Atlantic Lithium Limited (AIM:ALL, OTCQX:ALLIF, ASX:A11) has told investors that its Ewoyaa lithium project in Ghana is showing ‘significant potential’ for a future resource upgrade as it revealed the latest results from recent drilling.
The company, which aims to build Ghana’s first lithium mine, announced highlights from assays spanning some 4,709 metres of exploration and infill reverse circulation drilling, including multiple intersections containing high grades.
Significantly, the company highlighted that the latest results come from drill holes both within and outside the areas that were the basis of the company’s previous mineral resource estimates (MRE).
"Drilling consistently delivers high-grade drill intersections, both within the infill programme targeting conversion of Indicated to Measured resources and within the exploration programme targeting resource growth outside the current MRE,” said Lennard Kolff, Atlantic Lithium’s interim chief executive.
Kolff added: “These results demonstrate the significant growth potential at the Ewoyaa project, with mineralisation still open along strike and downdip.”
So far, the company has reported the results from the first 26,000 metres of a total 47,000 metre drill campaign.
Atlantic Lithium noted that its recently completed pre-feasibility study, announced in September and based on the current MRE, indicated ‘exceptional financial outcomes’ for a 2mln tonne per year mining operation (to produce 255,000 tonnes pa of lithium containing concentrate), yet as new drill results come and the MRE grows there’s “potential for project metrics to substantially improve with increased scale”.
“The increased resource estimate will inform a definitive feasibility study, targeted for completion in mid-2023,” Kolff added.
"With the pre-feasibility study now delivered, the Mining Licence application submitted, ongoing positive drilling results and with the support of our funding agreement with Piedmont Lithium, we feel the company is ideally positioned to benefit from the unprecedented levels of lithium demand that are expected over the coming years."