Primarily North-America-based lithium explorer Piedmont Lithium [ASX:PLL] provided an update on its co-owned Ewoyaa Lithium Project earlier this morning.
It was announced that the project’s Prefeasibility Study (PFS) — led by joint partners Atlantic Lithium — has been completed, Atlantic declaring the PFS demonstrates ‘significant profitability potential’.
As a result of the announcement, Piedmont experienced a boost of more than 6% in share value on Wednesday morning.
The lithium miner may have plummeted more than 10% in the last week but has moved upwards with modesty by more than 21% in the past 12 months.
Source: Trading View
Piedmont’s 50% stake in the Ghana Project
One of the lithium miner’s shared projects, the Ewoyaa Lithium Project in Ghana, in which Piedmont maintains 50% interest, has now had its PFS ticked-off by the company’s project partner, Atlantic Lithium.
Located in Cape Coast in West Africa, the Ewoyaa Lithium Project has now been identified as providing the capacity to target production of around 255,000 tonnes 6% lithium spodumene concentrate a year.
The life of the mine has been estimated to reach around 12 and a half years, with ore reserves pinned at 18.9 million tonnes 1.24% Li2O.
While estimates for the project’s capital costs have seen an increase, Atlantic has expressed it believes it will be able to lower the mine’s operating expenses across the life of the mine.
There was also an increase noted for CAPEX from US$70 million to US$125 million — with US$27 million stemming from Atlantic’s choice in crushing processes.
Atlantic has chosen an in-house crushing operation, which evidently enables more control over the crushing process and simultaneously suggests there will be less lithium wastage.
The positive PFS results now mean that the Ghana Project can progress to the next stages, such as scoping studies and obtaining necessary permits.
At present, exploration and infill drilling is ongoing at the project, and Atlantic is expected to submit a request for mining licencing applications, alongside an environmental and social impact assessment report.
Production dates are set to commence in Q3 2024, that is, of course, provided this schedule can be helped along by the required licencing, and by passing all statutory requirements.
Piedmont’s Executive Vice President and Chief Operating Officer commented on the PFS results:
‘We expect the project in Ghana to play a critical role in our ability to ramp up production of lithium hydroxide in the United States. This proposed operation is underpinned by high-grade mineral resources, critical infrastructure, access to a deep-water port, and available labor.
‘The study also highlights Atlantic Lithium’s plans related to community engagement and environmental stewardship. The combination of robust economics and commitment to best-practices strengthens our Ghana Project’s position as an industry-leading asset, and we couldn’t be more excited for our partners at Atlantic Lithium.’
PLL’s Lithium Pipeline
Piedmont’s agreement with Atlantic includes an offtake agreement of 50% project annual production and 9.4% equity interest.
Once the Ghana Project is up and running, Piedmont will be using the Ghana spodumene to supply its 100%-owned Tennessee Lithium Project — converting it into lithium hydroxide.
Mr Brindle said the company will continue aiming to advance its plans across a global assets’ portfolio.
PLL is already ‘developing a world-class, multi-asset, integrated lithium business’ via lithium projects in Carolina and Tennessee, but also in partnership with Sayona Mining for its shared Québec project, and. of course, the Ghana project with Atlantic Lithium.
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