% Li2O from 42 m.
    • GRDT0476: 16.9 m at 1.62% Li2O from 130.1 m.
    • GRC0591: 15 m at 1.76% Li2O from 65 m.
    • GRC0616: 15 m at 1.59% Li2O from 249 m.
    • GRC0618: 15 m at 1.54% Li2O from 159 m.
    • GRC0590: 16 m at 1.44% Li2O from 194 m.
    • GRDT0481: 15 m at 1.47% Li2O from 97 m.
    • GRC0619: 17m at 1.28% Li2O from 172m
    • GRC0593: 11 m at 1.89% Li2O from 122 m.
    • GRDT0467: 14.6 m at 1.4% Li2O from 65.2 m.
  • Infill drilling results have confirmed grade and continuity across the Ewoyaa deposits and exploration drilling confirmed new mineralisation outside of the MRE at Kaampakrom West, Ewoyaa Sill and Grasscutter West targets.
  • 11 852 m of infill and extensional drilling assay results reported herewith in 73 holes, representing final assay results for the completed drill programme.
  • Multiple high-grade drill intersections reported along eastern strike extension of the Grasscutter West deposit, outside of the MRE.
  • Additional high-grade results received over the Ewoyaa Sill target and Kaampakrom West target, with good widths reported outside of the MRE footprint.
  • Regional exploration auger drilling ongoing on site with six power auger rigs active; regional airborne geophysical survey awarded to New Resolution Geophysics, South Africa, and soil sampling surveys planned over newly granted Cape Coast license.
  • Exploration and resource RC and DD expansion drilling planned to recommence in March 2022.
  • Recently announced scoping study update delivers exceptional financial outcomes for a 2 million tpy operation, producing an average 300 000 tpy of 6% Li2O spodumene concentrate (SC6) over an 11.4-year operation:
    • LOM revenues exceeding US$3.43 billion, post-tax NPV8 of US$789 million, IRR of 194% over 11.4 years.
    • US$70 million capital cost with industry-leading payback period of one year.
    • C1 cash operating costs of US$249/t of 6% Li2O SC6 Free on Board (FOB) Ghana Port, after by-product credits.
    • Pre-tax NPV8 of US$1.23 billion and EBITDA of US$2.02 billion for LOM.
    • Average EBITDA of US$178 million/yr.
  • Significant potential for resource upgrades to extend the planned LOM; project metrics substantially improve with a LOM beyond 12 years.

Vincent Mascolo, CEO of Atlantic Lithium, said: “Drilling results received confirm grade and continuity where tested across the Ewoyaa deposits, including a broad, high-grade intersection of 30 m at 1.5% Li2O at the Ewoyaa Northeast deposit, as well as new zones of mineralisation defined outside of the current resource footprint.

“Multiple high-grade drill intersections have been returned over the eastern strike extension of the Grasscutter West deposit; all of which occur outside of the resource and expected add further tonnes.

“Additional assay results received over the Ewoyaa Sill target continue to impress, with high-grade mineralisation and good widths occurring in flat lying structures favourable for tonnage addition and low strip ratio; also, outside of the resource which is expected add further tonnes.

“The results reported herewith represent the final drilling results for the programme completed in December 2021, where the company is targeting >80% resource conversion from inferred to indicated over the 21.3 million t at 1.31% Li2O JORC Resource, as well as a targeted tonnage increase to over 24 million t in support of a 12-year mine life for future studies.

“Our resource continues to grow, and the upside of the project is clear; not only do we believe that project metrics will improve significantly beyond the current defined mine life, however we also see further potential for substantial economic improvement due to the recent increases in spodumene concentrate pricing which have far exceeded our initial SC6 price modelling parameters.

“We believe these fundamentals continue to demonstrate Ewoyaa as an industry-leading asset; with the company ideally positioned to benefit from the growing lithium market; we look forward to progressing the project towards production and establishing Atlantic Lithium as a new player in the lithium supply chain.”

Infill and extensional drilling results

Final drilling results are reported herewith for 11 852 m of infill and extensional drilling in 73 holes at the Ewoyaa Project. This represents the final drilling results for the 37 500 m drilling programme completed post-reporting of the updated MRE of 21.3 million t ay 1.31% Li2O.

Multiple high-grade drill intersections have been returned in RC and DD infill and extensional drilling, at a 0.4% Li2O cut-off and maximum 4 m of internal dilution.

All sampling was completed at 1 m sampling intervals at the drill site for RC and at 1 m intervals or less at the core shed for DD, with samples submitted for analysis at Intertek laboratory with sample preparation completed in Ghana and sample analysis in Perth, Western Australia. All results passed internal and laboratory QA/QC protocols, providing confidence in the reported results.

The multiple >15 lithium m (Li2O% x m) metal content intersections reported at the Grasscutter West extension target including GRC0596: 21 m at 1.47% Li2O from 45 m, GRC0600: 19 m at 1.61% Li2O from 42 m and GRC0616: 15 m at 1.59% Li2O from 249 m bodes well for resource addition outside of the currently defined MRE, with mineralisation extended 150m eastwards and at depth.

Drilling results validate grade and mineralisation continuity where returned to date over the Ewoyaa Northeast, Okwesi, Anokyi, and Grasscutter East deposits, providing confidence in future resource upgrades from inferred to indicated status.

New mineralisation has been intersected and high-grade assay results returned at the Kaampakrom West, Ewoyaa Sill and Grasscutter West extension targets where multiple drill intersections and high-grade results fall outside of the currently defined MRE.

Field teams have returned to site and six auger rigs have commenced drilling activities for both regional exploration and resource expansion targeting over the Mankessim, Mankessim South and Saltpond licenses.

Exploration and resource drilling programmes are planned to recommence in March 2022 to test new targets along strike and at depth, as well as diamond core drilling in support of geotechnical, hydrogeology and site investigation studies.

Planning is underway for airborne geophysical and grid soil geochemistry over the recently granted Cape Coast license

Read the article online at: https://www.globalminingreview.com/exploration-development/10022022/atlantic-lithium-announce-final-ewoyaa-infill-drilling-results/

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African mining news Lithium mining news