Atlantic Lithium (ASX:A11) recorded a big lithium hit in Ghana

Nick Sundich, November 2, 2022

Barely a few weeks from listing, lithium explorer Atlantic Lithium (ASX:A11) unveiled some solid drilling results at its project in Ghana. The company is optimistic it can build Ghana’s first lithium mine, and judging by today’s share price response, so are shareholders.

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Atlantic Lithium isn’t alone in believing in Ewoyaa

Atlantic Lithium is hoping its Ewoyaa project can become Ghana’s first lithium mine. Shareholders were optimistic too and chipped in $13.3m at IPO, as was Piedmont Lithium (ASX:PLL), which has a 9.4% interest in A11 and a 50% stake in the Ewoyaa project, which includes an offtake deal.

A PFS was unveiled in September, outlining a 2Mtpa (million tonnes per annum) operation over 12.5 years with an initial capital investment of US$125m. At a grade of 6% lithium, this would equate to 255,000 tpa.

Strong drilling results

So far, Atlantic Lithium has recorded 21,000m of results from the current 47,000m drilling programme to date. But this morning, the company unveiled its highest reported grade to date at 4.52% lithium over 1m from 54m.

It told shareholders it anticipated further drilling results this year and would be targeting an upgraded Resource at the end of this year or early next, followed by a Definitive Feasibility Study to be completed in mid-2023.

Ghana isn’t well known as a lithium destination, but with red-hot lithium demand anticipated for years to come, there should be plenty of customers for Ewoyaa’s product.