Atlantic Lithium (ASX:A11) has uncovered mineralised pegmatites following a combined reverse circulation (RC) and diamond drilling (DD) resource and exploration drilling program at its Ewoyaa Project in Ghana.
The results, generated from a further 10,052m of combined RC and DD, have confirmed the existence of new lithium (Li2O) mineralised pegmatites at the Grasscutter North, Kaampakrom North, and Assan targets outside of the currently defined 30.1 million tonne (Mt) JORC 2012 compliant Mineral Resource Estimate (MRE).
The Africa-focused exploration and development company says the results demonstrate further resource scale potential and confirm near-surface mineralisation on new pegmatites within trucking distance of the currently defined mine design.
Key ‘high-grade’ intercepts include hole GRC0844 with 7m @ 1.69% Li2O from 162m; hole GRC0842 with 12m @ 1.55% Li2O from 93m; and hole GDD0102A with 22.2m @ 1.62% Li2O from 73.3m.
Atlantic Lithium also says a MRE upgrade is targeted for Q1 this year in order to inform a Definitive Feasibility Study (DFS), which is expected to be completed by mid-2023.
Commenting on the results, Atlantic Lithium Interim Chief Executive Officer (CEO) Lennard Kolff says: “Drilling continues to deliver high-grade drill intersections outside the current MRE.
This last batch of results has delivered multiple near-surface drill intersections in new pegmatites defined outside of the resource footprint at the Kaampakrom North and Grasscutter North targets including highlights of 36m at 1.23% Li2O from 42m and 20m at 1.62% Li2O from 44m.
“Drilling continues to deliver high-grade drill intersections outside the current MRE”
We have now reported all assay results for the approximate 47,000m drilling program, with a resource upgrade targeted for Q1 2023 and a DFS targeted for completion mid-2023.
With the Prefeasibility Study delivered, the mining licence application submitted, the FEED engineering contract awarded and the funding agreement with our partner Piedmont Lithium (ASX:PLL) in place, we feel the company is ideally positioned to benefit from the ongoing lithium demand expected over the coming years.”
The company also notes that these results demonstrate a further 3km strike extension of prospective lithium pegmatite vein swarms towards the northeast of the current project footprint.
In addition, the recently announced processing plant front–end engineering design (FEED) contract has been awarded to Primero Group (ASX:PGX) in order to optimise the project’s flow sheet, identify long lead items, maximise long-term profitability and support the advancement of the project towards becoming a financially and operationally robust lithium-producing mine.
Meanwhile, the company reports its recently announced PFS has delivered ‘exceptional’ financial outcomes for a 2 million tonne per annum (Mtpa) operation, producing an average 255,000tpa of 6% Li2O spodumene concentrate (SC6) over a 12.5-year operation.
The ‘exceptional’ financial outcomes include Life of Mine (LOM) revenues exceeding US$4.84 billion over 12.5 years, and an average LOM earnings before interest, taxes, and amortisation (EBITDA).
Atlantic Lithium is an ASX-listed and lithium-focused company working to advance its portfolio of lithium projects in Ghana and Côte d’Ivoire through to production. The Ewoyaa Lithium Project represents the company’s flagship project and is described as a ‘significant’ lithium spodumene pegmatite discovery on track to becoming Ghana’s first lithium-producing mine.
Images: Atlantic Lithium Ltd
