A scoping study update completed by Atlantic Lithium has revealed that the Life of Mine (LOM) operations of the Ewoyaa Lithium project, West Africa’s first lithium project will last for over 11 years.
While the study update increased the project’s LOM operations, its production capacity also showed an average of 300,000 tonnes per annum (tpa) of 6 per cent lithium oxide (Li2O) spodumene concentrate.
The scoping study on the Ewoyaa lithium project incorporated the increased Joint Ore Reserves Committee (JORC) resource of 21.3 million tonnes (Mt), resulting in a significant improvement in project economics and life of mine.
The company stated that the study update delivers exceptional financial outcomes, with LOM revenues exceeding US$3.43 billion, post-tax NPV8 of US$789 million, internal rate of return (IRR) of 194 per cent over 11.4 years, and an “industry-leading payback period” of less than 1 year.
It also included a $70 million capital cost with cash operating costs of $249 per tonne of 6% lithium spodumene concentrate free on board at Ghana port after byproduct credits, and a pre-tax NPV8 of $1.23 billion and EBITDA of $2.02 billion for the life-of-mine.
In addition to spodumene production, the company noted that the study update included two additional revenue streams: a saleable direct shipping ore fines product and a saleable feldspar by-product.
Ewoyaa Project an Industry-leading Asset
The scoping study incorporated a conventional open cut mining operation from surface with low to moderate stripping ratios and simple processing through conventional Dense Media Separation (DMS) only.
CEO Vincent Mascolo stated, “…Update regarding the company’s exceptional scoping study confirms that the Ewoyaa is an industry-leading asset and transformational for Atlantic Lithium. The project leverages existing infrastructure, including directly adjacent HV power, a major highway within one kilometre of the site, and the major port of Takoradi, 110 kilometres 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.”Vincent Mascolo, CEO
The study estimated that every additional year of production would add up to $60 million in post-tax NPV per annum, Mascolo added.
Importantly, the company pointed out that there is a significant exploration upside potential from the historic Egyasimanku Hill deposit (1.5Mt at 1.66% Li2O, non-JORC) and surrounding 560km2 portfolio.
“Our resource continues to grow, and the upside of the project is clear; further resource drilling recently completed, as such, we expect that the project metrics will improve beyond the current defined life-of-mine.
“Given these fundamentals, we are very excited by the resurgence and exponential growth potential across the lithium supply chain and reaffirm to the market that Atlantic is ideally poised to capture the lithium market going forward.”Vincent Mascolo, CEO
Recall that a few weeks ago, the company received its license to expand its operations, covering an area of 139.23km2, near the company’s Mankessim exploration site, Ewoyaa Lithium and also adjacent to the company’s Saltpond license. This, the company said was “exceptionally well located”, in terms of both geological and infrastructure perspective.