Atlantic Lithium announce Ewoyaa project results

Highlights:

• Assay results reported for 1879 m of infill diamond drilling (DD), and 3488 m of infill and exploration reverse circulation (RC) drilling completed at the Ewoyaa Main, Grasscutter East and Anokyi targets, part of the now completed resource evaluation and exploration RC and 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); providing further confidence in resource conversion and extending mineralisation downdip at the Ewoyaa Main and Grasscutter East deposits.
• Broad, high-grade infill drill intersections within the current MRE, reported at the Ewoyaa Main deposit, including highlights of:
  • GDD0073: 84.5 m at 1.63% Li2O from 6 m.
  • GRC0690: 89 m at 1.52% Li2O from 9 m.
  • GDD0071: 90.5 m at 1.48% Li2O from 0 m.
  • GDD0070: 77.5 m at 1.5% Li2O from 13 m.
  • GDD0069: 71.5 m at 1.49% Li2O from 25 m.
  • GRC0686: 62 m at 1.29% Li2O from 32 m.
  • GDD0077: 50 m at 1.51% Li2O from 40 m.
  • GDD0074: 63.3 m at 1.1% Li2O from 27 m.
  • GDD0075: 44.6 m at 1.56% Li2O from 37 m.
  • GDD0078: 47.3 m at 1.4% Li2O from 43.2 m.
  • GRC0677: 50 m at 1.25% Li2O from 33 m.
  • GDD0079: 55 m at 1% Li2O from 23 m.
  • GRC0669: 59 m at 0.95% Li2O from 113 m.
• Broad, high-grade exploration drill intersections outside of the current MRE, reported at the Ewoyaa Main and Grasscutter East deposits, including highlights of:
  • GRC0688A: 67 m at 1.51% Li2O from 235 m at Grasscutter East.
  • GRC0680: 28 m at 1.27% Li2O from 116 m.
  • GRC0676: 20 m at 0.75% Li2O from 142 m.
  • GRC0684: 8 m at 1.43% Li2O from 96 m.
  • GRC0675: 7 m at 1.53% Li2O from 187 m.
  • GRC0684: 9 m at 1.12% Li2O from 154 m.
• Completion of the planned 37 000 m RC and DD drilling programme, which was increased by an additional 10 000 m for a total of 47 000 m with approximately 15 000 m of assay results reported to date.
• Recently announced pre-feasibility study delivers exceptional financial outcomes for a 2 million tpy operation, producing an average circa 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 industry-leading payback period of <5 months.
  • C1 cash operating costs of US$278/t of 6% lithium spodumene concentrate fee on board (FOB) Ghana Port, after by-product credits.
  • Average life of mine (LOM) EBITDA of US$248 million per year.
  • 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; project metrics substantially improve with increased LOM beyond 12.5 years.

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

"We are delighted to report the completion of the planned 37 000 m resource evaluation and exploration drilling programme at Ewoyaa, with approximately 15 000 m of assays reported to date. The programme was increased by an additional 10 000 m, to a total of 47 000 m, which included detailed geotechnical, metallurgical, hydrogeological, resource and exploration drilling.

"The latest infill drilling results from within the current resource at the Ewoyaa Main deposit have returned multiple high-grade pegmatite intervals over 1.5% Li2O and over 80 m long, providing further confidence in resource to reserve conversion and the pre-feasibility design.

"Additionally, we have announced positive exploration drilling results from outside of the current resource, including 67 m at 1.51% Li2O at the Grasscutter East deposit and 28 m at 1.27% Li2O at the Ewoyaa Main deposit. These results reaffirm our belief that the current resource demonstrates significant growth potential, which we hope to unlock.

"We anticipate further news flow regarding the awaited drill results going 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 update, 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/20102022/atlantic-lithium-announce-ewoyaa-project-results/