http://www.proactiveinvestors.com.au Proactiveinvestors RSS feed en Fri, 28 Apr 2017 12:29:41 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Sayona Mining makes key appointment to fast-track Authier lithium project ]]> http://www.proactiveinvestors.com.au/companies/news/176892/sayona-mining-makes-key-appointment-to-fast-track-authier-lithium-project-176892.html Sayona Mining (ASX:SYA) has appointed Jonathan Gagne as Canadian Country Manager to fast-track the development of the Authier project in Quebec, Canada.

Key duties for Gagne include completion of the Definitive Feasibility Study, permitting and approvals.

Other tasks include assessing opportunities for off-take, studying potential to value-add to Authier’s spodumene concentrate within Quebec, and capitalise on the strong demand for lithium value-added products within the U.S. markets.

Corey Nolan, chief executive officer, commented:

"Jonathon is intimately familiar with the Authier project and its potential following his involvement in the preparation of the Preliminary Economic Assessment in 2013.

"Since Jonathon’s involvement in the project in 2012/13, Sayona has drilled an additional 8,000 metres at Authier and completed a Pre-feasibility Study, and lithium spodumene prices have soared to record levels, significantly enhancing the value of the project."


Next steps

Sayona is currently awaiting assays from the phase two drilling program at Authier.

Once all the remaining assay results from the phase two drilling are received, Sayona plans to update its JORC resource estimate.


Key findings of the recently completed PFS

- Pre-tax NPV of C$140 million and pre-tax internal rate of return of 39%;
- Annual average concentrate production of 99,000 tonnes at 5.75% lithium oxide;
- Average annual revenue of C$67 million and EBITDA of C$31 million;
- Life of mine strip ratio of 6:1 (waste to ore) and cash costs of C$367 (US $280) FOB Montreal Port;
- Development capital expenditure of C$66 million; and
- Maiden Ore Reserve of 10.2 million tonnes at 1.02% lithium oxide (Proven Reserve: 4.9 million tonnes at 0.97% lithium oxide and Probable Reserve 5.3 million tonnes at 1.06% lithium oxide) delivers a mine life of 13 years.

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Wed, 26 Apr 2017 14:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/176892/sayona-mining-makes-key-appointment-to-fast-track-authier-lithium-project-176892.html
<![CDATA[News - Sayona Mining opens underwritten share purchase plan ]]> http://www.proactiveinvestors.com.au/companies/news/176701/sayona-mining-opens-underwritten-share-purchase-plan-176701.html Sayona Mining (ASX:SYA) has today opened its share purchase plan (SPP), which is underwritten to the amount of $1.5 million.

The issue price will be determined at the issue date of new shares and will represent a 20% discount to the volume weighted average price over five days prior to the issue date.

Under the SPP, shareholders can apply for parcels of new shares valued between $500 and $15,000.

The proposed use of the funds raised under the SPP is as follows:

- To accelerate the development of the company’s Authier lithium project in Canada;
- To fund exploration activity on the company’s Australian lithium projects;
- To provide general working capital; and
- For corporate costs and the costs of the issue.

Sayona is currently awaiting assays from the phase two drilling program at Authier.

Drilling commenced in January 2017 and comprised 31 holes for 4,104 metres, which are now all complete.

Once all the remaining assay results from the phase two drilling are received, Sayona plans to update its JORC resource estimate.

Sayona is also progressing its Mallina project in the world-class Pilgangoora lithium district in Western Australia, where mapping and sampling programs have outlined a number of prospective lithium targets.

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Fri, 21 Apr 2017 13:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/176701/sayona-mining-opens-underwritten-share-purchase-plan-176701.html
<![CDATA[News - Sayona Mining launches underwritten share purchase plan ]]> http://www.proactiveinvestors.com.au/companies/news/176415/sayona-mining-launches-underwritten-share-purchase-plan-176415.html Sayona Mining (ASX:SYA) will pocket $1.5 million through an underwritten share purchase plan (SPP).

The funds will be used to accelerate the development of the Authier project in Canada.

More specifically, Sayona will allocate the new funds for:

- Resource upgrade following the completion of the Phase 2 drilling program;
- Geotechnical and hydrogeological programs to improve the pit wall slopes and reduce the life-of-mine waste movement;
- Further metallurgical testing to optimise recoveries and concentrate grades;
- Updating the February 2017 Pre-Feasibility Study and Ore Reserve;
- Studying the potential for producing value-added lithium carbonate and/or hydroxide; and
- Continuation of the environmental and mining lease work programs.


Plan details

Eligible shareholders can subscribe for up to $15,000 worth of new shares.

The price will be determined at the issue date of new shares under the SPP.

This will be based on a 20% discount to the volume weighted average price of Sayona shares traded on the ASX during the 5 days immediately prior to the issue date.

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Thu, 13 Apr 2017 11:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/176415/sayona-mining-launches-underwritten-share-purchase-plan-176415.html
<![CDATA[News - Sayona Mining in ASX trading halt pending capital raising ]]> http://www.proactiveinvestors.com.au/companies/news/176262/sayona-mining-in-asx-trading-halt-pending-capital-raising-176262.html Sayona Mining (ASX:SYA) has been granted a trading halt by the ASX.

The company requested the halt pending the release of details regarding a capital raising.

The halt will remain in place until the opening of trade on Thursday 13th April 2017, or earlier if an announcement is made to the market.

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Tue, 11 Apr 2017 09:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/176262/sayona-mining-in-asx-trading-halt-pending-capital-raising-176262.html
<![CDATA[News - Sayona Mining receives lithium assays from phase two ]]> http://www.proactiveinvestors.com.au/companies/news/176258/sayona-mining-receives-lithium-assays-from-phase-two-176258.html Sayona Mining (ASX:SYA) has received assays from the first five diamond holes from phase two drilling at the Authier lithium project located in Canada.

The phase two drilling program has initially focused on targeting extensions of mineralisation in the western sector.

Drilling has defined new zones of high-grade mineralisation in the western sector including, 32 metres at 1.15 % lithium oxide from 165 metres.

The results also demonstrate extensions of the main pegmatite orebody up to 300 metres to the west extending the main pegmatite to 1,100 metres in strike length.

Corey Nolan, CEO, commented: “The 2017 drilling program is demonstrating the potential to expand the size of the 2016 Mineral Resource.”


Drill result details

The second phase drilling program follows a successful 3,967 metre drilling campaign in 2016 which significantly expanded the size of the Authier resource.

Drilling commenced in January 2017 and comprised 31 holes for 4,104 metres, which are now all complete.

The drilling program initially focused on targeting extensions of mineralisation in the western sector.

Significant intersections from the first five drill holes include:

- 32 metres at 1.15% lithium oxide from 165 metres including 7 metres at 1.44 % lithium oxide;
- 11 metres at 1.07 % lithium oxide from 222 metres including  5 metres at 1.42 % lithium oxide; and
- 19 metres at 1.26% lithium oxide from 224m including 9 metres at 1.69% lithium oxide.

The results have confirmed an extension of the main pegmatite orebody by 300 metres to the west within the deeper levels and 200 metres west at shallower levels.

The mineralisation remains open to the west and further drilling will be required to test the full western strike extent of the deposit.


Authier lithium project

Sayona’s flagship Authier lithium project is located in Quebec, Canada.

