ASX-listed lithium exploration and development company Atlantic Lithium (ASX:A11) reports it has awarded ‘industry-leading’ engineering company Primero Group a contract for the Processing Plant Front-End Engineering Design (FEED) for the Ewoyaa Lithium Project in Ghana.
Under the terms of the agreement, the company states Primero will provide services to optimise the project’s flow sheet, identify long-lead items, look to maximise the project’s long-term profitability, reduce execution risk and support the advancement of the project towards becoming a financially and operationally robust lithium-producing mine.
The value of the contract is US$980,000, the consideration of which is to be paid in accordance with the 3-stage earn-in agreement the company has with Piedmont Lithium (ASX:PLL) to fund Ewoyaa toward production.
Atlantic Lithium Executive Chairman Neil Herbert says the company is thrilled to take the next significant step towards becoming a lithium producer by awarding the FEED contract to Primero.
“Primero is an industry leader in engineering and construction in the lithium sector, as proven by their technical expertise, quality and efficient delivery across an extensive portfolio of projects around the world.
“Primero’s involvement invites a fast-tracked program and ‘significantly’ reduces execution risk and, therefore, will be highly valuable to the company”
Primero’s involvement invites a fast-tracked program and ‘significantly’ reduces execution risk and, therefore, will be highly valuable to the company.”
Atlantic reports Primero, which is a wholly-owned subsidiary of NRW Holdings (ASX:NRW), specialises in the design, construction and operation of global resource projects.
The group has extensive experience in delivering large-scale construction contracts, including in the lithium industry and in West Africa, which demonstrates ‘significant’ expertise, versatility and competence.
Furthermore, Primero has provided services for a number of lithium projects with comparable flow sheets to Ewoyaa’s, including the Bald Hill Project operated by Tawana Resources, the Pilgangoora Project ran by Pilbara Minerals (ASX:PLS) and Finnus Lithium operated by Core Lithium (ASX:CXO).
Atlantic also reports it has appointed Roux Terblanche as Project Manager, stating Roux has over 25 years’ experience across domestic and international mining sectors, including the lithium sector in West Africa.
The company says Roux was part of the team that delivered the Pre-Feasibility Study (PFS) for Ewoyaa and his experience will be key to Atlantic’s success in building Ghana’s first lithium producing mine.
Herbert commented: “We are delighted to announce Roux Terblanche’s appointment as Project Manager. Roux brings considerable experience and expertise to the team, not least having been involved in delivering the PFS at Ewoyaa, and his appointment comes at an exciting and highly important time.
The award of the contract to Primero and Roux’s appointment as project manager demonstrates the ‘significant’ steps we are taking to advance the project towards production.
Following the recent completion of the drilling program at the project, we look forward to announcing an updated mineral resource estimate (MRE) in the coming months, which will put us in good stead to announce the Definitive Feasibility Study (DFS) in mid-2023.”
Atlantic reports following the recently completed 47,000m resource and exploration drilling program at Ewoyaa, it is currently working towards producing an updated MRE scheduled to be released in Q1 2023. This updated MRE will then be used to support a DFS expected to be completed in mid-2023.
Atlantic Lithium is an ASX-listed lithium exploration and development company focused on advancing its portfolio of projects and licences in Ghana and Cote d’Ivoire through to production. The company has a land holding of 560km-square in Ghana and 774km-square in Cote d’Ivoire.
The Ewoyaa Project is the company’s flagship asset and is on-track to become Ghana’s first lithium producing mine. Based on the PFS, the project has an indicated Life of Mine (LoM) revenue in excess of US$4.84 billion, producing a spodumene concentrate via simple gravity only process flow sheet.
Images: Atlantic Lithium Ltd
