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Atlantic Lithium announces initial Ewoyaa Ltihium infill drilling results

Published by
Global Mining Review,


Atlantic Lithium Ltd, an African focused lithium exploration and development company, has announced initial infill drilling results at the Ewoyaa Lithium Project in Ghana, West Africa, where the company recently announced an updated scoping study and increased JORC resource of 21.3 million t at 1.31% Li2O, resulting in a significant improvement in project economics and life of mine.

Highlights

  • Initial infill drilling results received validate grade and continuity where drilled at the project.
  • Highest metal content intersection (lithium grade x metres) reported to date of 91.6 m at 1.6% Li2O from 8 m in hole GDD0015.
  • High-grade infill drilling results reported for diamond drilling (DD) and reverse circulation (RC) holes, including highlights at a 0.4% Li2O cut-off and maximum 4 m of internal dilution of:
    • GDD0015: 91.6 m at 1.6% Li2O from 8 m.
    • GDD0039: 67.7 m at 1.36% Li2O from 41 m.
    • GRC0425: 75 m at 1.17% Li2O from 68 m.
    • GDD0047: 62 m at 1.4% Li2O from 36 m.
    • GDD0022: 58.8 m at 1.45% Li2O from 34.1 m.
    • GRC0428: 66 m at 1.26% Li2O from 41 m.
    • GRC0426: 64 m at 1.28% Li2O from 74 m.
    • GDD0014: 52.3 m at 1.3% Li2O from 20.4 m.
    • GDD0016: 35.7 m at 1.83% Li2O from 58.3 m.
    • GDD0036: 44.5 m at 1.43% Li2O from 36.5 m.
    • GDD0044: 37.7 m at 1.59% Li2O from 50.3 m.
    • GDD0020: 36.5 m at 1.64% Li2O from 17 m.
    • GRC0454: 33 m at 1.67% Li2O from 107 m.
    • GDD0017: 43.4 m at 1.23% Li2O from 45.6 m.
    • GDD0048: 24.7 m at 2.01% Li2O from 14.5 m.
  • 10 200 m of infill drilling assay results reported herewith in 98 holes. Additional approximate 26 800 m of infill, extensional and exploration drilling assay results remaining to report post completion of drilling activities for the year.
  • 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 <1 year.
    • C1 cash operating costs of US$249/t of 6% lithium 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; project metrics substantially improve with increased LOM beyond 12 years.

Vincent Mascolo, CEO of Atlantic Lithium, said: “The infill drilling results received to date have confirmed mineralisation grade and continuity where tested within the Ewoyaa deposit.

“We have also received our highest metal content drill intersection to date with a broad 91.6 m intercept of high-grade pegmatite at 1.6% Li2O returned at the Ewoyaa Main deposit.

“The company is targeting >80% resource conversion from inferred to indicated over the recently upgraded 21.3 million t at 1.31% Li2O resource, as well as a 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; as such, we expect that the project metrics will improve beyond the current defined LOM. It is estimated by the company that every additional year of production will add up to US$60 million in post-tax NPV/yr. 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 Lithium is ideally poised to benefit from the growing lithium market going forward.”

Read the article online at: https://www.globalminingreview.com/exploration-development/16122021/atlantic-lithium-announces-initial-ewoyaa-ltihium-infill-drilling-results/

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This article has been tagged under the following:

African mining news Lithium mining news