Atlantic Lithium Limited (AIM:ALL, OTCQX:ALLIF, ASX:A11) has announced final assay results from the resource and exploration drilling programme completed at its Ewoyaa Lithium Project in Ghana, West Africa, which confirm new mineralised pegmatites at the Grasscutter North, Kaampakrom North and Assan targets.
These targets are outside of the currently defined 30.1 mln tonnes (Mt) 1.26% lithium oxide (Li2O) Ewoyaa JORC (2012) Compliant Mineral Resource Estimate (MRE), the company said.
The final assay results were received for a further 10,052 metres (m) of exploration and infill diamond core (DD) drilling and reverse circulation (RC) drilling completed at the Ewoyaa Project, part of the now completed resource evaluation and exploration RC and DD programme. All assay results have now been reported for the total approximate 47,000m completed drilling programme.
Multiple high-grade drill intersections were reported at the Kaampakrom North, Grasscutter North, Anokyi and Grasscutter West targets, including highlights of:
- GRC0825: 36m at 1.23% Li2O from 42m
- GDD0102A: 22.2m at 1.62% Li2O from 73.3m
- GRC0837: 20m at 1.6% Li2O from 44m
- GDD0103: 15.1m at 1.24% Li2O from 55.4m
- GRC0842: 12m at 1.55% Li2O from 93m
- GRC0839: 13m at 1.35% Li2O from 99m
- GRC0850: 12m at 1.24% Li2O from 96m
- GRC0341: 12m at 1.03% Li2O from 134m
- GRC0844: 7m at 1.69% Li2O from 162m
- GRC0872: 8m at 1.48% Li2O from 34m
It noted that the recently announced processing plant FEED engineering contract awarded to Primero aims to optimise the project's flow sheet, identify long lead items, maximise long-term profitability, reduce execution risk and ultimately support the advancement of the project towards becoming a financially and operationally robust lithium-producing mine.
The recently announced Pre-Feasibility Study (PFS) has delivered exceptional financial outcomes for a 2 mln tonnes per annum (tpa) operation, producing an average of 255,000 tpa of 6% Li2O spodumene concentrate (SC6) over a 12.5-year operation.
The PFS predicts:
- Life of mine (LOM) revenues exceeding US$4.84bn, Post-tax NPV8 (net present value) of US$1.33bn, IRR (internatal rate of return) of 224% over 12.5 years;
- A US$125m capital cost with industry-leading payback period of less than 5 months;
- C1 cash operating costs of US$278 per tonne of 6% lithium spodumene concentrate Free on Board ("FOB") Ghana Port, after by-product credits;
- Average LOM EBITDA of US$248m per annum;
- 1.9Mt at 1.24% Li2O Maiden Ore reserve; and
- Average annualised US$1,359/dry metric tonne SC6 pricing used
"Drilling has also returned high-grade, near-surface results at the Assan target approximately 3km north-east of the northern-most current pit design including highlights of 6m at 1.49% Li2O from 66m and 6m at 1.44% Li2O from 45m, demonstrating further potential within the mineralised pegmatite swarm"
He added: "We have now reported all assay results for the approximate 47,000m drilling programme, with a Resource upgrade targeted for Q1 2023 and a DFS targeted for completion mid-2023.
"With the Pre-Feasibility Study delivered, the Mining Licence application submitted, the FEED engineering contract awarded and the funding agreement with our partner Piedmont Lithium (NASDAQ:PLL) in place, we feel the company is ideally positioned to benefit from the ongoing lithium demand expected over the coming years."