Africa-focused company Atlantic Lithium (ASX: A11) has updated a definitive feasibility study for its $186 million Ewoyaa development in Ghana, which it holds in joint venture with Piedmont Lithium (ASX: PLL).
The study includes a two-stage development plan targeting optimised process flowsheets and mine throughput scenarios for the operation.
The first stage includes the definitive feasibility study and project development. This will comprise crushing and screening to three size fractions (up to 10 millimetres) in order to improve cyclone performance; retaining sales of natural occurring fines as a direct shipping ore (DSO) by-product; and modelling various mine throughput scenarios to optimise project outcomes.
In the second stage, scoping studies will evaluate early lithium spodumene concentrate (SC6) production opportunities through the deployment of modular dense media separation (DMS) units to capitalise on current market prices; later-stage beneficiation of natural occurring fines to SC6; and the production of feldspar by-products to reduce waste and supply Ghana’s growing ceramics industry.
The plan has been driven by a February increase in Ewoyaa’s mineral resource estimate, which now sits at 35.3 million tonnes grading 1.25% lithium oxide.
Pre-feasibility study
A pre-feasibility study released in September and based on Ewoyaa’s initial mineral resource estimate of 30.1Mt at 1.26% lithium oxide delivered positive financial outcomes for a 2 million tonnes per annum throughput operation to produce an average 255,000tpa of SC6 over a 12.5-year mine life.
Life of mine revenues exceeded $7.23 billion, with a post-tax net present value of $1.99bn and a 244% initial rate of return.
The DFS incorporates the updated resource estimate and is expected to significantly enhance the project’s economics.
By-product potential
Atlantic chief operating officer Keith Muller said the company had been working hard to enhance Ewoyaa’s processes and by-product potential.
“Ghana has an existing market for the raw materials required for its ceramics industry and we are evaluating the potential to supply feldspar to the Ghanaian market,” he said.
“Our evaluation will ensure the most efficient utilisation of resources and could make Ewoyaa a significant source of domestically-produced feldspar.”
