REG - Atlantic Lithium Ltd - 2023 Exploration and Resource Programmes Update

Atlantic LithiumAnnouncement

20/03/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230320:nRST4953Ta&default-theme=true

RNS Number : 4953T  Atlantic Lithium Limited  20 March 2023

20 March 2023

 

2023 Exploration and Resource Drilling Programmes Update

Auger Drilling Commenced

Ewoyaa Lithium Project, Ghana

 

Atlantic Lithium Limited (AIM: ALL, ASX: A11, OTCQX: ALLIF, "Atlantic Lithium"
or the "Company"), the funded African-focussed lithium exploration and
development company targeting to deliver Ghana's first lithium mine, is
pleased to announce the commencement of auger drilling at the Ewoyaa Lithium
Project ("Ewoyaa" or the "Project"), part of the 2023 exploration and resource
drilling programmes now underway at the Project and broader 560km(2) Cape
Coast Lithium portfolio ("Portfolio") in Ghana, West Africa.

HIGHLIGHTS:

Ø The following 2023 exploration drilling programme is planned:

·    Approximately 20,000m of auger drilling over a five-month period to
test multiple targets identified within the Project area and broader
Portfolio; auger drilling has now commenced at the Assan target in the north
of the Project area, with four auger rigs active to test for and define
pegmatite footprints.

·  Passive seismic geophysics survey to test for potential concealed
pegmatite targets within the immediate Ewoyaa Mineral Resource Estimate(1)
("MRE" or "Resource") footprint

·    Approximately 6,500m of follow-up exploration RC drilling on new
targets defined in auger drilling and the passive seismic survey, dependent on
results.

·    Soil geochemistry survey, which has now commenced over the Cape Coast
licence.

Ø An additional resource drilling programme is planned to run concurrently:

·    Approximately 10,000m of resource infill and extensional reverse
circulation ("RC") and diamond core ("DD") drilling at the Project consisting
of:

o  3,000m of infill drilling to convert Inferred resources to the higher
confidence Indicated category at the Ewoyaa South 2 deposit for future mine
sequencing optionality; drill pads and access construction is currently
underway;

o  7,000m of step out extensional drilling along strike and at depth below
the Ewoyaa Main, Ewoyaa North-East and Kaampakrom corridor deposits aiming to
grow the current MRE(1).

·    Approximately 2,000m of DD for Project studies including water
monitoring, metallurgy and resource twinning of RC holes.

·    Analysis of pegmatite drill intersections from stored pulps and
retention samples for multi-element geochemistry to help define a feldspar MRE
in support of future mine studies.

Ø The Front-End Engineering Design ("FEED") and Definitive Feasibility Study
("DFS") for the Project is well progressed

·    The delivery of the DFS, which will be based on the current 35.3Mt @
1.25% Li(2)O MRE(1), is targeted for completion at the end of Q2 2023; the
planned 2023 programmes will not impact delivery of the DFS.

 

Commenting on the Company's latest progress, Lennard Kolff, Interim Chief
Executive Officer of Atlantic Lithium, said:

"The objectives of these significant 2023 exploration and resource drilling
programmes are to test for concealed pegmatites within the immediate Resource
footprint, improve Resource confidence, add potential tonnes to the current
MRE and expand the regional exploration pipeline of targets.

"We are commencing the field programmes on all fronts, with four auger rigs
active in the Assan target area, a dozer on site constructing drill access and
pads ahead of an infill resource programme at the Ewoyaa South 2 deposit, and
the regional geochemistry soil survey underway over the broader Cape Coast
Lithium Portfolio area.

"We are excited to have engaged Fleet Space Technologies to complete a passive
seismic geophysical survey, using their ExoSphere solution, over the Ewoyaa
footprint looking for potential concealed pegmatites. All the drilling focus
to date has been on outcropping pegmatites whilst typically they occur in
clusters and there is potential for concealed pegmatites. The technology has
been successfully deployed on lithium pegmatite targeting elsewhere so we look
forward to seeing the results of the survey on Ewoyaa.

"With a significant MRE infill and extensional programme planned, we are
confident of further resource upgrades. Importantly, these will not impact the
planned delivery date of the DFS, which will be based on the current MRE.

"The infill programme planned at the Ewoyaa South 2 deposit is designed to
convert additional near surface Inferred resources to the higher confidence
Indicated category, aiming to provide mine scheduling optionality nearer to
the commencement of mining operations.

"Further to the 2023 exploration and resource drilling programmes, which are
now underway, both the FEED and DFS are well progressed. These represent major
landmarks for the Company in advancing Ewoyaa towards the mine build. The DFS
remains on track for release at the end of Q2.

"With the Pre-Feasibility Study delivered, the Mining Licence application
submitted, the FEED engineering contract awarded and the funding agreement
with our partner Piedmont Lithium in place, the Company is pushing ahead to
achieve production and benefit from the ongoing lithium demand expected over
the coming years."

 

2023 Exploration and Resource Programmes:

The Company has planned comprehensive exploration and resource drilling
programmes for the 2023 season with three key objectives; test for concealed
pegmatites within the immediate Resource footprint using passive seismic
geophysics, improve Resource confidence and add potential tonnes to the
current MRE(1), and expand the regional exploration pipeline of targets (refer
Figure 1).

