Atlantic Lithium upbeat on latest Ghana progress

Atlantic Lithium updated the market on ongoing exploration and resource drilling at the Ewoyaa Lithium Project and broader 560-square kilometre Cape Coast Lithium portfolio in Ghana on Wednesday, as it aimed to deliver Ghana's first lithium mine.

The AIM-traded firm said infill drilling had started at the Ewoyaa South 2 deposit, as part of the planned 3,000-metre infill reverse circulation and diamond drilling programme.

It said the drilling was aiming to convert inferred resources to the higher-confidence indicated category, providing future mine sequencing optionality.

Additionally, a passive seismic geophysical survey was now underway within the immediate Ewoyaa mineral resource estimate footprint, using Fleet Space Technologies' ExoSphere ambient noise tomography geodes.

The board said the survey would test the potential for concealed pegmatite targets.

Atlantic was also conducting a soil geochemistry survey over the Cape Coast licence, while auger drilling was testing for, and defining, pegmatite footprints within the project area and broader portfolio.

To date, 7,900 metres had been drilled, and auger drilling rigs were now testing new targets west of the mineral resource estimate footprint.

The exploration and resource drilling programmes would not impact the delivery of the definitive feasibility study, Atlantic explained, which was on track for delivery in the second quarter.

"Our 2023 exploration and resource drilling programmes are well underway across the Ewoyaa Lithium Project and the wider Cape Coast Lithium portfolio in Ghana," said interim chief executive officer Lennard Kolff.

"Infill drilling has now commenced at Ewoyaa South 2, marking the start of the planned approximate 3,000m infill RC and DD programme.

"This programme aims to further de-risk the project's current resources and provide optionality with regards to the mine plan."

Kolff said that on completion of the infill programme, the drill rig would then start the planned 7,000-metre resource extension drilling programme at the Ewoyaa Main, Ewoyaa North-East and Kaampakrom targets for potential further resource growth.

"We are very excited to be working with Fleet Space Technologies and to announce the commencement of the passive seismic geophysical survey at the project, the first in Ghana, testing for concealed pegmatites within the immediate MRE footprint.

"Its technology has proven to generate impressive results, including at Core Lithium's Finniss project in Australia, which bears many similarities to Ewoyaa.

"If successful, the survey could significantly improve our understanding of the current Ewoyaa MRE and unearth further areas to target with follow-up drilling."

Lennard Kolff explained that 6,500 metres of exploration reverse circulation drilling had been planned for follow-up drilling of targets, defined by both the passive seismic survey and auger drilling.

"Meanwhile, the soil geochemistry survey which is ongoing over the Cape Coast licence is now nearing completion.

"Soil samples will be analysed at our in-house laboratory for multi-element geochemistry using pXRF and lithium using LIBS analysers.

"Coincident soils and geophysical anomalies will be followed up with field mapping and auger drilling, if warranted, ahead of potential RC drill testing at depth."

The auger drilling programme underway was also progressing well, Kolff said, with more than 7,900 metres drilled to-date of the planned 20,000-metre programme.

"The 2023 exploration and resource drilling programmes are expected to add significant value to the project, and will not impact the delivery of the definitive feasibility study, which remains on track for delivery in the second quarter of 2023.

"We look forward to providing further updates on the ongoing programmes in due course."

At 1309 BST, shares in Atlantic Lithium were up 2.96% at 34.8p.

Reporting by Josh White for Sharecast.com.