Atlantic Lithium announces Ewoyaa drilling results

Highlights:

• Assay results reported for a further 4709 m of exploration and infill reverse circulation (RC) drilling completed at the Grasscutter West, Ewoyaa North and Ewoyaa Main deposits, part of the now completed resource evaluation and exploration RC and diamond drilling (DD) programme.
• Newly reported drilling results fall both within and outside the currently defined 30.1 million t @ 1.26% Li2O Ewoyaa JORC (2012) compliant mineral resource estimate (MRE); extending mineralisation at the Grasscutter West and Ewoyaa North deposits and providing further confidence in resource conversion at the Ewoyaa Main deposit.
• Multiple high-grade exploration drill intersections outside of the current MRE, reported at the Grasscutter West and Ewoyaa North deposits, including highlights of:
  • GRC0744: 24 m at 1.54% Li2O from 100 m.
  • GRC0738: 21 m at 1.41% Li2O from 88 m.
  • GRC0752: 23 m at 1.23% Li2O from 183 m.
  • GRC0753: 16 m at 1.48% Li2O from 133 m.
  • GRC0753: 21 m at 1.02% Li2O from 251 m.
  • GRC0740: 17 m at 1.22% Li2O from 96 m.
  • GRC0734: 13 m at 1.5% Li2O from 290 m.
  • GRC0738: 13 m at 1.46% Li2O from 132 m.
  • GRC0747: 11 m at 1.71% Li2O from 77 m.
  • GRC0740: 13 m at 1.37% Li2O from 161 m.
  • GRC0745: 7 m at 2.02% Li2O from 50 m.
  • GRC0738: 13 m at 0.98% Li2O from 73 m.
  • GRC0751: 9 m at 1.15% Li2O from 203 m.
  • GRC0749: 9 m at 1.09% Li2O from 220 m.
  • GRC0749: 7 m at 1.37% Li2O from 122 m.
  • GRC0752: 8 m at 1.04% Li2O from 91 m.
• Broad, high-grade exploration drill intersections within the current MRE, reported at the Ewoyaa Main deposit, including highlights of:
  • GRC0741: 57 m at 1.49% Li2O from 24 m.
  • GRC0728: 52 m at 1.33% Li2O from 26 m.
  • GRC0737: 25 m at 1.08% Li2O from 29 m.
  • GRC0743: 15 m at 1.22% Li2O from 36 m.
• Approximately 26 000 m of results from the 47 000 m drilling programme reported to date.
• Recently announced pre-feasibility study delivers exceptional financial outcomes for a 2 million tpy operation, producing an average of around 255 000 tpy of 6% Li2O spodumene concentrate (SC6) over a 12.5-year operation:
  • LOM revenues exceeding US$4.84 billion, Post-tax NPV8 of US$1.33 billion, IRR of 224% over 12.5 years.
  • US$125 million capital cost with an industry-leading payback period of <5 months.
  • C1 cash operating costs of US$278/t of 6% lithium spodumene concentrate free on board (FOB) Ghana Port, after by-product credits.
  • Average life of mine (LOM) EBITDA of US$248 million/yr.
  • 18.9 million t at 1.24% Li2O maiden ore reserve.
  • Average annualised US$1359/dry t SC6 pricing used.
• Significant potential for resource upgrades and exploration upside; potential for project metrics to substantially improve with increased scale.

Commenting on the company's latest progress, Lennard Kolff, Interim Chief Executive Officer of Atlantic Lithium, said:

"Drilling consistently delivers high-grade drill intersections, both within the infill programme targeting conversion of indicated to measured resources and within the exploration programme targeting resource growth outside the current MRE.

"Exploration drilling outside of the current resource has returned multiple intersections, including highlights of 23 m at 1.23% Li2O and 16 m at 1.48% Li2O at the Grasscutter West deposit, and 24 m at 1.54% Li2O and 21 m at 1.41% Li2O at the Ewoyaa North deposit. These results demonstrate the significant growth potential at the Ewoyaa Project, with mineralisation still open along strike and downdip.

"The latest infill drilling results from within the current resource at the Ewoyaa Main deposit have returned high-grade pegmatite intervals, including 57 m at 1.49% Li2O and 52 m at 1.33% Li2O, providing further confidence in future resource to Reserve conversion.

"We anticipate further news flow from a further 21 000 m of pending drilling results into the end of the year and are targeting a resource upgrade at the end of 2022 or early 2023, dependent on lab turn-around time. The increased resource estimate will inform a definitive feasibility study, targeted for completion in mid-2023.

"With the pre-feasibility study now delivered, the mining licence application submitted, ongoing positive drilling results and with the support of our funding agreement with Piedmont Lithium, we feel the company is ideally positioned to benefit from the unprecedented levels of lithium demand that are expected over the coming years."

Read the article online at: https://www.globalminingreview.com/mining/09112022/atlantic-lithium-announces-ewoyaa-drilling-results/