Sayona plans to progress towards completing a definitive feasibility study, mining licence applications, off-take contracts and financing this year.

Key findings of the recently completed PFS include:

- Pre-tax NPV of C$140 million and pre-tax internal rate of return of 39%;
- Annual average concentrate production of 99,000 tonnes at 5.75% lithium oxide;
- Average annual revenue of C$67 million and EBITDA of C$31 million;
- Life of mine strip ratio of 6:1 (waste to ore) and cash costs of C$367 (US $280) FOB Montreal Port;
- Development capital expenditure of C$66 million; and
- Maiden Ore Reserve of 10.2 million tonnes at 1.02% lithium oxide (Proven Reserve: 4.9 million tonnes at 0.97% lithium oxide and Probable Reserve 5.3 million tonnes at 1.06% lithium oxide) delivers a mine life of 13 years.


Analysis

Assays from the first diamond holes drilled west of the main Authier pegmatite orebody have successfully demonstrated extensions of the mineralisation at open-cut mineable depths.

An expanded resource has the potential to extend the mine life beyond the 13 years as outlined in the February 2017 PFS.

Once all the remaining assay results from the phase two drilling are received, Sayona plans to update its JORC resource estimate.

Sayona believes the western sector remains highly prospective for further spodumene mineralisation

The main orebody has shown to be strongly correlated to a deep magnetic low which extends to the western tenement boundary.

Sayona believes there is no reason lithium mineralisation doesn’t extend to the western tenement boundary as the magnetic data suggests.

With the 31-hole phase two program complete, more assays are expected keeping the company leveraged to exploration based news flow in the short term.

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Tue, 11 Apr 2017 09:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/176258/sayona-mining-receives-lithium-assays-from-phase-two-176258.html
<![CDATA[News - Sayona Mining resumes lithium exploration at Mallina project ]]> http://www.proactiveinvestors.com.au/companies/news/174956/sayona-mining-resumes-lithium-exploration-at-mallina-project-174956.html Sayona Mining (ASX:SYA) is closing in on drill targets after resuming exploration at its Mallina project located in the world-class Pilgangoora lithium district of Western Australia.

Exploration has identified a coarse spodumene pegmatite where a recent rock assay of 3.47% lithium oxide was sampled.

Spodumene has now been identified in three main pegmatite swarms within a 1x1 kilometre area.

Submissions for the statutory approval to allow drilling have been lodged and preliminary drill programs designed.

Further geochemical sampling, to help identify mineralisation under the shallow cover which affects much of the project area will also be carried as soon as ground conditions allow.

Corey Nolan, CEO, commented: “The company is very encouraged by the continuing identification of prospective spodumene pegmatites.

“It is anticipated the planned geochemistry and geophysics will be quickly followed up by drill testing.”

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Fri, 17 Mar 2017 13:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/174956/sayona-mining-resumes-lithium-exploration-at-mallina-project-174956.html
<![CDATA[News - Sayona Mining secures option to expand Authier lithium project ]]> http://www.proactiveinvestors.com.au/companies/news/174884/sayona-mining-secures-option-to-expand-authier-lithium-project-174884.html Sayona Mining (ASX:SYA) has signed an option-to-purchase agreement to acquire a tenement along strike from its flagship Authier deposit located in Quebec, Canada.

The eastern tenement is strategically important and straddles the eastern extension of the Authier deposit.

Sayona plans on drilling the optioned tenement during the current Phase 2 drilling program.

The 4,000 metre Phase 2 program was commenced in late January to focus on the expansion of the resource following the successful drilling program in 2016 which significantly increased the resource and grade.

The 2016 drilling resulted in a 68% expansion of Authier’s contained lithium resource to 13.74 million tonnes grading 1.07% lithium oxide for 147,600 tonnes of contained lithium.

The option is exercisable anytime during the next five years, by making payments including, CAD$25,000 on signing, CAD$5,000 on each anniversary between year two and five, and CAD$75,000 on exercise of the option.

Sayona recently reported its maiden Ore Reserve and pre-feasibility study (PFS) results for Authier which forecast a net present value of C$140 million pre-tax.

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Thu, 16 Mar 2017 12:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/174884/sayona-mining-secures-option-to-expand-authier-lithium-project-174884.html
<![CDATA[News - Sayona Mining takes note of high priced lithium contracts ]]> http://www.proactiveinvestors.com.au/companies/news/173769/sayona-mining-takes-note-of-high-priced-lithium-contracts-173769.html Sayona Mining (ASX:SYA) sees good potential for it to benefit from the recent pricing of lithium concentrates being sold from Australia to China, which continues to surprise on the upside.

Two new Australian producers have recently reported settlements for 2017 contract pricing of US$750 per tonne for 6% lithium oxide and US830 per tonne FOB for 5.5% lithium oxide.

Notably, Sayona’s pricing assumption in its pre-feasibility study for its developing Authier lithium project in Canada was US$515 per tonne FOB for 5.75% lithium oxide.

The new pricing regime reflects the much tighter market for concentrates as new projects commission slower than forecast and financing constraints slow the planned development timetables for other advanced projects.

Sayona recently reported its maiden Ore Reserve and pre-feasibility study (PFS) results for Authier which forecast a net present value of C$140 million pre-tax.


Authier lithium project

Sayona’s flagship Authier lithium project is located in Quebec, Canada.

Sayona plans to progress towards completing a definitive feasibility study, mining licence applications, off-take contracts and financing this year.

Key findings of the recently completed PFS include:

- Pre-tax NPV of C$140 million and pre-tax internal rate of return of 39%;
- Annual average concentrate production of 99,000 tonnes at 5.75% lithium oxide;
- Average annual revenue of C$67 million and EBITDA of C$31 million;
- Life of mine strip ratio of 6:1 (waste to ore) and cash costs of C$367 (US $280) FOB Montreal Port;
- Development capital expenditure of C$66 million; and
- Maiden Ore Reserve of 10.2 million tonnes at 1.02% lithium oxide (Proven Reserve: 4.9 million tonnes at 0.97% lithium oxide and Probable Reserve 5.3 million tonnes at 1.06% lithium oxide) delivers a mine life of 13 years.

The company is now looking at a number of optimisation options to significantly enhance the value of the project, including drilling (currently underway) to expand the Mineral Resource and Ore Reserves, further metallurgical and geotechnical test-work, and other downstream value-adding opportunities.

The deposit is open along strike and at depth.


Analysis

Sayona remains focused on rapidly developing its spodumene projects and capitalising on the strong pricing window available for new project entrants in the short to medium term.

Despite the solid progress achieved at Authier, the company still trades on one of the lowest enterprise value per tonne of Measured and Indicated Resource multiples in the global sector being $176 per tonne.

This valuation is more in line with lithium explorers than an advanced project.

ASX peers such as Pilbara Minerals (ASX:PLS) and Altura Mining (ASX:AJM) have comparable valuations of $400-$600 per tonne, representing the potential opportunity Sayona offers.

Opportunity for value-uplift for exists as the project resource base is expanded, optimisation activities are completed, and it’s advanced towards development, which is planned.

The company currently has cash resources of $1.3 million which will fund its development activities in the short term.

Sayona has commenced some preliminary discussions with prospective financiers about options for funding future exploration and development activities with minimal dilution to shareholders.

