Atlantic Lithium releases new assay results from Ewoyaa

The AIM-traded firm said the latest results encompassed 5,444 metres of infill and exploration reverse circulation (RC) drilling, as part of a broader 18,500-metre drilling plan set for 2023.

It said the new findings supplemented mineralisation data at the Ewoyaa South-2 deposit, which contributed to the 35.3 million tonnes at 1.25% lithium oxide Ewoyaa mineral resource estimate (MRE).

Additionally, mineralisation had been extended in depth at the Ewoyaa North-East deposit - an area previously not incorporated in the current resource.

The company said the main goal of the infill drilling was to upgrade inferred resources to the more certain category of indicated resources at the Ewoyaa South-2 deposit.

That, it said, would assist in devising future mining strategies and potentially expand the mineral resource estimate, particularly in regions where mineralisation persists in depth or along the deposit's strike.

The report highlighted a number of high-grade drill intersections, with GRC0928 showing 23 metres at 1.75% lithium oxide from 184 metres.

GRC0911 meanwhile recorded 15 metres at 1.3% lithium oxide from 68 metres, and another 14 metres at 1.27% lithium oxide from 48 metres.

Atlantic said GRC0927 showed nine metres at 1.57% lithium oxide from 263 metres, while GRC0912 marked 14 metres at 0.99% lithium oxide from six metres.

“We are pleased to report ongoing drilling assay results across the Ewoyaa Lithium Project, which have returned high-grade infill and extension intersections,” said executive chairman Neil Herbert.

“These include some significant apparent widths and grades from relatively shallow depths.

“Results are from the Ewoyaa South-2 deposit, where we are infill drilling to convert Inferred to Indicated Resources to provide optionality for future mine scheduling, and from the Ewoyaa North-East deposit, where mineralisation has been confirmed outside of the current Resource envelope and at depth.”

Herbert said a total of 18,500 metres of infill, extensional and exploration reverse circulation drilling had been planned for 2023.

“These programmes are intended to grow and improve the confidence of the Ewoyaa Resource, in turn, improving the economics of the project.

“Following the completion of the passive seismic survey over the central portion of the Ewoyaa Resource area, we have decided to demobilise the equipment, rather than extending the survey.

“Due to various limitations, not all known pegmatites were identified by the survey.”

While a 10-metre mineralised pegmatite was intersected in drilling from one of the targets, Herbert said that was the extension of a known pegmatite where mineralisation remained open at depth.

“The survey has enhanced our knowledge of the Ewoyaa deposits and provided valuable learnings for potential future use of the technology across the company's portfolio or new opportunities at a later date.

“However, at this stage, we see greater value in deploying capital towards the systematic drilling programmes that have been proven to deliver significant value to the company to date.

“This will comprise further drilling for resource growth within the immediate project area, whilst continuing to grow the exploration pipeline within the broader portfolio using soil sampling, geophysics and auger drilling ahead of reverse circulation drill testing.”

At 1507 BST, shares in Atlantic Lithium were down 8.34% at 17.8p.

Reporting by Josh White for Sharecast.com.