Atlantic Lithium announces DFS for Ewoyaa Project, Ghana

DFS Highlights:

• 3.6 million t spodumene concentrate production over 12-year Life of Mine (LOM).
• Exceptional Project economics: Post-tax Net Present Value (NPV) of US$1.5 billion with free cash flow of US$2.4 billion from LOM revenues of US$6.6 billion, Average LOM EBITDA of US$316 million per year, Internal Rate of Return (IRR) of 105% and short payback of 19 months.
• C1 cash operating costs of US$377/t of concentrate Free-On-Board (FOB) Ghana Port, after by-product credits from conventional open cut mining operation; All in Sustaining Cost (AISC) of US$610/t.
• Modest capital cost estimate of US$185 million.
• Incorporates Modular DMS units to generate early cash flow and increased throughput from 2 million tpy to 2.7 million tpy: Modular DMS cash flow reduces mine build peak funding requirement; capex paid back prior to full completion of plant build; and DFS maintains low capital intensity of US$64/t of annualised throughput.
• Throughput increased by 35% following significant uplift in Ore Reserves to 25.6 million t @ 1.22% Li₂O.
• Simple mineralogy enables simple flowsheet comprising integrated 3-stage crushing facility through conventional Dense Media Separation (DMS) processing, producing 6% (SC6) and 5.5% (SC5.5) concentrate (approx. 50:50 ratio) at 10 mm top size crush.
• Additional 4.7 million t of secondary product anticipated as by-product from DMS concentrator, with average grade of 1.16% Li₂O.
• DFS incorporates Mineral Resource Estimate (MRE) of 35.3 million t @ 1.25 Li₂O and conservative LOM concentrate pricing of US$1587/t, FOB Ghana Port.
• Project benefits from close proximity to operational infrastructure, low energy and water-intensity process flow sheet, proximity to potential off-takers and skilled Ghanaian workforce within surrounding communities; over 800 direct jobs to be created.

Commenting, Keith Muller, Chief Executive Officer of Atlantic Lithium, said: "The Definitive Feasibility study has reaffirmed the Ewoyaa Lithium Project's impressive economic outcomes and profitability potential, providing improved confidence in Ewoyaa's ability to become a significant, near-term producer of spodumene concentrate. Using conservative pricing, the DFS outlines 3.6Mt concentrate production over a 12-year mine life, delivering US$6.6bn Life of Mine revenues, a post-tax NPV8 of US$1.5bn and an Internal Rate of Return of 105%. The Study indicates payback within only 19 months and maintains a low capital intensity, further reinforcing Ewoyaa's position among the leading pre-production hard rock lithium assets globally. The increase in capex from the PFS results from the inclusion of the Modular DMS units and the increased throughput of 2.7Mtpa. Early revenue generated by the Modular DMS units will reduce peak funding requirement for the mine build, strongly justifying these developments. Furthermore, this will provide a valuable opportunity to train national staff and engineer out any mining, materials handling or logistics bottlenecks ahead of large-scale operations commencing for a potentially quicker commissioning phase. The deployment of the Modular DMS units has been reallocated from Stage 2 to Stage 1 of the Project's development. Stage 2 includes the evaluation of a Feldspar circuit, a by-product of the DMS process that we intend to supply to the local Ghanaian ceramics market, and a Flotation circuit, further enhancing the Project's economics. Ewoyaa's favourable mineralogy enables a simple flowsheet comprising a 3-stage crushing facility and Dense Media Separation processing from conventional, open pit mining to produce a spodumene concentrate proven suitable for carbonate, sulphide or hydroxide conversion. Due to its grade, the Project's coastal location and against the backdrop of the global decarbonisation movement, demand from off-takers for product from Ewoyaa has been strong. The Project benefits from a low water and energy-intensive plant, close proximity to exceptional infrastructure, including adjacent grid power, as well as a skilled Ghanaian workforce within Ewoyaa's supportive surrounding communities. These favourable characteristics underlie the viability of the Project. Understanding the role we can play, we are fully committed to the development of our host communities. This includes local investment via a community development fund, apportioning an equivalent of 1% of retained earnings to local initiatives, and the creation of employment opportunities. As we set our sights on first production, we firmly believe that Ewoyaa will deliver long-lasting benefits for the Central Region, to Ghana and to West Africa."

Read the article online at: https://www.globalminingreview.com/mining/06072023/atlantic-lithium-announces-dfs-for-ewoyaa-project-ghana/