Atlantic Lithium announces staged development for Ewoyaa

Africa-focussed explorer and developer Atlantic Lithium announced plans for staged project developments to optimise the process flowsheet and mine throughput scenarios for the Ewoyaa Lithium Project in Ghana on Wednesday.

The AIM-traded firm said the updates were the result of its increased mineral resource estimate to 35.3 million tonnes at 1.25% lithium oxide, and ongoing work to optimise the project's processes.

It said the first stage of project development would comprise crushing and screening to three size fractions, from one to 10 millimetres, to improve cyclone performance, and the retention of sales of natural occurring fines as a direct shipping ore by-product.

Various mine throughput scenarios would be modelled to optimise project outcomes.

The second stage would be scoping studies, including the evaluation of early lithium spodumene concentrate production opportunities through the rapid deployment of modular dense media separation units to capitalise on the current SC6 price environment.

Later-stage beneficiation of natural occurring fines to SC6 and the production of feldspar by-product to reduce waste and to supply Ghana's growing ceramics industry would also be included.

The company said it would consider various mine throughput scenarios for the project, driven by the mineral resource estimate upgrade.

It said the work was ongoing, to further optimise the project's processes and economics.

The board said the pre-feasibility study delivered “exceptional” financial outcomes for a two million tonnes-per-annum throughput operation, producing an average 255,000 tonnes of SC6 per annum over a 12.5-year mine life, based on the previous 30.1 million tonnes at 1.26% lithium oxide mineral resource estimate.

It said the project had life-of-mine revenues exceeding $4.84bn, a post-tax 8%-discounted net present value of $1.33bn, an internal rate of return of 224% over 12.5 years, and a $125m capital cost with an “industry-leading” payback period of less than five months.

A maiden ore reserve of 18.9 Mt at 1.24% lithium oxide had been declared, which Atlantic said demonstrated sound resources-to-reserve conversion, and a conventional dense media separation processing facility.

Front-end engineering design and the definitive feasibility study for the project were said to be progressing well, with the study remaining on track for the second quarter, which was expected to significantly enhance the project's economics.

“Since commencing at Atlantic Lithium, the team has been working hard to assess all opportunities to enhance the project's processes and potential economics,” said chief operating officer Keith Muller.

“Alongside the increased mineral resource estimate, the staged project development plan will focus on improved plant efficiency and increased metal recovery.

“With numerous positive milestones ahead, we expect 2023 to be a year in which we realise some of the significant value potential available to the company.”

At 1436 GMT, shares in Atlantic Lithium were down 1.28% at 26.9p.

Reporting by Josh White for Sharecast.com.