REG - Atlantic Lithium Ltd - Ewoyaa Definitive Feasibility Study
29/06/2023 07:30
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RNS Number : 3640E Atlantic Lithium Limited 29 June 2023
29 June 2023
EWOYAA DEFINITIVE FEASIBILITY STUDY
DFS confirms Project's economic viability and indicates low capital intensity and exceptional profitability potential
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 its Definitive Feasibility Study ("DFS") for the Ewoyaa Lithium
Project ("Ewoyaa" or the "Project") in Ghana, West Africa.
DFS HIGHLIGHTS:
- 3.6 million tonnes ("Mt") spodumene concentrate production over
12-year Life of Mine ("LOM").
- Exceptional Project economics: Post-tax Net Present Value
("NPV(8)") of US$1.5bn with free cash flow of US$2.4bn from LOM revenues of
US$6.6bn, Average LOM EBITDA of US$316 million per annum, Internal Rate of
Return ("IRR") of 105% and 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 from conventional open cut mining
operation; All in Sustaining Cost ("AISC") of US$610/t.
- Modest capital cost estimate of US$185 million.
- Incorporates Modular DMS units to generate early cash flow and
increased throughput from 2Mtpa to 2.7Mtpa:
w Modular DMS cash flow reduces mine build peak funding requirement; capex
paid back prior to full completion of plant build; and
w DFS maintains low capital intensity of US$64/t of annualised throughput.
- Throughput increased by 35% following significant uplift in Ore
Reserves to 25.6Mt @ 1.22% Li(2)O.
- Simple mineralogy enables simple flowsheet comprising integrated
3-stage crushing facility through conventional Dense Media Separation ("DMS")
processing, producing 6% ("SC6") and 5.5% ("SC5.5") concentrate (approx. 50:50
ratio) at 10mm top size crush.
- Additional 4.7Mt of secondary product anticipated as by-product
from DMS concentrator, with average grade of 1.16% Li(2)O.
- 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.
- Project benefits from close proximity to operational
infrastructure, low energy and water-intensity process flow sheet, proximity
to potential off-takers and skilled Ghanaian workforce within surrounding
communities; over 800 direct jobs to be created.
Commenting, Keith Muller, Chief Executive Officer of Atlantic Lithium, said:
"The Definitive Feasibility study has reaffirmed the Ewoyaa Lithium Project's
impressive economic outcomes and profitability potential, providing improved
confidence in Ewoyaa's ability to become a significant, near-term producer of
spodumene concentrate.
"Using conservative pricing, the DFS outlines 3.6Mt concentrate production
over a 12-year mine life, delivering US$6.6bn Life of Mine revenues, a
post-tax NPV(8) of US$1.5bn and an Internal Rate of Return of 105%. The Study
indicates payback within only 19 months and maintains a low capital intensity,
further reinforcing Ewoyaa's position among the leading pre-production hard
rock lithium assets globally.
"The increase in capex from the PFS results from the inclusion of the Modular
DMS units and the increased throughput of 2.7Mtpa. Early revenue generated by
the Modular DMS units will reduce peak funding requirement for the mine build,
strongly justifying these developments. Furthermore, this will provide a
valuable opportunity to train national staff and engineer out any mining,
materials handling or logistics bottlenecks ahead of large-scale operations
commencing for a potentially quicker commissioning phase.
"The deployment of the Modular DMS units has been reallocated from Stage 2 to
Stage 1 of the Project's development. Stage 2 includes the evaluation of a
Feldspar circuit, a by-product of the DMS process that we intend to supply to
the local Ghanaian ceramics market, and a Flotation circuit, further enhancing
the Project's economics.
"Ewoyaa's favourable mineralogy enables a simple flowsheet comprising a
3-stage crushing facility and Dense Media Separation processing from
conventional, open pit mining to produce a spodumene concentrate proven
suitable for carbonate, sulphide or hydroxide conversion. Due to its grade,
the Project's coastal location and against the backdrop of the global
decarbonisation movement, demand from off-takers for product from Ewoyaa has
been strong.
"The Project benefits from a low water and energy-intensive plant, close
proximity to exceptional infrastructure, including adjacent grid power, as
well as a skilled Ghanaian workforce within Ewoyaa's supportive surrounding
communities. These favourable characteristics underlie the viability of the
Project.
"Understanding the role we can play, we are fully committed to the development
of our host communities. This includes local investment via a community
development fund, apportioning an equivalent of 1% of retained earnings to
local initiatives, and the creation of employment opportunities. As we set our
sights on first production, we firmly believe that Ewoyaa will deliver
long-lasting benefits for the Central Region, to Ghana and to West Africa."
Figures and Tables referred to in this release can be viewed in the PDF
version available via this link:
[INSERT LINK]
(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
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, which is
available at atlanticlithium.com.au (https://www.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 in the
announcement dated 1 February 2023 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 announcement
dated 1 February 2023.
1.0 PROJECT INTRODUCTION
1.1 PROJECT OVERVIEW AND SUMMARY
Atlantic Lithium has undertaken a Definitive Feasibility Study ("DFS") for the
development of the Ewoyaa Lithium Project ("Ewoyaa" or the "Project") in
Ghana, West Africa. The DFS builds upon previous studies completed in 2021 and
2022.
The Project development involves open cut mining of several lithium-bearing
pegmatite deposits, conventional Dense Media Separation ("DMS") processing and
supporting infrastructure to target the production of spodumene concentrate
and secondary product by Q2 2025 (Figure 1). The development timeline is
contingent on the permitting schedule as outlined in Table 16.
Figure 1 Site Overview looking Northeast, Year 1 Operation
Initial processing of approximately 450,000t of ore will be carried out over
the first nine months, starting Q2 2025, in an early production processing
plant fed from Ewoyaa South 2 pit, prior to processing through the main
2.7Mtpa processing facility from Q1 2026 for 11 years.
Over the life of mine ("LOM"), the Project is estimated to produce 3.58Mt of
6% (SC6) and 5.5% (SC5.5) grade spodumene concentrate, as well as 4.7Mt of
secondary product, which have been identified to be saleable given current and
forecast lithium demand projections.
Key Project metrics from the DFS are listed in Table 1, demonstrating robust
Project financial outcomes and metrics.
Table 1 EWOYAA DFS KEY METRICS (100% PROJECT BASis(2))
Item Units DFS Result
Mineral Resource(3) Mt @ % 35.3Mt @ 1.25% Li(2)O
Measured Indicated Mineral Resource Mt @ % 3.5Mt @ 1.37% Li(2)O
Indicated Mineral Resource Mt @ % 24.5Mt @ 1.25% Li(2)O
Inferred Mineral Resource Mt @ % 7.4Mt @ 1.16% Li(2)O
Mine Life Years 12
Ore Reserves (Probable) Mt @ % 25.6Mt @ 1.22% Li(2)O
Total Material Movement LOM Mt 406
Mined Waste Mt 375.4
Mined Ore Mt 30.6
Strip Ratio W:O 12.3
Processed Ore LOM Mt 27.3
DMS Plant Feed Rate Mtpa 2.7
Li(2)O Head Grade (average) % 1.22
Average Whole of Ore Recovery SC6 % 62.1
Average Whole of Ore Recovery SC5.5 % 67.2
Secondary Product Mass Yield (% of ROM Feed) % 17.0
SC6 Produced LOM, t 1,792,222
SC5.5 Produced LOM, t 1,792,195
Secondary Product Produced LOM, t 4,733,264
Project Total Upfront Capital Cost US$M 185
SC6 Sell Price, LOM Average, FOB Ghana US$/t 1,695
SC5.5 Sell Price, LOM Average, FOB Ghana US$/t 1,478
Secondary Product Sell Price, LOM Average, FOB Ghana US$/t 186
Revenue (all products) US$M 6,566
Post-tax IRR % 105
C1 Cash Cost, after secondary product credits US$/t 377
All In Sustaining Cost (AISC) US$/t 610
Surplus Cashflow, Post Tax US$M 2,438
NPV(8) Post Tax US$M 1,498
Payback Months 19
NPAT, LOM US$M 2,284
(2) Whilst the asset is currently wholly owned by Atlantic Lithium Ltd,
Piedmont Lithium Inc. can earn up to half the asset through the funding
agreement, whilst the Government of Ghana has the right to a 10% free carry
once in production.
(3) Mr S. Searle of Ashmore Advisory Pty Ltd for Mineral Resources and Mr H.
Warries of Mining Focus Consultants Pty Ltd for Ore Reserves. For full
Competent Persons statements, refer to Table 5 and Table 12.
NOTE: Mineral Resources are inclusive of the Ore Reserves.
1.2 PROJECT LOCATION AND ACCESS
The Project area is immediately north of Saltpond in the Central Region of
Ghana and falls within the Mfantseman Municipality where Saltpond is the
district capital (Figure 2).
The site is approximately 100km southwest of the capital of Accra. Site access
is from the sealed N1 Accra-Cape Coast-Takoradi highway which runs along the
southern coastal boundary of the Project and links Accra and the deep-sea port
of Takoradi, approximately 110km west of the site. Several unsealed roads
extend northwards from the highway and link communities within the Project
area. A new site access road will be developed to join to existing roads and
to the highway.
Figure 2 Project location and Exploration Permits
The Project area is in Mfantseman Municipality, which falls under the local
governance of the Mfantseman Municipal Assembly, which also falls under the
Central Regional Coordinating Council.
The Municipality has a projected population of 176,288 representing 6.6% of
the Central Region. Mfantseman is largely an agrarian economy with 27% of the
economically active population employed in mainstream agriculture. Industrial
activity occurs in the various market centres at Anomabo, Biriwa, and
Yamoransa, with Mankessim as the commercial hub. The three major industries of
employment in the Municipality include agriculture/forestry/fishing (37%),
wholesale/retail trade/auto repairs (23.7%) and manufacturing (8.4%).
1.3 SUPPORTING INFRASTRUCTURE
The existing, sealed N1 Accra-Cape Coast-Takoradi highway provides access to
Accra and the Takoradi port. A new access road will be built to the facility
from existing road infrastructure.
Several High Voltage (HV) powerlines traverse or run nearby to the Project
site, facilitating connection to the existing power grid and access to
existing power supply. Relocation of some HV powerlines within planned mining
areas will be required and forms part of the Project scope.
No water supply for the operation currently exists but will be sourced from a
combination of pit dewatering, site water capture and pumped supply from a
nearby reservoir for makeup water.
Connection to existing communications infrastructure for internet and
telephony will also be possible.
Existing port facilities are available at Takoradi, approximately 110km west
of the site, and at Tema, 140km east, for Project construction and operations
logistics requirements.
The nearest international airports are the Kotoka International Airport in
Accra and Sekondi-Takoradi Airport Port in Takoradi, thus no site airstrip
will be required.
Figure 3 Existing Grid Power, N1 Highway and Takoradi Port Close to
the Project Site
1.4 CLIMATE
The climate around Cape Coast is typical of the dry equatorial region of
Ghana, characterised by an average temperature of 24°C and relative humidity
of 70%. There are double rainfall peaks with a pronounced rainfall increase
during May-June and a lesser rainfall peak sometimes occurring around
September-October. Mean annual rainfall ranges from 730mm to 1,230mm along the
coast and up to 1,600mm inland, and dry seasons extend from December to
February and from July to September.
1.5 TOPOGRAPHY
The topography of the Project area varies with steep hills surrounding
low-lying valleys throughout the proposed mining area. The terrain of the
Project area rises sharply from a narrow coastal plane to an undulating
peneplain where elevation ranges from 20m to 120m above mean sea level.
2.0 OWNERSHIP, TENURE AND LEGAL
2.1 COMPANY STRUCTURE and OWNERSHIP
Atlantic Lithium holds 100% ownership over IronRidge Resources Singapore Pte
Ltd, and IronRidge Resources Singapore Pte Ltd holds both 100% ownership of
Green Metals Resources Ltd ("GMR") and 90% ownership in Barari Development
Ghana Ltd ("BDV"). The inter-corporate relationship is depicted in Table 2.
The subsidiary companies and related tenement/mineral right for which this DFS
relates to is summarised in Table 2.
Figure 4 Atlantic Lithium Corporation Structure
Table 2 Subsidiary Companies Property Rights
Subsidiary Identifying Incorporated Location and Date Percentage Holding Activity
Number
IronRidge Resources Singapore Pte Ltd UEN 201829622K Incorporated in Singapore on 29 August 2018 Atlantic Lithium Limited owns 100% Holder of shares in Barari DV Ghana Ltd & Green Metals Resources Ltd
Green Metals Resources Limited CS080712016 Incorporated in Ghana on IronRidge Resources Singapore Pte Ltd owns 100% Owns assets being the tenements / mineral rights #PL3/109
10 May 2016
Barari DV Ghana Ltd CS134902018 Incorporated in Ghana on IronRidge Resources Singapore Pte Ltd owns 90% Owns assets being the tenements / mineral rights #RL3/55
27 April 2011
Barari DV Ghana LTD is the "Operating Company" and hold the mineral right
intended to be converted to a Mining Lease for the Project. The Operating
Company will be required to obtain a Mining Lease in order to exploit the
minerals in the licence area. A holder of a reconnaissance licence or a
prospecting licence may, prior to the expiration of the licence, apply for one
(1) or more Mining Leases in respect of all or any of the minerals the subject
of the licence and in respect of all or any one or more of the blocks which
constitutes the licence area.
MINERAL RIGHTS
Atlantic Lithium holds rights to six prospecting licences and three
applications through outright ownership and joint venture (Table 3) host the
current Project site and form the basis of the Mining Lease area application.
Table 3 Ewoyaa Lithium Project Mineral Rights
Number Tenement name Size Minerals Holder Date of grant Renewal date Expiry date Term
(km(2))
PL3/55 Mankessim 74.67 Gold, Lithium, Base Metals Barari DV Ghana Ltd 23 March 2018 27 July 2021 26 Jul 2024 3 yrs
PL3/109 Mankessim South 13.02 Gold, Lithium, Base Metals Green Metals Resources Ltd 19 Feb. 2020 N/A 18 Feb 2023 3 yrs
(renewal in process)
PL3/102 Saltpond 88.62 Feldspar Joy Transporters Ltd 30 Dec. 2016 21 Aug. 2019 20 Aug. 2022 3 yrs
(renewal in process)
PL3/106 Cape Coast 136.23 Lithium Joy Transporters Ltd 15 Nov. 2021 N/A 14 Nov. 2024 3 yrs
PL3/67 Apam 20.50 Gold, Columbite, Tantalite Obotan Minerals Company Ltd 3 Sep. 2002 27 June 2019 26 Jun 2022 3 yrs
(renewal in process)
PL3/92 Apam West 33.35 Gold Obotan Minerals Company Ltd 6 Jan. 2017 21 Aug. 2019 20 Aug. 2022 3 yrs
(renewal in process)
The Project intends to transfer a portion of tenement PL3/109 from Green
Metals Resources Ltd ("GMR") to Barari to enable Atlantic Lithium to apply for
a single Mining Lease covering the Project area.
2.2 LEGAL
Key legislation relevant to the Project are the Minerals and Mining Act, 2006,
(Act 703) as amended and the Minerals and Mining Regulations passed under the
Act. Together, these instruments regulate mine development and operation in
Ghana. The Ministry of Lands and Natural Resources, and the Minerals
Commission, are primarily responsible for the administration of mining
activity in Ghana.
The Operating Company will be required to obtain a Mining Lease to exploit
minerals in the licence area. Mining companies are also required under the
Environmental Protection Agency Act, 1994 (Act 490) to obtain an environmental
permit from the EPA before commencing exploration and mining operations.
2.3 TAXATION AND PROJECT FISCAL REGIME
All taxes, royalties, fees, charges, and costs applicable to the Project in
accordance with Ghanaian legislation have been identified. These elements are
implemented in the financial model for assessment of post-tax financial
performance (Section 13.0).
3.0 GEOLOGY AND RESOURCE
3.1 GEOLOGY
The regional geology of western Ghana is characterised by a thick sequence of
steeply dipping metasediments, alternating with metavolcanic units of
Proterozoic age. The sequences belong to the Birimian Supergroup and extend
for approximately 200km along strike in several parallel north-easterly
trending volcano-plutonic belts and volcano-sedimentary basins, of which the
Kibi-Winneba Belt and Cape Coast Basin extend through the region in the
Company's Mankessim licence area.
The mineralised pegmatite intrusions generally occur as sub-vertical bodies
with two dominant trends as briefly outlined earlier: either striking
north-northeast (Ewoyaa Main) and dipping sub-vertically to moderately
southeast to east-southeast, or striking west-northwest to east-west (Abonko,
Kaampakrom, Anokyi, Okwesi, Grasscutter and Ewoyaa Northeast) dipping
sub-vertically to moderately northeast or north. Pegmatite thickness varies
across the Project, with thinner mineralised units intersected at Abonko and
Kaampakrom between 4m and 12m; and thicker units intersected at Ewoyaa Main
between 30m and 60m, and up to 100m at surface.
The mineralisation at Ewoyaa has been confirmed to be associated with
spodumene-bearing pegmatite as the main lithium bearing mineral. No petalite
or lepidolite have been observed in any of the resource RC and diamond core
drill logging. The pegmatites are predominantly quartz-albite-muscovite +/-
microcline and spodumene in composition with accessory blue-green apatite, and
less common colourless to light blue beryl, barite and secondary Fe-Mn-Li
bearing phosphates.
The Project has two clearly defined geometallurgical domains or material types
of spodumene bearing lithium mineralisation. Atlantic Lithium has termed these
material types as Pegmatite Type ("P1") and Pegmatite Type ("P2"):
- P1: Coarse grained spodumene material (>20mm), the dominant
spodumene-bearing pegmatite encountered to date, exhibiting very coarse to
pegmatoidal, euhedral to subhedral spodumene crystals composing 20 to 40% of
the rock and
- P2: Medium to fine grained spodumene material (<20mm), where
abundant spodumene crystals of a medium crystal size dominates. The spodumene
is euhedral to subhedral and can compose up to 50% of the rock. The spodumene
can be bimodal with some larger phenocrysts entrained within the medium
grained spodumene bearing matrix. There are indications of very minor
occurrences of other lithium bearing phases present .
The vast majority of the finer grained spodumene P2 ore is found within the
Ewoyaa Main pegmatite bodies and preferentially occurring towards the footwall
contact of the Ewoyaa Main pegmatites, but with some exceptions. Any finer
grained spodumene P2 pegmatite material occurring in the Abonko trending
pegmatite bodies are generally rare and of limited extent.
3.2 MINERAL RESOURCE
Drilling programmes undertaken at the Project site used reverse circulation
("RC") drill rigs and a portion using diamond core ("DD") drill rigs. Over
several drilling phases to date a total of 137,153m in 1,025 holes were
drilled (Table 4). Drilling at the deposit extends to a maximum drill depth of
386m.
