Atlantic Lithium has announced a significant upgrade in the mineral resource estimate at the Ewoyaa project to 30.1Mt at 1.26% Li2O for the Ewoyaa lithium deposit, representing an increase of 42 per cent.
This result is in line with the company’s goal to increase the Resource to support a more than 12-year mine life and to convert more than 80% of the previous resource from Inferred to Indicated status. “We have comfortably achieved both goals, demonstrating the robust geological fundamentals of the Project,” said Leon Kolff, Interim CEO of Atlantic Lithium.
Total Resource grade remains largely unchanged, highlighting its robust geological fundamentals, and includes a 294% increase to 20.5Mt at 1.29% Li2O in the Indicated category and 1.19% Li2O in the Inferred category. Also, the mineralization remains open at depth and along strike with additional untested pegmatites within the immediate deposit area, providing confidence for further resource upgrades.
This new resource upgrade is based on a total drilling of 90,308 metres which includes an additional 37,500 metres of drilling completed at year-end 2021 with one drill rig active on-site. The 2022 drilling round is expected to have six drill rigs active over the portfolio. This includes a detailed airborne geophysical survey awarded and soil sampling surveys underway.
There is significant exploration upside within broader 560km2 Cape Coast lithium portfolio, the report highlighted, consisting of historic 1.48Mt at 1.67% Li2O Egyasimanku Hill deposit.
“The Resource is exceptionally well located, being only 1km from the sealed national highway and 110km from the operating deep-sea port of Takoradi with adjacent grid power; it is challenging to find other lithium pegmatite projects better located.”
Leon Kolff, CEO Atlantic Lithium
Profitability of Mine
Considering the profitability of the Resource, the company reported that with a life-of-mine of more than 11.4 years, the expected revenues will exceed $3.43 billion, Post-tax NPV8 of US$789m, and an internal rate of return (IRR) of 194%.
Additionally, at such a mine life, the company’s capital cost is $70 million with industry-leading payback period of more than 1 year. Also, it has a cash operating costs of $249 per tonne of 6% lithium spodumene concentrate Free on Board (“FOB”) Ghana Port, after by-product credits and a pre-tax NPV8 of $1.23 billion and EBITDA of $2.02 billion.
Commenting on the latest progress, Leon Kolff, Interim CEO of Atlantic Lithium, said:
“We are delighted to have increased the Ewoyaa Resource by a further 42% to 30.1Mt at 1.26% Li2O and will continue to grow this robust project with ongoing drilling programs. In conjunction with the ongoing drilling, mining studies in support of the Pre-Feasibility Study are well advanced.
“Due to the coarse nature of the spodumene dominant mineralisation, metallurgical test-work to date has consistently delivered high-purity, low contaminants more than 6% Li2O spodumene concentrate utilising dense medium gravity separation, boding well for low capital, operating and carbon intensities.
Leon Kolff
With Ewoyaa being fully funded to production through an agreement with the Ewoyaa project partner, Piedmont Lithium, this upgrade highlights the exceptional potential of the project and the value that it brings to the Company.
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