TIDMALL
RNS Number : 2151U
Atlantic Lithium Limited
22 November 2023
22 November 2023
Project Development Update
Atlantic Lithium takes major strides in the development of the
Ewoyaa Lithium Project,
targeting the commencement of construction in late 2024 and
initial production in early 2025
Atlantic Lithium Limited (AIM: ALL, ASX: A11, OTCQX: ALLIF,
"Atlantic Lithium" or the "Company"), the African-focused lithium
exploration and development company targeting to deliver Ghana's
first lithium mine, is pleased to provide the following progress
update with regards to the development of the Company's flagship
Ewoyaa Lithium Project ("Ewoyaa" or the "Project") in Ghana, West
Africa.
Highlights
- Bulk Customer Permit awarded in respect of the electricity
requirements of the Company's Ewoyaa Lithium Project, expected to
deliver a 30-50% overall power cost reduction for the Project.
- Key contracts on the critical path for the Project progressing, including:
-- Advanced discussions ongoing for the award of the
Engineering, Procurement, Construction and Management ("EPCM")
contract for the main processing plant and all non-processing
infrastructure;
-- Tender stage underway to appoint a mining contractor and for
the procurement of the modular Dense Media Separation ("DMS") unit,
respectively;
-- Tender stage to commence imminently for the procurement of
the mobile crusher to feed the modular DMS unit ; and
-- Award of the contract to divert the transmission lines
crossing the Project site expected in Q2 2024.
- Completion of the Flotation Scoping Study; results confirm the
viability of the inclusion of a downstream flotation circuit at
Ewoyaa for future value addition.
- Maiden feldspar Mineral Resource Estimate expected in Q4 2023;
in line with the Feldspar Study underway to evaluate the viability
of the production of feldspar as a by-product of spodumene
production at the Project.
- Work underway with Engineering Procurement and Construction
firm Mincore to assess the potential to establish a downstream
lithium conversion plant in Ghana, as agreed under the terms of the
grant of the Mining Lease for the Project.
- Appointment of three General Managers, including General
Manager, Operations, as the Company steps up recruitment to
strengthen its leadership team, with a focus on mine build and
operating experience, as it transitions from explorer and developer
to producer.
Commenting on the Company's latest progress, Keith Muller, Chief
Executive Officer of Atlantic Lithium, said :
"Following the grant of the Mining Lease in October 2023, we are
now firmly on the path towards building Ewoyaa as Ghana's first
lithium mine. Alongside our ongoing, recently extended exploration
programmes, which continue to add value to the Project, excellent
progress is being made towards achieving shovel readiness.
"The permitting phase is well underway, with active engagement
with local stakeholders within and surrounding the Project's Lease
Area. In October, we held the inaugural Community Consultative
Committee meeting, whereby we welcomed the open discussion of how
the Project can benefit the local community. Ever since the Company
began operating in Ghana, the local population has shown incredible
backing for the Project, and this continues even as we near
construction.
"As anticipated, the results of the Flotation Scoping Study
support the viability of processing both the fines and the
middlings materials through flotation, as well as the potential to
achieve significantly enhanced recovery of the P2 finer-grained
pegmatite material. The results firmly confirm the Company's case
for the inclusion of a flotation circuit, which will operate
independently and downstream from the main DMS plant. Construction
and integration of the circuit will be carried out post the main
processing plant achieving steady state 2.7Mt annualised
throughput.
"In line with the terms agreed under the grant of the Mining
Lease, work on both the feldspar and downstream conversion studies
is progressing at pace. Concurrently, discussions are underway with
a number of parties with regards to commercial contracts that are
critical to the development of the Project, with updates expected
on each of these over the coming months.
"Being now within only two years from initial production, the
Company continues to actively recruit experienced individuals to
bolster the expertise of the leadership team ahead of mine build
and operation, while also ensuring a successful transition to
becoming a lithium producer. We are delighted to welcome three
General Managers to the team, each bringing significant expertise
from across the mining sector. We expect to continue to grow our
teams, both in Ghana and in Australia, as we near construction.