Earlier phase RC drilling was completed on a nominal 100m by 50m grid pattern,
with subsequent phases of RC and DD reducing the wide spacing to 80m by 40m
and down to 40m by 40m during infill drilling phases.
Table 4 Summary of Drilling Used for the Ewoyaa Resource Estimate
Hole Type In Database In Mineral Resource
Drill holes Drill holes I
n
t
e
r
s
e
c
t
i
o
n
Number Metres Number Metres Metres
RCH 11 1,100
RC 878 119,745 616 88,967 16,959
RCD 35 4,998 32 4,568 733
DD 101 11,310 93 10,159 4,987
Total 1,025 137,153 741 103,694 22,679
3.3 MINERAL RESOURCE ESTIMATE
An updated JORC (2012) compliant Mineral Resource Estimate ("MRE") was
prepared by Ashmore Advisory Pty Ltd using analytical data from a total of 741
drillholes totalling 103,694m (Table 4) and ordinary kriging methods for
resource estimation (Table 5). The MRE is based on a 0.5% reporting cut-off
grade (constrained to above -190mRL), within a 0.4% Li(2)O wireframed
pegmatite body.
The MRE was classified as Measured, Indicated and Inferred Mineral Resource
based on data quality, sample spacing, and lode continuity. The Measured
Mineral Resource was confined to fresh rock within areas drilled at 20m by 15m
along with robust continuity of geology and Li(2)O grade. The Indicated
Mineral Resource was defined within areas of close spaced drilling of less
than 40m by 40m, and where the continuity and predictability of the lode
positions was good. In addition, Indicated Mineral Resource was classified in
weathered rock overlying fresh Measured Mineral Resource. The Inferred Mineral
Resource was assigned to transitional material, areas where drill hole spacing
was greater than 40m by 40m, where small, isolated pods of mineralisation
occur outside the main mineralised zones, and to geologically complex zones.
Table 5 Ewoyaa MRE by Deposit and JORC Classification (0.5% Li(2)O
Cut-off, above -190mRL)
Measured Mineral Resource
Deposit Tonnage Li(2)O Cont. Lithium Oxide
Mt % kt
Ewoyaa 3.5 1.37 48
Total 3.5 1.37 48
Indicated Mineral Resource
Deposit Tonnage Li(2)O Cont. Lithium Oxide
Mt % kt
Abonko 1.1 1.31 14
Anokyi 2.9 1.42 41
Ewoyaa 9.7 1.15 111
Ewoyaa Northeast 3.3 1.40 46
Grasscutter 5.8 1.19 69
Kaampakrom 0.9 1.40 13
Okwesi 0.6 1.47 9
Sill 0.4 1.36 5
Total 24.5 1.25 307
Inferred Mineral Resource
Deposit Tonnage Li(2)O Cont. Lithium Oxide
Mt % kt
Abonko 0.7 1.20 9
Anokyi 0.5 1.16 5
Bypass 0.3 1.00 3
Ewoyaa 2.9 1.09 32
Ewoyaa Northeast 0.4 1.25 5
Grasscutter 1.7 1.25 22
Kaampakrom 0.5 1.11 6
Okwesi 0.3 1.35 4
Sill 0.1 1.51 1
Total 7.4 1.16 86
Total Mineral Resource
Deposit Tonnage Li(2)O Cont. Lithium Oxide
Mt % kt
Abonko 1.8 1.26 23
Anokyi 3.3 1.38 46
Bypass 0.3 1.00 3
Ewoyaa 16.0 1.19 190
Ewoyaa Northeast 3.6 1.38 50
Grasscutter 7.5 1.20 90
Kaampakrom 1.4 1.30 18
Okwesi 0.9 1.43 13
Sill 0.5 1.38 6
Total 35.3 1.25 440
COMPETENT PERSONS NOTE:
The Mineral Resource has been compiled under the supervision of Mr. Shaun
Searle who is a director of Ashmore Advisory Pty Ltd and a Registered Member
of the Australian Institute of Geoscientists. Mr. Searle has sufficient
experience that is relevant to the style of mineralisation and type of deposit
under consideration and to the activity that he has undertaken to qualify as a
Competent Person as defined in the JORC Code. Mr Searle consents to the
inclusion in the report of the matters based on his information in the form
and context in which it appears.
All Mineral Resources figures reported in the table above represent estimates
at January 2023. Mineral Resource estimates are not precise calculations,
being dependent on the interpretation of limited information on the location,
shape and continuity of the occurrence and on the available sampling results.
The totals contained in the above table have been rounded to reflect the
relative uncertainty of the estimate. Rounding may cause some computational
discrepancies.
Mineral Resources are reported in accordance with the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves (The
Joint Ore Reserves Committee Code - JORC 2012 Edition).
There are two main geometallurgical domains at the Project which are shown in
Table 6.
Table 6 Geometallurgical occurance
Ore Type Tonnage Grade Cont. Lithium Concentrate Grade Lab HLS Recovery
Mt % Li(2)O kt % Li(2)O %
P1 31.3 1.27 398 5.5% 74%
6% 70%
P2 4 1.06 42 5.5% 25%
6% 18%
Total 35.3 1.25 440
4.0 MINING
4.1 INTRODUCTION
Mining Focus Consultants Pty Ltd were engaged to undertake a mining study as
part of the DFS. The scope of works included Pit Optimisations, Mine pit
design and scheduling, Mining Cost development and preparation of an Ore
Reserve statement.
The Project comprises eight main deposits including Ewoyaa, Okwesi, Anokyi,
Grasscutter, Abonko, Kaampakrom, Sill and Bypass (Figure 5). Deposits are
broadly 4km apart, spread out over approximately 8km(2). Two waste dumps will
be constructed west and northeast of Ewoyaa Main pit.
Figures and Tables referred to in this release can be viewed in the PDF
version available via this link:
[INSERT LINK]
Figure 5 Ewoyaa Lithium Project Pit Layout
Conventional open pit mining methods of drill and blast followed by load and
haul will be employed at the Project. Drilling and blasting will be performed
on benches between 5m and 10m high. Mining equipment will likely consist of
100t to 200t hydraulic excavators and 90t to 150t off-highway dump trucks,
supported by standard open-cut drilling and auxiliary equipment. A contract
mining model will be employed under the supervision of an Atlantic Lithium
mining management team.
Mining operations are scheduled to work 365 days in a year, less unscheduled
delays such as high rainfall events. The mine workforce will operate on a two
shift, three panel roster, seven days a week, in two 12 hour working shifts.
4.2 PIT OPTIMISATION
Mine pit optimisation works were undertaken based on the updated MRE (Section
3.3) and using WHITTLE™ Four-X optimisation software using the
Lerchs-Grossmann algorithm. Optimisations were carried out on two scenarios:
1. The total MRE; and
2. The Measured and Indicated resource only.
The supplied resource model was re-blocked from a sub-blocked mode to a
regular parent block size of 10mE x 10mN x 10mRL, which is considered a
reasonable selective mining unit for the size of mining equipment envisaged
for the Project.
The key economic input parameters used for the pit optimisation are shown in
Table 7.
Table 7 Summary of Key Pit Optimisation Input Parameters
Item Unit Value
P1 Pegmatite P2 Pegmatite
Plant throughput Mtpa 2.0
Spodumene price $/t 1,500
Concentrate grade % 6
Royalty % 6.2
Marketing and insurance (% of gross sales) % 1
Processing recovery Transition % 68 35
%
70
35
Fresh
Processing cost $/t processed 13.50
General and administration $/t processed 3.20
Land freight $/t conc. 25.00
Average mining cost (contract mining) $/t mined 3.61
Rehandle cost (P2 pegmatite only) $/t 0.54
Sustaining capital $/t processed 0.44
Closure cost $/t processed 0.64
Mining recovery % 95
Mining dilution % 5
Overall pit wall slope angle Degree Ranging from 30.0o (Oxide) to 50.4o (Fresh)
(inclusive of a ramp system)
Pit optimisation results show that for both scenarios the optimum pit shell
based on the maximum average discounted operating cash flow is pit shell 29
(Figure 6).
Figures and Tables referred to in this release can be viewed in the PDF
version available via this link:
http://www.rns-pdf.londonstockexchange.com/rns/3640E_1-2023-6-29.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3640E_1-2023-6-29.pdf)
Figure 6 Pit Optimisation Results total resource
4.3 Mine Design and Scheduling
Pit shell 29 for the total Mineral Resource was selected from pit optimisation
works as the basis for the life of mine detailed pit design. Pit design
parameters for the DFS are based on established mining practices and
parameters detailed in Table 8.
Table 8 Summary Pit Design Parameters
Pit Wall Parameters As per Section 3(*)
Haul Road Design Width - Dual Lane 25m
- Single Lane
16m
Gradient 10%
Working width Minimum pit base width (goodbye cut) 10m
Minimum cutback width 20m
*Staged development of the pits is driven by the desire to maximise the grade
of the initial plant feed, minimise waste pre-stripping and the requirement
for consistent total material movement.
Comparison of the LOM pit design to the Whittle optimised shell is provided in
Table 9.
Table 9 Comparison pit design versus pit optimisation shell
Item Total Material Waste(*) Strip Ratio Plant F eed Concentrate Sub-grade Material
Mt Tonnes Li(2)O kt Tonnes Li(2)O
Grade
Grade
Mt w:o
Mt % Mt %
Shell 29 370.7 339.9 11.0 30.8 1.21 4,146 5.9 0.27
LOM Pit 412.7 381.7 12.3 31.1 1.21 4,163 5.9 0.26
Variance % 11.3 11.7 11.3 0.8 -0.2 0.6
*Inclusive of sub-grade material (< 0.5% Li(2)O) that is shown as plant
feed in the optimisation results
Variances between pit design and the Whittle shell are a function of applying
ramp design parameters and detailed slope design parameters to the pit design,
using actual batter and berm values compared to initial estimates of the
overall slope angle (inclusive of a ramp system) used for the pit
optimisation.
WASTE DUMPS
The mine generates 382Mt of waste or about 195Mm(3) at a swell factor of 25%.
Two waste dumps with a total capacity of about 190Mm(3) have been designed,
with some waste to be backfilled into the southern end of the Ewoyaa Main pit.
The Western waste dump reaches a maximum height of 70mRL, covers about 34Ha
and has a capacity of approximately 6.5Mm(3). The North-eastern waste dump
reaches a maximum height of 95mRL, covers about 340Ha and has a capacity of
approximately 182.4Mm(3).
Three to five years' worth of tailings will be stored in an Integrated Waste
Landform Tailings Storage Facility (IWLTSF) within the north-eastern waste
dump.
STOCKPILING AND ROM
A stockpiling strategy has been adopted where all inferred plant feed is
stockpiled for the first five years, with a 10% limit of Inferred being fed to
the crusher in subsequent years. Further, P1 Pegmatite is being preferentially
processed, with P2 Pegmatite limited to 10% of the ore blend where possible.
A ROM area adjacent to the crushing plant will accommodate about 500kt of
stockpiling, with two additional stockpile areas identified some 600m NE of
the ROM pad.
HAUL ROADS
Mine Roads will be designed to allow all-weather trafficability. This will
include regular spreading and compaction of suitable crushed rock road base
material. A total of six major haul road segments that connect pits with the
ROM/crusher and waste dumps. Most roads traverse over moderately sloping
terrain and do not require any major cut and fill, other than the main road
connecting the pits with the ROM/crusher will traverse through some steeper
terrain and will require cut and fill.
By the end of Year 10, an alternative road to the crusher needs to be
developed and a preliminary design has been completed in the study.
4.4 MINE PRODUCTION SCHEDULE
Subsequent to the pit design work, pits with 100% of plant feed classified as
Inferred Resources were removed from DFS mine schedule. Five pits were
removed, namely both Bypass pits, Anokyi South pit, Abonko East pit and
Kaampakrom Far East.
The mine production schedule was developed in monthly increments and is based
on a total material movement of 406Mt, comprising 375.0Mt of waste and 30.6Mt
of ore at 1.21% Li(2)O of plant feed, for a 12.2:1 waste to ore strip ratio.
Staged development of the pits is driven by the desire to maximise the grade
of the initial plant feed, minimise waste pre-stripping and the requirement
for consistent total material movement. In addition, four constraints were
imposed on the mine production schedule as listed below:
- First access to mining areas: mining commences in Ewoyaa South 2
pit whilst removal of existing HV powerlines traversing the Ewoyaa main pit
location occurs;
- Processing rate: The Early Production Phase targets 50kt per month
of crusher feed with the first year of full production targeting 2Mt,
increasing to an annual crusher feed rate of 2.7Mt per annum thereafter;
- P2 ore limit: % of P2 in the ore blend is limited to 10% where
possible; and
- Inferred limit: Inferred material deferred/stockpiled for the
first five years and limited to 10% of the total plant feed thereafter.
During the Early Production Phase, the total material movement is 6.1Mt,
including a total of 453kt of ore that is processed by early production DMS
plant. Total material movement increases to 18Mt in the first year of the
fixed process plant operation and thereafter gradually increases on account of
higher mining strip ratios.
Stockpile tonnage reaches about 0.4Mt at the end of Year 1 (Early Production
Phase) and increasing over the years up to 3.6Mt in Year 11 on account of
stockpiling inferred material and limiting the amount processed to 10% of
total plant feed until the final year of operation.
A total of 1.7Mt at 1.19% Li(2)O of Inferred Resource is included as plant
feed, equivalent to approximately 6% of the total plant feed.
Table 10 Summary Mine Production Schedule
Year Total Material Waste Strip Ratio Probable Ore Reserves Processed Inferred Mineral Resource Processed Total
Tonnes Li(2)O Tonnes Li(2)O Tonnes Li(2)O
Mt Mt w:o kt % kt % kt %
1(*) 6.1 5.3 6.5 453 1.43% - 453 1.43%
2 18.2 15.0 4.7 2,000 1.29% - 2,000 1.29%
3 24.8 21.6 6.8 2,700 1.27% - 2,700 1.27%
4 38.6 36.1 14.3 2,707 1.09% - 2,707 1.09%
5 41.1 37.7 11.0 2,700 1.24% - 2,700 1.24%
6 39.5 36.2 10.9 2,430 1.31% 270 1.25% 2,700 1.30%
7 43.6 40.9 15.3 2,430 1.22% 270 1.04% 2,700 1.20%
8 45.3 42.6 15.3 2,437 1.22% 271 1.21% 2,707 1.22%
9 48.9 46.8 21.9 2,430 1.17% 270 1.18% 2,700 1.18%
10 48.7 46.2 18.2 2,331 1.12% 259 1.24% 2,589 1.13%
11 43.9 40.6 12.2 2,147 1.26% 239 1.18% 2,385 1.25%
12 7.2 6.5 9.5 881 1.23% 98 1.29% 979 1.24%
Total 406.0 375.4 12.3 25,645 1.22% 1,676 1.19% 27,321 1.22%
*Early production phase, which covers 14 months.
CAUTIONARY STATEMENT:
There is a low level of geological confidence associated in inferred mineral
resources and there is no certainty that further exploration work will result
in the determination of indicated mineral resources or that the production
target itself will be realised.
Figure 7 Total Material Movement by Cutback
5.0 ORE RESERVES
5.1 Introduction
This section describes the methodology used and the economic criteria applied
to derive at the Ore Reserves as defined in the 'Australasian Code for
Reporting of Mineral Resources and Ore Reserves' of December 2012 ("JORC
Code") as prepared by the Joint Ore Reserves Committee of the Australasian
Institute of Mining and Metallurgy.
The Ore Reserves were determined as part of the mine planning work that MFC
undertook for Atlantic Lithium as part of the Company's Definitive Feasibility
Study.
Mining will be undertaken by conventional open pit methods of drill and blast,
followed by load and haul. Processing incorporates well-tested technology
and utilises conventional dense media separation techniques to produce a SC6.0
and SC5.5 concentrate products, as well as a secondary product that comprises
fines material (-0.85+0.053mm).
5.2 Modifying factors
The term 'Modifying Factors' is defined to include mining, metallurgical,
economic, marketing, legal, environmental, social and governmental
considerations.
The sources for the Modifying Factors are summarised in Table 11.
Table 11 Source Modifying Factors used for Ore Reserve determination
Item Source
Commodity price Atlantic Lithium
Royalty, insurance and marketing Atlantic Lithium
Processing and administration cost Atlantic Lithium, Primero Ltd
Mining costs RFQ submissions
Other miscellaneous costs Atlantic Lithium
Mine planning MFC
Metallurgy and processing Primero Ltd, Trinol Pty Ltd, Nagrom
Capital costs Atlantic Lithium, Primero Ltd
General site infrastructure Atlantic Lithium, Primero Ltd
Geotechnical investigation SRK Consulting
Hydrogeology SRK Consulting South Africa & Ghana
Tailings storage facility Geocrest & REC
Mining dilution and recovery MFC
Social and Environmental NEMAS Consult Limited and Environmental and Social Sustainability (ESS)
Legal tenure Atlantic Lithium
Government Atlantic Lithium
The Ore Reserves as determined for the Project were based on the Modifying
Factors as summarised in Table 12.
All currencies are denominated in United States of America dollars, unless
specifically stated otherwise.
Table 12 Summary of Modifying Factors for Ore Reserve Determination
Item Unit Value
P1 Pegmatite P2 Pegmatite
Plant throughput Mtpa 2.7
Spodumene price (SC6.0 and SC5.5 product) $/t 1,587
Concentrate grade % 6.0
- SC6.0 Product (50% of total production)
5.5
- SC5.5 Product (50% of total production)
Secondary product price $/t 186
Secondary product recovery (of total crusher feed) % 17
Royalty % 6.0
Processing recovery SC6.0 62.1 NA
67.2
14.9
SC5.5
Processing Cost $/t processed 7.77
General and Administration (Incl. Marketing and insurance) $/t processed 6.18
Lithium Concentrate Transport Costs $/t conc. 29.81
SC6.0 and SC5.5
32.65
Secondary product
Average Mining Cost (Contract mining) $/t mined 3.82
Mining recovery % 95
Mining dilution % 5
Overall Pit Wall Slope Angle Degree Ranging from 30.0(o) (Oxide) to 50.4(o) (Fresh)
(inclusive of a ramp system)
Capital expenditure $M 185.2
Sustaining capital $M 112.2
Discount rate % 8
5.3 Ore Reserve summary
The mine plan as described in Section 4 includes 1.7Mt at 1.19% Li(2)O or 6%
of Inferred Resources. In order to determine whether to Project was still
economically viable when plant feed that was classified as Inferred was
excluded from the mine plan (and re-categorised from plant feed to waste),
Atlantic Lithium developed a cash flow model with all Inferred Resources
excluded from plant feed and re-assigned as waste.
