Atlantic Lithium Limited, the African-focused lithium exploration and development company targeting to deliver Ghana’s first lithium mine, is pleased to announce the appointment of DRA Global Limited to conduct a Scoping Study for the inclusion of a flotation circuit at the Ewoyaa Lithium Project in Ghana, West Africa.
DRA is an international multi-disciplinary engineering, project delivery and operations management group, predominantly focused on the mining, minerals and metals industry. The group has an extensive track record spanning almost four decades across a wide range of commodities, with expertise in the mining, minerals and metals processing industries, as well as related non-process infrastructure, such as water and energy solutions.
The Scoping Study, which forms part of Stage 2 of the Project’s development, will comprise:
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an evaluation of the technical and commercial viability of the use of flotation to process fines and middlings as a potential additional downstream circuit to the planned Ewoyaa Lithium Dense Media Separation (“DMS”) processing plant;
assessing the use of the 4.7Mt of 1.2% Li2O fines material currently intended to be sold as a low-grade Li2O secondary product (refer Ewoyaa Definitive Feasibility Study1, announced on 29 June 2023) as potential feedstock for the flotation circuit.
Preliminary testwork and calculations indicate encouraging flotation stage recovery and the achievement of >5% Li2O concentrate grades. The higher-value concentrate produced by flotation is intended to replace the current lower-grade secondary product. The Company believes that this would enhance the Project’s financial outcomes and de-risk the Project in the event that the low-grade lithium-bearing products market is adversely affected.
Under the terms of the agreement, DRA will deliver process design criteria, a processing flowsheet, capital and operating cost estimates for the additional flotation circuit.
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The Study is due to commence imminently, with an outcome expected in Q4 2023.
The Definitive Feasibility Study1 (“DFS”) for Ewoyaa indicates exceptional economic outcomes and profitability potential for a 2.7Mtpa steady state operation, producing 3.6Mt of spodumene concentrate over a 12-year Life of Mine (“LOM”):
Post-tax NPV8 of US$1.5bn, with free cash flow of US$2.4 billion from LOM revenues of US$6.6 billion, Internal Rate of Return (“IRR”) of 105%;
Average LOM EBITDA of US$316 million per annum, short payback of 19 months;
C1 cash operating costs of US$377/t of concentrate Free-On-Board (“FOB”) Ghana Port, after by-product credits;
Capital cost estimate of US$185 million;
DFS incorporates Mineral Resource Estimate1 (“MRE”) of 35.3Mt @ 1.25 Li2O and conservative LOM concentrate pricing of US$1,587/t, FOB Ghana Port.
Commenting, Keith Muller, Chief Executive Officer of Atlantic Lithium, said:
“Initial testwork has indicated the possibility of upgrading the lower-grade secondary product that we will be producing from the Ewoyaa Lithium Dense Media Separation plant to a higher margin spodumene concentrate product through an additional flotation circuit, downstream from the DMS plant.
“By increasing the production of concentrate, we believe that we reduce our reliance on the low-grade lithium-bearing products market and enhance our exposure to spodumene concentrate pricing upside. The higher-value product will generate greater revenues and, as such, the inclusion of the flotation circuit is expected to improve the financial outcomes indicated in the recent Definitive Feasibility Study for the Project.
“We look forward to working with DRA and delivering the outcome of Scoping Study later this year.”
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