Atlantic Lithium Limited (AIM:ALL, OTCQX:ALLIF, ASX:A11) has upgraded the mineral resource estimate (MRE ) at Ewoyaa in Ghana to 35.3 million tones (Mt) at 1.25% Li2O (lithium oxide), with 79% now in the highest certainty measured and indicated categories.
This is the first time it has published measured resources for Ewoyaa, Atlantic Lithium said, with the new indicated tonnes upgraded from inferred.
Out of the 35.3Mt, some 3.5Mt at 1.37% Li2O are in the most certain or measured category, 24.5Mt at 1.25% Li2O are indicated with the rest inferred.
Drilling has been underway as part of a definitive feasibility study for Ewoyaa, which Atlantic said is now targeted for release in the second quarter of this calendar year.
Ewoyaa's project’s economics are expected to improve ‘significantly’ following this latest MRE, Atlantic said. In an earlier study, Ewoyaa was attributed a post-tax net present value of US$1.33bn at lithium prices way below current levels.
There is also significant exploration upside, Atlantic added, with only 15 square kilometres (sq km) drilled to date within a broader 560 sq km Cape Coast lithium portfolio.
In a statement, Lennard Kolff, Atlantic's interim chief executive, noted: "The resource upgrade represents a significant de-risking milestone for the company, with 79% of the resource now in the higher confidence measured and indicated categories with potential for further exploration growth.
"This, in addition to the larger overall tonnage, will provide the opportunity to evaluate extended mine life and increased throughput to enhance project economics."
He added: "Our goal was to convert the inferred to indicated category, define the first 1 to 2 years of planned production to measured category and increase the overall resource scale. We have comfortably achieved all our goals, demonstrating the robust geological fundamentals of the project.
“We are on course to deliver one of the world's most efficient hard rock lithium projects, in terms of capital intensity and lower operating costs.”