Exploration Programme:

 

Auger drilling has commenced with four rigs active along the Assan corridor
target to the north of the Project footprint (refer Figure 1). Approximately
20,000m of auger drilling is planned over a five-month period and will test
multiple coincident geochemical and geophysical targets within the Project
corridor and broader Portfolio. The auger drilling is designed to test for
pegmatites below vegetation and soil cover in the absence of outcrop and, if
intersected, step out drilling over a grid pattern will follow to define the
sub-surface pegmatite footprint ahead of RC drill testing at depth for grade
potential.

The Company has engaged Fleet Space Technologies to conduct a passive seismic
geophysical survey at the Project area to test the potential for concealed
pegmatite targets (refer Figure 1). The survey is targeted to commence during
Q2, with geodes currently being shipped to site.

Dependent on the results of the regional auger drilling and passive seismic
survey, the Company has allowed for 6,500m of exploration RC drilling to test
the targets defined later in the year.

The Company has also commenced a 100 x 100m grid soil geochemistry survey over
the Cape Coast license ahead of target definition.

Resource Programme:

 

The Company has mobilised a dozer and commenced access and drill pad
construction over the Ewoyaa South 2 deposit ahead of a planned approximate
3,000m infill RC and DD programme. The programme is designed to convert the
current Inferred category resources to the Indicated category, in support of
future mine scheduling options (refer Figure 1). Drilling is planned to
commence during Q2.

Additionally, the Company has planned approximately 7,000m of step out
extensional resource drilling at the Ewoyaa Main and Ewoyaa North-East
deposits where mineralisation remains open at depth, and at the Kaampakrom
target where mineralisation remains open along strike and depth (refer Figure
1).

A further 2,000m of DD drilling is planned for Project studies including water
monitoring, metallurgy and resource twinning of RC holes.

None of the planned resource drilling programmes will impact the targeted
delivery date of the DFS, which will be based on the current 35.3Mt @ 1.25%
Li(2)O MRE(1).

The Company has commenced sampling of stored resource drilling pulps and
retention samples for multi-element geochemistry in support of defining a
feldspar MRE in support of future mine studies. This will not impact the
targeted completion date of the DFS. Work to define a feldspar MRE will be
undertaken as part of the development of the Project and is expected to
enhance the Project's economics. The Company believes the Project can
significantly boost Ghana's ceramics industry through the establishment of a
domestic, sustainable supply source.

Figure 1: Overview of planned 2023 exploration and resource programmes'
targets currently defined over geology interpretation with transparent Li LIBS
soils overlay heatmap.

 

 

End note:

 1  The Company's current mineral resource estimate of 35.3Mt @ 1.25% Li(2)O
for the Project was reported in its announcement on 1 February 2023. The MRE
includes a total of 3.5Mt at 1.37% Li(2)O in the Measured category, 24.5Mt at
1.25% Li(2)O in the Indicated category and 7.4Mt at 1.16% Li(2)O in the
Inferred category.  For the purposes of ASX Listing Rule 5.23, the Company
confirms that it is not aware of any new information or data that materially
affects the information included in its announcement dated 1 February 2023 and
that all material assumptions and technical parameters underpinning the
estimate in that announcement continue to apply and have not materially
changed.

 

 

Competent Person

Information in this report relating to the exploration results is based on
data reviewed by Mr Lennard Kolff (MEcon. Geol., BSc. Hons ARSM), Interim CEO
of the Company. Mr Kolff is a Member of the Australian Institute of
Geoscientists who has in excess of 20 years' experience in mineral exploration
and is a Qualified Person under the AIM Rules. Mr Kolff consents to the
inclusion of the information in the form and context in which it appears.

 

 

For any further information, please contact:

 

 Atlantic Lithium Limited                                           Tel: +61 2 8072 0640

 Neil Herbert (Executive Chairman)

 Amanda Harsas (Finance Director and Company Secretary)

 www.atlanticlithium.com.au (http://www.atlanticlithium.com.au)

 IR@atlanticlithium.com.au

 SP Angel Corporate Finance LLP                                     Tel: +44 (0)20 3470 0470

 Nominated Adviser

 Jeff Keating

 Charlie Bouverat

 Canaccord Genuity Limited                                          Tel: +44 (0) 20 7523 4500

 Joint Company Broker

 Raj Khatri

 James Asensio

 Harry Rees

 Liberum Capital Limited                                            Tel: +44 (0) 20 3100 2000

 Joint Company Broker

 Scott Mathieson

 Edward Thomas

 Kane Collings

 Yellow Jersey PR Limited                                           Tel: +44 (0)20 3004 9512

 Charles Goodwin

 Bessie Elliot
 atlantic@yellowjerseypr.com (mailto:atlantic@yellowjerseypr.com)

Notes to Editors:

 

About Atlantic Lithium

www.atlanticlithium.com.au (http://www.atlanticlithium.com.au/)

 

Atlantic Lithium is an AIM and ASX-listed lithium company advancing a
portfolio of lithium projects in Ghana and Côte d'Ivoire through to
production.

 

The Company's flagship project, the Ewoyaa Project in Ghana, is a significant
lithium spodumene pegmatite discovery on track to become Ghana's first
lithium-producing mine. The Company signed a funding agreement with Piedmont
Lithium Inc. for US$103m towards the development of the Ewoyaa Project. Based
on the Pre-Feasibility Study, the Ewoyaa Project has indicated Life of Mine
revenues exceeding US$4.84bn, producing a spodumene concentrate via simple
gravity only process flowsheet.

 

Atlantic Lithium holds 560km(2) & 774km(2) of tenure across Ghana and
Côte d'Ivoire respectively, comprising significantly under-explored, highly
prospective licences.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DRLPPUPAWUPWUQU