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Ewoyaa Stands out From the Lithium Crowd

IronRidge Resources (LON:IRR) has completed its scoping study on the Ewoyaa Lithium Project, located in Ghana. This study returned robust economics with a post-tax net present value using an 8% discount rate (NPV8) of US$345mln and a post-tax internal rate of return (IRR) of 125%, assuming a conservative spodumene concentrate price of US$650 per tonne (t). Compared to its peer group developing spodumene concentrate operations, Ewoyaa is a high-volume project with low capital expenditure (capex) intensity and a low operating expenditure (opex) requirement.

Over the eight-year mine life, the project is expected to generate US$1.55bn of revenue with underlying earnings (EBITDA) of US$854mln. The operation will be a conventional operation with a series of seven proximal open pits (Figure 1) with simple processing flow sheet using dense media separation.

Figure 1 - Proposed Open Pits
 
Source: IronRidge Resources

The economics could be further improved with the sale of a feldspar bi-product, and by extending the life-of-mine using material from the historic Egyasimanku Hill deposit (1.5mln tonnes at a grade of 1.66% Li2O) and other regional targets that have recently been identified. Additional drilling is underway at these regional targets and is already returning intersections of spodumene-bearing pegmatite.

 

Quick facts: IronRidge Resources Ltd

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Price: 20.1 GBX

Market Cap: £115.32 m

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