"With a number of key milestones ahead, we look forward to
sharing our progress in due course."
Key Contracts
A Bulk Customer Permit has been awarded by Ghana's Energy
Commission, the technical regulator of Ghana's energy sector, in
respect of the Company's Ewoyaa Lithium Project. The permit, which
is valid for one year and renewable before its expiration,
classifies the Project as a bulk consumer of electricity, allowing
the Company to enter into a competitive bid process with various
bulk energy suppliers in Ghana, expected to reduce the overall
power cost for the Project by 30-50%. An overall operating cost
reduction for the Project will be recalculated once an agreement
with the Company's preferred bulk supplier has been finalised.
The Company is in advanced discussions to appoint an engineering
firm to conduct the EPCM of the main processing plant and all
non-processing infrastructure.
Having conducted site visits and shortlisted its preferred
firms, the Company has entered the tender stage to appoint a mining
contractor for the Project and, separately, for the procurement of
the modular Dense Media Separation ("DMS") unit.
The Company intends to imminently commence the tender stage for
the procurement of the mobile crusher to supply feed to the modular
DMS unit.
Following receipt of the approval from EPA for the diversion of
the transmission lines which traverse the Project site (refer
announcement of 10 October 2023 ), the Company has selected its
preferred vendor to carry out the diversion and intends to award
the contract for the work in Q2 2024, ensuring alignment with the
critical path for the Project.
Studies
Flotation Scoping Study
In partnership with DRA Global Limited (ASX: DRA, JSE: DRA,
"DRA"), the Company has now completed the Flotation Scoping Study
to assess the viability of including a flotation circuit downstream
from the DMS-only plant at Ewoyaa.
As anticipated by the Company, the results of the Scoping Study
confirm the viability of beneficiating the 4.7Mt of 1.2% Li(2) O
naturally-occurring fines material(1) , currently intended to be
sold as a low-grade lithium secondary product (as outlined in the
Definitive Feasibility Study for the Project, refer announcement of
29 June 2023 ), as feedstock for the flotation circuit. The higher
value, lower volume flotation concentrate product would replace the
secondary product, reducing the Company's exposure to the low-grade
lithium-bearing products market in the event that the market is
adversely affected in the near-to-medium term.
The Study also supports the potential to process the DMS
processing plant middlings, which were not previously considered a
saleable product from Ewoyaa, through the flotation circuit to
achieve >5% Li(2) O concentrate grades. Repeatability testwork
is required to determine the volume and grade that can be achieved
to evaluate the potential enhancement to the value of the
Project.
In addition, the results of the Study confirm the significant
(circa fourfold) improvement of metal recovery of the finer-grained
P2 spodumene-bearing pegmatite material through the flotation
circuit versus when it is processed through the main DMS plant
alone.
Results of the Study, therefore, support the Company's case for
the inclusion of a flotation circuit, which is not on the critical
path for the construction or operation of the main DMS plant, as a
value-addition proposition at the Project.
The Company intends to commence construction and the staged
integration of the flotation circuit once the main plant
consistently delivers its intended nameplate throughput of 2.7Mt
per annum.
Feldspar Study
Identified as an opportunity to further enhance the economics of
the Project and to be supplied into the local Ghanaian ceramics
market, in August 2023, the Company signed a Memorandum of
Understanding with the University of Mines and Technology ("UMaT"),
Tarkwa in the Western Region of Ghana, to conduct a Definitive
Feasibility Study ("Feldspar Study") to assess the viability of
producing feldspar as a by-product of spodumene concentrate
production at the Project.
In line with the Feldspar Study, the Company has now completed
sodium analysis of archive drilling sample pulps stored at the
Project site. The sodium analysis, along with X-ray diffraction
("XRD") analysis of a selection of whole rock pegmatite samples,
will enable the Company to define a maiden Mineral Resource
Estimate ("MRE") for feldspar production at Ewoyaa.
