IronRidge Resources Ltd (LON:IRR) has released the results of a scoping study for the Ewoyaa lithium project in Ghana.
The group said the study supports the case for a two million tonnes per annum production operation with life of mine revenues exceeding US$1.55bn, and significant potential to extend mine life.
During the eight year mine life the project will produce an average of 295,000 tonnes per year of 6% Li2O spodumene concentrate. The internal rate or return stands at 125%., while the capital cost estimate is USS$68mln.
Average underlying earnings (EBITDA) will ring in at US$105mln per annum, the company added.
"Today's landmark update regarding the company's exceptional scoping study confirms that the Ewoyaa lithium project is an industry-leading asset and transformational for IronRidge,” said chief executive Vincent Mascolo in a statement.
"The project leverages existing infrastructure, including directly adjacent HV power, a major highway within 1km of the site, and the major port of Takoradi less than two hours' drive away.”