Australian exploration and development firm Atlantic Lithium Ltd. (ALL:LSE-AIM; ALLIF:OTCQX), which is endeavoring to bring West Africa's first lithium mine into production, today announced "a significant Mineral Resource Estimate (MRE) upgrade to 30.1Mt at 1.26% Li2O for the Ewoyaa lithium deposit."
The company noted that the Ewoyaa Project is located within the Cape Coast Lithium Portfolio in Ghana, West Africa and highlighted that the Indicated and Inferred resource of 30.1Mt at 1.26% Li2O represents a 42% overall increase for the Ewoyaa deposit.
The company explained that "the total resource grade remains largely unchanged, highlighting its robust geological fundamentals, and includes a 294% increase to 20.5 Mt at 1.29% Li2O in the Indicated category and 9.6 Mt at 1.19% Li2O in the Inferred category." The firm added that mineralization remains open at depth and along strike which provides opportunities for further future resource upgrades.
Atlantic indicated that the MRE upgrade was based up the data from 90,308m of RC and DD drilling and advised that the firm is presently continuing with resource expansion and exploration RC drilling.
The company stated that the resource upgrade will significantly improve project economics compared to the prior estimates released in December 2021 that calculated a resource of 21.3Mt at 1.31% Li2O. With the increased resource estimate, the project is now expected to generate more than US$3.43 billion in revenues over a projected 11.4-yer mine-life and that based upon the new estimates it expects to achieve average yearly EBITDA of US$178 million.
Atlantic Lithium's Interim CEO Lennard Kolff commented, "We are delighted to have increased the Ewoyaa Resource by a further 42% to 30.1Mt at 1.26% Li2O and will continue to grow this robust project with ongoing drilling programs. Our goal was to increase the Resource to support a >12-year mine life and to convert >80% of the previous resource from Inferred to Indicated status. We have comfortably achieved both goals, demonstrating the robust geological fundamentals of the Project."
"Delivery of the upgraded 30.14Mt at 1.26% Li2O Mineral Resource Estimate including 20.5Mt at 1.29% Li2O in the Indicated category, is an important de-risking milestone for this industry standout project. With Ewoyaa being fully funded to production through our agreement with Piedmont Lithium, this upgrade highlights the exceptional potential of the project and the value that it brings to the company," Kolff added.
Atlantic Lithium is a lithium mining company headquartered in Brisbane, Qld. Australia. The firm is presently engaged in advancing lithium mining projects through to production in Ghana and Côte d'Ivoire.
The company's flagship property is the Ewoyaa Project in Ghana. Ewoyaa is the site of a significant lithium pegmatite discovery which is on pace to becoming the first lithium producing mine in West Africa. The project is estimated to generate greater than $3.4 billion in revenues over the 11.4-year life of the mine. According to the company's website the firm owns exploration licenses covering a 560 sq. km in Ghana and 777 sq. km in Côte d'Ivoire.
Atlantic Lithium began the day with a market cap of around $321.4 million with approximately 573.7 million shares outstanding. ALLIF OTC shares opened almost 18% higher today at $0.6521 (+$0.0990, +17.68%) over yesterday's $0.5601 closing price and established a new 52-week high price for the stock this morning of $0.6591. The stock has traded today between $0.6138 and $0.6591 per share and is currently trading at $0.6556 (+$0.0955, +17.05%).
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