Atlantic Lithium Limited (AIM:ALL, OTCQX:ALLIF, ASX:A11)’s “exciting” Ewoyaa spodumene lithium project in Ghana is progressing well, with the definitive feasibility study on track to finish in the second quarter of 2023, according to analysts at house broker Liberum.
On the exploration front, drilling is planned to test for concealed pegmatites containing large lithium deposits which would “improve resource confidence and potentially add to the current resource estimate”.
Atlantic Lithium’s focus on concealed pegmatite discovery could have “a significant positive economic impact” on the group’s 2023 exploration programme, said Liberum.
Liberum was also encouraged by Atlantic’s statement that increased resource tonnage will allow the definitive resource study to “evaluate an extended mine life and increased throughput to enhance project economics”.
Noting its valuation of 78p per share at a flat spodumene concentrate price of US$1,500 per tonne, Liberum reiterated a 'buy' rating with a target price of 56p.
Against Atlantic Lithium’s share price of 27.6p as of 20 March, Liberum’s forecast represents a 102% upside.