The maiden MRE, which will prioritise the first five years of
the Project's mine schedule, is expected in Q4 2023, with the
results of the Feldspar Study expected in Q1 2024, as agreed under
the terms of the grant of the Mining Lease for the Project.
The Company believes that the Project represents a major
domestic source of feldspar. If proven to be viable, the Company
believes that Ewoyaa's feldspar production can generate significant
value to the Project, to the local communities within the Central
Region and to Ghana more broadly, including through the creation of
new direct jobs in the ceramics sector and the development of
businesses and services closely related to the industry.
The Project's economics under the terms of the grant of the
Mining Lease (refer announcement of 20 October 2023 ) do not
currently consider the inclusion of any activity related to the
production of feldspar.
Downstream Conversion Study
Initiated in September 2023, the Company has commenced work in
partnership with major Engineering Procurement and Construction
firm Mincore to conduct a Scoping Study to assess the viability and
economic benefits of delivering a downstream conversion plant in
Ghana ("Downstream Conversion Study") and the potential to produce
higher purity lithium products from spodumene concentrate produced
at Ewoyaa.
As agreed under the terms of the grant of the Mining Lease for
the Project, the Company expects to announce the results of the
Downstream Conversion Study in Q1 2024.
Subject to the results of the Downstream Conversion Study and
the evaluation of the relevant economic and market conditions, the
Company has the right to establish a lithium conversion plant in
Ghana. The Government believes that the establishment of a
downstream plant will generate considerable benefits to Ghana and,
as such, has offered incentives to support the Company if it
decides to undertake the work.
Permitting
Following ministerial grant of the Mining Lease for the Project
in October 2023, representatives of the Government of Ghana have
publicly expressed their desire to ratify the Mining Lease before
the end of the calendar year.
Concurrently, the Company is undergoing activities to obtain the
necessary approvals and permits required ahead of construction of
the Project.
The Company has submitted its Scoping Report, which includes the
Terms of Reference and is based on the activities proposed in the
agreed Mining Lease, for Environmental Protection Agency ("EPA")
review and approval. The Report has subsequently been gazetted by
the EPA for public consideration and comment.
The Company has held multiple stakeholder meetings each year
since it commenced exploration activities in Ghana. On 26 October
2023, the Company held its inaugural Community Consultative
Committee ("CCC") meeting in Saltpond, within Ghana's Mfantseman
Municipality. Chaired by Municipal Chief Executive, Hon. Ike Lord
Ennu and comprising representatives of the communities surrounding
the Project area, including chiefs and elders of the local
communities, the CCC has been established to enable transparent
discussion to maximise the value of the Project for the local
population. During the inaugural meeting, Country Manager Abdul
Razak explained in greater detail the proposed activities of the
Company, as referred to in the grant of the Mining Lease for the
Project.
The local community continues to express its overwhelming
support for the advancement of the Project, acknowledging the
significant benefit Ewoyaa can bring to the communities surrounding
the Project area.
Inaugural meeting of the Community Consultative Committee, held
in Saltpond
Final Investment Decision ("FID")
Final Investment Decision is expected to be made by the Company
and its funding partner, Piedmont Lithium Inc. (Nasdaq: PLL; ASX:
PLL, "Piedmont") upon receipt of EPA approval and the grant of a
Mine Operating Permit.
Ahead of FID, using a risk-based approach, the Company will
establish criteria for its funding of milestones deemed on the
critical path for the development of the Project. This is intended
to enable the completion of early works, which includes purchasing
long-lead items and awarding both strategic contracts and limited
notices to proceed.
Key Strategic Appointments
The Company has made a number of recent strategic hires,
including the appointment of three General Managers, to bolster the
experience and expertise of the team to prepare the Company as it
continues to grow, ultimately targeting shovel readiness, mine
build and operatorship.
