REG - Atlantic Lithium Ltd - Corporate Update and Half-year Financial Report

Atlantic LithiumAnnouncement

15/03/2023 07:15

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RNS Number : 0349T  Atlantic Lithium Limited  15 March 2023

 

15 March 2023

 

Interim Results

 

Highly successful operational, corporate and financial period

Robust Pre-Feasibility Study significantly derisks Ewoyaa Lithium Project

Further progress made towards building Ghana's first lithium mine

 

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 its unaudited Interim Results for the half-year period
ended 31 December 2022.

 

A full copy of today's report (including tables and diagrams referred to in
this release) is available through the Investor Centre of the Company's
website (https://www.atlanticlithium.com.au
(https://www.atlanticlithium.com.au) ) or can be viewed in the PDF version via
the following link:

http://www.rns-pdf.londonstockexchange.com/rns/0349T_1-2023-3-15.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0349T_1-2023-3-15.pdf)

 

Project Highlights

·    Completed Pre-Feasibility Study ("PFS") on the Ewoyaa Lithium Project
("Ewoyaa"), demonstrating the significant profitability potential of this
stand-out project:

o  LOM revenues exceeding US$4.84bn, Post-tax NPV(8) of US$1.33bn, IRR of
224% over 12.5 years

o  US$125m capital cost with industry-leading payback period of <5 months

o  Maiden Ore Reserve of 18.9Mt at 1.24% Li(2)0 declared, demonstrating sound
resources to reserve conversion

o  12.5-year mine life, 2Mtpa conventional dense media separation ("DMS")
processing facility with average 255,000tpa 6% lithium spodumene concentrate
("SC6") production

·    Mining Licence application lodged for the extraction of minerals from
the proposed Ewoyaa Lithium Mine

·    Awarded processing plant Front-End Engineering Design contract to
Primero Group

·    Completed a 47,000m resource infill and extensional reverse
circulation ("RC") and diamond core ("DD") drilling programme. Results
included:

o  Highest-grade assay result of 6.78% Li(2)O over a 1m interval in drilling
at the Ewoyaa Main 'Starter Pit'

o  Multiple broad and high-grade intersections within and outside of the
previous MRE (30.1Mt @ 1.26% Li(2)O), which were incorporated in the MRE
upgrade announced post-period

 

Corporate Highlights

·    Admitted to trading on the Official List of the Australian Securities
Exchange ("ASX") on 21 September 2022, under the ticker 'A11'

·    Appointment of Mr Keith Muller as Chief Operating Officer

 

Financial Highlights

·    Strong cash position of A$19.1m at 31 December 2022 (31 December
2021: A$23.3m)

·    Exploration and evaluation expenditure held on the balance sheet for
the period ended 31 December 2022 was A$12.7 million (2021: A$11.0 million)
which is net of Piedmont Lithium Inc. contributions

 

Post-Period

·    Significant Mineral Resource Estimate (MRE) upgrade at Ewoyaa to
35.3Mt at 1.25% Li(2)O:

o  Includes 28Mt (79%) in the Measured and Indicated categories, which is
expected to significantly improve project economics

·    Final assay results received for a further 10,052m of exploration and
infill diamond core ("DD") drilling and reverse circulation ("RC") drilling
completed at Ewoyaa

 

Commenting, Chairperson Neil Herbert said:

 

"Atlantic Lithium is fully focused on advancing its flagship project, the
Ewoyaa Lithium Project, to production as Ghana's first lithium mine. The
second half of the year saw significant progress made in the pursuit of this
aim.

 

"We were delighted to report the Pre-Feasibility Study for the Project in
September 2022, further showcasing Ewoyaa as an industry-leading lithium
asset. Ewoyaa is a low capex, low opex project with a simple processing
flowsheet, soon to be producing highly sought-after, coarse grain spodumene
concentrate. There are few spodumene projects that boast the existing
infrastructure, minimal footprint and short timeline to production that Ewoyaa
offers. It is unsurprising, therefore, the considerable level of interest that
we have received in the remaining 50% of the offtake.

 

"During the period, our activities on the ground generated excellent results,
with the 47,000m resource evaluation and exploration drilling programme
increasing the confidence in the Project's resource category and extending
mineralisation beyond the previous Mineral Resource footprint. Results
included the highest-grade assay result that we have reported at the Project,
of 6.78% Li(2)O over 1m at the Ewoyaa Main 'Starter Pit', as well as multiple
broad and high-grade intersections within and outside of the previous MRE.

 

"These results were followed, post-period end, by the significant upgrade to
the Mineral Resource Estimate to 35.3Mt @ 1.25% Li(2)O, including 3.5Mt at
1.37% Li(2)O in the Measured category and 24.5Mt at 1.25% Li(2)O in the
Indicated category. 79% of the overall MRE now sits in Measured and Indicated,
providing us with greater assurance of the Project's potential.

 

"As part of our evolution from explorer and developer towards producer, the
Company appointed Keith Muller as Chief Operating Officer and Roux Terblanche
as Project Manager during the half-year period. Keith and Roux bring
considerable, directly relevant experience of operating in Africa and on
lithium projects specifically. At this crucial time, as we move through the
permitting phases, their insights are invaluable.

 

"Another major milestone during the half-year was the Company's successful
admission to trading on the Official List of the ASX. Atlantic Lithium's
profile has grown immensely in line with greater investor demand for exposure
to the battery metals sector. The ASX listing serves to enable wider trading
of the Company's shares around the world and allows us to gain recognition
alongside fellow lithium peers.

 

"Looking ahead, in the coming months, we hope to receive the grant of the
Mining Licence application that was lodged post-period end, before we commence
the EPA process. The Definitive Feasibility Study ("DFS") is on track for
release in Q2 2023 and is progressing well. Incorporating the increased MRE
announced post period-end, the DFS will evaluate an extended mine life and
increased throughput to enhance the Project's economics.

 

"Further to the news flow regarding the permitting process, we also continue
to explore our licences in Ghana within and outside of the current resource
base and we look forward to sharing updates to this regard in due course.

 

"We look to the remainder of 2023 with great excitement and thank the loyal
shareholders who are taking this journey with us."

 

 

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.

 

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