Africa-focussed lithium explorer and developer Atlantic Lithium reports that its current high-grade infill drilling campaign at the Ewoyaa lithium project, in Ghana, continues to confirm high grades and mineralisation continuity.
Atlantic recently announced an updated scoping study and increased Joint Ore Reserves Committee-compliant resource of 21.3-million tonnes at a grade of 1.31% lithium oxide, resulting in a significant improvement in project economics and life-of-mine (LoM).
Thus far, Atlantic has undertaken 4 769 m of infill drilling, with assay results having been reported for 42 holes.
Most noteworthy of the ongoing infill diamond and reverse circulation drilling was hole GRC0501 that found 1.54% lithium oxide for 45 m from 78 m below surface; hole GRC0478 that found 1.61% lithium oxide for 33 m from 72 m below surface; and hole GRDT0455 that found 1.66% lithium oxide for 31.2 m at a depth of 78.4 m.
Also, Atlantic notes that an additional 22 500 m of infill, extensional and exploration drilling assay results are outstanding and will be reported post completion of drilling activities for further resource upgrades.
Recently, Atlantic recommenced with auger drilling on site, with six power auger rigs active to test new exploration targets within the Mankessim, Mankessim South and Saltpond licences.
Regional airborne geophysical and soil sampling surveys are also planned over the newly granted Cape Coast licence.
Exploration and resource expansion drilling is planned to recommence in February.
Atlantic CEO Vincent Mascolo says assay results received over the Ewoyaa Sill target to date are encouraging, with mineralisation occurring in flat-lying sill structures favourable for tonnage addition and a low strip ratio.
In addition, the company reports that assay results pending for the newly drilled Kaampakrom West target and Ewoyaa Sill, where spodumene has been observed in drill cuttings and new mineralisation, have been observed outside of the current resource footprint.
These point to a two-million-tonne-a-year operation, producing an average of 300 000 t/y of 6% lithium oxide spodumene concentrate over an 11.4-year LoM.
LoM revenues exceed $3.43-billion, with a post-tax net present value of $789-million and an internal rate of return of 194% over 11.4 years.
Also, the updated scoping study points to the project having a $70-million capital cost with a payback period of less than one year.
Mascolo adds that the company is targeting a greater than 80% resource conversion from inferred to indicated over the recently upgraded 21.3-million-tonne resource, as well as a targeted tonnage increase to over 24-million tonnes in support of a 12-year mine life for future studies.
“Our resource continues to grow and the upside of the project is clear. As such, we expect that the project metrics will improve beyond the current defined LoM,” he says.