CAUTIONARY STATEMENT:
There is a low level of geological confidence associated in inferred mineral
resources and there is no certainty that further exploration work will result
in the determination of indicated mineral resources or that the production
target itself will be realised. In order to determine whether the Project was
still economically viable when plant feed that was classified as Inferred was
excluded from the mine plan a cash flow model was developed with all Inferred
Resources excluded from plant feed and re-assigned as waste. This alternative
cash flow model indicated that the Project is still financially robust when
all Inferred Resources plant feed is treated as waste. Therefore, the Company
is satisfied that the use of Inferred Resources is not a determining factor in
the overall Project viability.
Based on the above, Probable Ore Reserves were declared for the Project and
shown in Table 13. All stated Probable Ore Reserves are completely included
within the quoted Mineral Resources and are quoted in dry tonnes. Probable Ore
Reserves were declared based on the Measured and Indicated Mineral Resources
only contained within the pit designs.
This alternative cash flow model indicated that the Project is still
financially robust when all Inferred Resources plant feed is treated as waste
with the All-In-Sustaining Cost (AISC) margin greater than 50%.
Based on the above, Ore Reserves were declared for the Project.
Table 13 provides a summary of the Ore Reserves as of 16 June 2023 that were
determined for the Project.
Table 13 Ore Reserves as of 16 June 2023
Classification Ore Reserve
Tonnes (Mt) Li(2)O Grade (%)
Probable 25.6 1.22
COMPETENT PERSONS NOTE:
All stated Ore Reserves are completely included within the quoted Mineral
Resources and are quoted in dry tonnes. The reported Ore Reserves have been
compiled by Mr Harry Warries. Mr Warries is a Fellow of the Australasian
Institute of Mining and Metallurgy and an employee of Mining Focus Consultants
Pty Ltd. He has sufficient experience, relevant to the style of mineralisation
and type of deposit under consideration and to the activity he is undertaking,
to qualify as a Competent Person as defined in the 'Australasian Code for
Reporting of Mineral Resources and Ore Reserves' of December 2012 ("JORC
Code") as prepared by the Joint Ore Reserves Committee of the Australasian
Institute of Mining and Metallurgy, the Australian Institute of Geoscientists
and the Minerals Council of Australia. Mr Warries gives Atlantic Lithium
Limited consent to use this reserve estimate in reports.
6.0 METALLURGY
Testwork was conducted at the Nagrom Laboratories in Western Australia and
included specific gravity, uniaxial compressive strength ("UCS"), abrasion
index ("Ai"), crushing work index ("CWi"), Bond ball plant work index
("BBWi"), size by analysis, crush size establishment, variability heavy liquid
separation ("HLS") testing, DMS 100 and DMS250 pilot scale testing, and
sighter flotation tests.
6.1 METALLURGICAL TESTWORK
Over 30 diamond drill holes generating more than 375 pegmatite samples were
used to develop a total of 69 composite pegmatite samples across the Ewoyaa
and Abonko trends.
Before core composites were crushed, key physical parameters were tested from
five deposits as summarised in Table 14. The CWi and UCS values confirm the 1
ore is more crystalline and easier to crush than P2, with results summarised
in Table 14.
Table 14 Summary of Ore Physical Parameters
Parameter Unit
Deposit
Ewoyaa Starter Ewoyaa Main Anokyi
Comp ID Comp 17 Comp 5 Comp 10 Comp 16 Comp 31
Lithology P1 fresh P2 fresh P1 fresh P2 fresh P1 fresh
BCWi kWh/t 10.9 11 7.8 10.5 8.4
UCS MPa 84 124 82 127 105
BBMWi kWh/t 21.39 18.06 20.19 19.72 21.43
The crushing facility has been designed with a target crushed product top-size
of 10mm as a key criteria, which, based on crushing simulation modelling
conducted, should provide a particle size distribution P80 of approximately
7.0mm.
69 composites were made up from 15 of the identified deposits at Ewoyaa. All
the composites were crushed to 10mm and screened at 0.5mm for HLS comparisons
in order to benchmark the deposits. The results demonstrate variable recovery
response of 50% to 80% for gravity processing of P1 ores (with the exception
of Ewoyaa South 1 and Ewoyaa NW Sill). P1 ore makes up over 80% of the MRE.
A feature of the testwork has been the consistently good quality of lithium
concentrates produced via DMS only testing. In the main, the results show the
iron content of the concentrates, as expressed by % Fe(2)O(3), as being
consistently below 1% and total alkalis (Na(2)O + K(2)O) to be less than 3%.
Coupled with the coarse size of the concentrates, these are desirable
properties for off-takers.
6.2 RECOVERY
The recoveries for P1 and P2 materials were based on HLS and DMS 250 test
results and on calculation of assumed additional recovery from middlings.
Laboratory tests were performed on -10 +0.5mm material, the bottom size being
finer than the proposed plant flowsheet bottom size of 0.85mm.
Recoveries for P1 material into primary concentrate at a 10mm crush were
50-80% from the HLS test work with an average 68% recovery for weathered and
70% for the fresh.
Ore recoveries for the DMS plant for both 5.5% and 6.0% spodumene and % of ore
type are summarised in Table 15, include a factor for expected increased fines
generated in full scale crushing, increases to the DMS bottom size (for both
1mm and 0.85mm), HLS to DMS effects, and the use split size fractions, as well
as the minimum benefit from re-crushing.
Concentrate Grade Ore Type HLS Recovery Plant Recovery Plant Recovery
(% Li2O) (% Li2O) (% Li2O)
(% Li(2)O) -10+0.5mm -10+0.85mm -10+1.0mm
5.50% >90% P1 74.4% 67.2% 64.9%
>80% P2 25.0% 14.9% 12.6%
6.00% >90% P1 69.6% 62.1% 59.8%
>80% P2 17.5% 7.0% 4.7%
Table 15 Final DMS recoveries by SC Grade and % of Ore Type.
There is significant indicated recovery improvement for a bottom size of
0.85mm compared to 1mm and on the basis that the plant design can accommodate
the finer bottom size, these numbers have been adopted for plant financial
modelling and plant design.
7.0 PLANT AND PROCESSING DESIGN
7.1 DESIGN OVERVIEW
The processing facility (Figure 8) has been designed in accordance with
accepted industry practice and the flowsheet incorporates unit operations that
are well proven in the industry and commensurate with the test work conducted
and results achieved to date. The test work supports a flowsheet that utilises
conventional DMS processing to recover spodumene to a saleable concentrate.
The plant layout provides ease of access to all equipment for operating and
maintenance requirements while maintaining a compact footprint to minimise
construction costs.
Figure 8 Processing plant and infrastructure viewed from the West.
The key Project and ore specific design criteria for the processing facility
design are as follows:
- 2,700,000tpa of Run-of-Mine ("ROM") ore through the crushing plant
operating at 70% utilisation (6,132h/y);
- DMS plant utilisation of 85% (7,446h/y) supported by crushed ore
storage and standby equipment in critical areas; and
- Sufficient automated plant control to minimise the need for
continuous operator interface and allow manual override and control if and
when required.
7.2 PLANT FLOWSHEET
The overall process flowsheet is depicted in Figure 9.
Figure 9 Overall simplified process flowsheet
ROM feed is direct tipped or loaded by front-end loader into a ROM feed bin.
Material is then subjected to three stages of crushing through separate
crushing circuits to produce a +10mm top size material ready for feed to a
conventional DMS beneficiation circuit.
The feed material is separated into three size fractions to maximise DMS
efficiency, namely Coarse (-10 +5.6mm), Fines (-5.6 +2.8mm) and Ultrafines
(-2.8 +0.85mm) fractions. Each fraction is then processed in a two stage DMS
circuit. A review of the metallurgy and testwork to date indicates that a
bottom size fraction of 0.85mm is preferential to overall recovery than the
1.0mm design, and the plant design and equipment will be able to meet capacity
at the 0.85mm bottom size.
In each two stage DMS circuit, the Primary DMS sinks are upgraded in the
secondary stage. Secondary sinks from each size fraction are combined to
produce a DMS concentrate product.
To improve recovery, coarse DMS floats are fed to a recrush circuit. The
recrush circuit crushes the material to -4mm and the recrush DMS circuit
recovers liberated spodumene.
The screened -0.85mm fraction is pumped to the fines dewatering circuit.
Dewatered fines material is stacked in a fines stockpile. The material will be
sold as a secondary product. In the future it is expected this material may be
processed through a flotation circuit.
The dewatering cyclone overflow or slimes fraction is sent to the thickener
and is pumped to tailings storage facility. There are no toxic chemicals used
in the DMS circuit and therefore the tailings itself is chemically and
biologically inert.
The design includes all associated utilities, including water services,
compressed air and reagents.
7.3 PRE-PRODUCTION PROCESSING
Atlantic Lithium has identified an opportunity to conduct early processing
operations using a modular DMS processing plant and contract crushing
services. The early production will precede the primary processing plant by
nine months. The pre-production flowsheet design criteria are as follows:
- 600,000tpa ore processed, with the DMS plant treating 375,000tpa
after fines are removed; and
- The modular DMS plant will be operating at 80% utilisation for a
feed rate of 50tph.
The contract crushing provider will crush ore to a top size of 10mm. The DMS
feed material will be screened at 3mm to produce DMS feed (-10mm+3mm) and a
fines stream (-3mm). The DMS plant will produce a spodumene concentrate, along
with the deslimed fines as a secondary product for sale.
The DMS plant will be two-stage single size fraction process all using
conventional DMS equipment. Grits and fines generated in the process will be
thickened and filtered to produce a dry tailings which will be stockpiled
along with the middlings.
The crushing contractor will provide an all-inclusive crushing service. The
Modular DMS plant provider will supply experienced labour to commission and
operate the processing plant for the first three months. A small team of
Atlantic Lithium operations personnel will be recruited for operation of this
plant to be trained and become familiar with DMS operation, and will later
transition to the primary processing plant when the primary plant begins
production.
8.0 INFRASTRUCTURE AND SERVICES
8.1 OVERVIEW INFRASTRUCTURE
Existing infrastructure supporting the site includes:
- Sealed N1 highway running to the south of the site;
- Existing unsealed roads traversing the site;
- HV powerlines in the vicinity of and traversing the site;
- Ports of Takoradi, approximately 110km to the west of site, and
Tema, 140km to the east; and
- Airports at Accra and Takoradi.
Infrastructure required to be developed or modified to support the site
includes:
- Water supply and sources including a water storage dam (WSD);
- Power supply from the existing grid and existing electrical
powerline infrastructure relocation for mine development;
- Integrated Waste Landform Tailings Storage Facility (IWLTSF);
- Plant site access road;
- Buildings and facilities;
- Fuel supply and storage; and
- Communications.
Given the proximity and road quality to Accra and Takoradi, no airstrip is
required to support the site.
8.2 SITE ACCESS
Access to the site from Accra is along the existing sealed N1 Accra-Cape
Coast-Takoradi highway which runs along the southern boundary of the Project.
Several existing unsealed roads extend northwards from the highway and link
communities in the Project area.
8.3 TRANSPORT, LOGISTICS AND PORT FACILITIES
The deep-sea port of Takoradi is 110km west of site and accessible via the N1
highway. Travel time from Project site to port will be less than four hours,
even during peak times. Products from the operation are stockpiled on site and
loaded by front end loader onto 35t tipper trucks for offsite transport.
Based on annual product export volumes and loading only on day shift, a
trucking fleet of fifty 35t tipper trucks and two front end loaders will be
required to maintain average 15-minute cycle times.
Assistance was sought from established freight forwarding and transport
companies established at the port to provide the product transport solution on
an FOB Incoterms basis. Transport companies will provide the necessary
equipment under contracted services to the operation, eliminating the need for
project purchase of equipment. A combination of warehousing and outdoor
storage be utilised near to the port to manage product volumes prior to ship
loading.
8.4 WATER SUPPLY AND SOURCES
Raw water supply for the Project will be from passive inflows to mine pits,
runoff inflows to the water storage dam ("WSD") and tailings storage facility
("TSF") and augmented via a pump and pipeline from Lake Agege, 7km north of
the WSD. An overall site water balance was completed for the Project,
predicting life of mine average raw water makeup volumes of 8.6m(3)/h.
Groundwater inflows to mine pits were modelled for the DFS, with combined
inflows from all pits gradually increasing from 184 m³/d during
pre-production to a peak of 10,585m(3)/d, meaning the reliance on the external
Lake Agege water supply to the operation is expected to be short-term.
Given the relatively low pit inflows, additional active dewatering from ex-pit
boreholes is considered unnecessary. Once additional geological structural
information is available and exposed in the pit, horizontal drain holes
targeting these structures from inside the pit could be used to manage inflows
into the Ewoyaa Main and North-East pits.
Although the zone of drawdown does not extend a large distance from the mining
area, there are some settlements near the mining area. There is a risk,
although deemed low, of some reduction in water levels. Atlantic Lithium has
installed monitoring bores for mapping these impacts.
8.5 POWER
Site power supply is from the electricity grid in Ghana at an average
operating cost of $US0.14/kWh. Installed power to the operation is estimated
at 8,500kW and an average continuous load of 4,270kW. The Ghana Grid Company
Ltd (GRIDCo) owns the National Interconnected Transmission System in Ghana and
Volta River Authority (VRA) is the primary energy provider in Ghana, augmented
by other IPP power generation companies providing alternative sources of
energy which can be wheeled through the grid.
Ghana currently has 12 commercial power generation facilities with total
installed capacity of 4,210MW. The makeup of generation capacity is based on
56% from three hydro power plants at Akosombo, Kpong and Bui, 44% from an
array of thermal plants including combined cycle gas turbines, simple cycle
gas turbines and diesel generators and less than 0.1% from solar power.
The preferred option for providing power to the Project is to construct a
34.5kV single circuit transmission line approximately 3km from a 161/34.5kV
substation at Saltpond to a new substation constructed at the Project site,
that in turn distributes power to site electrical substations.
Two existing transmission lines traverse the planned mining areas and will be
diverted prior to mining commencement. The revised line route length will be
approximately 15km and require 30km of new transmission line construction and
a major shutdown to decommission existing lines and connect the new lines.
8.6 TAILINGS MANAGEMENT
An integrated waste landform TSF ("IWLTSF") will be constructed in two stages
to take advantage of the proposed integrated waste dump and the natural
landforms. The facility which will be operational for the first three years.
The third stage of tailings storage comprises of an IPTSF (In Pit Tailings
Facility) within the Ewoyaa South 2 Pit.
The WSD comprises of a low permeability face situated on the western face of
the Waste Dump East Stage 1. The embankments of the IWLTSF are proposed to be
constructed using excavated and borrowed low permeability material and waste
rock, with borrowed material to be used to construct the WSD.
The operation of these facilities is based on an anticipated high water
recovery, at least 50% of the slurry water volume entering the TSF. The decant
pumping system (return water pumps and pipelines) must be designed to
accommodate a water return of up to 65% of the tailings slurry water to the
process plant. The results of high-water recovery can be directly attributed
to a small decant pond, high in-situ dry density of the deposited tailings and
minimal seepage losses.
The designs of the TSFs assume an average dry density of 1.5 t/m(3) for
operation which will provide 0.5Mm(3) of storage capacity for 0.75Mt of
tailings in the IWLTSF and 0.97Mm(3) of storage capacity for 1.46Mt of
tailings in the IPTSF. The WSD can provide a water storage capacity of
187,500m(3).
In accordance with the DMP Code of Practice (CoP) (DMP, 2013), the IWLTSF is
assessed as 'Medium' with a classification of 'Category 2', with the IPTSF as
a 'Low' and 'Category 3' and the WSD as 'Low' and 'Category 2'. Construction
work must be undertaken in accordance with drawings and an earthworks
specification. Furthermore, the operation of these facilities must be executed
in accordance with the intent of the design and Operating Manual (OM).
The IWLTSF and WSD each have capacity for a 1:200-year annual exceedance
probability (AEP) 72-hour storm event in accordance with GISTM requirements,
Government of Ghana and DMP required freeboard. The design objectives were
developed to ensure both IWLTSF and WSD are decommissioned and rehabilitated
in an ecologically sustainable manner and in accordance with both DMIRS
principal closure objectives for rehabilitated mines and EPA objectives for
rehabilitation and decommissioning.
8.7 SITE ROADS
A range of road types will be required for both site internal and access roads
to meet a wide range of duties. The hierarchy of road types includes dedicated
mine haul roads, the main access roads, general access roads and minor use
roads and tracks. Some of the roads will border service corridors, e.g., raw
water supply pipe lines, or tailings pump line access. Hence, road alignments
also need to consider service routes in addition to transport requirements.
The road widths and construction details have been selected to match the
required duties. The main haul road will intersect the existing dirt road that
connects the Ewoyaa village to the main highway.
8.8 BUILDINGS/OTHER
The Project will develop several buildings and facilities to support the
operation, including:
- Administration building housing management and administrative
personnel;
- Services building to house medical, training and other support
facilities;
- Workshop and warehouse;
- Reagent storage sheds;
- Worker changeroom, ablutions building; and
- Site access building and access turnstile gate.
Mining services facilities will be provided by the mining contractor under
their contracted works.
Figure 10 Mining Services, Admin, Services, Workshop and Warehouse
Facilities
8.9 ACCOMMODATION
Accommodation for most of the workforce is proposed utilising the available
accommodation in the region. Accommodation for senior management, visitors and
dignitaries will be provided at a nearby resort facility, which is currently
under care and maintenance and will require minor upgrade works and
maintenance to be operational.
A contract to operate the resort will be let to a suitable provider, inclusive
of resort management, cleaning, maintenance and provision of all meals and
accommodation requirements.
8.10 FUEL STORAGE AND DISTRIBUTION
Fuel storage and distribution will be provided and controlled by the mining
contractor as the main user of fuels and lubricants at the site. Atlantic
Lithium will make use of locally available services for maintenance of light
vehicles, and to support the basic administrative supplies requirements for
the operation.
8.11 COMMUNICATIONS
Site communications, consisting of phone, internet, and a communications
tower, will be established for the site and connected to nearby existing
Internet Service providers in the vicinity of the N1 highway.
9.0 ENVIRONMENTAL AND SOCIAL STUDIES AND PERMITTING
Under Ghanaian environmental and social legislation, all undertakings,
including mining and allied activities, must be compliant with the
Environmental Protection Agency Act 1994, Act 490, and the Environmental
Assessment Regulations 1999 (LI 1652). In addition to these two key national
legislations, there are over 40 other environmental and social related
legislations that any undertaking must be compliant with, depending on the
nature, scope, and location of the undertaking.
