Atlas Lithium Expands Brazilian Mineral Rights, Bolsters Global Market Position

Atlas Lithium Corporation (NASDAQ: ATLX) has announced a substantial expansion of its lithium mineral rights in Brazil, reinforcing its strategic position in the global lithium market. This move comes at a time when the demand for lithium is soaring, driven by the global push towards sustainability and electrification. The U.S. aims to achieve 100% clean electricity by 2035, establishing a framework for net-zero emissions by 2050.

Lithium's importance spans numerous modern industries, including electric vehicles, renewable energy storage, consumer electronics, and aerospace. By 2030, global demand for lithium carbonate equivalent is predicted to exceed 2.4 million metric tons, doubling the forecasted demand for 2025. Atlas Lithium is well-positioned to meet this rising demand through its extensive project portfolio in Brazil and strong operational capabilities.

The company has more than doubled its lithium exploration footprint in Brazil to approximately 539 km² (208 miles²), including new mineral rights in the Doce River and Mucuri Valleys. These areas, located near Governador Valadares in Minas Gerais, offer a new frontier for lithium exploration. Governador Valadares, a municipality with around 280,000 inhabitants, is strategically positioned with favorable infrastructure and access roads, approximately 350 km (217 miles) from the Port of Vitoria.

James Abson, chief geology officer at Atlas Lithium, noted, "Our new mineral rights near Governador Valadares offer access to an exciting new lithium frontier that has been relatively untapped beyond gemstone mining. This region hosts dozens of documented lithium-rich pegmatites, presenting a substantial opportunity for us."

Atlas Lithium is also making significant strides towards producing lithium concentrate at its flagship Neves Project in Brazil’s Eastern Brazilian Pegmatite Province (EBPP). The company plans to commence production in the fourth quarter of 2024, aiming to produce up to 150,000 tons per annum (tpa) of battery-grade spodumene using dense medium separation (DMS) technology in Phase 1, with a capacity set to double to 300,000 tpa in Phase 2 by 2025.

In preparation, Atlas Lithium has completed the trial assembly of its DMS plant, scheduled for shipment in the third quarter of 2024. The geological team has been actively drilling within the Neves Project area, having mapped and sampled more than 84 pegmatite outcrops. The company’s exploration campaign, initiated in late 2023, leverages advanced techniques such as hyperspectral satellite and drone LiDAR mapping to accelerate pegmatite discovery.

Additionally, the company is progressing with a Definitive Feasibility Study (DFS) for the Neves Project, expected to be completed before initial production commencement. This study will include an updated Mineral Resource Estimate (MRE) and assess the project’s economic viability and resource expansion opportunities.

The Valadares Project, located about 50 km (31 miles) from Governador Valadares, is a focal point of Atlas Lithium’s exploration efforts. Initial mapping and sampling have identified six additional spodumene-bearing pegmatites, underscoring the potential of these new claims. The company’s exploration team has utilized advanced tools such as high-resolution drone surveys and soil sampling campaigns to identify pegmatite bodies.

The Coronel Murta Project, approximately 50 km (31 miles) northwest of the Neves Project, is strategically situated within the EBPP. Initial geological mapping and soil sampling have identified anomalous concentrations of cesium, indicating the likely presence of LCT pegmatites on the property. High-resolution drone surveys have been deployed to support detailed mapping efforts, with plans for a high-resolution drone magnetics geophysics survey to expand the scout drilling campaign.

With one of the largest exploration project portfolios in Brazil, the adoption of cutting-edge processing technologies, and strong financial backing, Atlas Lithium is well-positioned to produce high-quality, low-cost lithium concentrate to meet robust global demand. The company’s strategic expansions and technological advancements solidify its role as a primary player in the global lithium market, addressing the increasing demands of various sectors, including electric vehicles, renewable energy storage, consumer electronics, and aerospace.

Featured Photo by MiningWatch Portugal on Unsplash

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