REG - Atlantic Lithium Ltd - Definitive Feasibility Study Project Update

Atlantic LithiumAnnouncement

22/03/2023 07:15

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RNS Number : 8379T  Atlantic Lithium Limited  22 March 2023

22 March 2023

 

Definitive Feasibility Study Project Update

Staged Project Development and Mine Throughput Optimisation

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 provide an update on the Definitive Feasibility Study ("DFS"),
including a staged project development plan focussing on optimised process
flowsheet and mine throughput scenarios, for the Ewoyaa Lithium Project
("Ewoyaa" or the "Project) in Ghana.

 

The following planned developments to the Project result from the Company's
increased Mineral Resource Estimate(1) ("MRE") to 35.3 Mt @ 1.25% Li(2)O,
announced on 1 February 2023, and ongoing work to optimise the Project's
processes.

 

Figures, Tables and Appendixes referred to in this release can be viewed in
the PDF version available via this link:

http://www.rns-pdf.londonstockexchange.com/rns/8379T_1-2023-3-22.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8379T_1-2023-3-22.pdf)

 

HIGHLIGHTS:

Ø Staged developments to increase metal recovery and improve plant
efficiency:

·   Stage 1 - DFS Project Development, comprising:

o  Crushing and screening to three size fractions (from 1-10mm) in order to
improve cyclone performance.

o  Retain sales of natural occurring fines as a direct shipping ore ("DSO")
by-product.

o  Model various mine throughput scenarios to optimise Project outcomes.

·   Stage 2 - Scoping Studies, comprising of three separate value-adding
streams:

o  Evaluation of early lithium spodumene concentrate ("SC6") production
opportunities through the rapid deployment of Modular Dense Media Separation
("DMS") units to capitalise on the current SC6 price environment.

o  Later-stage beneficiation of natural occurring fines to SC6.

o  Production of feldspar by-product to reduce waste and to supply Ghana's
growing ceramics industry.

Ø Study to consider various mine throughput scenarios for the Project driven
by the MRE(1) upgrade to 35.3 Mt @ 1.25% Li(2)O.

Ø Work ongoing to further optimise the Project's processes and economics.

Ø The PFS(1) delivers exceptional financial outcomes for a 2.0Mtpa throughput
operation, producing an average c. 255,000tpa SC6 over a 12.5-year mine life,
based on the previous 30.1 Mt at 1.26% Li(2)O MRE:

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

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

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

·    Conventional DMS processing facility.

Ø Front-End Engineering Design ("FEED") and DFS for the Project progressing
well; DFS remains on track for Q2 2023:

·    DFS to incorporate increased 35.3 Mt @ 1.25% Li(2)O MRE(1) and is
expected to significantly enhance the Project's economics.

 

Commenting on the Company's latest progress, Keith Muller, Chief Operating
Officer of Atlantic Lithium, said:

"Since commencing at Atlantic Lithium, the team has been working hard to
assess all opportunities to enhance the Project's processes and potential
economics. Alongside the increased MRE, the staged project development plan
will focus on improved plant efficiency and increased metal recovery.

"The DFS will be based on a flow sheet that encompasses a crushing and
screening process that produces three distinct size fractions, with a maximum
size of 10mm. Utilising three different size fractions significantly improves
cyclone performance as they operate more efficiently within a narrower size
range. This optimisation leads to better metal recoveries in the processing
plant, which is one of our key focus areas.

"Separate to the delivery of the DFS, we will be conducting initial studies on
the use of Modular DMS units, to potentially shorten the timeline to initial
production against a backdrop of current buoyant lithium pricing. We will also
focus on the beneficiation of middlings, which will enable us to further
enhance the final quantities of SC6 produced.

"Ghana has an existing market for the raw materials required for its ceramics
industry; the Company intends to evaluate the potential to supply feldspar,
another by-product of production, to the Ghanaian market. This initiative
could make Ewoyaa a significant source of domestically produced feldspar. Our
evaluation will ensure the most efficient utilisation of resources and
contribute to the growth of both the Company and Ghana's ceramics industry.

"Work on the Front-End Engineering Design and Definitive Feasibility Study for
Ewoyaa is progressing well, with the Company continuously assessing
opportunities to enhance the Project's economics. The DFS, targeted for
completion in Q2, will incorporate the latest upgraded Mineral Resource
Estimate to 35.3 Mt @ 1.25% Li(2)O and will model various throughput scenarios
to optimise Project outcomes.