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Mon, 27 Feb 2017 14:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/173769/sayona-mining-takes-note-of-high-priced-lithium-contracts-173769.html
<![CDATA[News - Sayona Mining samples high grade lithium in world class district ]]> http://www.proactiveinvestors.com.au/companies/news/173302/sayona-mining-samples-high-grade-lithium-in-world-class-district-173302.html Sayona Mining (ASX:SYA) has received assay results from its first phase of sampling at the Mallina project, located in the world-class Pilgangoora lithium district of Western Australia.

Sample and mapping results have Identified five lithium mineralised spodumene bearing pegmatites up to 3.75% lithium oxide located within a 1 square kilometre zone.

Much of the pegmatite swarm and general tenement area remains untested by any previous lithium exploration.

Statutory approvals to allow drill testing are commencing.

Corey Nolan, CEO, commented: “The company is very encouraged by the new assay results from both the soil and rock chip programs.

“Exploration will continue with a focus on outlining potential drill targets as soon as possible on a number of the prospective targets identified from the current exploration program.”


Mallina project

The 140 square kilometre tenement forms part of the recently completed option agreement with Great Sandy Pty Ltd, comprising 871 square kilometres of tenure that complements Sayona’s additional 1,047 square kilometre lithium exploration portfolio in the Pilbara region.

Recent reconnaissance and mapping within the Mallina tenement area has focused around the Discovery pegmatite area, with 93 rock and 66 soil geochemical samples collected.

The Discovery pegmatite has been mapped over 500 metres of strike extent with rock chip assays grading up to 2.13% lithium oxide.

The company’s recent work has identified four previously unknown lithium mineralised spodumene pegmatites, which form part of an extensive swarm of pegmatites.

West of the Discovery pegmatite, two other areas of lithium mineralised pegmatites have been identified, with rock samples returning up to 2.65% lithium oxide.

Significantly, a single pegmatite outcrop, located 900 metres to the south of the Discovery pegmatite was identified and sampled, returning an assay of 3.47% lithium oxide.


Next steps

Further reconnaissance, mapping and rock sampling is planned in follow up to the strong mineralisation identified to date.

Work will focus in the area of newly discovered spodumene pegmatites as well as traversing the unexplored remainder of the tenement area.

Follow-up work will commence as soon as possible, once access after the recent flooding is possible.


Authier valued at C$140 million

Earlier this week, Sayona received the results from its pre-feasibility study (PFS) including a maiden JORC Ore Reserve at its flagship Authier lithium project located in Quebec, Canada.

Key outcomes of the study include a pre-tax net present value (NPV) of C$140 million over an initial 13-year mine life.

Sayona plans to progress towards completing a definitive feasibility study, mining licence applications, off-take contracts and financing this year.

Other key findings of the PFS include:

- Pre-tax NPV of C$140 million and pre-tax internal rate of return of 39%;
- Annual average concentrate production of 99,000 tonnes at 5.75% lithium oxide;
- Average annual revenue of C$67 million and EBITDA of C$31 million;
- Life of mine strip ratio of 6:1 (waste to ore) and cash costs of C$367 (US $280) FOB Montreal Port;
- Development capital expenditure of C$66 million; and
- Maiden Ore Reserve of 10.2 million tonnes at 1.02% lithium oxide (Proven Reserve: 4.9 million tonnes at 0.97% lithium oxide and Probable Reserve 5.3 million tonnes at 1.06% lithium oxide) delivers a mine life of 13 years.

The company is now looking at a number of optimisation options to significantly enhance the value of the project, including drilling (currently underway) to expand the Mineral Resource and Ore Reserves, further metallurgical and geotechnical test-work, and other downstream value-adding opportunities.

The deposit is open along strike and at depth.

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Fri, 17 Feb 2017 13:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/173302/sayona-mining-samples-high-grade-lithium-in-world-class-district-173302.html
<![CDATA[News - Sayona Mining affirms value of Canadian based Authier lithium project ]]> http://www.proactiveinvestors.com.au/companies/news/173230/sayona-mining-affirms-value-of-canadian-based-authier-lithium-project-173230.html Sayona Mining (ASX:SYA) has received the results from its pre-feasibility study including a maiden JORC Ore Reserve at the Authier lithium project located in Quebec, Canada.

Key outcomes of the study include a pre-tax net present value (NPV) of C$140 million over an initial 13-year mine life.

Sayona plans to progress towards completing a definitive feasibility study, mining licence applications, off-take contracts and financing this year.

Corey Nolan, CEO, commented: “The company is very pleased to demonstrate Authier’s potential to create significant shareholder value.

“A pre-tax net present value of C$140 million has been demonstrated with more upside to come through the phase 2 drilling program and other optimisation programs.”


Pre-feasibility study results

Key findings of the PFS include:

- Pre-tax NPV of C$140 million and pre-tax internal rate of return of 39%;
- Annual average concentrate production of 99,000 tonnes at 5.75% lithium oxide;
- Average annual revenue of C$67 million and EBITDA of C$31 million;
- Life of mine strip ratio of 6:1 (waste to ore) and cash costs of C$367 (US $280) FOB Montreal
Port;
- Development capital expenditure of C$66 million; and
- Maiden Ore Reserve of 10.2 million tonnes at 1.02% lithium oxide (Proven Reserve: 4.9 million tonnes at 0.97% lithium oxide and Probable Reserve 5.3 million tonnes at 1.06% lithium oxide) delivers a mine life of 13 years.

The company is now looking at a number of optimisation options to significantly enhance the value of the project, including drilling (currently underway) to expand the Mineral Resource and Ore Reserves, further metallurgical and geotechnical test-work, and other downstream value-adding opportunities.

The deposit is open along strike and at depth.


Monetisation options

Sayona is exploring three separate options for the monetisation of the spodumene concentrates, including:

1. Selling concentrates into the Quebec domestic market. Quebec is the only place in the world outside of China that has an established lithium carbonate production facility. The facility is on care and maintenance but is due to be re-commissioned in 2018. In addition, Nemaska Lithium Inc (TSE:NMX) is also planning to establish a lithium carbonate and hydroxide facility in Quebec and could be a potential purchaser of lithium concentrates;

2. Exporting concentrates through a Quebec Port and selling to a Chinese lithium carbonate processing facility; and

3. Processing and producing a lithium carbonate/hydroxide product through an integrated downstream processing facility at Authier.


Analysis

The results from the study have confirmed the technical and financial viability of constructing a simple, low-strip ratio, open-cut mining operation and processing facility producing spodumene concentrate.

The positive study results demonstrate the opportunity to create substantial long-term sustainable shareholder value at a low capital cost and 2.2 year payback period.

With the deposit open along strike and at depth, significant potential exists to expand resource base.

A drilling program has commenced with the aim of significantly expanding the project resource and reserve base, and improving the economic returns of the project.

Further potential also exists to optimise the mine plan and concentrate grade thereby improving returns.

The study recommends advancing the project to the next study phase in conjunction with a number of optimisation programs.

Sayona shares are trading up 30% over the past three months, currently priced $0.035.

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Thu, 16 Feb 2017 10:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/173230/sayona-mining-affirms-value-of-canadian-based-authier-lithium-project-173230.html
<![CDATA[News - Sayona Mining to expand lithium resource with more drilling ]]> http://www.proactiveinvestors.com.au/companies/news/172145/sayona-mining-to-expand-lithium-resource-with-more-drilling-172145.html Sayona Mining (ASX:SYA) has commenced its Phase 2 resource expansion drilling program at the Authier lithium project located in Quebec, Canada.