The Project has adopted critical international environmental and social
guiding principles and benchmarks. Among these include:
- Equator Principles (EP); EP3 - EP10;
- International Finance Corporation Performance Standards (IFC PS);
PS1 - PS6 and PS8;
- WB EHS Guidelines (General) (2007) and WB EHS Guidelines (Mining)
(2007); and
- International Labour Organisation (ILO) Conventions.
9.1 REGULATORY FRAMEWORK AND APPROVALS PROCESS
The Ghana Environmental Protection Agency (EPA) is the legally authorised body
for granting of Environmental Permits to undertakings in country. Ghanaian
environmental approval requirements for mining require a full Environmental
and Social Impact Assessment (ESIA). The ESIA and permitting process commences
with project registration with EPA. The EPA then screens the application and
decides on the need for further study based on the project scope, potential
environmental and social impacts, and the consent and support of various
stakeholders in the Project footprint. After this is a scoping stage once EPA
has requested the conduct of a detailed ESIA study.
A Scoping Report will be developed and submitted to the EPA for review and
approval. The report will also be made publicly available and will include
Terms of Reference for the ESIA, a description of any issues raised during the
consultation process and how they will be addressed in the ESIA.
The ESIA study will cover potential positive and negative impacts on
environmental, social, economic, and cultural aspects in relation to the
different phases of the Project, including transboundary impacts. Upon
completion of the ESIA Study, a draft Environmental Impact Statement (EIS)
will be developed and submitted to the EPA for review and approval.
EIS Approval by the EPA will be premised on satisfaction with the identified
impacts and mitigation and management measures outlined in the EIS. The EPA
may also recommend amendments to the report or the conduct of further studies
to warrant approval of the EIS. Once the EPA is satisfied and approves the
EIS, an Environmental Permit will be issued for the Project.
9.2 EXISTING Environmental Setting
TOPOGRAPHY AND GEOLOGY
Generally, the Project area landscape is undulating with isolated hills at
different locations with an elevation of between 15m to 110m above sea level.
The area geologically lies within the Birimian Supergroup, a Proterozoic
volcano-sedimentary basin located in western Ghana. The site is also classed
as B and C under the Euro Code 8 seismic site classification for soil which
consists of outcrop rock masses or very rigid soils and medium-dense sand,
gravel, or stiff clay respectively. Analyses of ground vibration data within
the Project area indicate that generally the peak particle velocity (PPV)
recorded do not pose an elevated seismic vulnerability risk.
CLIMATE
The Ewoyaa area experiences mild temperatures averaging between 24 and 28
degrees Celsius all year round and relative humidity of about 70% due to its
proximity to the ocean. The area experiences double maximum rainfall with
peaks in May-June and October. Annual total rainfall ranges between 90cm and
110cm in coastal savannah areas and between 110cm and 160cm in the interior
close to the margin of the forest zone. Dry seasons usually occur from
December to February and from July to September.
HYDROLOGY AND HYDROGEOLOGY
The natural drainage in the Project area indicates the possibility of several
streams and rivers existing or flowing through the area. Nonetheless, very few
surface water bodies are encountered on the ground, with the majority being
dugouts or water holding areas that temporarily dry out during the dry season.
Water from dugout sources normally is a mixture of surface runoff and
groundwater mostly from the unsaturated zone.
No perennial streams or rivers occur within the immediate Project area.
Typical borehole yields are from 0.1 to 0.5l/sec. Surveys conducted in the
Project area indicate that the water chemistry is predominantly alkaline, with
elevated fluoride levels which is normal for basement geology, and high
nitrate levels which indicate contamination from human and animal waste.
AIR QUALITY AND NOISE
Results of air quality monitoring conducted in the Project area since 2021 to
date revealed that prevailing air quality of the Project area generally falls
within the recommended Ghana EPA and WHO levels. On the other hand, noise
levels in some areas monitored exceed Ghana EPA and IFC/WHO recommended
levels, attributed mainly to the proximity of the communities/ sampling areas
to the Accra-Cape Coast Highway (N1) which is a significant source of noise
pollution.
LONG-TERM ENVIRONMENTAL MONITORING
The Project has gathered extensive environmental baseline data from 2019 to
date, which provides a snapshot of the quality and nature of the environment.
Additionally, the Project has instituted and is implementing a long-term
environmental monitoring programme (exploration phase through to closure
phase) which will afford prompt detection of deteriorating and/or improving
environmental conditions within the Project area to enable appropriate action
to be taken where required.
9.3 EXISTING SOCIAL SETTING
TRADITIONAL OWNERSHIP OF LAND
The Project communities where land ownership is likely to be affected are
Abonko, Anokyi, Ewoyaa, Krofu, Krampakrom and Lower Saltpond. Land title in
these communities is predominantly held by families, rather than chiefs and
stools, as is common in Ghana. Family lands, implicitly inferred by the 1992
Constitution as private property, are devoid of extensive government
regulatory mechanisms compared to stool or skin lands. Traditional authorities
however have played a key role in resolving and/or mediating conflicts that
have arisen in land ownership.
POPULATION
A 2020 survey conducted on communities within a 2km radius from active areas
of mineralisation estimated that over 3,562 people were living within the
survey area. The surveyed communities included Abonko, Anokyi, Ewoyaa, Krofu,
Krampakrom, Ansaadze, and Afrangua.
CULTURAL HERITAGE AND ARCHAEOLOGY
Cultural heritage and archaeological studies conducted in the Project area
revealed 33 archaeological and heritage resources located in the area. These
resources are shrines believed to be a link between the living and dead. All
shrines in these communities are networked and rituals for one can be
performed at another. Almost all shrines share common ritual items, functions
and taboos. Some of these resources may need to relocate, which will be done
in consultation with the various Deity-Heads to avoid social disruption and
prevent potential non-cooperation.
9.4 HEALTH, SAFETY, ENVIRONMENT AND COMMUNITIES MANAGEMENT SYSTEM
(HSECMS)
The Project has developed several mechanisms to facilitate sustainable and
effective management of HSEC concerns within its footprint. This includes
documented plans, agreements, toolkits, and registers that provide the
framework to manage the HSEC management system of the Project.
- Stakeholder Engagement Plan (SEP): Describes the applicable
regulatory and/or other requirements for disclosure, consultation and ongoing
engagement with the Project's stakeholders, and provides the framework to
build a two-way communication between the Project, the potentially affected
communities and other project stakeholders through a clear, simple and
effective communication strategy.
- Community Development Plan (CDP): Aimed at ensuring inclusive
decision-making with host communities, supporting environmental and
socio-economic development, enhancing community wellbeing, and expanding the
capabilities of communities to effectively engage with the Project,
government, and Community-Based Organisations (CBOs) on development issues
that concern the communities.
- Emergency Response Plan (ERP): Identifies potential emergency
scenarios likely to occur in association with the Project, their likely
consequences, preventive strategies, response procedures and corresponding
responsible parties/persons, resource requirements for efficient emergency
response, response timing, reporting channels and procedures.
- HSEC Risk Register: Details all the identified risks of the
Project (Exploration Phase), the potential impacts or consequences of those
risks occurring, control and management measures for each identified risk and
responsible parties for managing the risks.
- Baseline Exceedance Level Tracking: Serves as a proactive
monitoring tool to identify deteriorating or improving environmental
conditions (air and water quality, and noise levels) within the Project
footprint based on data from monthly environmental monitoring.
9.1 IMPLEMENTATION APPROACH
The overall Project objective is to design, fabricate, build and commission a
successful lithium mine, concentrate production facility and associated
infrastructure to a high safety standard whilst meeting all statutory laws and
regulations and minimising impact to local communities.
The execution strategy to meet the Project objective will be to employ an
Engineering, Procurement and Construction Management) ("EPCM") methodology,
whereby EPCM contractors will provide the engineering, procurement,
construction management and commissioning support services necessary for
delivery of the process plant, associated infrastructure and services works
scopes. The EPCM approach is commonly employed in mining projects in the
region and allows Atlantic Lithium to monitor and control the budget, schedule
and quality of the end product through all stages of project development and
execution.
EPCM contractors will provide management, engineering, design and procurement
services for their work packages aligned with a "fit for purpose" approach to
design, tender, evaluate, recommend for award, purchase and expedite all
required equipment and materials for the Project.
EPCM contractors will manage their teams and report to Atlantic Lithium's
management structure, who will be supported by a Project Team staffed to the
meet Project objectives and mange any owner-led work packages.
EPCM contractors will establish construction management teams to manage and
supervise on-site contractor construction progress, quality of workmanship,
safety and environmental compliance. The Project will maximise the use of
majority Ghanaian owned contractors and suppliers of key bulk materials and
services in accordance with recently legislated requirements. Over 400
personnel are expected on-site during the peak construction phase.
Equipment fabricated outside of Ghana will be imported through the ports of
Tema and Takoradi and transported by road to site. A transport and logistics
(TandL) contractor (freight forwarder) with local and international presence
will oversee all TandL requirements under EPCM contractor supervision.
EPCM contractors will manage and complete the commissioning of plant and
infrastructure and perform handover to the Atlantic Lithium team for
production ramp up once the agreed acceptance requirements are achieved.
The Project has completed FEED work packages for the process plant design and
for the HV powerline relocation and Project power supply works package. These
works expedite readiness for long lead equipment item selection and purchase
and de-risk the overall Project schedule. The balance of the detailed design
will be completed after Final Investment decision ("FID").
9.2 IMPLEMENTATION SCHEDULE
A detailed Project implementation schedule has been developed based on inputs
from the Atlantic Lithium team and all DFS and FEED consultants. The schedule
outlines a 30-month duration from DFS completion until introduction of first
ore into the main process plant in January 2026. The schedule has zero float
and is contingent upon the following assumptions and basis:
- Atlantic Lithium will use the DFS and completed FEED works for its
preliminary Mining Lease application to the Minerals Commission of Ghana with
receipt in Q3 2023;
- In parallel, internal assessment with Project JV partners for a
FID;
- Following FID, access to agreed funds based on JV partner Project
investment agreements and projected cashflow requirements identified in the
DFS to commence:
w Engineering detailed design and procurement of long lead capital items;
w Design, supply and execute works scope for the relocation of existing HV
powerlines that traverse the Project site; and
w Carrying out ESIA works, application for environmental permits and
developing the RAP requirements and implementation plant.
- The critical path relates to the activities and durations
associated with completing ESIA and RAP works to apply for and receive an
environmental permit
- After ratification of the Mining Lease application, implementation
of Phase 1 RAP activities will commence ahead of construction works (breaking
ground) and mining contractor mobilisation for site establishment and mine
pre-stripping;
- Concurrent mine development and construction of processing
facilities and infrastructure; and
- Development of an early production DMS plant ahead of completion
of the main process plant, for early production of spodumene products for
early revenue streams, as well as training of operators and developing
co-ordination between mining and operations departments.
The key milestones for the Project are outlined in Table 16 below.
Table 16 Project Milestones
Project Milestone Start Finish
Complete DFS Jun-23
Process Plant Engineering and Procurement of Vendor Data Award Jul-23
Commence Commercial Negotiations (LLI) Aug-23
Process Plant Procurement Package Award Sep-23
Ghana Presidential and Parliamentary Election Canvasing Commences (12m ahead) Dec-23
Complete EIA and RAP and Submit to EPA Mar-24
Permit Application Process (Opp to expedite) Mar-24
Environmental Permit Granted (EIA and RAP) (Independent of ML Ratification) Jun-24
Parliamentary Ratification of Mining Lease (Obtain 6 months post ML Jul-24
Application)
2024 Wet Season May-24 Sep-24
Earthworks Contractor Mobilisation to Site for Process Plant Construction Sep-24
Phase 1.1 Commence Process Plant Construction (Break Ground) Sep-24
Ghana Presidential and Parliamentary Election Dec-24
First Ore Available Early Production Plant Mar-25
First Product (Early Production plant) Apr-25
Commence Mining for Process Plant feed May-25
2025 Wet Season May-25 Sep-25
Power Feed Line to Process Plant Complete Sep-25
Power On Date Sep-25
First Ore Available Process Plant Oct-25
Process Plant Construction Complete Nov-25
First Ore Through Plant (SC6) Jan-26
First Shipment of Concentrate (SC6) Feb-26
10.0 OPERATIONS
Ghana has an established mining industry with several currently operating
gold, bauxite and manganese mines. It has established supporting industries
and supply chains for mining operations as well as a skilled and experienced
workforce for mining and plant operations, albeit without experience with
lithium mining and processing in the country.
The overall organisational structure of the operation has been developed with
a breakdown of each department and function with associated headcount,
position level and identification of expatriates, local workforce and
contractors. More than 800 direct jobs will be created at the Project across
security, medical, mining, processing and laboratory functions. The structure
has also been used to develop labour costs in the operating cost estimate.
A structured recruitment procedure will be carried out to identify and employ
suitable candidates for all required positions and in the identified
timeframes prior to productions and operation to ensure all training and other
operational readiness requirements are implemented. Wherever possible, the
operation will employ experienced Ghanaian management and supervision
personnel, supplemented by a small number of expatriates with specific
expertise in lithium production.
Expatriates will be critical for operational readiness, local workforce
training, guidance and management for successful operations startup, plant
commissioning and ramp-up. Some expatriates will remain with the operation for
one to three years, after which time it is anticipated that the operation can
employ 100% Ghanaian personnel.
The Project will implement a hire local philosophy. This will provide
contribution to economic growth and stability at the local level in the
community. Atlantic Lithium will encourage its staff to live and work in the
region and, by employing locally, the Company can be a more active part of the
community and provide residents with an opportunity to access the jobs
Atlantic Lithium creates.
Figure 11 ESTIMATED EMPOYMENT FOR LOM
11.0 OPERATING COST ESTIMATE
11.1 ACTIVITY BASED COST
The Project has an estimated C1 cash cost, FOB Ghana detailed in Table 17
below.
Table 17 activity based cost
Operating Cost $ M (LOM) Unit of measure Unit cost by activity $/dmt concentrate
Mining Contractor 1,550,248 $/t mined 3.82 432
Atlantic Mine Management 38,785 $/t mined 0.10 11
Processing 212,155 $/t processed 7.77 59
General and Administration 168,758 $/dmt concentrate 47.08 47
Spodumene Selling 106,850 $/dmt concentrate 29.81 30
Secondary Product Selling Costs 154,534 $/dmt secondary product 32.65 43
Secondary Product Credits -878,424 $/dmt concentrate -245
Total Operating Cost 1,351,217 $/dmt concentrate 377
C1 operating cost are defined as direct cash operating costs of production
FOB, Ghana Port. Direct cash operating costs include mining, processing,
transport, and general and administration costs, net the credit from secondary
product sales. Secondary product credits do not include Feldspar sales.
The operating cost estimates are detailed below.
11.2 MINING COSTS
Estimation of direct mining costs were developed on the basis of a mining
contractor operation, under the management of the Atlantic Lithium site
operations team. Mining costs were based on:
- Contract mining costs established via a request for quotation
("RFQ") process involving eight established mining contractors active in the
region for the full scope of contract mining services, excluding grade control
drilling. Contract grade control costs were provided by the exploration
drilling company that conducted the resource drilling at the Project (Geodrill
Limited);
- Capital works relating to mobilising and establishing mining
operations were requested as part of the RFQ process; and
- Owner's operations mining management team costs were estimated by
Atlantic Lithium and are included in the OPEX.
Contract mining quotes were obtained from eight mining contractors experienced
in the region. For conforming contractor quotes, unit mining costs excluding
site establishment, mobilisation and de-mobilisation ranged from $3.21/t to
$4.60/t mined based on material movement for the first seven years of mine
life.
Mining costs were estimated at $3.82/t mined, over the life of mine, inclusive
of contractor mobilisation, establishment, pre-production mining and
demobilisation.
11.3 DMS PROCESSING COST
Process operating costs have been developed on an annualised basis and using
the parameters specified in the plant process design criteria for the main
plant operation. The operating cost estimate includes all owner management,
administration and processing costs to process 2.7Mtpa of ore annually to
produce spodumene concentrate and secondary product.
Operating costs are expressed in United States Dollars (US$) unless otherwise
stated, with an estimate basis date of Q2 2023, and are summarised in Table
18.
Table 18 Summary of DMS Operating Cost (USD, Q2 2023, -15% + 15%)
Item $M/year $/t Crusher Feed $/t Product
Labour (Processing and Maintenance) 6.8 2.51 7.82
Reagents and Operating Consumables 2.4 0.89 2.76
Maintenance Materials 4.0 1.48 4.62
Power 3.4 1.25 3.88
Labour (Atlantic Lithium) 3.4 1.24 3.88
Labour (General and Administration) 5.4 2.01 6.24
General and Administration Expenses 9.3 3.44 10.71
General and Administration Power 0.3 0.13 0.39
Material Handling 2.0 0.76 2.36
11.4 EARLY PRODUCTION PLANT OPERATING COST
Operating costs for the smaller pre-production Modular DMS processing plant
Table 19 were prepared on an annualised basis for the period of operation
prior to the main plant coming online. Costs were developed with the same
basis as the main processing plant operating cost, apart from labour
requirements being reduced appropriately, higher reagent consumptions applied
and diesel costs calculated for associated power consumption given the
permanent power supply will not be online.
Table 19 Pre-production OPEX Summary
Item $M/year $/t Crusher Feed $/t Product
Crushing 6.2 10.31 22.85
Labour (Processing and Maintenance) 2.2 3.65 8.10
Reagents and Operating Consumables 0.7 1.11 2.46
Maintenance Materials 1.7 2.83 6.28
Diesel 2.0 3.28 7.26
Labour (Atlantic Lithium) 1.8 3.00 6.66
Labour (General and Administration) 1.7 2.80 6.22
General and Administration Expenses 2.7 4.40 9.75
Material Handling 0.4 0.64 1.42
11.5 BASIS OF ESTIMATION
Labour costs were developed based on the operations team (position and
headcount) defined in the operations organisation chart and the expected cost
of salaries, allowances, statutory charges and costs for each position.
Reagents and operating consumables costs were calculated based on expected
consumption rates either from process design criteria information,
benchmarking against similar operations or operational experience, and applied
to unit rate pricing for each reagent and consumable item.
Power costs are based on unit rate power costs advised by ECG and applied to
expected power consumption for the plant and operation.
General and administrative costs include priced costs for contracted services
such as the metallurgical laboratory, site security, site medical etc as well
as costs such as insurances, legal and accounting fees, training, general
stationery and supplies, annual permits and licensing fees, consultant fees,
travel and expenses, social and community expenditure.
Product transportation and logistics costs are based on unit costs for the
complete transport and logistics chain (between site and product loading onto
ships at Takoradi port) applied to the calculated annual product tonnages.