"In addition to the progress on the FEED and DFS, an update on the Stage 2
Scoping Studies will also be provided. Collectively, these updates will
contribute to a more comprehensive understanding of the Project's potential,
allowing the Company to make well-informed decisions and ensure the Project's
long-term success, as well as maximising returns for the Company's
shareholders.

"With numerous positive milestones ahead, we expect 2023 to be a year in which
we realise some of the significant value potential available to the Company.
We look forward to providing further updates in due course."

 

 

The Company outlines the following steps in the planned development of the
Project towards production.

 

Planned Stage 1 - DFS and Project Development

 

Results from the heavy liquid separation ("HLS") testwork series (refer to
the PFS announcement of 22 September 2022) confirmed that crushing to an
all-in top-size of 6.3 mm would produce superior results and that a simple
gravity-only DMS would be suitable for the plant. However, crushing to one
size limits the potential throughput of the plant. Further testwork has
indicated that crushing and screening to three sizes, ranging from 1-10mm
would maximise metal recovery and grade at the Project. This optimisation will
lead to better metal recoveries in the processing plant.

 

Figure 1: Ewoyaa flowsheet

 

The Ewoyaa flowsheet provides for the extraction of natural occurring fines,
which still hold a relatively high head grade and metal credits. The natural
occurring fines hold approximately 5% of the metal units reporting to the
plant. The secondary cyclone 'rejects' or 'floats' produced through DMS at the
Project have a relatively high grade, accounting for approximately 7% of the
metal reporting to the plant. When combined with the natural occurring fines,
this material is ideal for sale as a low-grade product, with a lithium content
in the range of 1-1.2%.

 

As part of the Stage 2 Scoping Studies below, the Company will investigate the
potential to beneficiate this material through a middlings beneficiation
process, which could further improve value.

 

The Company will study various mine throughput scenarios for the DFS in line
with the increased Mineral Resource Estimate(1) ("MRE") of 35.3 Mt @ 1.25%
Li(2)O.

 

The exploration of additional processing and throughput options demonstrates
the Company's commitment to resource optimisation and value maximisation for
the Project, ultimately benefiting its stakeholders and contributing to the
Company's growth.

 

Stage 2 - Scoping Studies

 

Separate to the delivery of the DFS, the Company is investigating three study
streams, including the evaluation of early SC6 production opportunities, the
beneficiation of middlings to produce SC6 and the production of commercial
quantities of feldspar by-product to reduce waste at the Project site and to
supply Ghana's growing ceramics industry.

 

As part of the development of the Project, the Company intends to conduct a
study to evaluate the potential for early SC6 production through the
deployment of Modular DMS units. The Company believes that the Modular DMS
units can be easily installed, enabling earlier production in the current high
lithium price environment.

 

The Company also intends to conduct a study to undergo beneficiation of
middlings, which is a combination of naturally occurring fines produced and
secondary floats from the cyclone process, which have consistently delivered
lithium grades similar to the MRE. By optimising the processing of middlings,
the Company aims to enhance SC6 production, adding value to the overall
production process.

 

As detailed in the PFS(1), the Company believes that commercial quantities of
feldspar may be produced from the plant - feldspar being defined as
aluminosilicates containing a combined alkali content (Na(2)O + K(2)O) of
greater than 10%. Ghana currently imports feldspar to supply its ceramics
industry. The Company intends to evaluate the route to market of the feldspar
produced as a by-product at Ewoyaa which could significantly enhance Ghana's
ceramics industry. There is interest in Ghana to set up processing of the
feldspar and this option is also being considered by the Company.

 

Simultaneously, work on the FEED and DFS is progressing well. The DFS is
intended to be delivered in Q2 and will incorporate the upgraded MRE(1) of
35.3 Mt @ 1.25% Li(2)O, expected to deliver enhanced economics for the
Project.

 

 

End note:

(( 1 )) Ore Reserves, Mineral Resources and Production Targets

The information in this announcement that relates to production targets and
Ore Reserves is extracted from the announcement dated 23 September 2022. The
information in relation to Mineral Resources of 35.3 Mt @ 1.25% Li(2)O for the
Project is extracted from the announcement dated 1 February 2023. 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 production targets, Mineral Resources
and Ore Reserve estimates in the Announcements 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 the Announcements.

 

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

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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