The 4,000 metre program will focus on the expansion of the resource following the successful drilling program in 2016 which significantly increased the resource and grade.

The 2016 drilling resulted in a 68% expansion of Authier’s contained lithium resource to 13.74 million tonnes grading 1.07% lithium oxide for 147,600 tonnes of contained lithium.

Importantly, drilling will also aim to define the size and lithium grade of the recently discovered, high-grade, northern pegmatite.

Mineralisation remains open in all directions at Authier.


Background

Sayona’s flagship asset is the Authier lithium project comprising 19 mineral claims totalling 653 hectares.

Authier is a near-term development project and cash-flow generation opportunity for the company.

The dimensions of the deposit drilled to date are 825 metres long, with an average thickness of 25 metres, ranging from 4 metres to 55 metres.

Future mining or mineral extraction of the Authier deposit will be by open cut mining methods using drilling and blasting, and a conventional truck and shovel operation.

Sayona also recently secured an option to acquire an 871 square kilometre package of tenements in the world-class Pilgangoora district of Western Australia.

The package includes the Mallina project with newly identified spodumene pegmatite.


Drill program details

The drilling program has been designed with three aims, including:

- To improve the overall quality and expand on the size of its JORC resource.
The project now has nearly 19,000 metres of diamond drilling in 141 holes. Sayona’s plan is to increase the size and confidence levels of the resource and to study the merits of an expansion and/or the value adding potential of the project beyond what has been studied in the current pre-feasibility study which is nearing completion;

- Assess the resource potential of the newly discovered pegmatite; and

- Locate additional lithium mineralised pegmatites.

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Wed, 25 Jan 2017 11:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/172145/sayona-mining-to-expand-lithium-resource-with-more-drilling-172145.html
<![CDATA[News - Sayona Mining commences exploration at Pilbara lithium project ]]> http://www.proactiveinvestors.com.au/companies/news/171376/sayona-mining-commences-exploration-at-pilbara-lithium-project-171376.html Sayona Mining (ASX:SYA) has commenced first phase exploration at the Mallina project which is located in the world world-class Pilgangoora lithium district of Western Australia.

Initial mapping and sampling programs have commenced including rock chip sampling and mapping, targeting extensions of the known mineralisation.

Other prospective areas in the tenement package that have been identified through satellite and air photography imagery will also be explored.

Other work will include soil geochemistry to target pegmatites hidden by shallow soil cover, widely present within the tenement.

Recent due diligence exploration conducted at Mallina has located significant zones of visible spodumene mineralisation grading up to 2.13% lithium oxide within a pegmatite mapped over 500 metres.


Mallina project

During December, Sayona secured an option to acquire an 871 square kilometre package of tenements in the world-class Pilgangoora district of Western Australia.

The package includes the Mallina project with newly identified spodumene pegmatite.

Highlights include rock chip samples up to 2.13% lithium in discovery pegmatite, with the average of the 10 rock chip samples collected to date being 1.28% lithium.

Mallina is located 80 kilometres west of the Pilgangoora lithium deposits of Altura Mining (ASX:AJM) and Pilbara Minerals (ASX:PLS), and compliments the company’s other 1,000 square kilometre lithium exploration portfolio in the Pilbara region.


Phase II drill program at Authier

Sayona lodged drilling permits in December for the Phase II resource expansion drilling program at the flagship Authier lithium project located in Quebec, Canada.

The company sees good potential to both expand the size of the existing resource and to optimise and improve the existing resource.

A diamond drilling program of up to 4,000 metres is planned to commence in early 2017.

This follows the recent 68% expansion of Authier’s contained lithium resource to 13.74 million tonnes grading 1.07% lithium oxide for 147,600 tonnes of contained lithium.

Importantly, the next phase of drilling will aim to define the size and grade of the recently discovered high-grade northern pegmatite and explore for additional pegmatites.

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Tue, 10 Jan 2017 12:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/171376/sayona-mining-commences-exploration-at-pilbara-lithium-project-171376.html
<![CDATA[News - Sayona Mining secures more funds from an underwriting ]]> http://www.proactiveinvestors.com.au/companies/news/170835/sayona-mining-secures-more-funds-from-an-underwriting-170835.html The new funds, include option exercise by:

- Directors Totaling $145,000;
- Other supportive option and shareholders totaling $805,000; and
- Underwriting agreement extension from $450,000 to $570,000.

Total proceeds to date from option exercise and underwriting agreement total $1.52 million.

The proceeds, together with existing cash reserves, will be used to accelerate the development of the Authier project in Canada, including the planned drilling program for early 2017, and completion of the Pre-Feasibility Study.

Authier mineralisation is hosted in a spodumene-bearing pegmatite intrusion with more than 18,800 metres of drilling in 139 holes.

Authier is amenable to simple open-cut mining and processing methods, and is situated in close proximity to development infrastructure.

The resource is currently 13.74 million tonnes at 1.07% lithium oxide for 147,600 tonnes of contained lithium.

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Thu, 22 Dec 2016 11:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/170835/sayona-mining-secures-more-funds-from-an-underwriting-170835.html
<![CDATA[News - Sayona Mining dials into world-class Pilgangoora lithium district ]]> http://www.proactiveinvestors.com.au/companies/news/170770/sayona-mining-dials-into-world-class-pilgangoora-lithium-district-170770.html Sayona Mining (ASX:SYA) shares are on the rise today, following the company securing an option from Great Sandy Pty Ltd to acquire an 871 square kilometre package of tenements in the world-class Pilgangoora district of Western Australia.

The package includes the Mallina project with newly identified spodumene pegmatite.

Highlights include rock chip samples up to 2.13% lithium in discovery pegmatite, with the average of the 10 rock chip samples collected to date being 1.28% lithium.

Mallina is located 80 kilometres west of the Pilgangoora lithium deposits of Altura Mining (ASX:AJM) and Pilbara Minerals (ASX:PLS), and compliments the company’s other 1,000 square kilometre lithium exploration portfolio in the Pilbara region.


Additional highlights at Mallina

- Spodumene crystals over 20 centimetres in diameter identified within the discovery pegmatite, along a 500 metre strike zone; and
- Pegmatite swarm remains unexplored, and therefore the high potential for additional discoveries.

The company plans to commence mapping and geochemical sampling in early 2017, to generate drill targets.


Consideration

The purchase terms include an option to acquire 80% interest in all the tenements by making staged payments in cash or shares at Great Sandy’s election of $300,000 within 12 months and $300,000 within 24 months (or $500,000 within 18 months at Sayona’s election), and free carrying Grant Sandy to Decision to Mine.

Great Sandy can elect to convert the 20% interest to a 2% gross smelter royalty.
Sayona is required to make a $30,000 deal signing payment and commit to minimum expenditure of $100,000 within the first 12 months.


Details on the Mallina Spodumene Project

The Mallina project overlies Archaean sediments and mafic volcanics which have been intruded by post tectonic monzogranite.

The area does not appear to have been prospected for pegmatite mineralisation before the recent discovery, despite the combination of post tectonic granite, structure and proximity to the Wodgina / Pilgangoora lithium discoveries to the east.

The discovery pegmatite was recently identified during routine reconnaissance of the area.