Material handling costs are based on mining contractor waste haulage rates
applied to calculated annual material tonnages.
The OPEX excludes exchange rate and inflation variations from date of
estimate, Project financing costs and interest charges, corporate overheads,
VAT, Royalties, mining contractor costs (included directly in the financial
model) and exploration costs.
12.0 CAPITAL COSTS
The Project capital cost estimate was compiled based on input from the
following key contributors:
- Primero: process plant, bulk earthworks and various infrastructure
costs;
- Geocrest Group / REC for Tailings and water storage dam
earthworks;
- ECG Engineering for HV powerline relocation and power supply
connection costs; and
- Atlantic Lithium for owners costs, land and resettlement costs and
sustaining costs.
The upfront capital cost estimate is based on the scope described in this
report and has been peer reviewed for acceptance by the study team. All costs
are expressed in United States Dollars (US$) unless otherwise stated, with an
estimate basis date of Q2 2023. The estimate has been developed in accordance
with Primero's capital cost estimating procedures, with an accuracy of +15% /
-15%.
The upfront capital cost estimate summary is presented in Table 20. Mining
costs are discussed in Section 4.0 and have been included directly into the
financial model (Section 13).
Table 20 Capital Estimate Summary (USD, Q2 2023, -15% + 15%)
WBS Area US$M % of Total
Site General and Infrastructure 23.5 12.7
Process Plant - DMS 73.2 39.5
Project Indirects 27.6 14.9
Owners Costs 33.4 18.0
Modular Plant - DMS 15.3 8.3
Subtotal 173.0 93.4
Contingency 12.2 6.6
Total 185.2 100.0
12.1 ESTIMATE BASIS
The estimate has been presented in United States dollars as at Q2 2023. Prices
obtained in other currencies have been converted to US$ using agreed Project
exchange rates. The estimate build-up is based on a DFS level of engineering
and design across most scope areas to size equipment and prepare material
quantities. Quantity information was derived from a combination of sources and
categorised to reflect the maturity of design information:
- Study engineering including quantities derived from Project
specific engineering, equipment lists, drawings and 3D modelled facilities;
- Reference projects with quantities drawn from previously
constructed projects or detailed designs, adjusted to suit (where required)
this Project works scope;
- Estimates that include quantities derived from sketches or redline
mark-ups of previous Project drawings and data, compiled by estimating; and
- Factored quantities derived from percentages applied to previous
Project estimates.
Estimate pricing was derived from a combination of the following sources:
- Priced: Market pricing solicited specifically for the Project
estimate from enquiry to reputable suppliers, fabricators and construction
contractors in Ghana and internationally;
- Estimated: Historical database quantities or pricing older than
six months, with some use of priced information (above) such as unit rates for
cost build ups; and
- Allowance: Cost allowances based on Project team experience,
benchmarking.
The breakdown of estimate pricing source (excluding contingency) is shown in
Table 21.
Table 21 Source of Capital cost pricing
Source of Pricing US$M % of Total
Priced 136.6 79.0
Estimated 27.4 15.8
Allowance 9.0 5.2
Total 173.0 100.0
The capital cost estimate excludes sunk costs, corporate costs, company
overheads, exploration costs, Project financing costs, taxes, duties, working
capital, exchange rate variations and escalation.
12.2 DEFERRED AND SUSTAINING CAPITAL
Additional capital to be expended over the life of operation to sustain mining
and processing operations has been prepared and included in the financial
model. The costs are presented in Table 22. The costs exclude expenditure for
new or expanded process plant and infrastructure.
Table 22 Sustaining and Closure Capital Costs, LOM
Cost Item US$ M
Land Access and Resettlement Costs 98.9
Sustaining capital TSF Development Stages 2 and 3 0.8
New Tailings Line to Ewoyaa Pit 0.9
New Water Line from Ewoyaa Pit to Plant 0.5
Sediment Control Structures 3-5 0.1
Sustaining capital Plant and Buildings 7.0
Vehicle and Fleet Replacements 1.1
Sustaining Capital Infrastructure and Equipment: 2.9
Rehabilitation and Closure Costs 45.8
Total 158.0
13.0 FINANCIALS
13.1 FINANCIAL MODEL INPUTS AND BASIS
A financial model has been prepared to collate the study results to estimate
and evaluate Project cash flows and economic viability. The model is based on
the following key inputs and assumptions.
Table 23 Key Financial Model Inputs
Model Parameter Basis Basis Value/Input
Capital Funding Base Case: 100% Equity, 0% Debt Equity
Discount rate % per annum 8.0
Royalties Govt. % 5.0
Royalties 3rd Party % 1.0
Royalties 3rd Party %, capped at $2m total 1.0
Royalties - Growth and Sustainability 1% levy % 1.0
DMS Recovery P1 SC6.0 62.1%
DMS Recovery P1 SC5.5 67.2%
DMS Recovery P2 5.5 14.9%
DMS Modular Recovery SC5.5 34.0%
Li Product Moisture Content % 5.0
Secondary Product Moisture Content % 15.0
Corporate Tax Rate % 35
GET FUND Paid in year after cost incurred % of goods and services cost 2.5
NHIL FUND Paid in year after cost incurred % of goods and services cost 2.5
CDA FUND Paid in year after cost incurred % of earnings/profit (NPAT) 1.0
VAT Rate % of goods and services cost 15.0
Return Frequency for VAT (post Construction) Quarters 2.00
COVID 19 HRL - levy on non-exempt goods and services Paid in year after cost incurred 1%
Goods and Services Costs estimate based on % of Opex 17%
Import duties on op consumables 5%
Marketing Costs % 3
Environmental Bond first year payment US$ 4,575,905
Annual Premium as % Insurance Bond 0%
With-holding Tax Rate on non resident services 20%
Withholding Tax Rate on Interest and dividends 8%
Import Duties on Op Consumables (inc ECoWAS and Proc) 5%
Carried forward losses in Ghana Years 4
Refining Costs % 0.00
Governments Free Carry Requirement % 10
13.2 SPODUMENE CONCENTRATE PRICING
Spodumene concentrate pricing is based on a consensus SC6 forecast (Table 23).
This Pricing has been used for the component of SC6 produced on the Project.
SC5.5 pricing is calculated with a 5% discount to the SC6.0 Li(2)O unit
pricing and factored by a ratio of the product grades. Eg SC5.5 price =
(5.5/6)*SC6 Price*0.95.
Secondary product pricing is calculated with a 45% discount to the SC6.0
Li(2)O pricing and factored by a ratio of the product grade. The pricing basis
for the discount is from preliminary discussions with off-takers for the
material.
Table 24 Project Product Pricing Forecast, USD, FOB Ghana
Year 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
DFS SC6.0 (median consensus), US$ 3,000 2,557 2,000 1,841 1,770 1,666 1,560 1,452 1,410 1,410 1,410 1,410
DFS SC5.5 (calculated), US$ 2,613 2,227 1,742 1,603 1,541 1,451 1,359 1,264 1,228 1,228 1,228 1,228
Secondary Product (calculated), US$ 375 286 222 176 191 189 163 155 144 139 154 152
13.3 SPODUMENE CONCENTRATE production
Figure 12 depicts spodumene concentration production over Life of Mine. The
Modular DMS units will deliver early production during the first year. An
uptick in production is anticipated in the second year, running at 75% of the
nominal capacity on an annualised basis, which factors in both the
commissioning and ramp-up stages. Year 4 production considers a higher volume
of P2 ore processed.
Figure 12 LOM CONCENTRATE PRODUCTION
Statement:
The estimated Ore Reserves and Inferred Resources underpinning the production
target in Figure 12 have been prepared by a Competent Persons in accordance
with the requirement in Appendix 5A (JORC Code).
13.4 PROJECT FUNDING
The Project will be funded under a co-development agreement with Piedmont
Lithium Inc ("PLL"), where Piedmont has the right to earn up to 50% at the
Project level and 50% of the total spodumene concentrate (SC6) offtake at
market rates by funding US$17m towards studies and exploration and US$70m
towards the development. Any cost overruns or savings for the Project (i.e.
where development costs are more or less than the funding in the agreement)
will be shared equally between Atlantic Lithium and PLL.
Project funding has been included on the premise that all Project development
requirements will be funded by the PLL agreement, with additional funding
required by Atlantic Lithium to be sourced from cash or equity.
13.5 PROJECT FINANCIAL RESULTS
Key financial model outputs are shown in Table 25. The Project demonstrates
robust financial metrics and rapid payback.
Table 25 Cash Flow Model Key Results
Item Units DFS Result
Revenue (all products) US$M 6,566
Spodumene Revenue US$M 5,687
Secondary Product Revenue US$M 878
NPV(8) Post Tax US$M 1,498
IRR % 105
Payback Months 19
EBITDA US$M 3,798
EBIT US$M 3,527
NPAT, LOM US$M 2,284
Surplus Cashflow, Post Tax US$M 2,253
C1 Cash Cost (net by-product credit) US$/t 377
All In Sustaining Cost (AISC) US$/t 610
All-In Sustaining Costs (AISC) are defined as Operating Costs plus 3(rd) party
royalties, government royalties and sustaining capital. AISC are calculated
and reported from commencement of commercial production. AISC exclude
Non-Sustaining Capital expenditure.
The DFS illustrates that the Project has strong operating margins. The
realised concentrate price (FOB) is derived from the concentrate pricing in
Table 24, adjusted for the product mix.
Figure 13 Ewoyaa lithium project margin
13.6 CASH FLOW SENSITIVITIES
Sensitivities are applied to key Project estimates and assumptions.
Favourable and unfavourable movements relative to Post-Tax NPV(8) are
illustrated in the Figure 14 below.
Figure 14 Cash Flow Sensitivities Graph, NPV(8) Basis
Project cash flows are most sensitive to changes in concentrate selling price,
where a 10% change in price resulted in a 17.0% change to the Post-Tax NPV(8).
This was closely followed by sensitivity to changes in head grade 16.5% and
recovery at 13.8%.
Sensitivity adjustments of Project expenses demonstrated that mining costs,
which made up the largest portion of operating expenditure, resulted in the
most significant movements in Project NPV(8) followed by concentrate
transport, processing. The Project is insensitive to changes in capital cost.
14.0 PROJECT RISKS AND OPPORTUNITIES
14.1 INTRODUCTION
The study undertook analysis at two levels:
- Hazards identification associated with the plant operation
("HAZID"); and
- Project development risk and opportunity analysis.
14.2 HAZID
A HAZID was undertaken focussing on design and operational elements that have
the potential to cause significant personal injury or environmental damage, to
allow these to be addressed early in the detailed design.
The HAZID was carried out for the DFS in a workshop setting with attendees
from Atlantic Lithium and Primero and facilitated by an independent
representative. The results of the assessment constitute the HAZID risk
register, into which subsequent HAZID reviews were then conducted to complete
the analysis.
Overall, no hazards (uncontrolled) were classified as extreme, and only two
hazards were classified as high, related to interactions of personnel with
vehicles and mobile plant. With future implementation of industry standard
design practices and operational controls, the residual risk ratings for these
items are all low. All other hazards have both uncontrolled and residual risk
lower ratings to either medium or low.
14.3 PROJECT RISK ASSESSMENT
A risk assessment was undertaken to assess the impact of uncertainties on the
objective of delivering and operating the Project within budget and on
schedule. The risks identified related to Compliance, Electrical supply,
Environmental and approvals, Health and Safety, Human Resources,
Infrastructure, logistics, water modelling and owners risks, Metallurgy,
Geology, Mining, Processing, Security and Tailings and water dams
A standard Risk Assessment procedure was used for the Project Risk Review,
which categorises risks by project development area. This allows specific
risks and their impacts to be identified, along with current control measures.
A severity of consequence and a likelihood of occurrence was assigned to rate
risks and allow the effects of further control actions to be considered to
arrive at a residual risk rating.
The Project risk assessment was carried out for the DFS in a workshop setting
with attendees from Atlantic Lithium and all consultants and facilitated by an
independent representative. The results of the assessment constitute the
Project risk register, into which further reviews were then conducted by
individual teams to complete risk works for their areas of study scope,
including assignment of actions and risk owners for ongoing risk management.
The results of the workshops are presented in the Project Risk Register. In
the categories studied, one risk (uncontrolled) was classified as EXTREME,
related to risk of obtaining and keeping an environmental permit (EP) required
to conduct construction and operations. Long Project delays and delays to
revenues would result. Mitigation actions relate to developing a strong
understanding of the requirements to obtain and maintain the EP and carrying
out the planned ESIA and RAP readiness works for the EP application in
parallel to engineering and design works during 2023-24, leading to a residual
risk rating of MEDIUM.
Several risks were classified as HIGH, however with ongoing or future
mitigation actions, all residual risk ratings lower to either MEDIUM or LOW.
14.4 PROJECT OPPORTUNITIES
The Project has opportunities to capture further value from plant streams and
to upgrade secondary products to generate additional revenue. These
opportunities will need to be investigated in future further studies and
testwork programs to assess their feasibility.
FELDSPAR
Feldspar recovery consists of an additional DMS circuit and WHIMS iron removal
stage treating the DMS rejects stream. A high-quality feldspar concentrate
could be produced with greater than 10% alkalis, and less than 0.1% Fe(2)O(3).
Potential production qualities are shown in the table below:
Product % of plant Quantity Size range Grade
feed tonnage est. tpa (mm) % Li(2)O
Feldspar (future product) ~20% - 40% 500 - 1,000ktpa -10+1 n/a
Table 26 Feldspar estimates
FLOTATION
Another opportunity for the Project includes processing fines (<0.85mm) and
middlings streams through a flotation plant. Preliminary flotation sighter
testwork performed indicates encouraging flotation stage recovery and
achievement of >5% Li(2)O concentrate grades.
The fines and middlings streams making up the proposed flotation feed
represent approximately 1.1Mtpa feed stream with an estimated grade of 0.7%
Li(2)O. Preliminary calculations for concentrate production are in the range
of 80,000tpa for a >5% Li(2)O concentrate which represents an opportunity
to increase Project value.
The flotation concentrate product would replace the current (lower grade)
secondary product and would be a higher value, lower volume product. The
opportunity has potential to de-risk the Project in the event that low-grade
lithium bearing products market is adversely affected in the future.
Table 27 Potential Flotation plant feedstock per annum
Stream Quantity float feed est. tpa % Li(2)O
Fines 450,000 1.2
DMS Middlings 650,000 0.4
Total 1,100,000 0.7
15.0 Important Information
15.1 Mineral resource estimate
GEOLOGY AND GEOLOGICAL INTERPRETATION
The Ewoyaa Project area lies within the Birimian Supergroup, a Proterozoic
volcano-sedimentary basin located in Western Ghana. The Project area is
underlain by three forms of metamorphosed schist; mica schist, staurolite
schist and garnet schist. Several granitoids intrude the basin metasediments
as small plugs. These granitoids range in composition from intermediate
granodiorite (often medium-grained) to felsic leucogranites (coarse to
pegmatoidal grain size), sometimes in close association with pegmatite veins
and bodies.
Pegmatite intrusions generally occur as sub-vertical dykes with two dominant
trends: either east-southeast (Abonko, Anokyi, Ewoyaa Northeast, Grasscutter,
Kaampakrom and Okwesi) dipping sub-vertically northeast; or north-northeast
(Ewoyaa Main) dipping sub-vertically to moderately to the east. Pegmatite
thickness varies across the Project, with thinner mineralised units
intersected at Abonko and Kaampakrom between 4 and 12m; and thicker units
intersected at Ewoyaa Main between 30 and 60m, and up to 100m at surface.
SAMPLING AND SUB-SAMPLING TECHNIQUES
Sampling Techniques
RC drill holes were routinely sampled at 1m intervals with a nominal 3-6kg
sub-sample split off for assay using a rig-mounted cone splitter at 1m
intervals. DD holes were quarter core sampled at 1m intervals or to geological
contacts for geochemical analysis. For assaying, splits from all prospective
ore zones (i.e. logged pegmatites +/- interburden) were sent for assay.
Outside of these zones, the splits were composited to 4m using a portable
riffle splitter. Holes without pegmatite were not assayed. Approximately 5% of
all samples submitted were standards and coarse blanks. Blanks were typically
inserted with the interpreted ore zones after the drilling was completed.
Approximately 2.5% of samples submitted were duplicate samples collected after
logging using a riffle splitter and sent to an umpire laboratory. This ensured
zones of interest were duplicated and not missed during alternative routine
splitting of the primary sample. Prior to the December 2018 - SGS Tarkwa was
used for sample preparation (PRP100) and subsequently forwarded to SGS
Johannesburg for analysis; and later SGS Vancouver for analysis (ICP90A). Post
December 2018 to present - Intertek Tarkwa was used for sample preparation
(SP02/SP12) and subsequently forwarded to Intertek Perth for analysis
(FP6/MS/OES - 21 element combination Na(2)O(2) fusion with combination
OES/MS). ALS Laboratory in Brisbane was used for the Company's initial due
diligence work programs and was selected as the umpire laboratory since Phase
1. ALS conducts ME-ICP89, with a Sodium Peroxide Fusion. Detection limits
for lithium are 0.01-10%. Sodium Peroxide fusion is considered a "total" assay
technique for lithium. In addition, 22 additional elements assayed with Na2O2
fusion, and combination MS/ICP analysis.
Sub-sampling Techniques
RC samples were cone split at the drill rig. For interpreted waste zones the
1 or 2m rig splits were later composited using a riffle splitter into 4m
composite samples. DD core was cut with a core saw and selected half core
samples dispatched to Nagrom Laboratory in Perth for preliminary metallurgical
test work. The other half of the core, including the bottom-of-hole
orientation line, was retained for geological reference. The remaining DD core
was quarter cored for geochemical analysis. Since December 2018, samples were
submitted to Intertek Tarkwa (SP02/SP12) for sample preparation. Samples were
weighed, dried and crushed to -2mm in a Boyd crusher with an 800-1,200g rotary
split, producing a nominal 1,500g split crushed sample; which was subsequently
pulverised in a LM2 ring mill. Samples were pulverised to a nominal 85%
passing 75µm. All the preparation equipment was flushed with barren
material prior to the commencement of the job. Coarse reject material was
kept in the original bag. Lab sizing analysis was undertaken on a nominal
1:25 basis. Final pulverised samples (20g) were airfreighted to Intertek in
Perth for assaying. The vast majority of samples were drilled dry. Moisture
content was logged qualitatively. All intersections of the water table were
recorded in the database. Field sample duplicates were taken to evaluate
whether samples were representative and understand repeatability, with good
repeatability. Sample sizes and laboratory preparation techniques were
appropriate and industry standard.
