Atlantic Lithium has announced high-grade drill intersection in the latest results from its flagship Ewoyaa lithium project, receiving assay results for an additional 4,000 metres of drilling at the Ewoyaa Main and Grasscutter North targets.
Highlights from drilling at the main deposit included 46m at 1.21% lithium oxide (Li2O) from a depth of 115m; 43m at 1.08%; 31m at 1.43%; and 10m at 1.39%.
The new drilling results fall outside the current JORC-compliant resource estimate and extend mineralisation a further 75m downdip at the Ewoyaa Main deposit.
Sample preparation was completed by Intertek Ghana and assay by Intertek Perth with all reported results passing QA/QC protocols, providing confidence in reported results.
Interim chief executive Lennard Kolff, said:
“We are pleased to report ongoing and significant high-grade pegmatite intervals over broad widths below the Ewoyaa Main deposit and outside of the currently defined resource volume, giving us confidence to deliver future resource upgrades for the project.”
“Remaining assays are pending for holes GRC0666 and GRC0667 which have long intervals of visible spodumene reported and initial high-grade results received of 10m at 1.39% Li2O in GRC0666 with mineralisation open at depth.”
Lennard Kolff
Visible spodumene zones up to 80m long were observed in holes GRC666, GRC667, GRC669 and GRC670 below the Ewoyaa Main deposit.
Exploration Programme Yields Resource Growth
Approximately 24,900m of the planned 37,000m resource evaluation and exploration RC and diamond core drilling programme completed to date and planned for completion in Q3 2022.
“Our ongoing exploration programme demonstrates considerable scope for resource growth and the potential for an extended mine life beyond the metrics of the Scoping Study. This, in conjunction with further economic benefits from increased spodumene concentrate pricing, continue to demonstrate Ewoyaa as an industry-leading asset.”
Lennard Kolff
Given the pre-feasibility study targeted for completion is Q3 2022, and Piedmont’s agreement to fund the project to production, “we feel the company is ideally positioned to benefit from the growing lithium demand.”
After completion of the pre-feasibility study in Q3 2022, it will likely add to the results obtained during the previous scoping study which returned a post-tax NPV8 (net present value using an 8% discount rate) of US$789 million and a post-tax internal rate of return (IRR) of 194%.
Atlantic Lithium has acknowledged that there is a substantial improvement in project metrics with a mine life over 15 years, previously estimating that every additional year of production will add up to an expected US$60 million to the post-tax NPV.
This comes after Atlantic Lithium realised a significant resource upgrade in March 2022 to 30.1Mt at 1.26% Li2O for the Ewoyaa Lithium deposit, which represented a 42% increase from the previous MRE. This included 20.5Mt @ 1.29% Li2O in the Indicated category.
Last week, the company set its eyes on pursuing a listing on the Australian Securities Exchange (ASX), intending to complete the processes this quarter.
The move is expected to bring the Company’s Ewoyaa Project and Cape Coast Lithium Portfolio to the attention of a robust resources market where lithium exploration companies have in recent times attracted significant investor interest.
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