]]>
Wed, 21 Dec 2016 11:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/170770/sayona-mining-dials-into-world-class-pilgangoora-lithium-district-170770.html
<![CDATA[News - Sayona Mining secures funds through option underwriting agreement ]]> http://www.proactiveinvestors.com.au/companies/news/170282/sayona-mining-secures-funds-through-option-underwriting-agreement-170282.html Sayona Mining (ASX:SYA) has executed an option underwriting agreement for $450,000 in respect of its listed $0.03 options expiring 30 December, 2016.

The company is also in discussions with other parties to increase the underwritten commitments.

The proceeds of the underwriting, together with existing cash reserves, will be used to accelerate the development of the Authier lithium project located in Canada, including the planned drilling program for early 2017.

Sayona recently lodged drilling permits for the Phase II resource expansion drilling program at Authier.

The company sees good potential to both expand the size of the existing resource and to optimise and improve the existing resource.

A diamond drilling program of up to 4,000 metres is planned to commence in early 2017.

This follows the recent 68% expansion of Authier’s contained lithium resource to 13.74 million tonnes grading 1.07% lithium oxide for 147,600 tonnes of contained lithium.

Importantly, the next phase of drilling will aim to define the size and grade of the recently discovered high-grade northern pegmatite and explore for additional pegmatites.


Phase II drill program

The drilling program has been designed with three aims:

- To improve the overall quality and expand on the size of its JORC resource;
- Assess the resource potential of the newly discovered pegmatite; and
- Locate additional lithium mineralised pegmatites.

The project now has nearly 19,000 metres of diamond drilling in 141 holes.

Sayona’s plan is to increase the size and confidence levels of the resource and to study the merits of an expansion and/or the value adding potential of the project beyond what has been studied in the current pre-feasibility study which is nearing completion.

]]>
Mon, 12 Dec 2016 10:40:00 +1100 http://www.proactiveinvestors.com.au/companies/news/170282/sayona-mining-secures-funds-through-option-underwriting-agreement-170282.html
<![CDATA[News - Sayona Mining prepares for next phase of lithium drilling ]]> http://www.proactiveinvestors.com.au/companies/news/170078/sayona-mining-prepares-for-next-phase-of-lithium-drilling-170078.html Sayona Mining (ASX:SYA) has lodged drilling permits for the Phase II resource expansion drilling program at the Authier lithium project located in Quebec, Canada.

The company sees good potential to both expand the size of the existing resource and to optimise and improve the existing resource.

A diamond drilling program of up to 4,000 metres is planned to commence in early 2017.

This follows the recent 68% expansion of Authier’s contained lithium resource to 13.74 million tonnes grading 1.07% lithium oxide for 147,600 tonnes of contained lithium.

Importantly, the next phase of drilling will aim to define the size and grade of the recently discovered high-grade northern pegmatite and explore for additional pegmatites.


Phase II drill program

The drilling program has been designed with three aims:

- To improve the overall quality and expand on the size of its JORC resource;
- Assess the resource potential of the newly discovered pegmatite; and
- Locate additional lithium mineralised pegmatites.

The project now has nearly 19,000 metres of diamond drilling in 141 holes.

Sayona’s plan is to increase the size and confidence levels of the resource and to study the merits of an expansion and/or the value adding potential of the project beyond what has been studied in the current pre-feasibility study which is nearing completion.


Authier lithium project

Sayona purchased the Authier lithium project comprising 19 mineral claims totalling 653 hectares for CAD$4 million during 2016.

Authier is a near-term development project and cash-flow generation opportunity for the company.

The dimensions of the deposit drilled to date are 825 metres long, with an average thickness of 25 metres, ranging from 4 metres to 55 metres.

Future mining or mineral extraction of the Authier deposit will be by open cut mining methods using drilling and blasting, and a conventional truck and shovel operation.

The project is situated 45 kilometres north-west of the city of Val d’Or, a major mining service centre.

The project is easily accessed by a rural road network connecting to a national highway a few kilometres east of the project site.


Analysis

The second phase of drilling at Authier is significant for Sayona as it looks to grow the resource, which in turn has an opportunity to improve project economics.

The Authier deposit has been extensively drilled, is amenable to simple open cut mining and has a defined JORC resource with simple metallurgy.

The successful first phase of drilling has both expanded the lithium resource and shown that mineralisation remains open in all directions.

Furthermore, pegmatites generally occur in swarms and the company’s aim is to locate additional mineralised pegmatites in the area.

Sayona is working towards completing its pre-feasibility study in late 2016 which will assess the development potential of a simple, low strip ratio, open-cut mining operation and processing facility.

]]>
Wed, 07 Dec 2016 10:20:00 +1100 http://www.proactiveinvestors.com.au/companies/news/170078/sayona-mining-prepares-for-next-phase-of-lithium-drilling-170078.html
<![CDATA[News - Sayona Mining Ltd significantly expands JORC lithium resource ]]> http://www.proactiveinvestors.com.au/companies/news/169369/sayona-mining-ltd-significantly-expands-jorc-lithium-resource-169369.html Sayona Mining Ltd (ASX:SYA) has expanded its JORC lithium resource to 13.74 million tonnes grading 1.07% lithium oxide at the Authier lithium project in Quebec, Canada.

The total contained lithium increased 68% to 146,700 tonnes and was a result of a successful 3,967 metre drilling campaign.

86% of the new resource estimate is in the Measured and Indicated categories.

Strong potential still exists to expand the resource and drilling is planned to commence in early 2017 for the definitive feasibility study.

Corey Nolan, CEO, commented: “The 2016 drilling program has significantly expanded the size of the Resource and improved the average grade of the deposit, especially at shallow levels which would be mined first in a future operation.”


Project details

Sayona purchased the Authier lithium project comprising 19 mineral claims totalling 653 hectares for CAD$4 million during 2016.

Authier is a near-term development project and cash-flow generation opportunity for the company.

The dimensions of the deposit drilled to date are 825 metres long, with an average thickness of 25 metres, ranging from 4 metres to 55 metres.

Future mining or mineral extraction of the Authier deposit will be by open cut mining methods using drilling and blasting, and a conventional truck and shovel operation.


Follow up drilling

Follow up drilling is being planned for early 2017 with the objectives, including:

- Defining the mineralised boundaries and lifting the resource categories in the western
sector that was not accessible during the summer months;
- Testing for mineralisation in the east and west strike extensions; and
- Assessing the resource potential of the new northern pegmatite.

Any new mineralisation defined within the new pegmatite is likely to fall within the main Authier open-cut pit shell.

Any new resources will significantly improve the waste to ore ratio in a future operation


Infrastructure access

The Authier project is situated 45 kilometres north-west of the city of Val d’Or, a major mining service centre.

The project is easily accessed by a rural road network connecting to a national highway a few kilometres east of the project site. 


Analysis

The Authier deposit has been extensively drilled, is amenable to simple open cut mining and has a defined JORC resource with simple metallurgy.

The phase 1 drill program at Authier comprised of 18 diamond holes and has successfully expanded the JORC lithium resource.

The mineralisation remains open in all directions.

Sayona is working towards completing its pre-feasibility study in late 2016 which will assess the development potential of a simple, low strip ratio, open-cut mining operation and processing facility.

Regarding metallurgical testing, a detailed program using 430 kilograms of drill core is underway.

