The PFS was managed directly by the company, engaging experienced internationally recognised consultants, and incorporates the increased JORC resource of 30.1 million t at 1.26% Li2O, as announced on 24 March 2022.
- Post-tax NPV8 of US$1.33 billion with free cash flow of US$2 billion from life of mine (LOM) revenues of US$4.84 billion.
- Internal rate of return of 224% and payback less than five months, with average LOM EBITDA of US$248/yr.
- Maiden ore reserve of 18.9 million t at 1.24% Li2O declared, demonstrating sound resource to reserve conversion.
- 12.5-year mine life, 2 million tpy conventional dense media separation (DMS) processing facility with average 255 000 tpy 6% lithium spodumene concentrate (SC6) production.
- C1 cash operating costs of US$278/t of SC6 free-on-board (FOB) Ghana Port, after by-product credits.
- In addition to SC6 production, the PFS incorporates two additional revenue streams from by-products:
- A saleable direct shipping ore fines product (DSO fines).
- A saleable Feldspar by-product
- Capital cost estimate of US$125 million, including integrated 3-stage crushing facility ahead of the DMS processing facility; a major design change to the scoping study concept of contract crushing, reducing plant OPEX, improving operational control and reducing lithium losses.
- Key assumptions: Long-term average SC6 price of US$1359/t FOB over 12.5 years, project funding via Piedmont agreement and cost estimation at +/- 20% level of accuracy.
Commenting on the company’s latest progress, Lennard Kolff, Interim Chief Executive Officer of Atlantic Lithium, said:
“We are delighted to release our PFS for the Ewoyaa Lithium Project in Ghana, which further illustrates Ewoyaa as an industry-leading lithium asset, generating in excess of US$4.84 billion in revenues over a 12.5-year mine life.
"The study outlines a robust 2 million tpy operation which can deliver excellent cash flows, an exceptional 20-week payback and a post-tax NPV8 of US$1.33 billion producing a coarse, premium DMS SC6 product including credits from DSO fines and feldspar by-products.
“The study used a long-term average SC6 price of US$1359/t FOB Ghana, with recent equivalent grade prices as high as US$7708/t being achieved on Pilbara Minerals Limited BMX platform and representing a mid-range forecast when compared to other commentators.
“Every US$100/t increase in SC6 price forecast results in an additional 9% increase to the post-tax NPV8, highlighting the significant potential value uplift to the Project.
“We are also pleased to declare a maiden ore reserve of 18.9 million t at 1.24% Li2O, presenting sound resource to reserve conversion and confirming the robust project fundamentals.
Read the article online at: https://www.globalminingreview.com/mining/23092022/atlantic-lithium-ltd-complete-pre-feasibility-study-for-ewoyya-lithium-project/
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