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Atlantic Lithium provides further Ewoyaa drill results

Published by
Global Mining Review,


Atlantic Lithium Ltd, an African focused lithium exploration and development company, has announced ongoing high-grade 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

  • Ongoing infill drilling results continue to confirm grade and continuity.
  • 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:
    • GRC0501: 45 m at 1.54% Li2O from 78 m.
    • GRC0478: 33 m at 1.61% Li2O from 72 m.
    • GRDT0455: 31.2 m at 1.66% Li2O from 78.4 m.
    • GRDT0451: 24.3 m at 1.65% Li2O from 123 m.
    • GRDT0457: 24.7 m at 1.39% Li2O from 117.3 m.
    • GRDT0449: 20.8 m at 1.64% Li2O from 100.7 m.
    • GRC0477: 23 m at 1.48% Li2O from 33 m.
    • GRC0484: 24 m at 1.3% Li2O from 56 m.
    • GRC0482: 22 m at 1.41% Li2O from 38 m.
    • GRDT0405: 18.2 m at 1.4% Li2O from 77.8 m.
    • GRDT0429: 26.7 m at 0.92% Li2O from 95.3 m.
    • GRDT0443: 21.4 m at 1.12% Li2O from 116.6 m.
    • GRC0472: 17 m at 1.31% Li2O from 99 m.
    • GRC0474: 20 m at 1.08% Li2O from 40 m.
    • GRC0491: 15 m at 1.23% Li2O from 30 m.
  • 4769 m of infill drilling assay results reported herewith in 42 holes. Additional approximate 22 500 m of infill, extensional and exploration drilling assay results remaining to be reported post completion of drilling activities for further resource upgrades.
  • Initial results received over the Ewoyaa Sill target confirm flat lying mineralisation; potential for tonnage increase and low strip ratio.
  • Assay results pending for newly drilled Kaampakrom West target and Ewoyaa Sill where spodumene has been observed in drill cuttings and new mineralisation has been observed outside of the current resource footprint.
  • Recently announced scoping study update delivers exceptional financial outcomes for a 2 million tpy operation, producing an average approximately 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% 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.
  • Significant potential for resource upgrades; project metrics substantially improve with increased LOM beyond 12 years.
  • Auger drilling recommenced on site with six power auger rigs active to test new exploration targets within the Mankessim, Mankessim South and Saltpond licenses; regional airborne geophysical and soil sampling surveys planned over newly granted Cape Coast license.
  • Exploration and resource expansion drilling planned to recommence in February 2022.

Vincent Mascolo, CEO of Atlantic, said: “The ongoing infill drilling results received continue to confirm mineralisation grade and continuity where tested across the Ewoyaa deposit.

“Assay results received over the Ewoyaa Sill target to date are encouraging, with mineralisation occurring in flat lying sill structures favourable for tonnage addition and low strip ratio. Additional results are still pending.

“Visible spodumene was observed in the new Kaampakrom West target, with assays pending. Both of these target areas fall outside of the current resource footprint, indicating the potential for further resource growth.

“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 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. 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 per annum. These fundamentals continue to demonstrate Ewoyaa as an industry-leading asset and, with the company being ideally poised to benefit from the growing lithium market, we look forward to progressing the project towards production and establishing Atlantic as new player in the lithium supply chain.”

Infill drilling results

Ongoing infill drilling results are reported herewith for 4769 m of infill drilling in 42 holes at the Ewoyaa Lithium Project. An additional 22 500 m of resource and exploration drilling results are pending which in addition to what is reported herewith and was reported on 15 December 2021 were completed post reporting of the updated mineral resource estimate (MRE) of 21.3 million t at 1.31% Li2O.

Multiple high-grade drill intersections have been returned in RC and DD infill drilling, with highlights reported 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 and 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.

Ongoing infill drilling results validate grade and mineralisation continuity where returned to date over the Ewoyaa Main, Ewoyaa_NE, Okwesi, Anokyi and Grasscutter_E deposits, providing confidence in future resource upgrades from inferred to indicated status.

New mineralisation has been intersected and initial high grades returned at the Ewoyaa Sill target, where mineralisation is associated with flat lying sill structures favourable for tonnage and low strip ratio potential. Additional mineralisation has been observed in drill cuttings from the new Kaampakrom West target with assay results pending. Both targets fall outside of the currently defined resource.

Additionally, the company has targeted further resource expansion and exploration drilling with assays pending over the Grasscutter West extension zone, Kaampakrom West target and depth extensions at Ewoyaa_NE, Okewesi, Anokyi and Grasscutter zones.

Approximately 22 500 m of additional resource infill, extensional and exploration drilling assay results are pending.

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. RC exploration and resource drilling is planned to recommence in February 2022 to test new exploration and resource expansion targets along strike and at depth. DD will commence thereafter in support of detailed geotechnical, hydrogeology and site investigation drilling.

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/18012022/atlantic-lithium-provides-further-ewoyaa-drill-results/

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African mining news Lithium mining news