The final stages of the program which incorporates locked cycle process testing of the Authier ore is nearing is nearing completion.

The company is also currently engaged with the local authorities to establish the permitting regime for Authier.

]]>
Wed, 23 Nov 2016 13:20:00 +1100 http://www.proactiveinvestors.com.au/companies/news/169369/sayona-mining-ltd-significantly-expands-jorc-lithium-resource-169369.html
<![CDATA[News - Sayona Mining Ltd receives final lithium assay results ]]> http://www.proactiveinvestors.com.au/companies/news/169105/sayona-mining-ltd-receives-final-lithium-assay-results-169105.html Sayona Mining Ltd (ASX:SYA) has received the final ten diamond drill results, which demonstrate potential to expand the resource at the Authier lithium project in Canada.

Six new drill holes have successfully tested the deep extensions of mineralisation at the main Authier pegmatite.

Four shallow holes at the Authier pegmatite will also be used to upgrade the resource categories from indicated to measured. 

Sayona believes the new drilling has the potential to expand the size of the existing JORC resource, and the mineralisation remains open in all directions.

More drilling is planned for early 2017.


Drill results

All diamond drill holes have intercepted high-grade spodumene mineralisation with the best  drilling intercepts including:

- 38 metres at 1.10% lithium oxide from 192 metres, including 23 metres at 1.35% lithium oxide;
- 46 metres at 1.26% lithium oxide from 135 metres including 24 metres at 1.62% lithium oxide; and
- 47 metres at 1.05% lithium oxide from 161 metres including 27 metres at 1.31% lithium oxide.

The final 10 holes were part of the phase 1 drill program comprising 3,960 metres of drilling in 18 diamond holes.


Background

Sayona recently completed the CAD$4 million acquisition of the Authier lithium project in Canada, which is a near-term development project and cash-flow generation opportunity for the company.

Sayona has paid CAD$4 million for a project that:
- Has been extensively drilled;
- Is a simple deposit amenable to open cut mining;
- Has a defined JORC resource with simple metallurgy; and
- Has good access to developed infrastructure.

The acquisition cost represents a valuation of $47 per tonne of lithium resource.

Sayona can unlock value by progressing this project further towards development.

Developing Authier is in the line with the company’s strategy to develop its lithium and graphite projects to provide raw materials for lithium-ion batteries.


Analysis

Assays from the phase 1 drill program at Sayona have confirmed the potential this drilling program has to expand the size of the existing JORC Resource.

They also supports the converting of existing resources to the higher confidence measured and indicated categories.

The resource definition drilling is expected to enhance the quality and scale of the resource that will be used in the pre-feasibility study due for completion late this quarter.

Once the pre-feasibility study is completed, the company plans the rapid completion of a bankable feasibility study, securing off-take agreements and project financing.

Any additional lithium resources found have the opportunity to improve project economics.

The Authier deposit is amenable to low cost, open cut mining.

News regarding the completion of the pre-feasibility study is expected in this quarter.

]]>
Thu, 17 Nov 2016 10:20:00 +1100 http://www.proactiveinvestors.com.au/companies/news/169105/sayona-mining-ltd-receives-final-lithium-assay-results-169105.html
<![CDATA[News - Sayona Mining Ltd receives strong interest for future lithium concentrate sales ]]> http://www.proactiveinvestors.com.au/companies/news/168969/sayona-mining-ltd-receives-strong-interest-for-future-lithium-concentrate-sales-168969.html Sayona Mining Ltd (ASX:SYA) has been exploring a number of options for selling or value-adding the spodumene concentrate that will be produced from a future operation at the Authier lithium project in Canada.

This includes direct sales of concentrate to converters that produce lithium products suitable for the global battery markets.

Strong demand for the lithium products has driven concentrate prices to record levels and the company has received strong interest for the supply of new concentrates to the market.

In early November, Sayona attended a global lithium conference in China and held a number of discussions with interested parties seeking to establish long-term spodumene sales contracts.

The company is also actively evaluating value-adding opportunities in the downstream lithium sector such as producing lithium carbonate.


Lithium carbonate opportunity

Currently there is significant financial margins being achieved by the processing of spodumene concentrates into lithium carbonate.

Sayona is evaluating the technical and economic viability of building a lithium carbonate and/or hydroxide production conversion facility to enhance the project value, and improve the long-term competitive position of the project.

The Canadian state of Quebec is uniquely positioned with a number of significant commercial and market advantages.

Quebec has excellent infrastructure including globally competitive, low-cost gas and electricity prices, skilled labour, road and rail transport networks, a supportive government, and is in close proximity to the U.S markets including the Tesla Giga factory in Nevada.


Background

Sayona completed the CAD$4 million acquisition of the Authier lithium project in Canada, which is a near-term development project and cash-flow generation opportunity for the company.

Sayona paid CAD$4 million for a project that:

- Has been extensively drilled;
- Is a simple deposit amenable to open cut mining;
- Has a defined JORC resource with simple metallurgy; and
- Has good access to developed infrastructure.

The acquisition cost represents a valuation of $47 per tonne of lithium resource.

Since its acquisition, the phase 1 drill program at Authier has been completed and comprised 3,960 metres of drilling in 18 diamond holes.

The latest drill hole, hole 10, assayed 7 metres at 1.36% lithium oxide from 15 metres depth including 2 metres at 2.24% lithium oxide.


Next steps

Sayona is working towards completing its pre-feasibility study in 2016 which will assess the development potential of a simple, low strip ratio, open-cut mining operation and processing facility.

It will also incorporate an updated JORC Resource estimate.

Regarding metallurgical testing, a detailed program using 430 kilograms of drill core is underway.

The final stages of the program which incorporates locked cycle process testing of the Authier ore is nearing is nearing completion.

The company is also currently engaged with the local authorities to establish the permitting regime for Authier.

]]>
Tue, 15 Nov 2016 11:20:00 +1100 http://www.proactiveinvestors.com.au/companies/news/168969/sayona-mining-ltd-receives-strong-interest-for-future-lithium-concentrate-sales-168969.html
<![CDATA[News - Sayona Mining Ltd receives assays from newly discovered pegmatite ]]> http://www.proactiveinvestors.com.au/companies/news/168651/sayona-mining-ltd-receives-assays-from-newly-discovered-pegmatite-168651.html Sayona Mining Ltd (ASX:SYA) has received assays measuring 7 metres at 1.36% lithium oxide from a hidden pegmatite discovered at the Authier lithium project in Canada during the October drilling campaign.

The pegmatite is not visible from surface and was discovered in a step-back drill hole targeting deeper mineralisation.

Further drilling is required to test the extent of the new pegmatite system.

Corey Nolan, CEO, commented: “The new discovery highlights the potential for identifying new high-grade pegmatites within the Authier tenement package which remains largely under explored outside the main pegmatite resource.

“Drilling to test the potential of the new pegmatite is planned in early 2017.”


Background

Sayona recently completed the CAD$4 million acquisition of the Authier lithium project in Canada, which is a near-term development project and cash-flow generation opportunity for the company.

Sayona has paid CAD$4 million for a project that:

- Has been extensively drilled;
- Is a simple deposit amenable to open cut mining;
- Has a defined JORC resource with simple metallurgy; and
- Has good access to developed infrastructure.

The acquisition cost represents a valuation of $47 per tonne of lithium resource.

Sayona can unlock value by progressing this project further towards development.

