Atlantic Lithium substantially upgrades Ewoyaa resource estimate

Africa-focussed Atlantic Lithium announced a “significant” upgrade to its mineral resource estimate at the Ewoyaa deposit in Ghana on Thursday.

The AIM-traded firm said the resource increased 42% to 30.1 million tonnes at 1.26% lithium oxide under the JORC code.

It said the total resource grade remained “largely unchanged”, and included a 294% increase to 20.5 million tonnes at 1.29% lithium oxide in the indicated category and 9.6 million tonnes at 1.19% lithium oxide in the inferred category.

The mineralisation remained open at depth and along strike, with additional untested pegmatites within the immediate deposit area giving the company “confidence” for further resource upgrades.

Atlantic said the upgrade was based on 90,308 metres of reverse circulation (RC) and diamond core drilling, which included an additional 37,500 metres of drilling completed by the end of December.

Resource expansion and exploration RC drilling was currently underway, with one RC drill rig active on site.

Regional exploration auger drilling was also taking place, with six rigs active over the portfolio, while a detailed airborne geophysical survey contract had been awarded, and soil sampling surveys underway over the newly-granted Cape Coast licence.

Atlantic Lithium described “significant” exploration upside within the broader 560 square kilometre Cape Coast lithium portfolio, including a historic 1.48 million tonnes at 1.67% lithium oxide at the Egyasimanku Hill deposit.

The board said the resource upgrade was expected to “significantly improve” the project’s economics, noting that the previous scoping study update was based on 21.3 million tonnes at 1.31% lithium oxide, and delivered “robust” financial outcomes for a two million tonnes-per-annum operation, producing an average 300,000 tonnes of 6% lithium oxide spodumene concentrate each year over an 11.4-year operation.

There was “significant potential” for further resource upgrades to extend the planned life-of-mine, with the firm claiming that the project’s metrics would “substantially improve” with a life of 15 years or more.

“With the commencement of additional resource, and exploration drilling along strike and at depth, we are confident of further resource upgrades,” said interim chief executive officer Lennard Kolff.

“In conjunction with the ongoing drilling, mining studies in support of the pre-feasibility study are well advanced.

“"Due to the coarse nature of the spodumene dominant mineralisation, metallurgical test-work to date has consistently delivered high-purity, low contaminants 6% lithium oxide spodumene concentrate utilising dense medium gravity separation, boding well for low capital, operating and carbon intensities.”

Kolff described the resource as “exceptionally well-located”, being one kilometre from a sealed national highway and 110 kilometres from the operating deep-sea port at Takoradi, with adjacent grid power.

“Delivery of the upgraded mineral resource estimate is an important de-risking milestone for this industry-standout project.

“With Ewoyaa being fully funded to production through our agreement with Piedmont Lithium, this upgrade highlights the exceptional potential of the project and the value that it brings to the company.”

At 1454 GMT, shares in Atlantic Lithium were up 11.98% at 47.48p.