Atlantic Lithium Limited Announces Further Lithium Infill Drilling Results, Ghana

Rhea-AI Summary

Atlantic Lithium Limited announced promising infill drilling results at the Ewoyaa Lithium Project in Ghana, confirming mineralization grade and continuity. The updated JORC resource now stands at 21.3Mt @ 1.31% Li₂O, enhancing project economics. Key drill results include:

• GRC0501: 45m at 1.54% Li₂O
• GRC0478: 33m at 1.61% Li₂O
• GRDT0455: 31.2m at 1.66% Li₂O

The Scoping Study shows LOM revenues exceeding US$3.43bn and a post-tax NPV₈ of US$789m. Exploration continues with additional drilling planned.

Positive

• Infill drilling results confirm high-grade mineralization at the Ewoyaa Lithium Project.
• Updated JORC resource stands at 21.3Mt @ 1.31% Li₂O, improving project valuation.
• Scoping Study indicates LOM revenues exceeding US$3.43bn and a post-tax NPV₈ of US$789m.
• C1 cash operating costs of US$249 per tonne of spodumene concentrate are competitive.
• Average EBITDA projected at US$178m annually indicates strong cash flow potential.

Negative

• No significant negative aspects identified.

ONGOING HIGH-GRADE INFILL DRILLING RESULTS EWOYAA LITHIUM PROJECT, GHANA WEST AFRICA

SYDNEY, AUSTRALIA / ACCESSWIRE / January 18, 2022 / Atlantic Lithium Limited (AIM:ALL, OTCQX:ALLIF, "Atlantic Lithium" or the "Company"), the African focussed lithium exploration and development company, is pleased to announce ongoing high-grade infill drilling results at the Ewoyaa Lithium Project ("Ewoyaa" or the "Project") in Ghana, West Africa, where the Company recently announced an updated Scoping Study and increased JORC resource of 21.3Mt @ 1.31% Li₂O, resulting in a significant improvement in project economics and life of mine.

Figures and Tables referred to in this release can be viewed in the PDF version available via this link:

http://www.rns-pdf.londonstockexchange.com/rns/7919Y_1-2022-1-18.pdf

HIGHLIGHTS:

• Ongoing infill drilling results continue to confirm grade and continuity.
• High-grade infill drilling results reported for diamond drilling ("DD") and reverse circulation ("RC") holes, including highlights at a 0.4% Li₂O cut-off and maximum 4m of internal dilution of:
  • GRC0501: 45m at 1.54% Li₂O from 78m
  • GRC0478: 33m at 1.61% Li₂O from 72m
  • GRDT0455: 31.2m at 1.66% Li₂O from 78.4m
  • GRDT0451: 24.3m at 1.65% Li₂O from 123m
  • GRDT0457: 24.7m at 1.39% Li₂O from 117.3m
  • GRDT0449: 20.8m at 1.64% Li₂O from 100.7m
  • GRC0477: 23m at 1.48% Li₂O from 33m
  • GRC0484: 24m at 1.3% Li₂O from 56m
  • GRC0482: 22m at 1.41% Li₂O from 38m
  • GRDT0405: 18.2m at 1.4% Li₂O from 77.8m
  • GRDT0429: 26.7m at 0.92% Li₂O from 95.3m
  • GRDT0443: 21.4m at 1.12% Li₂O from 116.6m
  • GRC0472: 17m at 1.31% Li₂O from 99m
  • GRC0474: 20m at 1.08% Li₂O from 40m
  • GRC0491: 15m at 1.23% Li₂O from 30m
• 4,769m of infill drilling assay results reported herewith in 42 holes. Additional approximate 22,500m of infill, extensional and exploration drilling assay results remaining to be reported post completion of drilling activities for further resource upgrades.
• Initial results received over the Ewoyaa Sill target confirm flat lying mineralisation; potential for tonnage increase and low strip ratio.
• Assay results pending for newly drilled Kaampakrom West target and Ewoyaa Sill where spodumene has been observed in drill cuttings and new mineralisation has been observed outside of the current resource footprint.
• Recently announced Scoping Study update (refer RNS of 7 December 2021) delivers exceptional financial outcomes for a 2Mtpa operation, producing an average c. 300,000tpa of 6% Li₂O spodumene concentrate ("SC6") over an 11.4-year operation:
  • LOM revenues exceeding US$3.43bn, Post-tax NPV₈ of US$789m, IRR of 194% over 11.4 years
  • US$70m capital cost with industry-leading payback period of <1 year
  • C1 cash operating costs of US$249 per tonne of 6% lithium spodumene concentrate Free on Board ("FOB") Ghana Port, after by-product credits
  • Pre-tax NPV₈ of US$1.23bn and EBITDA of US$2.02bn for LOM
  • Average EBITDA of US$178m per annum
• Significant potential for resource upgrades; project metrics substantially improve with increased LOM beyond 12 years.
• Auger drilling recommenced on site with six power auger rigs active to test new exploration targets within the Mankessim, Mankessim South and Saltpond licenses; regional airborne geophysical and soil sampling surveys planned over newly granted Cape Coast license.
• Exploration and resource expansion drilling planned to recommence in February 2022.

