Atlantic Lithium Limited Announces Further Lithium Infill Drilling Results, Ghana

Rhea-AI Summary

Atlantic Lithium has announced significant infill drilling results at its Ewoyaa Lithium Project in Ghana, with an updated JORC resource of 21.3Mt @ 1.31% Li₂O. Highlights include drill intersections such as 65m at 1.66% Li₂O and 23m at 1.64% Li₂O. The recent scoping study predicts LOM revenues exceeding US$3.43bn with a 194% IRR over 11.4 years. The company is also targeting resource upgrades, anticipating an increase to over 24Mt to support a planned 12-year mine life.

Positive

• Updated JORC resource: 21.3Mt @ 1.31% Li2O, enhancing project value.
• Notable drill results include 65m at 1.66% Li2O, confirming mineralization continuity.
• Scoping study indicates potential LOM revenues exceeding US$3.43bn.
• IRR of 194% and average annual EBITDA of US$178m projected.
• Resource expansion anticipated, targeting over 24Mt to increase mine life.

Negative

• None.

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

SYDNEY, AUSTRALIA / ACCESSWIRE / January 25, 2022 / Atlantic Lithium Limited (AIM:ALL)(OTCQX:ALLIF), "Atlantic Lithium" or the "Company"), the fully-funded African focussed lithium exploration and development company on track to become West Africa's first lithium producing mine, is pleased to announce further 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 ("LOM").

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/4644Z_1-2022-1-25.pdf

HIGHLIGHTS:

• High-grade infill and extensional resource drilling assay results reported for diamond core ("DD") and reverse circulation ("RC") holes, including highlights at a 0.4% Li₂O cut-off and maximum 4m of internal dilution of:
  • GRC0570: 65m at 1.66% Li₂O from 159m
  • GRC0546: 23m at 1.64% Li₂O from 87m
  • GRC0560: 35m at 0.96% Li₂O from 32m
  • GDD0059: 21.1m at 1.53% Li₂O from 92.5m
  • GRC0539: 20m at 1.6% Li₂O from 48m
  • GRC050 2: 24m at 1.29% Li₂O from 98m
  • GDD0061: 27.8m at 1.11% Li₂O from 44.2m
  • GRC053 1: 22m at 1.4% Li₂O from 45m
  • GRC0538: 21m at 1.21% Li₂O from 52m
  • GRC056 8: 12m at 1.84% Li₂O from 104m
  • GDD0056: 14.4m at 1.17% Li₂O from 24m
  • GRC056 6: 11m at 1.5% Li₂O from 117m
  • GRC0532: 9m at 1.8% Li₂O from 96m
• Further infill drilling results continue to confirm grade and continuity across the Ewoyaa deposits.
• Second highest metal content (grade x interval length) drill intersection returned to date with hole open in mineralisation; 65m at 1.66% Li₂O from 159m in GRC0570.
• 10,688m of infill drilling assay results reported herewith in 90 holes, with additional approximate 11,800m of infill and extensional drilling assay results pending post completion of drilling activities for further resource upgrades.
• First results received for newly drilled Kaampakrom West target confirm good grades and widths outside of the current resource footprint with further results pending.
• Additional results received over the Ewoyaa Sill target continue to confirm good grades and widths outside of the current resource footprint with further results pending.
• 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 to extend the planned LOM; Project metrics substantially improve with an LOM beyond 12 years.
• Exploration auger drilling recommenced on site with six power auger rigs active; 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 Lithium, said:

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

"First assay results received over the Kaampakrom West target are encouraging and have returned good grades and widths outside of the current resource footprint which will add further tonnes.

"Additional assay results received over the Ewoyaa Sill target continue to impress, with mineralisation occurring in flat lying structures favourable for tonnage addition and low strip ratio.

"We have reported our second highest metal content and one of our deepest drill intersections to date with the hole open in mineralisation, highlighting the potential for further resource expansion.

"An additional 11,800m of drilling results are pending, predominantly within the Kaampakrom West and Ewoyaa Sill targets outside of the current resource.

"The Company is targeting >80% resource conversion from inferred to indicated over the recently upgraded 21.3Mt @ 1.31% Li₂O JORC 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 believe 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 Lithium as new player in the lithium supply chain."

Infill Drilling Results

Further infill drilling results are reported herewith for 10,688m of infill and extensional drilling in 90 holes at the Ewoyaa Project. An additional approximate 11,800m of resource and exploration drilling results are pending from the c. 37,500m drilling programme 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 Reverse Circulation ("RC") and Diamond core ("DD") infill and extensional 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 Anokyi and Kaampakrom West deposits.

Hole GRC0570 has returned the second highest metal content (grade x interval length) of 65m at 1.66% Li₂O from 159m for the current programme and is one of the deepest drill intersections to date at the Project. The hole remains open in mineralisation and demonstrates the continuity of high-grade mineralisation at depth at the Anokyi target as well as potential for further resource upgrades (refer Figure 2).

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 grade assay results returned at the Kaampakrom West target, whilst the Ewoyaa Sill target continues to deliver encouraging results, where mineralisation is associated with flat lying sill structures favourable for tonnage and low strip ratio potential. Both targets fall outside of the currently defined mineral resource estimate.

Additionally, the Company targeted further resource expansion and exploration drilling as part of last years programme, with assays pending over the Grasscutter extension, Ewoyaa Sill, Kaampakrom West targets and depth extensions at Ewoyaa_NE, Okewesi and Anokyi targets (refer Figure 4).

Approximately 11,800m 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.

Exploration and resource drilling programmes are planned to recommence in February 2022 to test new targets along strike and at depth, as well as diamond core drilling in support of geotechnical, hydrogeology and site investigation studies.

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

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

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

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SOURCE: Atlantic Lithium Limited

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FAQ

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

Atlantic Lithium reported high-grade infill drilling results, including notable intersections like 65m at 1.66% Li2O.

What is the updated JORC resource for Atlantic Lithium's Ewoyaa Project?

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

What are the financial projections from the recent scoping study for the Ewoyaa Project?

The scoping study projects LOM revenues exceeding US$3.43bn with an IRR of 194% over 11.4 years.

How much additional drilling is pending for the Ewoyaa Project?

Approximately 11,800m of additional resource and exploration drilling results are pending.

What is the target mine life for the Ewoyaa Lithium Project?

The company aims to extend the mine life to over 12 years to support ongoing resource upgrades.