Aim-listed explorer IronRidge Resources has completed a scoping study on the Ewoyaa lithium project in Ghana, which supports a business case for a two-million-tonne-a-year operation with an eight-year life-of-mine (LoM), LoM revenues exceeding $1.55-billion and significant potential to extend the LoM.
According to the scoping study, the mine will be able to produce an average 295 000 t/y of 6% lithium oxide spodumene concentrate.
In terms of project financials, the scoping study points to a post-tax net present value (NPV) of $345-million, a pre-tax NPV of $539-million and an internal rate of return of 125% over eight years.
The study also suggests the project will produce earnings before interest, taxes, depreciation and amortisation of $854-million over the eight-year mine life.
The project will require a capital investment of $68-million, but has a payback period of less than a year.
The study also lays out that the project will have cash operating costs of $247/t of 6% lithium spodumene concentrate.
Further, preliminary test work by the Australian Nuclear Science and Technology Organisation confirms Ewoyaa concentrate produces high-purity, battery-grade lithium hydroxide monohydrate.
IronRidge highlights that the project provides good asset fundamentals, logistics and access to infrastructure. It will use a conventional opencut mining operation from surface with low stripping ratios, while processing will be done through conventional dense media separation (DMS) only, thereby producing a premium coarse crush 6% spodumene concentrate saleable product.
The company also notes that the project has significant exploration upside potential from the historic Egyasimanku Hill.
IronRidge CEO Vincent Mascolo says the project leverages existing infrastructure, including directly adjacent high-voltage power, a major highway within 1 km of the site and the major Port of Takoradi less than two hours’ drive away.
“Few hard-rock lithium projects worldwide can boast the proximity to existing operational infrastructure, lithium grade and a simple DMS-only process route that separates Ewoyaa from its peers.”
He adds that, with the benefit of adjacent infrastructure and without the need to include expensive milling and flotation circuits, the project benefits from a low upfront capital expenditure.
“Our resource continues to grow and the upside of the project is clear; further resource drilling is currently under way and, as such, we expect that the project metrics will improve beyond the current defined LoM.”