Developing Authier is in the line with the company’s strategy to develop its lithium and graphite projects to provide raw materials for lithium-ion batteries.


Phase 1 drill program

The phase 1 drill program at Authier is now complete and comprised 3,960 metres of drilling in 18 diamond holes.

The latest drill hole, hole 10, discovered 7 metres at 1.36% lithium oxide from 15 metres depth including 2 metres at 2.24% lithium oxide.

The assay comes from a recently discovered second pegmatite body, located 400 metres north of the Authier pegmatite.

The new pegmatite was discovered in a step-back drill hole targeting deeper mineralisation in the eastern zone of the Authier main pegmatite.

The new pegmatite, not visible from the surface, was intersected at shallow levels between 15 metres to 22 metres downhole depth.


Analysis

Assays from hole 10 confirm lithium mineralisation in a previously unknown pegmatite 400 metres from the main Authier pegmatite.

Drill results from the phase 1 drilling campaign continue to confirm the potential this drilling program has to expand the size of the existing JORC Resource.

It also supports the converting of existing resources to the higher confidence measured and indicated categories.

The resource definition drilling is expected to enhance the quality and scale of the resource that will be used in the pre-feasibility study due for completion late this quarter.

Once the pre-feasibility study is completed, the company plans the rapid completion of a bankable feasibility study, securing off-take agreements and project financing.

Any additional lithium resources found have the opportunity to improve project economics.

The Authier deposit is amenable to low cost, open cut mining.

News flow is expected regarding drilling assays from the remaining completed holes.

]]>
Tue, 08 Nov 2016 10:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/168651/sayona-mining-ltd-receives-assays-from-newly-discovered-pegmatite-168651.html
<![CDATA[News - Sayona Mining Ltd gets the results it wanted from lithium drill assays ]]> http://www.proactiveinvestors.com.au/companies/news/168442/sayona-mining-ltd-gets-the-results-it-wanted-from-lithium-drill-assays-168442.html Sayona Mining Ltd (ASX:SYA) has received assays from five diamond drill holes extending and upgrading the Authier lithium deposit located in Quebec, Canada.

The aim of the drilling program is to increase the size of the resource and improve the confidence level of the JORC resource categories.

Three of the holes successfully tested deep extensions of mineralisation at the main Authier pegmatite intersecting 50 metres at 1.13% lithium oxide.

The other two holes returned better grades and thicknesses compared to historical nearby holes.

Sayona believes the new drilling has the potential to expand the size of the existing JORC Resource, and mineralisation remains open in all directions.


Diamond drilling program

The phase 1 drill program at Authier is now complete and comprised 3,960 metres of drilling in 18 diamond holes.

Assays from a total of seven holes have now been received with results from the latest five hole including:

- 27 metres at 1.46% lithium oxide from 135 metres depth including 11 metres at 1.66% lithium oxide;
- 50 metres at 1.13% lithium oxide from 120 metres depth including 11 metres at 1.40% lithium oxide; and
- 40 metres at 1.27% lithium oxide from 3.8 metres depth including 20 metres at 1.47% lithium oxide.

Results follow the first two diamond holes which intersected 62 metres at 1.35% lithium oxide from 12 metres depth including 16 metres at 1.65% lithium oxide.

Drilling recently helped discover a second pegmatite body, located 400 metres north of the Authier pegmatite.


Background

Sayona recently completed the CAD$4 million acquisition of the Authier lithium project in Canada, which is a near-term development project and cash-flow generation opportunity for the company.

Sayona has paid CAD$4 million for a project that:
- Has been extensively drilled;
- Is a simple deposit amenable to open cut mining;
- Has a defined JORC resource with simple metallurgy; and
- Has good access to developed infrastructure.

The acquisition cost represents a valuation of $47 per tonne of lithium resource.

Sayona can unlock value by progressing this project further towards development.

Developing Authier is in the line with the company’s strategy to develop its lithium and graphite projects to provide raw materials for lithium-ion batteries.


Analysis

This second set of drill results from the diamond program at Sayona further confirms the potential this drilling program has to expand the size of the existing JORC Resource.

It also supports the converting of existing resources to the higher confidence measured and indicated categories.

The resource definition drilling is expected to enhance the quality and scale of the resource that will be used in the pre-feasibility study due for completion late this quarter.

Once the pre-feasibility study is completed, the company plans the rapid completion of a bankable feasibility study, securing off-take agreements and project financing.

Any additional lithium resources found have the opportunity to improve project economics.

The Authier deposit is amenable to low cost, open cut mining.

News flow is expected regarding drilling assays from the remaining completed holes.

]]>
Thu, 03 Nov 2016 11:20:00 +1100 http://www.proactiveinvestors.com.au/companies/news/168442/sayona-mining-ltd-gets-the-results-it-wanted-from-lithium-drill-assays-168442.html
<![CDATA[News - Sayona Mining Ltd hits more lithium in Canada ]]> http://www.proactiveinvestors.com.au/companies/news/167869/sayona-mining-ltd-hits-more-lithium-in-canada-167869.html Sayona Mining Ltd (ASX:SYA) has drilled a 40 metre thick zone of spodumene mineralisation at the Authier lithium project in Canada in a zone that was previously thought to be a gap in the lithium deposit.

Historical drilling has previously failed to intersect mineralisation within the middle to deep levels of the gap zone.

It was interpreted that the resource didn’t connect between the eastern and western zones of the deposit.

Spodumene mineralisation was visible throughout the intersection and interpreted as medium to high grade lithium.

Assays remain pending.


Background

Sayona recently completed the CAD$4 million acquisition of the Authier lithium project in Canada, which is a near-term development project and cash-flow generation opportunity for the company.

Sayona has paid CAD$4 million for a project that:
- Has been extensively drilled;
- Is a simple deposit amenable to open cut mining;
- Has a defined JORC resource with simple metallurgy; and
- Has good access to developed infrastructure.

The acquisition cost represents a valuation of $47 per tonne of lithium resource.

Sayona can unlock value by progressing this project further towards development.

Developing Authier is in the line with the company’s strategy to develop its lithium and graphite projects to provide raw materials for lithium-ion batteries.


Analysis

This latest drill hole has the opportunity to enhance the value of the project by adding additional resources to the current deposit.

The mineralisation within the zone is interpreted to extend 150 metres in strike length and down to 200 metres depth.

It will also likely simplify the mine plan and optimisation of the life-of-mine stripping ratio.

An additional drill hole within the western border of the gap zone is being drilled for resource definition purposes.

The company’s drilling objective is to significantly expand the size of the Authier JORC Resource and extend the mine life, and potentially the scale of a future operation.

A prefeasibility study is underway to study the technical and commercial viability of the base case development scenario, and is due for completion late in 2016.

Assays from first two diamond drill holes intersected:

- 62 metres at 1.35% lithium oxide from 12 metres depth including 16 metres at 1.65% lithium oxide; and
- 49 metres at 1.18% lithium oxide from 50 metres depth including 17 metres at 1.49% lithium oxide.

The 62-metre intersection is the longest intercept of spodumene mineralisation recorded in drilling at Authier.

News flow is expected with all other assays of completed holes still pending.