Ahmed-Salim Adam joins the Company as General Manager,
Operations. Ahmed-Salim is an accomplished mining General Manager
with over 15 years' experience leading various large-scale projects
in Ghana, across all stages of mine development, production and
closure, with a focus on safety and sustainability. With a thorough
understanding of technical, financial and regulatory complexities
within the mining sector, as well as strong leadership qualities,
Ahmed-Salim has a proven ability of managing challenging technical
operations and implementing initiatives to improve processes and
deliver upon operational and business objectives.
Andrew Henry joins the Company as General Manager, Commercial
and Finance. Andrew brings to the Company significant commercial
and finance management experience, including within the mining
sector, where he has honed his expertise on strategy, planning and
analysis, contracts, and large-scale project development. Most
recently, Andrew held the role of Commercial Manager at global
lithium chemicals company Allkem and, prior to that, he spent over
4 years with major gold mining company Newcrest Mining.
Simone Horsfall joins the Company as General Manager, People.
Simone is a senior human resources professional with a focus on the
mining sector. She previously spent over a decade at AngloGold
Ashanti as Human Resources Manager and, more recently, at 29Metals
as Group Manager, Human Resources. Simone's appointment aims to
support the Company's successful transition towards becoming a
globally significant lithium producer.
In line with the growth of the Company's Project development
team, Atlantic Lithium has signed a 5-year lease for an office in
West Perth, Australia.
End Notes
(1) Ore Reserves, Mineral Resources and Production Targets
The information in this announcement that relates to Ore
Reserves, Mineral Resources and Production Targets complies with
the 2012 Edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (JORC
Code). The information in this announcement relating to Production
Targets is extracted from the Ewoyaa Lithium Project Definitive
Feasibility Study ("DFS"), announced by the Company on 29 June
2023, which is available at atlanticlithium.com.au . The Company
confirms that all technical parameters underpinning the DFS
continue to apply. Material assumptions for the Project have been
revised on grant of the Mining Lease for the Project, announced by
the Company on 20 October 2023. The Company is not aware of any new
information or data that materially affects the information
included in this announcement or the announcements dated 29 June
2023 and 20 October 2023.
FOR ANY FURTHER INFORMATION, PLEASE CONTACT:
ATLANTIC LITHIUM LIMITED
Neil Herbert (Executive Chairman)
Amanda Harsas (Finance Director and Company Secretary)
www.atlanticlithium.com.au
IR@atlanticlithium.com.au
Tel: +61 2 8072 0640
SP Angel Corporate Finance Yellow Jersey PR Limited Canaccord Genuity Limited
LLP Charles Goodwin Financial Adviser:
Nominated Adviser Bessie Elliot Raj Khatri (UK) /
Jeff Keating atlantic@yellowjerseypr.com Duncan St John, Christian
Charlie Bouverat Tel: +44 (0)20 3004 9512 Calabrese (Australia)
Tel: +44 (0)20 3470 0470
Corporate Broking:
James Asensio
Tel: +44 (0) 20 7523
4500
============================== ============================= ===========================
NOTES TO EDITORS:
About Atlantic Lithium
www.atlanticlithium.com.au
Atlantic Lithium is an AIM and ASX-listed lithium company
advancing a portfolio of lithium projects in Ghana and Côte
d'Ivoire through to production.
The Company's flagship project, the Ewoyaa Project in Ghana, is
a significant lithium spodumene pegmatite discovery on track to
become Ghana's first lithium-producing mine.
The Definitive Feasibility Study for the Project indicates the
production of 3.6Mt of spodumene concentrate over a 12-year mine
life, making it one of the top 10 largest spodumene concentrate
mines in the world.
The Project, which was awarded a Mining Lease in October 2023,
is being developed under a funding agreement with Piedmont Lithium
Inc.
Atlantic Lithium holds 509km(2) and 774km(2) of tenure across
Ghana and Côte d'Ivoire respectively, comprising significantly
under-explored, highly prospective licences.
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END
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