Commenting on the Company's latest progress, Vincent Mascolo, CEO of Atlantic, said:

"The ongoing infill drilling results received continue to confirm mineralisation grade and continuity where tested across the Ewoyaa deposit.

"Assay results received over the Ewoyaa Sill target to date are encouraging, with mineralisation occurring in flat lying sill structures favourable for tonnage addition and low strip ratio. Additional results are still pending.

"Visible spodumene was observed in the new Kaampakrom West target, with assays pending. Both of these target areas fall outside of the current resource footprint, indicating the potential for further resource growth.

"The Company is targeting >80% resource conversion from inferred to indicated over the recently upgraded 21.3Mt @ 1.31% Li₂O resource, as well as a targeted tonnage increase to over 24Mt in support of a 12-year mine life for future studies.

"Our resource continues to grow, and the upside of the Project is clear. As such, we expect that the Project metrics will improve beyond the current defined Life of Mine. It is estimated by the Company that every additional year of production will add up to c. US$60m^[1] in post-tax NPV per annum. These fundamentals continue to demonstrate Ewoyaa as an industry-leading asset and, with the Company being ideally poised to benefit from the growing lithium market, we look forward to progressing the Project towards production and establishing Atlantic as new player in the lithium supply chain."

Infill Drilling Results

Ongoing infill drilling results are reported herewith for 4,769m of infill drilling in 42 holes at the Ewoyaa Lithium Project. An additional 22,500m of resource and exploration drilling results are pending which in addition to what is reported herewith and was reported on 15 December 2021 were completed post reporting of the updated Mineral Resource Estimate ("MRE") of 21.3Mt @ 1.31% Li₂O (refer RNS of 1 December 2021).

Multiple high-grade drill intersections have been returned in RC and DD infill drilling, with highlights reported in Table 1 and Figure 1 at a 0.4% Li₂O cut-off and maximum 4m of internal dilution (refer Appendix 1 for all reported intersections).

All sampling was completed at 1m sampling intervals at the drill site and submitted for analysis at Intertek laboratory with sample preparation completed in Ghana and sample analysis in Perth, Western Australia. All results passed internal and laboratory QA/QC protocols, providing confidence in the reported results.

Highlight drill sections are shown in Figure 2 and Figure 3 below for the Ewoyaa North-East and Anokyi deposits.

Ongoing infill drilling results validate grade and mineralisation continuity where returned to date over the Ewoyaa Main, Ewoyaa_NE, Okwesi, Anokyi and Grasscutter_E deposits, providing confidence in future resource upgrades from inferred to indicated status.

New mineralisation has been intersected and initial high grades returned at the Ewoyaa Sill target where mineralisation is associated with flat lying sill structures favourable for tonnage and low strip ratio potential. Additional mineralisation has been observed in drill cuttings from the new Kaampakrom West target with assay results pending (see Figure 4). Both targets fall outside of the currently defined resource.

Additionally, the Company has targeted further resource expansion and exploration drilling with assays pending over the Grasscutter West extension zone, Kaampakrom West target and depth extensions at Ewoyaa_NE, Okewesi, Anokyi and Grasscutter zones (refer Figure 4).

Approximately 22,500m of additional resource infill, extensional and exploration drilling assay results are pending.

Field teams have returned to site and six auger rigs have commenced drilling activities for both regional exploration and resource expansion targeting over the Mankessim, Mankessim South and Saltpond licenses.