DRILLING TECHNIQUES
The database contains data for the auger, RC and DD drilling conducted by the
Company since 2018. The drilling was completed by the Company in six phases
commencing in April 2018. All the drilling was undertaken by GeoDrill
(Ghana), using both RC and DD rigs.
Drilling at the deposit extends to a vertical depth of approximately 319m and
the mineralisation was modelled from surface to a depth of approximately 330m
below surface. The estimate is based on good quality RC and DD drilling
data. Drill hole spacing is predominantly 20m by 20m and 40m by 40m in the
well-drilled portions of the Project and up to 80m by 80m to 100m by 100m
across the breadth of the known mineralisation.
The RC drilling used a combination of 5.25' and 5.75' face sampling hammers.
The DD used PQ and HQ (85mm and 63.5mm) diameter core barrels. The DD holes
were completed from surface or as tails with PQ to maximise recovery in
weathered zones, with reversion to HQ once ground conditions improved within
fresh material.
In 2018, Phase 1 RC holes were completed on a nominal 100m by 50m grid
pattern, targeting the Ewoyaa Main mineralised system. Phases 2 to 5 reduced
the wide spacing to 80m by 40m and down to 40m by 40m in the well-drilled
portions of the Project. Eleven DD twins of RC holes were completed.
During Phase 1 and 2, RC drilling bulk samples and splits were collected at
the rig for every metre interval drilled, the splits being undertaken using a
riffle splitter. During Phase 3, Phase 4, Phase 5 and Phase 6, RC samples were
split with a rig mounted cone spitter, which took duplicate samples for
quality control purposes.
DD was cut with a core saw and selected half core samples was dispatched to
Nagrom Laboratory in Australia for metallurgical test work.
Selected core intervals were cut to quarter core with a saw at one-metre
intervals or to geological contacts; and since December 2018, were sent to
Intertek Laboratory in Tarkwa, Ghana for sample preparation. Prior to that,
samples were sent to SGS Laboratory in Tarkwa for sample preparation.
All Phase 1 samples were submitted to SGS Tarkwa for preparation (PRP100) and
subsequently forwarded to SGS Johannesburg and later SGS Vancouver for
analysis (ICP90A).
PRP100 - Samples <3kg are dried in trays, crush to 100% passing 2mm, split
using a rotary splitter to 5kg and pulverised in a LM2 to a nominal 85%
passing 75µm. Approximately 100g sub-sample is taken for assay. All the
preparation equipment is flushed with barren material prior to the
commencement of the job. Coarse reject material was kept in the original bag.
Since December 2018, samples have been submitted to Intertek Tarkwa
(SP02/SP12) for sample preparation. Samples were weighed, dried and crushed to
-2mm in a Boyd crusher with an 800-1,200g rotary split, producing a nominal
1,500g split crushed sample, which was subsequently pulverised in a LM2 ring
mill. Samples were pulverised to a nominal 85% passing 75µm. All the
preparation equipment was flushed with barren material prior to the
commencement of the job. Coarse reject material was kept in the original
bag. Lab sizing analysis was undertaken on a nominal 1:25 basis. Final
pulverised samples (20g) were airfreighted to Intertek in Perth, Australia for
assaying.
MINERAL RESOURCE CLASSIFICATION CRITERIA
The Ewoyaa lithium deposits show good continuity of the main mineralised units
which allowed the drill hole intersections to be modelled into coherent,
geologically robust domains. Consistency is evident in the thickness of the
structure, and the distribution of grade appears to be reasonable along and
across strike.
The Ewoyaa Mineral Resource was classified as Measured, Indicated and Inferred
Mineral Resource based on data quality, sample spacing, and lode continuity.
The Measured Mineral Resource was defined within areas of close spaced RC and
DD drilling of less than 20m by 20m, and where the continuity and
predictability of the lode positions was good. Indicated Mineral Resource was
defined within areas of close spaced RC and DD drilling of less than 40m by
40m, and where the continuity and predictability of the lode positions was
good. In addition, Indicated Mineral Resource was confined to the fresh rock.
The Inferred Mineral Resource was assigned to transitional material, areas
where drill hole spacing was greater than 40m by 40m, where small, isolated
pods of mineralisation occur outside the main mineralised zones, and to
geologically complex zones.
SAMPLING ANALYSIS METHOD
Since December 2018, samples were sent to Intertek Laboratory in Perth for
analysis (FP6/MS/OES). FP6/MS/OES is an analysis for lithium and a suite of 21
other elements. Detection limits for lithium range between 5ppm and
20,000ppm. The sodium peroxide fusion (in nickel crucibles) is completed
with hydrochloric acid to dissolve the sub-sample and is considered a total
dissolution. Analysis is conducted by Inductively Coupled Plasma Mass
Spectrometry ("ICP-MS").
Prior to December 2018, Phase 1 samples were submitted to SGS Johannesburg and
later SGS Vancouver for analysis (ICP90A). ICP90 is a 28-element combination
Na(2)O(2) fusion with ICP-OES. ICP-MS was added to some submissions for
additional trace element characterisation purposes.
ESTIMATION METHODOLOGY
A Surpac block model was created to encompass the extents of the known
mineralisation. The block model was rotated on a bearing of 30°, with block
dimensions of 10m NS by 10m EW by 5m vertical with sub-cells of 2.5m by 2.5m
by 1.25m. The block size was selected based on results of Kriging
Neighbourhood Analysis ("KNA") and also in consideration of two predominant
mineralisation orientations of 30° and 100 to 120°.
The parent block size was selected based on KNA, while dimensions in other
directions were selected to provide sufficient resolution to the block model
in the across-strike and down-dip direction.
Bulk densities ranging between 1.7t/m(3) and 2.78t/m(3) were assigned in the
block model dependent on lithology, mineralisation and weathering. These
densities were applied based on 13,901 bulk density measurements conducted by
the Company on 101 DD holes and 35 RC holes with diamond tails conducted
across the breadth of the Project. The measurements were separated using
weathering surfaces, geology and mineralisation solids, with averages assigned
in the block model.
CUT-OFF GRADE
The Statement of Mineral Resources has been constrained by the mineralisation
solids and reported above a cut-off grade of 0.5% Li(2)O. The reporting
cut-off grade is supported by a high-level Whittle optimisation.
MINING AND METALLURGICAL METHODS AND PARAMETERS
The Statement of Mineral Resources has been constrained by the mineralisation
solids, reported at a cut-off grade of 0.5% Li(2)O. Whittle optimisations
demonstrate reasonable prospects for eventual economic extraction. Preliminary
metallurgical test work indicates four main geometallurgical domains;
weathered and fresh coarse-grained spodumene-bearing pegmatite (P1) and
weathered and fresh medium-grained spodumene-bearing pegmatite (P2). From test
work completed for the Scoping Study at a 6.3mm crush, the P1 material
produces a 6% Li(2)O concentrate at approximately 70 to 85% recovery (average
75% recovery), whilst P2 material produces 5.5 to 6% Li(2)O concentrate at
approximately 35 to 65% recovery (average 47% recovery).
Further metallurgical test work completed for the PFS was done at a 10mm
crush. Recoveries for P1 material into primary concentrate at a 10mm crush
were 50-80% from the HLS test work with an average 68% recovery for weathered
and 70% for the fresh used for the PFS before discounting.
A P2 recovery of 50% was used for weathered and fresh for the purpose of the
PFS study. In the Scoping study, HLS tests on P2 weathered and fresh material
at a 6.3mm crush size gave recoveries of 46-61%. Recoveries of P2 to primary
concentrates at 10mm crush size ranged from 7-30% and averaged 20%. The
middlings contained ~60% of the lithium and it is expected that after finer
crushing at least 50% of this will be recovered giving an overall recovery of
50% before discounting.
Recoveries selected for the DMS Plant process design criteria were interpreted
from laboratory results discounted by 4% to simulate the typical loss of
recoveries from laboratory conditions to on-site, large-scale operations
resulting in 66% recovery for P1 fresh, 64% recovery for P1 weathered and 46%
for P2 weathered and fresh materials (refer announcement of 22 September
2022).
Further geological, geotechnical, engineering and metallurgical studies are
recommended to further define the lithium mineralisation and marketable
products.
16.0 DFS CONTRIBUTORS
Atlantic Lithium engaged several experienced and specialist technical
consultants for contribution to and coordination of the DFS preparation. DFS
Contributors and their areas of contribution are listed in Table 28.
Table 28 Definitive-Feasibility Study Contributor
Area Contribution by Area Contribution By
Geology and Resources Atlantic Lithium Infrastructure Geocrest, REC, Engineering, PPS/SRK, Atlantic Lithium
Mineral Resources Ashmore Advisory Project Implementation Primero, Atlantic Lithium
Mine Geotechnical, Hydrology and Hydrogeology SRK Consulting Ghana and RSA Operating Cost Primero, Atlantic Lithium, ACC Logistics, Bolloré Africa, Glen Falloch
Consulting
Mine Engineering Mining Focus Consultants Capital Costs Primero, Atlantic Lithium, ECG, REC Engineering
Metallurgical Testwork Trinol (supervision) and NAGROM (laboratory) Risks and Opportunities Atlantic Lithium, Increva
Site Geotechnical, TSF, WSD Geocrest and Associates, REC Engineering Financial Analysis Aspire Solutions Pty Ltd
ESIA Study NEMAS Ghana Power Supply ECG Engineering
Process Plant Engineering Primero
Project Implementation
JORC Code 2012 Table 1
The following extract from the JORC Code 2012 Table 1 is provided for
compliance with the Code requirements for the reporting of Ore Reserves:
'JORC Code 2012 Table 1' Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections).
Sampling techniques · Nature and quality of sampling (e.g. cut channels, random chips, · RC drill holes were routinely sampled at 1m intervals with a
or specific specialised industry standard measurement tools appropriate to the nominal 3-6kg sub-sample split off for assay using a rig-mounted cone splitter
minerals under investigation, such as down hole gamma sondes, or handheld XRF at 1m intervals.
instruments, etc.). These examples should not be taken as limiting the broad
meaning of sampling. · DD holes were quarter core sampled at 1m intervals or to
geological contacts for geochemical analysis.
· Include reference to measures taken to ensure sample
representivity and the appropriate calibration of any measurement tools or · For assaying, splits from all prospective ore zones (i.e. logged
systems used. pegmatites +/- interburden) were sent for assay. Outside of these zones, the
splits were composited to 4m using a portable riffle splitter.
· Aspects of the determination of mineralisation that are Material
to the Public Report. · Holes without pegmatite were not assayed.
· In cases where 'industry standard' work has been done this would · Approximately 5% of all samples submitted were standards and
be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1m coarse blanks. Blanks were typically inserted with the interpreted ore zones
samples from which 3kg was pulverised to produce a 30g charge for fire after the drilling was completed.
assay'). In other cases more explanation may be required, such as where there
is coarse gold that has inherent sampling problems. Unusual commodities or · Approximately 2.5% of samples submitted were duplicate samples
mineralisation types (e.g. submarine nodules) may warrant disclosure of collected after logging using a riffle splitter and sent to an umpire
detailed information. laboratory. This ensured zones of interest were duplicated and not missed
during alternative routine splitting of the primary sample.
· Prior to the December 2018 - SGS Tarkwa was used for sample
preparation (PRP100) and subsequently forwarded to SGS Johannesburg for
analysis; and later SGS Vancouver for analysis (ICP90A).
· Post December 2018 to present - Intertek Tarkwa was used for
sample preparation (SP02/SP12) and subsequently forwarded to Intertek Perth
for analysis (FP6/MS/OES - 21 element combination Na(2)O(2) fusion with
combination OES/MS).
· ALS Laboratory in Brisbane was used for the Company's initial due
diligence work programs and was selected as the umpire laboratory since Phase
1. ALS conducts ME-ICP89, with a Sodium Peroxide Fusion. Detection limits
for lithium are 0.01-10%. Sodium Peroxide fusion is considered a "total" assay
technique for lithium. In addition, 22 additional elements assayed with
Na(2)O(2) fusion, and combination MS/ICP analysis.
Drilling techniques · Drill type (e.g. core, reverse circulation, open-hole hammer, · Six phases of drilling were undertaken at the Project using RC
rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, and DD techniques. All the RC drilling used face sampling hammers.
triple or standard tube, depth of diamond tails, face-sampling bit or other
type, whether core is oriented and if so, by what method, etc.). · Phase 1 and 2 programs used a 5.25 inch hammers while Phase 3
used a 5.75-inch hammer.
· All DD holes were completed using PQ and HQ core from surface
(85mm and 63.5mm).
· All DD holes were drilled in conjunction with a Reflex ACT II
tool; to provide an accurate determination of the bottom-of-hole orientation.
· All fresh core was orientated to allow for geological, structural
and geotechnical logging by a Company geologist.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries · A semi-quantitative estimate of sample recovery was completed for
and results assessed. the vast majority of drilling. This involved weighing both the bulk samples
and splits and calculating theoretical recoveries using assumed densities.
· Measures taken to maximise sample recovery and ensure Where samples were not weighed, qualitative descriptions of the sample size
representative nature of the samples. were recorded. Some sample loss was recorded in the collaring of the RC
drill holes.
· Whether a relationship exists between sample recovery and grade
and whether sample bias may have occurred due to preferential loss/gain of · DD recoveries were measured and recorded. Recoveries in excess
fine/coarse material. of 95.8% have been achieved for the DD drilling program. Drill sample recovery
and quality is adequate for the drilling technique employed.
· The DD twin program has identified a positive grade bias for iron
in the RC compared to the DD results.
Logging · Whether core and chip samples have been geologically and · All drill sample intervals were geologically logged by Company
geotechnically logged to a level of detail to support appropriate Mineral geologists.
Resource estimation, mining studies and metallurgical studies.
· Where appropriate, geological logging recorded the abundance of
· Whether logging is qualitative or quantitative in nature. Core specific minerals, rock types and weathering using a standardised logging
(or costean, channel, etc.) photography. system that captured preliminary metallurgical domains.
· The total length and percentage of the relevant intersections · All logging is qualitative, except for the systematic collection
logged. of magnetic susceptibility data which could be considered semi quantitative.
· Strip logs have been generated for each drill hole to cross-check
geochemical data with geological logging.
· A small sample of washed RC drill material was retained in chip
trays for future reference and validation of geological logging, and sample
reject materials from the laboratory are stored at the Company's field office.
· All drill holes have been logged and reviewed by Company
technical staff.
· The logging is of sufficient detail to support the current
reporting of a Mineral Resource.
Criteria JORC Code Explanation Commentary
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all · RC samples were cone split at the drill rig. For interpreted
core taken. waste zones the 1 or 2m rig splits were later composited using a riffle
splitter into 4m composite samples.
· If non-core, whether riffled, tube sampled, rotary split, etc.
and whether sampled wet or dry. · DD core was cut with a core saw and selected half core samples
dispatched to Nagrom Laboratory in Perth for preliminary metallurgical test
· For all sample types, the nature, quality and appropriateness of work.
the sample preparation technique.
· The other half of the core, including the bottom-of-hole
· Quality control procedures adopted for all sub-sampling stages to orientation line, was retained for geological reference.
maximise representivity of samples.
· The remaining DD core was quarter cored for geochemical analysis.
· Measures taken to ensure that the sampling is representative of
the in situ material collected, including for instance results for field · Since December 2018, samples were submitted to Intertek Tarkwa
duplicate/second-half sampling. (SP02/SP12) for sample preparation. Samples were weighed, dried and crushed to
-2mm in a Boyd crusher with an 800-1,200g rotary split, producing a nominal
· Whether sample sizes are appropriate to the grain size of the 1,500g split crushed sample; which was subsequently pulverised in a LM2 ring
material being sampled. mill. Samples were pulverised to a nominal 85% passing 75µm. All the
preparation equipment was flushed with barren material prior to the
commencement of the job. Coarse reject material was kept in the original
bag. Lab sizing analysis was undertaken on a nominal 1:25 basis. Final
pulverised samples (20g) were airfreighted to Intertek in Perth for assaying.
· The vast majority of samples were drilled dry. Moisture content
was logged qualitatively. All intersections of the water table were recorded
in the database.
· Field sample duplicates were taken to evaluate whether samples
were representative and understand repeatability, with good repeatability.
· Sample sizes and laboratory preparation techniques were
appropriate and industry standard.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · Analysis for lithium and a suite of other elements for Phase 1
laboratory procedures used and whether the technique is considered partial or drilling was undertaken at SGS Johannesburg / Vancouver by ICP-OES after
total. Sodium Peroxide Fusion. Detection limits for lithium (10ppm - 100,000ppm).
Sodium Peroxide fusion is considered a "total" assay technique for lithium.
· For geophysical tools, spectrometers, handheld XRF instruments,
etc., the parameters used in determining the analysis including instrument · Review of standards and blanks from the initial submission to
make and model, reading times, calibrations factors applied and their Johannesburg identified failures (multiple standards reporting outside control
derivation, etc. limits). A decision was made to resubmit this batch and all subsequent batches
to SGS Vancouver - a laboratory considered to have more experience with this
· Nature of quality control procedures adopted (e.g. standards, method of analysis and sample type.
blanks, duplicates, external laboratory checks) and whether acceptable levels
of accuracy (i.e. lack of bias) and precision have been established. · Results of analyses for field sample duplicates are consistent
with the style of mineralisation and considered to be representative. Internal
laboratory QAQC checks are reported by the laboratory, including sizing
analysis to monitor preparation and internal laboratory QA/QC. These were
reviewed and retained in the company drill hole database.
· 155 samples were sent to an umpire laboratory (ALS) and/assayed
using equivalent techniques, with results demonstrating good repeatability.
· Atlantic Lithium's review of QAQC suggests the SGS Vancouver and
Intertek Perth laboratories performed within acceptable limits.
· No geophysical methods or hand-held XRF units have been used for
determination of grades in the Mineral Resource.
Criteria JORC Code Explanation Commentary
Verification of sampling and assaying · The verification of significant intersections by either · Significant intersections were visually field verified by company
independent or alternative company personnel. geologists and Shaun Searle of Ashmore during the 2019 site visit.
· The use of twinned holes. · Drill hole data was compiled and digitally captured by Company
geologists in the field. Where hand-written information was recorded, all
· Documentation of primary data, data entry procedures, data hardcopy records were kept and archived after digitising.
verification, data storage (physical and electronic) protocols.
· Phase 1 and 2 drilling programs were captured on paper or locked
· Discuss any adjustment to assay data. excel templates and migrated to an MS Access database and then into Datashed
(industry standard drill hole database management software). The Phase 3 to
6 programs were captured using LogChief which has inbuilt data validation
protocols. All analytical results were transferred digitally and loaded into
the database by a Datashed consultant.
· The data was audited, and any discrepancies checked by the
Company personnel before being updated in the database.
