Atlantic Lithium announces further Ewoyaa drill results

Highlights

• High-grade infill and extensional resource drilling assay results 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:
  • GRC0570: 65 m at 1.66% Li₂O from 159 m.
  • GRC0546: 23 m at 1.64% Li₂O from 87 m.
  • GRC0560: 35 m at 0.96% Li₂O from 32 m.
  • GDD0059: 21.1 m at 1.53% Li₂O from 92.5 m.
  • GRC0539: 20 m at 1.6% Li₂O from 48 m.
  • GRC0502: 24 m at 1.29% Li₂O from 98 m.
  • GDD0061: 27.8 m at 1.11% Li₂O from 44.2 m.
  • GRC0531: 22 m at 1.4% Li₂O from 45 m.
  • GRC0538: 21 m at 1.21% Li₂O from 52 m.
  • GRC0568: 12 m at 1.84% Li₂O from 104 m.
  • GDD0056: 14.4 m at 1.17% Li₂O from 24 m.
  • GRC0566: 11 m at 1.5% Li₂O from 117 m.
  • GRC0532: 9 m at 1.8% Li₂O from 96 m.
• Further infill drilling results continue to confirm grade and continuity across the Ewoyaa deposits.
• Second highest metal content (grade x interval length) drill intersection returned to date with hole open in mineralisation; 65 m at 1.66% Li₂O from 159 m in GRC0570.
• 10 688 m of infill drilling assay results reported herewith in 90 holes, with additional approximate 11 800 m of infill and extensional drilling assay results pending post completion of drilling activities for further resource upgrades.
• First results received for newly drilled Kaampakrom West target confirm good grades and widths outside of the current resource footprint with further results pending.
• Additional results received over the Ewoyaa Sill target continue to confirm good grades and widths outside of the current resource footprint with further results pending.
• 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 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 to extend the planned LOM; Project metrics substantially improve with a LOM beyond 12 years.
• Exploration auger drilling recommenced on site with six power auger rigs active; 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 Lithium, said: “The ongoing infill drilling results received continue to confirm mineralisation grade and continuity where tested across the Ewoyaa deposit.

“First assay results received over the Kaampakrom West target are encouraging and have returned good grades and widths outside of the current resource footprint which will add further tonnes.

“Additional assay results received over the Ewoyaa Sill target continue to impress, with mineralisation occurring in flat lying structures favourable for tonnage addition and low strip ratio.

“We have reported our second highest metal content and one of our deepest drill intersections to date with the hole open in mineralisation, highlighting the potential for further resource expansion.

“An additional 11 800 m of drilling results are pending, predominantly within the Kaampakrom West and Ewoyaa Sill targets outside of the current resource.

“The company is targeting >80% resource conversion from inferred to indicated over the recently upgraded 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. As such, we believe 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 approximately 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 Lithium as new player in the lithium supply chain.”

Infill drilling results

Further infill drilling results are reported herewith for 10 688 m of infill and extensional drilling in 90 holes at the Ewoyaa Project. An additional approximate 11 800 m of resource and exploration drilling results are pending from the 37 500 m drilling programme 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 and extensional 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.

Hole GRC0570 has returned the second highest metal content (grade x interval length) of 65 m at 1.66% Li₂O from 159 m for the current programme and is one of the deepest drill intersections to date at the project. The hole remains open in mineralisation and demonstrates the continuity of high-grade mineralisation at depth at the Anokyi target as well as potential for further resource upgrades.

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-grade assay results returned at the Kaampakrom West target, whilst the Ewoyaa Sill target continues to deliver encouraging results, where mineralisation is associated with flat lying sill structures favourable for tonnage and low strip ratio potential. Both targets fall outside of the currently defined mineral resource estimate.

Additionally, the company targeted further resource expansion and exploration drilling as part of last year’s programme, with assays pending over the Grasscutter extension, Ewoyaa Sill, Kaampakrom West targets and depth extensions at Ewoyaa_NE, Okewesi and Anokyi targets.

Approximately 11 800 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.

Exploration and resource drilling programmes are planned to recommence in February 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/25012022/atlantic-lithium-announces-further-ewoyaa-drill-results/