Reverse Circulation exploration and resource drilling is planned to recommence in February 2022 to test new exploration and resource expansion targets along strike and at depth. Diamond drilling will commence thereafter in support of detailed geotechnical, hydrogeology and site investigation drilling.

Planning is underway for airborne geophysical and grid soil geochemistry over the recently granted Cape Coast license (refer RNS of 19 November 2021).

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^[1] https://www.investegate.co.uk/atlantic-lithium-ltd--all-/rns/exceptional-lithium-scoping-study-update-ghana/202112070700018028U/

For any further information, please contact:

Atlantic Lithium Limited Vincent Mascolo (Chief Executive Officer) Amanda Harsas (Company Secretary) www.atlanticlithium.com.au	Tel: +61 2 8072 0640
SP Angel Corporate Finance LLP Nominated Adviser Jeff Keating Charlie Bouverat	Tel: +44 (0)20 3470 0470
Canaccord Genuity Limited Joint Company Broker Raj Khatri James Asensio Harry Rees	Tel: +44 (0) 20 7523 4500
Liberum Capital Limited Joint Company Broker Scott Matheson Edward Thomas Kane Collings	Tel: +44 (0) 20 3100 2000
SI Capital Limited Joint Company Broker Nick Emerson Jon Levinson	Tel: +44 (0) 1483 413 500 Tel: +44 (0) 207 871 4038
Yellow Jersey PR Limited Henry Wilkinson Matthew McHale Dominic Barretto	Tel: +44 (0)20 3004 9512

Competent Persons

Information in this report relating to the exploration results is based on data reviewed by Mr Lennard Kolff (MEcon. Geol., BSc. Hons ARSM), Chief Geologist of the Company. Mr Kolff is a Member of the Australian Institute of Geoscientists who has in excess of 20 years' experience in mineral exploration and is a Qualified Person under the AIM Rules. Mr Kolff consents to the inclusion of the information in the form and context in which it appears.

Information in this report relating to Mineral Resources was compiled by Shaun Searle, a Member of the Australian Institute of Geoscientists. Mr Searle has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). Mr Searle is a director of Ashmore. Ashmore and the Competent Person are independent of the Company and other than being paid fees for services in compiling this report, neither has any financial interest (direct or contingent) in the Company.

Information in this report relating to metallurgical results is based on data reviewed by Mr Noel O'Brien, Director of Trinol Pty Ltd. Mr O'Brien is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr O'Brien consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

Notes to Editors:

About Atlantic Lithium
www.atlanticlithium.com.au

Atlantic Lithium (formerly "IronRidge Resources") is an AIM-listed lithium company advancing a portfolio of projects in Ghana and Côte d'Ivoire through to production.

The Company's flagship project, the Ewoyaa Project in Ghana, is a significant lithium pegmatite discovery on track to become West Africa's first lithium producing mine. The project is fully funded to production under an agreement with Piedmont Lithium for US$102m and set to produce a premium lithium product. A robust update Scoping Study indicates Life of Mine revenues exceeding US$3.4bn.

Atlantic holds a 560km² & 774km² tenure across Ghana and Côte d'Ivoire respectively, comprising significantly under-explored, highly prospective licenses.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: RNS London Stock Exchange

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FAQ

What are the latest drilling results from Atlantic Lithium's Ewoyaa Project?

Atlantic Lithium reported ongoing high-grade infill drilling results confirming mineralization grade and continuity at the Ewoyaa Lithium Project, with significant intersections including 45m at 1.54% Li₂O.

What is the updated JORC resource for the Ewoyaa Lithium Project?

The updated JORC resource for the Ewoyaa Lithium Project is 21.3Mt at 1.31% Li₂O.

What financial outcomes did the Scoping Study reveal for the Ewoyaa Project?

The Scoping Study indicates life-of-mine revenues exceeding US$3.43bn and a post-tax NPV₈ of US$789m for the Ewoyaa Project.

When does Atlantic Lithium plan to recommence exploration drilling?

Atlantic Lithium plans to recommence exploration and resource expansion drilling in February 2022.

What are the cash operating costs for the Ewoyaa Lithium Project?

The C1 cash operating costs for the Ewoyaa Lithium Project are estimated at US$249 per tonne of 6% lithium spodumene concentrate.