· Twin DD holes were drilled to verify results of the RC drilling
programs. Results indicate that there is iron contamination in the RC drilling
process.
· Reported drill hole intercepts were compiled by the Chief
Geologist.
· Adjustments to the original assay data included converting Li ppm
to Li(2)O%.
Location of data points · Accuracy and quality of surveys used to locate drill holes · The collar locations were surveyed in WGS84 Zone 30 North using
(collar and down-hole surveys), trenches, mine workings and other locations DGPS survey equipment, which is accurate to 0.11mm in both horizontal and
used in Mineral Resource estimation. vertical directions. All holes were surveyed by qualified surveyors. Once
validated, the survey data was uploaded into Datashed.
· Specification of the grid system used.
· RC drill holes were routinely down hole surveyed every 6m using a
· Quality and adequacy of topographic control. combination of EZ TRAC 1.5 (single shot) and Reflex Gyroscopic tools.
· After the tenth drill hole, the survey method was changed to
Reflex Gyro survey with 6m down hole data points measured during an
end-of-hole survey.
· All Phase 2 and 3 drill holes were surveyed initially using the
Reflex Gyro tool, but later using the more efficient Reflex SPRINT tool. Phase
4 and 5 drill holes were surveyed using a Reflex SPRINT tool.
· LiDAR survey Southern Mapping to produce rectified colour images
and a digital terrain model (DTM) 32km(2), Aircraft C206 aircraft-mounted
LiDAR Riegl Q780 Camera Hasselblad H5Dc with 50mm Fixfocus lens.
· Coordinate system: WGS84 UTM30N with accuracy to ±0.04.
· The topographic survey and photo mosaic output from the survey is
accurate to 20mm.
· Locational accuracy at collar and down the drill hole is
considered appropriate for resource estimation purposes.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · The RC holes were initially drilled on 100m spaced sections and
50m hole spacings orientated at 300° or 330° with dips ranging from -50° to
· Whether the data spacing and distribution is sufficient to -60°. Planned hole orientations/dips were occasionally adjusted due to pad
establish the degree of geological and grade continuity appropriate for the and/or access constraints.
Mineral Resource and Ore Reserve estimation procedure(s) and classifications
applied. · Hole spacing was reduced to predominantly 40m spaced sections and
40m hole spacings, with infill to 20m by 15m in the upper portions of the
· Whether sample compositing has been applied. Ewoyaa Main deposit. Holes are generally angled perpendicular to interpreted
mineralisation orientations at the Project.
· Samples were composited to 1m intervals prior to estimation.
Criteria JORC Code Explanation Commentary
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · The drill line and drill hole orientation are oriented as close
possible structures and the extent to which this is known, considering the as practicable to perpendicular to the orientation of the general mineralised
deposit type. orientation.
· If the relationship between the drilling orientation and the · Most of the drilling intersects the mineralisation at close to 90
orientation of key mineralised structures is considered to have introduced a degrees ensuring intersections are representative of true widths. It is
sampling bias, this should be assessed and reported if material. possible that new geological interpretations and/or infill drilling
requirements may result in changes to drill orientations on future programs.
· No orientation based sampling bias has been identified in the
data.
Sample security · The measures taken to ensure sample security. · Samples were stored on site prior to road transportation by
Company personnel to the SGS preparation laboratory.
· With the change of laboratory to Intertek, samples were picked up
by the contractor and transported to the sample preparation facility in
Tarkwa.
Audits or reviews · The results of any audits or reviews of sampling techniques and · Prior to the drilling program, a third-party Project review was
data. completed by an independent consultant experienced with the style of
mineralisation.
· In addition, Shaun Searle of Ashmore reviewed drilling and
sampling procedures during the 2019 site visit and found that all procedures
and practices conform to industry standards.
'JORC Code 2012 Table 1' Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section).
Criteria JORC Code Explanation Commentary
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including · The Project covers two contiguous licences the Mankessim (RL
agreements or material issues with third parties such as joint ventures, 3/55) and Mankessim South (PL3/109) licence.
partnerships, overriding royalties, native title interests, historical sites,
wilderness or national park and environmental settings. · The Mankessim is a joint-venture, with the license in the name of
the joint-venture party (Barari Development Ghana Limited). Document number:
· The security of the tenure held at the time of reporting along 0853652-18.
with any known impediments to obtaining a licence to operate in the area.
· The Project occurs within a Mineral Prospecting license and was
renewed on the 27th July 2021 for a further three-year period, valid until
27th July 2024.
· The Mankessim South licence is a wholly-owned subsidiary of Green
Metals Resources. The Mineral Prospecting license renewal was submitted in
Nov 2022 for a further three-year period.
· The tenement is in good standing with no known impediments.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · Historical trenching and mapping were completed by the Ghana
Geological survey during the 1960's. But for some poorly referenced
historical maps, none of the technical data from this work was located. Many
of the historical trenches were located, cleaned and re-logged. No historical
drilling was completed.
Geology · Deposit type, geological setting and style of mineralisation. · Pegmatite-hosted lithium deposits are the target for exploration.
This style of mineralisation typically forms as dykes and sills intruding or
in proximity to granite source rocks.
· Surface geology within the Project area typically consists of
sequences of staurolite and garnet-bearing pelitic schist and granite with
lesser pegmatite and mafic intrusives. Outcrops are typically sparse and
confined to ridge tops with colluvium and mottled laterite blanketing much of
the undulating terrain making geological mapping challenging. The hills are
often separated by broad, sandy drainages.
Drillhole Information · A summary of all information material to the understanding of the · No exploration results are being reported.
exploration results including a tabulation of the following information for
all Material drill holes: · All information was included in the appendices (of the Mineral
Resource report). No drill hole information were excluded (from the Mineral
· easting and northing of the drill hole collar Resource report).
· elevation or RL (Reduced Level - elevation above sea level in
metres) of the drill hole collar
· dip and azimuth of the hole
· downhole length and interception depth
· hole length
· If the exclusion of this information is justified on the basis
that the information is not Material and this exclusion does not detract from
the understanding of the report, the Competent Person should clearly explain
why this is the case.
Criteria JORC Code Explanation Commentary
Data aggregation methods · In reporting Exploration Results, weighting averaging techniques, · Exploration results are not being reported.
maximum and/or minimum grade truncations (e.g. cutting of high grades) and
cut-off grades are usually Material and should be stated. · Not applicable as a Mineral Resource is being reported.
· Where aggregate intercepts incorporate short lengths of high · No metal equivalent values are being reported.
grade results and longer lengths of low grade results, the procedure used for
such aggregation should be stated and some typical examples of such
aggregations should be shown in detail.
· The assumptions used for any reporting of metal equivalent values
should be clearly stated.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting · The drill line and drill hole orientation are oriented as close
of Exploration Results. to 90° degrees to the orientation of the anticipated mineralised orientation
as practicable.
· If the geometry of the mineralisation with respect to the drill
hole angle is known, its nature should be reported. · The majority of the drilling intersects the mineralisation
between 60° and 80° degrees.
· If it is not known and only the downhole lengths are reported,
there should be a clear statement to this effect (e.g. 'downhole length, true
width not known').
Diagrams · Appropriate maps and sections (with scales) and tabulations of · Relevant diagrams have been included within the Mineral Resource
intercepts should be included for any significant discovery being reported. report 'Ewoyaa Lithium Project Mineral Resource Estimate' dated 25 March 2023.
These should include, but not be limited to, a plan view of drill hole collar
locations and appropriate sectional views.
Balanced reporting · Where comprehensive reporting of all Exploration Results is not · All hole collars were surveyed WGS84 Zone 30 North grid using a
practicable, representative reporting of both low and high grades and/or differential GPS. All RC and DD holes were down-hole surveyed with a
widths should be practiced to avoid misleading reporting of Exploration north-seeking gyroscopic tool.
Results.
· Exploration results are not being reported.
Other substantive exploration data · Other exploration data, if meaningful and material, should be · Results were estimated from drill hole assay data, with
reported including (but not limited to): geological observations; geophysical geological logging used to aid interpretation of mineralised contact
survey results; geochemical survey results; bulk samples - size and method of positions.
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances. · Geological observations are included in the report.
Further work · The nature and scale of planned further work (e.g. tests for · Follow up RC and DD drilling may be undertaken.
lateral extensions or depth extensions or large-scale step-out drilling).
· Further metallurgical test work may be required as the Project
· Diagrams clearly highlighting the areas of possible extensions, progresses through the study stages.
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive. · Drill spacing is currently considered adequate for the current
level of interrogation of the Project.
'JORC Code 2012 Table 1' Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to
this section).
Criteria JORC Code Explanation Commentary
Database integrity · Measures taken to ensure that data has not been corrupted by, for · The database has been systematically audited by Atlantic Lithium
example, transcription or keying errors, between its initial collection and geologists.
its use for Mineral Resource estimation purposes.
· All drilling data has been verified as part of a continuous
· Data validation procedures used. validation procedure. Once a drill hole is imported into the database a report
of the collar, down-hole survey, geology, and assay data are produced. This is
then checked by an Atlantic Lithium geologist and any corrections are
completed by the database manager.
Site visits · Comment on any site visits undertaken by the Competent Person and · A site visit was conducted by Shaun Searle of Ashmore during
the outcome of those visits. February 2019. Shaun inspected the deposit area, drill core/chips and
outcrop. During this time, notes and photos were taken. Discussions were
· If no site visits have been undertaken indicate why this is the held with site personnel regarding drilling and sampling procedures. No
case. major issues were encountered.
Geological interpretation · Confidence in (or conversely, the uncertainty of) the geological · The confidence in the geological interpretation is considered to
interpretation of the mineral deposit. be good and is based on visual confirmation in outcrop and within drill hole
intersections.
· Nature of the data used and of any assumptions made.
· Geochemistry and geological logging have been used to assist
· The effect, if any, of alternative interpretations on Mineral identification of lithology and mineralisation.
Resource estimation.
· The Project area lies within the Birimian Supergroup, a
· The use of geology in guiding and controlling Mineral Resource Proterozoic volcano-sedimentary basin located in Western Ghana. The Project
estimation. area is underlain by three forms of metamorphosed schist; mica schist,
staurolite schist and garnet schist. Several granitoids intrude the basin
· The factors affecting continuity both of grade and geology. metasediments as small plugs. These granitoids range in composition from
intermediate granodiorite (often medium grained) to felsic leucogranites
(coarse to pegmatoidal grain size), sometimes in close association with
pegmatite veins and bodies. Pegmatite intrusions generally occur as
sub-vertical dykes with two dominant trends: either east-northeast or
north-northeast and dip sub-vertically to moderately southeast to
east-southeast. Thickness varies across the Project, with thinner mineralised
units intersected at Abonko and Kaampakrom between 4 to 12m; and thicker units
intersected at Ewoyaa Main between 30 to 60m.
· Infill drilling has supported and refined the model and the
current interpretation is considered robust.
· Observations from the outcrop of mineralisation and host rocks;
as well as infill drilling, confirm the geometry of the mineralisation.
· Infill drilling has confirmed geological and grade continuity.
Dimensions · The extent and variability of the Mineral Resource expressed as · The Project Mineral Resource area extends over a north-south
length (along strike or otherwise), plan width, and depth below surface to the strike length of 4,390m (from 577,380mN - 581,770mN), and includes the 360m
upper and lower limits of the Mineral Resource. vertical interval from 80mRL to -280mRL.
Criteria JORC Code Explanation Commentary
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) · Using parameters derived from modelled variograms, Ordinary
applied and key assumptions, including treatment of extreme grade values, Kriging ("OK") was used to estimate average block grades in three passes using
domaining, interpolation parameters and maximum distance of extrapolation from Surpac software. Linear grade estimation was deemed suitable for the Cape
data points. If a computer assisted estimation method was chosen include a Coast Mineral Resource due to the geological control on mineralisation. The
description of computer software and parameters used. extrapolation of the lodes along strike and down-dip has been limited to a
distance of 40m. Zones of extrapolation are classified as Inferred Mineral
· The availability of check estimates, previous estimates and/or Resource.
mine production records and whether the Mineral Resource estimate takes
appropriate account of such data. · It is assumed that there are no by-products or deleterious
elements as shown by metallurgical test work.
· The assumptions made regarding recovery of by-products.
· Li(2)O (%), Ta (ppm), Fe (%), Nb (ppm), Sn (ppm), Cs (ppm), K
· Estimation of deleterious elements or other non-grade variables (%), Al (%), Si (%), P (%) and S (ppm) were interpolated into the block model.
of economic significance (e.g. sulphur for acid mine drainage
characterisation). · A Surpac block model was created to encompass the extents of the
known mineralisation. The block model was rotated on a bearing of 30°, with
· In the case of block model interpolation, the block size in block dimensions of 10m NS by 10m EW by 5m vertical with sub-cells of 2.5m by
relation to the average sample spacing and the search employed. 2.5m by 1.25m. The parent block size dimension was selected on the results
obtained from Kriging Neighbourhood Analysis and also in consideration of two
· Any assumptions behind modelling of selective mining units. predominant mineralisation orientations of 30° and 100 to 120°.
· Any assumptions about correlation between variables. · An orientated 'ellipsoid' search was used to select data and
adjusted to account for the variations in lode orientations, however all other
· Description of how the geological interpretation was used to parameters were taken from the variography derived from Domains 1, 2, 3, 4, 7
control the resource estimates. and 8. Up to three passes were used for each domain. First pass had a
range of 50m, with a minimum of 8 samples. For the second pass, the range
· Discussion of basis for using or not using grade cutting or was extended to 100m, with a minimum of 4 samples. For the third pass, the
capping. range was extended to 200m, with a minimum of 1 or 2 samples. A maximum of 16
samples was used for each pass with a maximum of 4 samples per hole.
· The process of validation, the checking process used, the
comparison of model data to drill hole data, and use of reconciliation data if · No assumptions were made on selective mining units.
available.
· Correlation analysis was conducted on the domains at Ewoyaa Main.
It is evident that Li(2)O has little correlation with any of the other
elements presented in the table, apart from weak negative correlations with
caesium and potassium.
· The mineralisation was constrained by pegmatite geology
wireframes and internal lithium bearing mineralisation wireframes prepared
using a nominal 0.4% Li(2)O cut-off grade and a minimum down-hole length of
3m. The wireframes were used as hard boundaries for the interpolation.
· Statistical analysis was carried out on data from 87 mineralised
domains. Following a review of the population histograms and log probability
plots and noting the low coefficient of variation statistics, it was
determined that the application of high grade cuts was not warranted.
· Validation of the model included detailed visual validation,
comparison of composite grades and block grades by northing and elevation and
a nearest neighbour check estimate. Validation plots showed good correlation
between the composite grades and the block model grades.
Criteria JORC Code Explanation Commentary
Moisture · Whether the tonnages are estimated on a dry basis or with natural · Tonnages and grades were estimated on a dry in situ basis.
moisture, and the method of determination of the moisture content.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters · The Statement of Mineral Resources has been constrained by the
applied. mineralisation solids, and the reported above a cut-off grade at 0.5% Li(2)O.
Whittle optimisations demonstrate reasonable prospects for eventual economic
extraction.
· Metallurgical test work indicates that there are two main
geometallurgical domains; coarse grained spodumene bearing pegmatite (P1); and
medium grained spodumene bearing pegmatite (P2). From test work completed to
date at a 6.3mm crush, the P1 material produces a 6% Li(2)O concentrate at
approximately 70 to 85% recovery (average 75% recovery), whilst P2 material
produces 5.5 to 6% Li(2)O concentrate at approximately 35 to 65% recovery
(average 47% recovery). From test work completed at a 10mm crush, the P1
material produces a 6% Li(2)O concentrate at approximately 50 to 80% recovery
(average 70%), whilst P2 material produces 5.5 to 6% Li(2)O concentrate at
approximately 7 to 30% recovery (average 20% recovery).
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum · Ashmore has assumed that the deposit could be mined using open
mining dimensions and internal (or, if applicable, external) mining dilution. pit mining techniques.
It is always necessary as part of the process of determining reasonable
prospects for eventual economic extraction to consider potential mining · A high level Whittle optimisation of the Mineral Resource
methods, but the assumptions made regarding mining methods and parameters when supports this view.
estimating Mineral Resources may not always be rigorous. Where this is the
case, this should be reported with an explanation of the basis of the mining
assumptions made.
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical · Scoping and PFS level metallurgical test work has been conducted
amenability. It is always necessary as part of the process of determining on the Ewoyaa material types. Test work indicates that there are four main
reasonable prospects for eventual economic extraction to consider potential geometallurgical material types in occurrence at the Project, with their
metallurgical methods, but the assumptions regarding metallurgical treatment relative abundances, concentrate grades and recoveries shown below, including
processes and parameters made when reporting Mineral Resources may not always a 4% discount factor for bench scale to mine scale efficiencies.
be rigorous. Where this is the case, this should be reported with an
explanation of the basis of the metallurgical assumptions made.
Weathered
Geomet Tonnage Li(2)O Rec Conc.
Mt % % Li(2)O (%)
P1 2.0 1.13 68 6.0
P2 0.2 1.00 50 6.0
Total 2.2 1.12
Primary
Geomet Tonnage Li(2)O Rec Conc.
Mt % % Li(2)O (%)
P1 29.3 1.28 70 6.0
P2 3.8 1.06 50 5.5
Total 33.1 1.25
Criteria JORC Code Explanation Commentary
Environmental factors or assumptions · Assumptions made regarding possible waste and process residue · No assumptions have been made regarding environmental factors.
disposal options. It is always necessary as part of the process of determining Atlantic Lithium will work to mitigate environmental impacts as a result of
reasonable prospects for eventual economic extraction to consider the any future mining or mineral processing.
potential environmental impacts of the mining and processing operation. While
at this stage the determination of potential environmental impacts,
particularly for a greenfields project, may not always be well advanced, the
status of early consideration of these potential environmental impacts should
be reported. Where these aspects have not been considered this should be
reported with an explanation of the environmental assumptions made.
Bulk density · Whether assumed or determined. If assumed, the basis for the · Bulk density measurements were completed on selected intervals of
assumptions. If determined, the method used, whether wet or dry, the frequency diamond core drilled at the deposit. The measurements were conducted at the
of the measurements, the nature, size and representativeness of the samples. Cape Coast core processing facility using the water immersion/Archimedes
method. The weathered samples were coated in paraffin wax to account for
· The bulk density for bulk material must have been measured by porosity of the weathered samples.
methods that adequately account for void spaces (vugs, porosity, etc.),
moisture and differences between rock and alteration zones within the deposit. · A total of 13,901 measurements were conducted on the Cape Coast
mineralisation, with samples obtained from oxide, transitional and fresh
· Discuss assumptions for bulk density estimates used in the material.
evaluation process of the different materials.
