Exploration work at Aim- and ASX-listed Africa-focussed lithium explorer and developer Atlantic Lithium’s Ewoyaa lithium project, in Ghana, has added a significant volume to the project’s mineral resource estimate (MRE), upgrading it to 35.3-million tonnes at a grade of 1.25% lithium oxide.
This includes 28-million tonnes (79%) in the measured and indicated categories, which is expected to significantly improve project economics.
For the year to date, Atlantic received the final assay results for a further 10 052 m of exploration and infill diamond core drilling and reverse circulation drilling completed at Ewoyaa.
With a maiden ore reserve of 18.9-million tonnes at 1.24% lithium oxide, the Ewoyaa project has a capital cost of $125-million but comes with a quick payback period of about five months.
Chairperson Neil Herbert says Atlantic is fully focused on advancing its flagship project to production as Ghana’s first lithium mine. “The second half of [2022] saw significant progress made in the pursuit of this aim.”
For the half-year to December 31, 2022, Atlantic generated cash of A$19.1-million, which was lower than the A$23.3-million of the corresponding period in 2021.
The company’s exploration and evaluation expenditure held on the balance sheet for the period totalled A$12.7-million, up from the A$11-million of the corresponding period in 2021.
During the six months, Atlantic also progressed Ewoyaa, having completed a prefeasibility study (PFS) with life-of-mine revenues exceeding $4.84-billion, a post-tax net present value of $1.33-billion and an internal rate of return of 224% over 12.5 years.
A definitive feasibility study is on track to be released in the second quarter of this year.
“We were delighted to report the PFS for the project in September 2022, further showcasing Ewoyaa as an industry-leading lithium asset,” he says.
Ewoyaa, Herbert explains, is a low capital cost, low operating expenditure project with a simple processing flowsheet, soon to be producing highly sought-after, coarse grain spodumene concentrate.
During the period under review, Atlantic lodged a mining licence application for the extraction of minerals from Ewoyaa mine, and also awarded a processing plant front-end engineering design contract to Primero Group.
In the six months under review, the company also completed a 47 000 m resource infill and extensional reverse circulation and diamond core drilling programme, the highest-grade assay result revealing 6.78% lithium oxide over a 1 m interval in drilling at the Ewoyaa main starter pit.
For the year to date, Atlantic received the final assay results for a further 10 052 m of exploration and infill diamond core drilling and reverse circulation drilling completed at Ewoyaa.
Multiple broad- and high-grade intersections within and outside of the previous MRE of 30.1-million tonnes at a grade of 1.26% lithium oxide were incorporated in an updated MRE, taking it to 35.3-million tonnes at a grade of 1.25% lithium oxide.
He says there exist few spodumene projects that boast the existing infrastructure, minimal footprint and short timeline to production that Ewoyaa offers. “It is unsurprising, therefore, the considerable level of interest that we have received in the remaining 50% of the offtake.”
“As part of our evolution from explorer and developer towards producer, the company appointed Keith Muller COO and Roux Terblanche project manager during the half-year period.
“Keith and Roux bring considerable, directly relevant experience of operating in Africa and on lithium projects specifically. At this crucial time, as we move through the permitting phases, their insights are invaluable,” says Herbert.
Another major milestone during the half-year was the company’s successful admission to trading on the official list of the ASX.
“Atlantic Lithium’s profile has grown immensely in line with greater investor demand for exposure to the battery metals sector. The ASX listing serves to enable wider trading of the company’s shares around the world and allows us to gain recognition alongside fellow lithium peers,” he says.
Going forward, Herbert says Atlantic hopes to be granted a mining licence, after which it will start an environmental application process.