REG - Atlantic Lithium Ltd - Appointment of Flotation Scoping Study Partner

Atlantic LithiumAnnouncement

13/07/2023 07:15

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RNS Number : 9150F  Atlantic Lithium Limited  13 July 2023

 

13 July 2023

APPOINTMENT OF FLOTATION SCOPING STUDY PARTNER

DRA TO EVALUATE FLOTATION circuit TO MAXIMISE RECOVERY AND ENHANCE pROJECT ECONOMICS

Atlantic Lithium Limited (AIM: ALL, ASX: A11, OTCQX: ALLIF, "Atlantic Lithium"
or the "Company"), the African-focused lithium exploration and development
company targeting to deliver Ghana's first lithium mine, is pleased to
announce the appointment of DRA Global Limited (ASX: DRA, JSE: DRA, "DRA") to
conduct a Scoping Study ("Study") for the inclusion of a flotation circuit at
the Ewoyaa Lithium Project ("Ewoyaa" or the "Project") in Ghana, West Africa.

DRA is an international multi-disciplinary engineering, project delivery and
operations management group, predominantly focused on the mining, minerals and
metals industry. The group has an extensive track record spanning almost four
decades across a wide range of commodities, with expertise in the mining,
minerals and metals processing industries, as well as related non-process
infrastructure, such as water and energy solutions.

The Scoping Study, which forms part of Stage 2 of the Project's development,
will comprise:

·    an evaluation of the technical and commercial viability of the use of
flotation to process fines and middlings as a potential additional downstream
circuit to the planned Ewoyaa Lithium Dense Media Separation ("DMS")
processing plant;

·    assessing the use of the 4.7Mt of 1.2% Li(2)O fines material
currently intended to be sold as a low-grade Li(2)O secondary product (refer
Ewoyaa Definitive Feasibility Study(1), announced on 29 June 2023) as
potential feedstock for the flotation circuit.

Preliminary testwork and calculations indicate encouraging flotation stage
recovery and the achievement of >5% Li(2)O concentrate grades. The
higher-value concentrate produced by flotation is intended to replace the
current lower-grade secondary product. The Company believes that this would
enhance the Project's financial outcomes and de-risk the Project in the event
that the low-grade lithium-bearing products market is adversely affected.

Under the terms of the agreement, DRA will deliver process design criteria, a
processing flowsheet, capital and operating cost estimates for the additional
flotation circuit.

The Study is due to commence imminently, with an outcome expected in Q4 2023.

The Definitive Feasibility Study(1) ("DFS") for Ewoyaa indicates exceptional
economic outcomes and profitability potential for a 2.7Mtpa steady state
operation, producing 3.6Mt of spodumene concentrate over a 12-year Life of
Mine ("LOM"):

·    Post-tax NPV(8) of US$1.5bn, with free cash flow of US$2.4bn from LOM
revenues of US$6.6bn, Internal Rate of Return ("IRR") of 105%;

·    Average LOM EBITDA of US$316 million per annum, short payback of 19
months;

·    C1 cash operating costs of US$377/t of concentrate Free-On-Board
("FOB") Ghana Port, after by-product credits;

·    Capital cost estimate of US$185 million;

·    DFS incorporates Mineral Resource Estimate(1) ("MRE") of 35.3Mt @
1.25 Li(2)O and conservative LOM concentrate pricing of US$1,587/t, FOB Ghana
Port.

Commenting, Keith Muller, Chief Executive Officer of Atlantic Lithium, said:

"Initial testwork has indicated the possibility of upgrading the lower-grade
secondary product that we will be producing from the Ewoyaa Lithium Dense
Media Separation plant to a higher margin spodumene concentrate product
through an additional flotation circuit, downstream from the DMS plant.

"By increasing the production of concentrate, we believe that we reduce our
reliance on the low-grade lithium-bearing products market and enhance our
exposure to spodumene concentrate pricing upside. The higher-value product
will generate greater revenues and, as such, the inclusion of the flotation
circuit is expected to improve the financial outcomes indicated in the recent
Definitive Feasibility Study for the Project.

"We look forward to working with DRA and delivering the outcome of Scoping
Study later this year."

 

 (1) Ore Reserves, Mineral Resources and Production Targets

The information in this announcement that relates to Ore Reserves, Mineral
Resources and Production Targets complies with the 2012 Edition of the
Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves (JORC Code). The information in this announcement relating to Ore
Reserves of 25.6Mt @ 1.22% Li(2)O and Production Targets is extracted from the
Ewoyaa Lithium Project Definitive Feasibility Study, announced by the Company
on 29 June 2023, and information in this announcement relating to the Mineral
Resource Estimate ("MRE") of 35.3 Mt @ 1.25% Li(2)O for Ewoyaa is extracted
from the Company's announcement dated 1 February 2023, both of which are
available at atlanticlithium.com.au. The MRE includes a total of 3.5 Mt @
1.37% Li(2)O in the Measured category, 24.5 Mt @ 1.25% Li(2)O in the Indicated
category and 7.4 Mt @ 1.16% Li(2)O in the Inferred category. The Company
confirms that all material assumptions and technical parameters underpinning
the Mineral Resource Estimate and the Definitive Feasibility Study continue to
apply and have not materially changed, and it is not aware of any new
information or data that materially affects the information included in this
announcement or the announcements dated 1 February 2023 or 29 June 2023.

 

FOR ANY FURTHER INFORMATION, PLEASE CONTACT:

ATLANTIC LITHIUM LIMITED

Neil Herbert (Executive Chairman)

Amanda Harsas (Finance Director and Company Secretary)

   www.atlanticlithium.com.au
   IR@atlanticlithium.com.au
   Tel: +61 2 8072 0640

 

 

   SP Angel Corporate Finance LLP         Canaccord Genuity Limited

   Nominated Adviser                      Joint Company Broker

   Jeff Keating                           Raj Khatri

   Charlie Bouverat                       James Asensio

   Tel: +44 (0)20 3470 0470               Harry Rees

                                          Tel: +44 (0) 20 7523 4500
   Liberum Capital Limited                Yellow Jersey PR Limited

   Joint Company Broker                   Charles Goodwin

   Scott Mathieson                        Bessie Elliot

                                      atlantic@yellowjerseypr.com
   Kane Collings

                                      Tel: +44 (0)20 3004 9512
   Tel: +44 (0) 20 3100 2000

 

 

 

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. towards the development of the Ewoyaa Project. Atlantic Lithium
is currently advancing the Ewoyaa Project through feasibility studies and
intends to be producing a spodumene concentrate via simple gravity only
process flowsheet.

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

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