Atlantic Lithium (ALL), an Africa-focused lithium explorer, has announced the appointment of DRA Global to conduct a scoping study for the inclusion of a flotation circuit at Atlantic's flagship Ewoyaa lithium project in Ghana. The Ewoyaa project aims to become Ghana's first lithium-producing mine.
The scoping study, which forms part of Stage 2 of the project's development, will comprise of: 1) an evaluation of the technical and commercial viability of the use of flotation as an additional downstream circuit to the planned Ewoyaa DMS plant, and 2) assessing the use of the 4.7Mt of 1.2% Li2O fines material currently intended to be sold as a low-grade Li2O secondary product as potential feedstock for the flotation circuit.
Atlantic said that preliminary testwork had indicated encouraging flotation stage recovery and the achievement of >5% Li2O concentrate grades. The higher-value concentrate produced by flotation is intended to replace the current lower-grade secondary product.
The company believes that this would enhance Ewoyaa's financial outcomes and derisk the project further in the event that the low-grade lithium-bearing products market is adversely affected.
"By increasing the production of concentrate, we believe that we reduce our reliance on the low-grade lithium-bearing products market and enhance our exposure to spodumene concentrate pricing upside. The higher-value product will generate greater revenues and, as such, the inclusion of the flotation circuit is expected to improve the financial outcomes indicated in the recent Definitive Feasibility Study for the Project." said Keith Muller, CEO of Atlantic Lithium.
The study is due to commence imminently, with an outcome expected in Q4 2023.
Atlantic's recently announced Definitive Feasibility Study (DFS) for Ewoyaa reaffirmed the project's robust economics and profitability potential. Using conservative pricing, the DFS outlined 3.6Mt concentrate production over a 12-year mine life, delivering US$6.6bn in revenues with a post-tax NPV8 of US$1.5bn and an IRR of 105%. Moreover, the study indicated payback within only 19 months, maintaining low capital intensity of US$64/t of annualised throughput.
With the potential addition of a flotation circuit to output a higher-grade secondary product, Ewoyaa's economics will be strengthened further. The project also benefits from close proximity to operational infrastructure, a low-water and low-energy plant, and proximity to potential off-takers.
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