· Bulk densities ranging between 1.7t/m(3) and 2.78t/m(3) were
assigned in the block model dependent on lithology, mineralisation and
weathering.
Classification · The basis for the classification of the Mineral Resources into · The Mineral Resource estimate is reported here in compliance with
varying confidence categories. the 2012 Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves' by the Joint Ore Reserves
· Whether appropriate account has been taken of all relevant Committee (JORC). The Cape Coast Mineral Resource was classified as
factors (i.e. relative confidence in tonnage/grade estimations, reliability of Measured, Indicated and Inferred Mineral Resource based on data quality,
input data, confidence in continuity of geology and metal values, quality, sample spacing, and lode continuity. The Measured Mineral Resource was
quantity and distribution of the data). confined to fresh rock within areas drilled at 20m by 15m along with robust
continuity of geology and Li(2)O grade. The Indicated Mineral Resource was
· Whether the result appropriately reflects the Competent Person's defined within areas of close spaced drilling of less than 40m by 40m, and
view of the deposit. where the continuity and predictability of the lode positions was good. In
addition, Indicated Mineral Resource was classified in weathered rock
overlying fresh Measured Mineral Resource. The Inferred Mineral Resource was
assigned to transitional material, areas where drill hole spacing was greater
than 40m by 40m, where small, isolated pods of mineralisation occur outside
the main mineralised zones, and to geologically complex zones.
· The input data is comprehensive in its coverage of the
mineralisation and does not favour or misrepresent in-situ mineralisation.
The definition of mineralised zones is based on high level geological
understanding producing a robust model of mineralised domains. This model
has been confirmed by infill drilling which supported the interpretation.
Validation of the block model shows good correlation of the input data to the
estimated grades.
· The Mineral Resource estimate appropriately reflects the view of
the Competent Person.
Criteria JORC Code Explanation Commentary
Audits or reviews · The results of any audits or reviews of Mineral Resource · Internal audits have been completed by Ashmore which verified the
estimates. technical inputs, methodology, parameters and results of the estimate.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and · The geometry and continuity have been adequately interpreted to
confidence level in the Mineral Resource estimate using an approach or reflect the applied level of Measured, Indicated and Inferred Mineral
procedure deemed appropriate by the Competent Person. For example, the Resource. The data quality is good, and the drill holes have detailed logs
application of statistical or geostatistical procedures to quantify the produced by qualified geologists. A recognised laboratory has been used for
relative accuracy of the resource within stated confidence limits, or, if such all analyses.
an approach is not deemed appropriate, a qualitative discussion of the factors
that could affect the relative accuracy and confidence of the estimate. · The Mineral Resource statement relates to global estimates of
tonnes and grade.
· The statement should specify whether it relates to global or
local estimates, and, if local, state the relevant tonnages, which should be · No historical mining has occurred; therefore, reconciliation
relevant to technical and economic evaluation. Documentation should include could not be conducted.
assumptions made and the procedures used.
· These statements of relative accuracy and confidence of the
estimate should be compared with production data, where available.
'JORC Code 2012 Table 1' Section 4 Estimation and Reporting of Ore Reserves
(Criteria listed in section 1, and where relevant in sections 2 and 3, also
apply to this section).
Criteria JORC Code Explanation Commentary
Mineral Resource estimate for conversion to Ore Reserves · Description of the Mineral Resource estimate used as a basis for · Refer to Section 3 of Table 1. The Ore Reserve estimate is based
the conversion to an Ore Reserve. on the Mineral Resource determined as of 1 February 2023.
· Clear statement as to whether the Mineral Resources are reported · The Mineral Resources are inclusive of the Ore Reserves.
additional to, or inclusive of, the Ore Reserves.
Site visits · Comment on any site visits undertaken by the Competent Person and · The Competent Person for the Ore Reserves, Mr Harry Warries,
the outcome of those visits. visited the site from 21 to 25 November 2022.
· If no site visits have been undertaken indicate why this is the ·
case.
Study status · The type and level of study undertaken to enable Mineral · A Definitive Feasibility study (DFS) was completed by Atlantic
Resources to be converted to Ore Reserves. Lithium Limited and this Ore Reserve Statement is a result of the DFS. The DFS
was undertaken by a team of industry professionals as listed below.
· The Code requires that a study to at least Pre-Feasibility Study
level has been undertaken to convert Mineral Resources to Ore Reserves. Such · Resource Estimate
studies will have been carried out and will have determined a mine plan that Ashmore Advisory Pty Ltd
is technically achievable and economically viable, and that material Modifying
Factors have been considered. · Mine
Engineering Mining Focus
Consultants Pty ltd
· Geotechnical investigation SRK Consulting
Ghana
· Metallurgy and Processing Primero Ltd,
Trinol Pty Ltd, Nagrom
· Hydrogeology
SRK Consulting South Africa and Ghana
· General site infrastructure Primero Ltd,
Atlantic Lithium Limited
· Tailings storage facility
Geocrest and Resource Engineering Consultants
· Legal tenure
Atlantic Lithium Limited
· Social and Environmental NEMAS
Consult Limited and Environmental and
Social Sustainability (ESS)
· Market
Research Atlantic
Lithium Limited
· Financial Modelling
Atlantic Lithium Limited
Cut-off parameters · The basis of the cut-off grade(s) or quality parameters applied. · A cutoff of 0.5% Li(2)O was adopted based on processing and
economic parameters determined for the Project.
Criteria JORC Code Explanation Commentary
Mining factors or assumptions · The method and assumptions used as reported in the · It is proposed to mine the resource utilising conventional open
Pre-Feasibility or Feasibility Study to convert the Mineral Resource to an Ore pit mining methods.
Reserve (i.e. either by application of appropriate factors by optimisation or
by preliminary or detailed design). · Conversion of Mineral Resources to Ore Reserves has been by the
application of appropriate mining factors and assumptions based on the
· The choice, nature and appropriateness of the selected mining prefeasibility study, including geotechnical investigations.
method(s) and other mining parameters including associated design issues such
as pre-strip, access, etc. · A 5% mining dilution and a 95% mining recovery was estimated.
· The assumptions made regarding geotechnical parameters (e.g. pit · Pit optimisations were completed the results of which were used
slopes, stope sizes, etc.), grade control and pre-production drilling. to identify the final pit limits.
· The major assumptions made and Mineral Resource model used for · The geotechnical parameters were developed by a specialist
pit and stope optimisation (if appropriate). geotechnical consultant.
· The mining dilution factors used. · The mine plan was based on Measured, Indicated Resources and
Inferred Resources with 6% of Inferred Resources included. This Inferred
· The mining recovery factors used. Resource is not considered material to the value of the Project and is not
included as part of the Ore Reserve. The mine plan incorporates a three to
· Any minimum mining widths used. five month mining ramp-up, with an ultimate steady state production of 2.7Mtpa
of plant feed.
· The manner in which Inferred Mineral Resources are utilised in
mining studies and the sensitivity of the outcome to their inclusion. · An alternative cash flow model with a mine plan that only
considers 25.6Mt at 1.22% Li(2)O of Probable Ore Reserves, where all Inferred
· The infrastructure requirements of the selected mining methods. Resources were excluded from plant feed and re-assigned as waste, was
developed and delivered the following post tax outcomes.
w NPV(8): US$1,404,840
w IRR: 104.5%
w EBITDA: US$3,502,938
w NPAT: US$2,091,874
· A minimum cutback mining width of 20m was adopted.
· The primary infrastructure required for the development of the
Project is listed below:
w General administration and services infrastructure.
w General mining facilities.
w Process plant
w Tailings storage facility
Metallurgical factors or assumptions · The metallurgical process proposed and the appropriateness of · The proposed metallurgical process incorporates well-tested
that process to the style of mineralisation. technology and utilises conventional dense media separation techniques.
Processing will be conducted in a newly constructed plant adjacent to the
· Whether the metallurgical process is well-tested technology or mining operations.
novel in nature.
· The metallurgical testwork to date includes 17 composites
· The nature, amount and representativeness of metallurgical test (Scoping Study) and 69 composites (PFS and DFS studies) samples representing
work undertaken, the nature of the metallurgical domaining applied and the each of the identified deposits, prepared for HLS testing and selected
corresponding metallurgical recovery factors applied. composites were used for the measurement of physical properties. Bulk
composites from each of the main pits (Ewoyaa Starter, Ewoyaa Main and Anokyi)
· Any assumptions or allowances made for deleterious elements. were tested at an advanced level in a DMS 100 for Scoping Study and DMS250 for
PFS study pilot plant.
· The existence of any bulk sample or pilot scale test work and the
degree to which such samples are considered representative of the orebody as a · The metallurgical testwork indicated that, based on the
whole. processing flow chart adopted, the recoveries for >90% P1 material will be
62% and 67% (for 6% and 5.5% concentrates respectively) and for >80% P2
· For minerals that are defined by a specification, has the ore material the recoveries will be 7% and 15% (for 6% and 5.5% concentrates
reserve estimation been based on the appropriate mineralogy to meet the respectively) at a 10mm crush.
specifications?
Criteria JORC Code Explanation Commentary
Environmental · The status of studies of potential environmental impacts of the · Preparations for the Environmental and Social Impact Assessment
mining and processing operation. Details of waste rock characterisation and (ESIA), Resettlement Action Plan (RAP) and Traffic Impact Assessment (TIA)
the consideration of potential sites, status of design options considered and, required under Ghanaian regulations, are progressing and are being undertaken
where applicable, the status of approvals for process residue storage and by the appointed consultant.
waste dumps should be reported.
· Sulphur assays have been determined for more than 25,600 resource
samples with results ranging from 250ppm to a maximum of 13,700 ppm with a
mean of 845ppm. Results are low and therefore unlikely to generate any
significant acid mine drainage.
· Process plant tails and products are considered inert with no
trace associated by-product metals or acid rock generating sulphide.
· Waste rock dumps contain no trace acid rock generating sulphide
and have been designed to minimise discharge into the environment in addition
to downstream surface and ground water monitoring sites to monitor for this.
· The Tailings storage facility (TSF) is designed as an integrate
waste landform TSF to minimise Project footprint and to design a more stable
TSF structure within an area of limited available flat ground for tailings
storage, within an overall low-volume tailings generating Project given the
DMS only process flow-sheet.
· Baseline environmental and heritage studies have been conducted
and environmental licensing is not identified to pose any restriction to the
planned activities.
Infrastructure · The existence of appropriate infrastructure: availability of land · The Project is located approximately 100km southwest of Accra,
for plant development, power, water, transportation (particularly for bulk the capital of Ghana, West Africa.
commodities), labour, accommodation; or the ease with which the infrastructure
can be provided, or accessed. · The process plant and the Project's supporting infrastructure has
been developed through studies by engineering service providers as listed
under the Study Status criterion. Works have included 'modelling' of plant
availability, plant throughput, tailings storage facility and water
consumption with subsequent production of sufficient drawings to enable
development of detail estimates including forecasts of consumable consumptions
such as grinding media, reagents and power. First principle estimates have
derived labour levels for Project construction and on-going operation.
· Water supply for the process will be sourced from a combination
of pit dewatering and the nearby Agege Dam for makeup water.
· A camp site will be not be established in proximity to the mine
site and all staff will be accommodated in hotels and housing local to the
mine area. Workshops, offices, and warehouse is planned adjacent to the mining
and processing operations as required. Power supply to the operation will be
from the local electricity grid.
· Potable water will be sourced from a potable water borehole with
Reverse Osmosis (RO) processing for drinking water.
· Labour is expected to be sourced locally within Ghana and
proximal to the Project site in particular. Skilled labour is more likely to
be sourced from Accra or Takoradi with minimal expatriate roles defined during
construction, plant commissioning and early years of production, after which
an all Ghanaian workforce is envisioned.
Costs · The derivation of, or assumptions made, regarding projected · The capital and operating cost estimates are commensurate with a
capital costs in the study. Definitive Feasibility level study and were estimated by the study
contributors as listed under the Study Status criteria discussed above. The
· The methodology used to estimate operating costs. capital cost estimate has been developed through the collation of a number of
first principle estimates completed by the various Study contributors on
· Allowances made for the content of deleterious elements. completion of sufficient design works to provide bills of materials to the
estimators, quotations from equipment providers and contracting companies and
· The derivation of assumptions made of metal or commodity estimates carried out directly by the owner's team. The operational cost
price(s), for the principal minerals and co- products. estimate was developed on a 'first principle basis', derived from base data
provided by Atlantic Lithium and the Study contributors.
· The source of exchange rates used in the study.
· Contract mining was adopted as the basis of the Project.
· Derivation of transportation charges.
· The estimated capital costs for the Project are $185.2M as
· The basis for forecasting or source of treatment and refining summarised below.
charges, penalties for failure to meet specification, etc.
w
· The allowances made for royalties payable, both Government and Processing
private. $88.5M
w Utilities and Infrastructure
$23.5M
w Owners
Costs
$33.4M
w Indirects- EPCM and working capex $27.6M
-
Contingency $12.1M
· The estimated LOM Sustaining costs are $112.2M, with closure
costs of $45.7M
· The mining costs were estimated at $3.82/t mined, inclusive of
contractor mobilisation, establishment, pre-production mining and
demobilisation.
· The estimated process operating costs, including general and
administration costs, for the Project are $15.36/t of plant feed.
· Spodumene products selling and transport cost were $29.81/t
produced.
· Secondary product selling and transport cost were $32.65/t
produced
· A 5% government royalty was applied, as well as a 1% third party
royalty.
· No deleterious elements have been identified for the Project.
· All costs have been estimated in United States of America
dollars.
Criteria JORC Code Explanation Commentary
Revenue factors · The derivation of, or assumptions made regarding revenue factors · The Project economics have been modelled on a long-term
including head grade, metal or commodity price(s) exchange rates, annualised spodumene concentrate price of $1,587/t and $187/t for the
transportation and treatment charges, penalties, net smelter returns, etc. secondary product.
· The derivation of assumptions made of metal or commodity
price(s), for the principal metals, minerals and co-products.
Market assessment · The demand, supply and stock situation for the particular · The market for lithium is robust and a long term metals price was
commodity, consumption trends and factors likely to affect supply and demand developed from published forecasts from multiple sources.
into the future.
· Supply and demand are not considered a material factor for the
· A customer and competitor analysis along with the identification spodumene market and, as such not relevant to the Ore Reserve calculations.
of likely market windows for the product.
· Price and volume forecasts and the basis for these forecasts.
· For industrial minerals the customer specification, testing and
acceptance requirements prior to a supply contract.
Economic · The inputs to the economic analysis to produce the net present · The financial evaluation undertaken as part of the Study
value (NPV(8)) in the study, the source and confidence of these economic indicated a positive net present value (NPV(8)) at an 8% discount rate.
inputs including estimated inflation, discount rate, etc.
· Sensitivity analysis indicated that a negative 25% change in
· NPV(8) ranges and sensitivity to variations in the significant product price, foreign exchange rate, 25% increase in overall operating cost
assumptions and inputs. or 25% increase in capital cost still resulted in a positive NPV(8).
· The All-In-Sustaining Cost (AISC) margin is estimated to be
greater than 60% which indicates robust economic performance of the Project.
Social · The status of agreements with key stakeholders and matters · The Project managers are in liaison with the state government and
leading to social licence to operate. engagement with key stakeholders is in place.
· Baseline heritage surveys have been conducted for the property
and sites of cultural and spiritual significance recorded including sacred
sites which have previously been re-located with the community's assistance
for exploration activities. Future heritage sites requiring re-location will
be managed accordingly.
· The community has been actively engaged throughout the
exploration and resource evaluation stages with ongoing community engagement
meetings, local employment from within the affected communities and a
community development programme initiated.
· The Project is identifying the potential impacts on residential
structures, crops and land and endeavours to keep impacts to a minimum by
adjusting the Project design where possible.
Other · To the extent relevant, the impact of the following on the · No significant (high) naturally occurring risks were identified
project and/or on the estimation and classification of the Ore Reserves: during a whole of Project risk assessment. The environment is stable with a
long history of productive mining operations that have not been affected by
· Any identified material naturally occurring risks. naturally occurring events.
· The status of material legal agreements and marketing · Atlantic Lithium's tenure is in good standing with all legal
arrangements. obligations met. Regular meetings with state and federal Government agencies
occur for the purposes of discussing required approvals and facilitating
· The status of governmental agreements and approvals critical to meetings with other stakeholders.
the viability of the project, such as mineral tenement status, and government
and statutory approvals. There must be reasonable grounds to expect that all · There are reasonable grounds to expect that future agreements and
necessary Government approvals will be received within the timeframes Government approvals will be granted and maintained within the necessary
anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss timeframes for successful implementation of the Project.
the materiality of any unresolved matter that is dependent on a third party on
which extraction of the reserve is contingent.
Classification · The basis for the classification of the Ore Reserves into varying · Probable Ore Reserves were declared based on the Measured and
confidence categories. Indicated Mineral Resources contained within the pit designs that were
developed for the Project. The financial analysis showed that the Project is
· Whether the result appropriately reflects the Competent Person's economically viable and the risk analysis did not identify any insurmountable
view of the deposit. risks.
· The proportion of Probable Ore Reserves that have been derived
from Measured Mineral Resources (if any).
Audits or reviews · The results of any audits or reviews of Ore Reserve estimates. · No external audits or reviews of the Ore Reserve estimates have
been undertaken.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and · The relative accuracy and confidence of the Ore Reserve estimate
confidence level in the Ore Reserve estimate using an approach or procedure is inherent in the Ore Reserve Classification.
deemed appropriate by the Competent Person. For example, the application of
statistical or geostatistical procedures to quantify the relative accuracy of · The statement relates to global estimates.
the reserve within stated confidence limits, or, if such an approach is not
deemed appropriate, a qualitative discussion of the factors which could affect · No mine production data is available at this stage for
the relative accuracy and confidence of the estimate. reconciliation and/or comparative purposes.
· The statement should specify whether it relates to global or · Factors that may affect the global tonnages and the associated
local estimates, and, if local, state the relevant tonnages, which should be grades, as well as the quantity of concentrate produced include:-
relevant to technical and economic evaluation. Documentation should include
assumptions made and the procedures used. w Accuracy of the Mineral Resource estimate
· Accuracy and confidence discussions should extend to specific w Mining dilution
discussions of any applied Modifying Factors that may have a material impact
on Ore Reserve viability, or for which there are remaining areas of w Mining recovery
uncertainty at the current study stage.
w P1 / P2 categorisation
· It is recognised that this may not be possible or appropriate in
all circumstances. These statements of relative accuracy and confidence of the w Process plant performance
estimate should be compared with production data, where available.
NOTES TO EDITORS:
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
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
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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