Atlantic Lithium Ltd (AIM:ALL, OTCQX:ALLIF, ASX:A11) said electricity costs are coming down at its Ewoyaa lithium project in Ghana, thanks to a bulk customer permit that is one of several recent developments in preparation for initial production within two years.
The one-year permit from Ghana's Energy Commission allows the company to now bid with bulk energy providers, which is expected to result in a 30-50% overall power cost reduction.
As well as hiring three general managers to oversee local operations, commercial & finance and HR as the company moves from explorer to developer stage, Atlantic said talks are at an advanced stage over awarding the engineering, procurement, construction and management (EPCM) contract for the main processing plant and all non-processing infrastructure.
Tenders have also been invited for mining contractors and for the procurement of a dense media separation unit, with the tender stage for the procurement of a mobile crusher to feed the separation unit to begin soon.
A flotation scoping study has also now concluded, with the results “firmly confirming”, the company said, that including downstream flotation circuit would be viable process both ‘fines’ and ‘middlings’ materials, including significantly enhancing the recovery of P2 finer-grained pegmatite material.
With the government of Ghana having publicly expressed their desire to ratify the mining lease before the end of the calendar year, a scoping report for a downstream conversion plant has been submitted for the Environmental Protection Agency to review and approve, with an inaugural Community Consultative Committee meeting that included chiefs and elders of the local communities garnering “overwhelming support” for the project.
"Following the grant of the mining lease in October 2023, we are now firmly on the path towards building Ewoyaa as Ghana's first lithium mine. Alongside our ongoing, recently extended exploration programmes, which continue to add value to the project, excellent progress is being made towards achieving shovel readiness,” said chief executive Keith Muller.
"The permitting phase is well underway, with active engagement with local stakeholders within and surrounding the project's lease area.”
Other key milestones ahead include a maiden feldspar mineral resource estimate expected before the end of the year, with a feldspar study underway evaluating whether feldspar will be able to be produced as a by-product of the project’s spodumene production.
Results from the downstream conversion study are due to be announced in the first quarter of next year.