Atlas Lithium Strikes High-Grade Lithium Near Surface in Brazil's Salinas Project

Author: Benzinga Newsdesk | August 18, 2025 05:16am

Atlas Lithium Corporation (NASDAQ:ATLX) ("Atlas Lithium" or "Company"), a leading lithium development company, is pleased to announce exceptional exploration results from its 100%-owned Salinas Project in Brazil's Lithium Valley. The Company has completed initial exploratory drilling with drill holes confirming spodumene-rich lithium mineralization near the surface, marking a significant milestone in establishing Salinas as the Company's next expansion frontier while maintaining focus on bringing Atlas Lithium's flagship Neves Project to production.

Salinas Project Overview

Atlas Lithium's Salinas Project encompasses 388 hectares (959 acres) in northern Minas Gerais, strategically positioned just 5 miles east of the Colina Project – the primary reason Pilbara Minerals acquired Latin Resources for approximately $370 million in August 2024. Located approximately 100 kilometers (60 miles) north of Atlas Lithium's flagship Neves Project, Salinas sits in a region of proven lithium prospectivity within Brazil's renowned Lithium Valley.

The Company has completed comprehensive exploration activities at Salinas, including systematic soil sampling, detailed geological mapping, LIDAR surveys, and high-resolution aerial photogrammetry. These efforts have successfully identified and mapped multiple spodumene-rich pegmatite bodies.

Excellent Initial Drilling Results Confirm Mineralization

Atlas Lithium is pleased to report that exploratory drill holes at the Salinas Project have intersected lithium mineralization indicating significant spodumene mineralization at only 23 meters depth.

"The initial drilling results at Salinas have exceeded our expectations," said Marc Fogassa, Chairman and CEO of Atlas Lithium. "It appears that our Salinas Project will be another example of a favorable location for future open pit mining and production. It is rewarding to see opportunity for organic growth within the large portfolio of mineral rights that we own. "

The 501 meters of diamond drilling completed to date have confirmed the continuity of pegmatite bodies, with analytical results from SGS-Geosol, a premier analytical laboratory, indicating Li₂O grades exceeding 2.0%, demonstrating strong geological potential. The proximity of lithium mineralization to surface suggests favorable conditions for cost-effective open-pit mining, similar to the Company's Neves Project.

 

Salinas: The Next Expansion Frontier

Atlas Lithium is strategically positioned to capitalize on its extensive regional lithium exploration portfolio in Brazil, with the Salinas Project emerging as a prime candidate for the Company's future growth plans. The project's location in the heart of the northern lithium district, combined with the exceptional initial drilling results, positions Salinas as a natural extension of Atlas Lithium's production strategy.

"The Salinas Project represents a compelling growth opportunity that could significantly expand our future production capacity," noted Eduardo Queiroz, Atlas Lithium's Project Management Officer and Vice President of Engineering. "The combination of proven mineralization and proximity to Pilbara's Colina Project validates our strategic vision for regional growth."

The Company's extensive 797 km2 lithium exploration footprint – the largest among publicly listed companies – provides multiple avenues for organic growth beyond Salinas. The Company's exploration program, including the work at the Salinas Project, are performed under the supervision of a Qualified Person for Lithium in accordance with item 1300 of Regulation S-K.

Neves Project Remains Primary Focus with Outstanding Economics

While advancing the Salinas Project, Atlas Lithium remains firmly committed to bringing its flagship Neves Project into production as its highest priority. The recently completed Definitive Feasibility Study (DFS) for the Neves Project, prepared by SGS Canada Inc. ("SGS"), demonstrates exceptional project economics that position Atlas Lithium among the world's most capital-efficient lithium developers.

The Neves Project DFS highlights include:

Internal Rate of Return (IRR): 145%

Payback Period: 11 months from start of operations

After-tax Net Present Value (NPV): $539 million

Operating Costs: $489 per tonne of lithium concentrate

Direct Capital Expenditure: $57.6 million (lowest among announced projects in Brazil)

The Company has already invested approximately $30 million in acquiring and transporting the Neves Project's newly fabricated dense media separation (DMS) plant to Brazil. The ready-to-assemble DMS processing facility capable of producing up to 150,000 tpa of lithium concentrate is now stored in Brazil pending assembly on site. Additionally, the Neves Project received its "Portaria de Lavra" (mining concession) status from Brazil's Ministry of Mines and Energy on May 27, 2025 – the highest level of titleship in Brazil allowing continuous mining operations.

"Our dual-track strategy of advancing Neves to production while systematically expanding our potential for growth through exploration in Salinas and other sites creates compelling value," added Mr. Fogassa.

Posted In: ATLX