Atlantic Lithium releases more positive drilling results

Africa-focussed explorer and developer Atlantic Lithium announced additional assay results from the ongoing resource and exploration drilling programme at the Ewoyaa project in Ghana on Tuesday.

The AIM-traded firm said results had been received for an additional 4,000 metres of reverse circulation drilling completed at the Ewoyaa Main and Grasscutter North targets.

It said broad, high-grade drill intersections were returned at the Ewoyaa Main deposit, including highlights of 46 metres at 1.21% lithium oxide from 115 metres at GRC0665, 43 metres at 1.08% from 126 metres at GRC0668, 31 metres at 1.43% from 179 metres at GRC0672, and 10 metres at 1.39% from 112 metres at GRC0666, where the mineralisation remained open at depth and further assays were pending.

The newly-reported drilling results fell outside the current JORC-compliant mineral resource estimate, and extended mineralisation a further 75 metres downdip at the Ewoyaa Main deposit, providing the company with “confidence” in its future resource growth potential.

Around 24,900 metres of the planned 37,000 metres of resource evaluation and exploration RC and diamond core drilling had been completed to date, with completion planned for the third quarter.

About 8,560 metres of assay results had been reported to date, meanwhile.

The firm announced a “significant” resource upgrade in March to 30.1 million tonnes at 1.26% lithium oxide for the Ewoyaa deposit, which was a 42% increase from the previous figure.

That included 20.5 million tonnes at 1.29% in the indicated category, in accordance with the JORC 2012 code.

“We are pleased to report ongoing and significant high-grade pegmatite intervals over broad widths below the Ewoyaa Main deposit and outside of the currently defined resource volume, giving us confidence to deliver future resource upgrades for the project,” said interim chief executive officer Lennard Kolff.

“Remaining assays are pending for holes GRC0666 and GRC0667 which have long intervals of visible spodumene reported and initial high-grade results received of 10 metres at 1.39% lithium oxide in GRC0666 with mineralisation open at depth.

“Drilling at the Ewoyaa project is ongoing, with approximately 24,900 metres of the planned 37,000 metres programme completed to date, with further assays pending and the programme targeted for completion this quarter.”

Kolff said the company’s ongoing exploration programme demonstrated “considerable scope” for resource growth, as well as potential for an extended mine life beyond the metrics of the scoping study.

“This, in conjunction with further economic benefits from increased spodumene concentrate pricing, continue to demonstrate Ewoyaa as an industry-leading asset.

“With the pre-feasibility study targeted for completion in the third quarter, and the project being funded to production through our agreement with Piedmont Lithium, we feel the company is ideally positioned to benefit from the growing lithium demand.”

At 1535 BST, shares in Atlantic Lithium were up 3.23% at 32p.

Reporting by Josh White at Sharecast.com.