Atlantic Lithium upbeat on latest drilling results from Ewoyaa

Atlantic Lithium announced assay results from the resource and exploration drilling programme underway at the Ewoyaa lithium project in Ghana on Tuesday, after results were received for an additional 2,900 metres of reverse circulation drilling at the Ewoyaa Main and Grasscutter North targets.

The AIM-traded firm said the targets were drilled as part of the ongoing 37,000 metre resource evaluation and exploration reverse circulation and diamond core drilling programme.

It said broad, high-grade drill intersections were returned at the Ewoyaa Main deposit, including 69 metres at 1.34% lithium oxide from 129 metres at GRC0667, 67 metres at 1.2% lithium oxide from 112 metres at GRC0666, 59 metres at 1.07% lithium oxide from 125 metres at GRC0670, and 59 metres at 0.95% lithium oxide from 113 metres.

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

Additional results also extended mineralisation a further 40 metres west at the Grasscutter North target outside of the current resource, including seven metres at 1.16% lithium oxide from 129 metres at GRC0653, four metres at 1.12% lithium oxide from 96 metres at GRC0654, and nine metres at 0.68% lithium oxide from 157 metres at GRC0655.

Approximately 27,000 metres of the planned 37,000 metre drilling programme had been completed to date, with the rest planned for completion in the third quarter.

Atlantic Lithium had 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 estimate.

That included 20.5 million tonnes at 1.29% lithium oxide in the indicated category, reported under the JORC 2012 code.

“We are pleased to report high-grade pegmatite intervals up to 69 metres long below the Ewoyaa Main deposit and outside of the currently defined resource estimate,” said interim chief executive officer Lennard Kolff.

“Furthermore, mineralisation remains open along strike and at depth.

“Approximately 27,000 metres of the planned 37,000 metre programme at Ewoyaa has now been completed.”

Kolff said drilling was ongoing, with further assays pending and the programme targeted for completion in the current quarter.

“These latest assays continue to demonstrate the potential for resource growth outside of the current resource and for an extended mine life beyond the metrics of the scoping study reported in December, and prior to the updated resource estimate of 30.1 million tonnes 1.26% lithium oxide, announced in March.

“It is clear from Ewoyaa's ongoing positive drilling results, available off take capacity combined with the pre-feasibility study targeted for completion in the third quarter and our funding agreement with Piedmont Lithium, we are in an exceptional position to benefit from the continued global lithium demand.”

At 1356 BST, shares in Atlantic Lithium were up 4.07% at 34.24p.

Reporting by Josh White at Sharecast.com.