More high-grade lithium intercepted at Piedmont’s Ewoyaa joint venture in Ghana
A definitive feasibility study for Ewoyaa is scheduled to be published in the first half of next year.
More high-grade lithium has been confirmed at Piedmont Lithium’s (ASX: PLL) Ewoyaa joint venture in Ghana.
Piedmont is earning a 50% interest in Atlantic Lithium’s (ASX: A11) spodumene assets in Ghana, including the flagship Ewoyaa project.
The agreement also allows for Piedmont to purchase 50% of the annual offtake from the projects at market prices and life-of-mine basis.
Piedmont also holds a 9.4% interest in Atlantic.
Ewoyaa assays
Latest assays from Ewoyaa are from 1,879m of infill diamond drilling and 3,488m of infill and exploration reverse circulation drilling.
Infill drilling within the project’s existing mineral resource of 30.1 million tonnes at 1.26% lithium returned more broad and high-grade intercepts.
Highlight results were 84.5m at 1.63% lithium from 6m; 89m at 1.52% lithium from 9m; and 90.5m at 1.48% lithium from surface.
Drilling outside of the resource intercepted 67m at 1.51% lithium from 235m at the Grasscutter East target.
All-up, 47,000m of drilling has been completed at Ewoyaa and assays have been reported for 15,000m.
Piedmont president and chief executive officer Keith Phillips said drill results from Ewoyaa continue to be “very impressive”.
He said the company was working closing with Atlantic to release a definitive feasibility study for the project in the first half of next year.
Pre-feasibility study
The definitive feasibility work follows a pre-feasibility study announced last month.
Mr Phillips said the latest drill results underpinned an extended mine life and stronger project economics.
The pre-feasibility study last month was described as delivering “exceptional financial outcomes”.
As part of the study, a maiden reserve was released of 18.9Mt at 1.24% lithium.
The study assumes a 2Mtpa operation to generate about 255,0000tpa of 6% lithium oxide spodumene concentrate over 12.5 years.
To develop the project, the capital expenditure is estimated at US$125 million, with operating costs of about US$278/t of spodumene concentrate produced (Free on Board) from the Ghana port and after by-product credits.
Life of mine revenues are forecast to exceed US$4.84 billion, based on an anticipated average price of US$1,359/t of spodumene.