Atlantic Lithium Limited, an African focused lithium exploration and development company, has announced an updated scoping study on the Ewoyaa Lithium Project in Ghana, West Africa. The scoping study update incorporates the increased JORC resource of 21.3 million t, resulting in a significant improvement in project economics and life of mine.
- Scoping study update retains business case for 2 million tpy production operation with life of mine (LOM) revenues exceeding US$3.43 billion.
- Study update increases project's LOM operations to over 11 years, producing an average 300 000 tpy of 6% Li2O spodumene concentrate.
- In addition to spodumene production, the study update incorporates two additional revenue streams:
- A saleable direct shipping ore (DSO) fines product.
- A saleable Feldspar by-product.
- Study update delivers exceptional financial outcomes:
- 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 <1 year.
- C1 cash operating costs of US$249/t of 6% lithium spodumene concentrate 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.
- Preliminary Australian Nuclear Science and Technology Organization (ANSTO) test-work confirms Ewoyaa concentrate produces high purity, battery-grade lithium carbonate (LC) and lithium hydroxide monohydrate (LHM).
- Project provides outstanding asset fundamentals, logistics and access to infrastructure:
- Conventional opencast mining operation from surface with low to moderate stripping ratios.
- Simple processing via conventional dense media separation only (DMS), producing a premium 6% spodumene concentrate saleable product at a 6.3 mm coarse crush.
- Excellent geology and metallurgy with potential upside for improved DMS recoveries.
- First quartile cash costs; low capital and operating costs with a low carbon footprint.
- Significant exploration upside potential from the historic Egyasimanku Hill deposit (1.5 million t at 1.66% Li2O, non-JORC) and surrounding 560 km2 portfolio.
- Close proximity to excellent logistics and infrastructure – only 110 km by road from the deep-sea port of Takoradi, adjacent to highway and high voltage (HV) powerlines, including hydroelectric sources.
- Significant potential for resource upgrades; project metrics substantially improve with increased LOM beyond 12 years.
Vincent Mascolo, CEO of Atlantic, said: “[The] landmark update regarding the company's exceptional Scoping Study confirms that the Ewoyaa is an industry-leading asset and transformational for Atlantic Lithium.
“The study outlines a robust 2 million tpy operation which can deliver excellent cash flows, a very quick payback and a pre-tax NPV of over US$1 billion from an 11.4-year operation, producing a coarse, premium DMS concentrate product.
“The project leverages existing infrastructure, including directly adjacent HV power, a major highway within 1 km of the site, and the major port of Takoradi 110 km away. Few hard-rock lithium projects worldwide can boast the proximity to existing operational infrastructure, lithium grade and a simple DMS-only process route that separates Ewoyaa from its peers. With the benefit of adjacent infrastructure and without the need to include expensive milling and flotation circuits, the project benefits from a very low upfront capital expenditure.
“Our resource continues to grow, and the upside of the project is clear; further resource drilling recently completed, as such, we expect that the project metrics will improve beyond the current defined LOM. It is estimated that every additional year of production will add up to approximately US$60 million in post-tax NPV per annum. Given these fundamentals, we are very excited by the resurgence and exponential growth potential across the lithium supply chain and reaffirm to the market that Atlantic is ideally poised to capture the lithium market going forward.”
Read the article online at: https://www.globalminingreview.com/exploration-development/10122021/atlantic-lithium-announces-updated-ewoyaa-scoping-study/