The PFS shows significant profitability potential for the proposed project in Ghana, including the increased JORC resource of 30.1Mt at 1.26% Li2O, and estimated to generate nearly $4.84bn in revenue over 12.5 years of mine life
Australia-based lithium exploration and development company Atlantic Lithium has completed the pre-feasibility study (PFS) on the Ewoyaa Lithium Project in Ghana.
The company said that it has directly managed the PFS by engaging experienced internationally recognised consultants.
The PFS shows significant profitability potential for the proposed project in Ghana, including the increased JORC resource of 30.1Mt at 1.26% Li2O.
It is estimated to generate nearly $4.84bn in revenue over 12.5 years of mine life.
Atlantic Lithium interim chief executive officer Lennard Kolff said: “We are delighted to release our Pre-Feasibility Study for the Ewoyaa Lithium Project in Ghana, which further illustrates Ewoyaa as an industry-leading lithium asset, generating in excess of $4.84bn in revenues over 12.5-year mine life.
“The study outlines a robust 2Mtpa operation which can deliver excellent cash flows, an exceptional 20-week payback and a post-tax NPV8 of $1.33bn producing a coarse, premium DMS SC6 product including credits from DSO fines and feldspar by-products.
“The study used a long-term average SC6 price of US$1,359/t FOB Ghana, with recent equivalent grade prices as high as US$7,708/t being achieved on Pilbara Minerals Limited BMX platform and representing a mid-range forecast when compared to other commentators.”
According to the PFS, the project has a net present value (NPV) of $1.3bn at a discount rate of 8%, with an internal rate of return estimated at 224%, and a payback period below five months.
The project will include a 2Mtpa conventional dense media separation (DMS) processing facility with an average 255,000tpa 6% lithium spodumene concentrate (SC6) production.
In addition, the PFS shows two additional revenue streams from by-products, including a saleable direct shipping ore fines product (DSO fines), and a saleable Feldspar by-product.
The capital cost for the project is estimated at $125m, including an integrated 3-stage crushing facility ahead of the DMS processing facility
Atlantic Lithium has reached a funding agreement with Piedmont Lithium, to advance the next stages of studies and permitting for the lithium project.
Kolff added: “Ewoyaa benefits from simple mineralogy, low power and water consumption, a DMS-only process flow-sheet design, skilled workforce and proximity to operational infrastructure, including grid power, sealed road and deep-sea port.
“These fundamentals are arguably among the best in the world and enable a low carbon footprint project.CAPEX has increased from $70m to $125m in the PFS, primarily due to bringing the crushing circuit in-house as opposed to contract crushing.
“Additionally, the increased resource footprint resulted in increased costs, including the extended high-voltage power line re-alignment and inflationary cost pressures in line with the current market. The financial model, however, shows that the Project is currently not sensitive to inflationary and capital cost increases.”