]]>
Tue, 25 Oct 2016 08:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/167869/sayona-mining-ltd-hits-more-lithium-in-canada-167869.html
<![CDATA[News - Sayona Mining hits 62 metres of lithium in Canada ]]> http://www.proactiveinvestors.com.au/companies/news/167804/sayona-mining-hits-62-metres-of-lithium-in-canada-167804.html This is the longest intercept of spodumene mineralisation recorded in drilling at Authier.

The current drilling program is demonstrating the potential to expand the size of the JORC Resource.

A new resource will be incorporated into the pre-feasibility study which is currently underway

Corey Nolan, chief executive officer, commented: “The company is very encouraged by the widths and high-grade nature of the mineralisation intersected in the drilling.

“The company believes the new drilling will have the potential to expand the size of the JORC resource at the completion of the program.”


Diamond drilling program

More than 3,300 metres of drilling has been completed in 16 diamond holes at Authier.

The aim of the drilling program is to increase the size of the resource and improve the confidence level of the JORC resource categories.

The first two diamond drill holes intersected:

- 62 metres at 1.35% lithium oxide from 12 metres depth including 16 metres at 1.65% lithium oxide; and
- 49 metres at 1.18% lithium oxide from 50 metres depth including 17 metres at 1.49% lithium oxide.

Drilling recently helped discover a second pegmatite body, located 400 metres north of the Authier pegmatite.


Background

Sayona recently completed the CAD$4 million acquisition of the Authier lithium project in Canada, which is a near-term development project and cash-flow generation opportunity for the company.

Sayona has paid CAD$4 million for a project that:
- Has been extensively drilled;
- Is a simple deposit amenable to open cut mining;
- Has a defined JORC resource with simple metallurgy; and
- Has good access to developed infrastructure.

The acquisition cost represents a valuation of $47 per tonne of lithium resource.

Sayona can unlock value by progressing this project further towards development.

Developing Authier is in the line with the company’s strategy to develop its lithium and graphite projects to provide raw materials for lithium-ion batteries.


Analysis

The width and grade from the first two drill holes at Authier shows the potential the project as to be expanded with drilling.

While the drilling is focused on converting resources to the higher confidence measured and indicated categories, it will also explore for extensions to the existing mineral resources.

The resource definition drilling is expected to enhance the quality and scale of the resource that will be used in the pre-feasibility study.

Once the pre-feasibility study is completed, the company plans the rapid completion of a bankable feasibility study, securing off-take agreements and project financing.

Any additional lithium resources found have the opportunity to improve project economics.

The Authier deposit is amenable to low cost, open cut mining.

News flow is expected regarding further drilling assays being received.

]]>
Mon, 24 Oct 2016 12:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/167804/sayona-mining-hits-62-metres-of-lithium-in-canada-167804.html
<![CDATA[News - Sayona Mining finds hidden pegmatite at Canadian lithium project ]]> http://www.proactiveinvestors.com.au/companies/news/167186/sayona-mining-finds-hidden-pegmatite-at-canadian-lithium-project-167186.html Sayona Mining Ltd (ASX:SYA) has discovered a new spodumene bearing pegmatite through drilling at the Authier lithium project in the Canadian state of Quebec.

The new pegmatite, not visible from the surface, was intersected at shallow levels between 15 metres to 21 metres downhole depth.

It contained visible spodumene mineralisation.

The new discovery highlights the potential for identifying new pegmatites within the Authier tenement package which remains under explored outside the main pegmatite resource.

The new pegmatite is located 400 metres north of the main pegmatite resource.

The company has now completed ten drill holes totalling 2,000 metres and samples from the first seven holes have been sent to the laboratory for analysis.


Background

Sayona recently completed the CAD$4 million acquisition of the Authier lithium project in Canada, which is a near-term development project and cash-flow generation opportunity for the company.

Sayona has paid CAD$4 million for a project that:

- Has been extensively drilled;
- Is a simple deposit amenable to open cut mining;
- Has a defined JORC resource with simple metallurgy; and
- Has good access to developed infrastructure.

The acquisition cost represents a valuation of $47 per tonne of lithium resource.

Sayona can unlock value by progressing this project further towards development.

Developing Authier is in the line with the company’s strategy to develop its lithium and graphite projects to provide raw materials for lithium-ion batteries.


Drill program details

During September, Sayona commenced a highly anticipated diamond drilling program of between 5,000 to 6,000 metres at the Authier lithium project.

The drilling is focused on converting resources to the higher confidence measured and indicated categories, while increasing the drill density to convert mineral resources to reserves.

The program will also explore for extensions to the existing mineral resources and other potential mineralisation within the tenement package.

The resource definition drilling is expected to enhance the quality and scale of the resource that will be used in the pre-feasibility study.

Once the pre-feasibility study is completed, the company plans the rapid completion of a bankable feasibility study, securing off-take agreements and project financing.

]]>
Tue, 11 Oct 2016 11:57:00 +1100 http://www.proactiveinvestors.com.au/companies/news/167186/sayona-mining-finds-hidden-pegmatite-at-canadian-lithium-project-167186.html
<![CDATA[News - Sayona Mining Ltd spins the diamond rig at Authier lithium ]]> http://www.proactiveinvestors.com.au/companies/news/165276/sayona-mining-ltd-spins-the-diamond-rig-at-authier-lithium-70923.html Sayona Mining Ltd (ASX:SYA) has now commenced a highly anticipated diamond drilling program of between 5,000 to 6,000 metres at the Authier lithium project, Quebec, Canada.

Authier was recently acquired by Sayona and is a near-term development project and cash-flow generation opportunity for the company.

The drilling is focused on converting resources to the higher confidence measured and indicated categories, while increasing the drill density to convert mineral resources to reserves.

The program will also explore for extensions to the existing mineral resources and other potential mineralisation within the tenement package.

Corey Nolan, chief executive officer, commented:

"The resource definition drilling is expected to enhance the quality and scale of the resource that will be used in the Pre-Feasibility Study.

"Once the Pre-Feasibility Study is completed, the company plans the rapid completion of a Bankable Feasibility Study, securing off-take agreements and project financing."


Drilling benefits

Additional drilling benefits include:

- Collecting geotechnical and hydrological data for incorporation in the Authier Feasibility Studies; and

- Collecting additional drill core for any additional metallurgical testing that may
be required to complete a Bankable Feasibility study, planned for 2017.


Background

Sayona recently completed the CAD$4 million acquisition of the Authier lithium project in Canada, which is a near-term development project and cash-flow generation opportunity for the company.

Sayona has paid CAD$4 million for a project that:

- Has been extensively drilled;
- Is a simple deposit amenable to open cut mining;
- Has a defined JORC resource with simple metallurgy; and
- Has good access to developed infrastructure.

The acquisition cost represents a valuation of $47 per tonne of lithium resource.

Sayona can unlock value by progressing this project further towards development.

Developing Authier is in the line with the company’s strategy to develop its lithium and graphite projects to provide raw materials for lithium-ion batteries.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 08 Sep 2016 10:50:00 +1000 http://www.proactiveinvestors.com.au/companies/news/165276/sayona-mining-ltd-spins-the-diamond-rig-at-authier-lithium-70923.html
<![CDATA[News - Sayona Mining Ltd's Corey Nolan talks lithium drilling at Spotlight CEO Sessions ]]> http://www.proactiveinvestors.com.au/companies/news/165275/sayona-mining-ltds-corey-nolan-talks-lithium-drilling-at-spotlight-ceo-sessions-70812.html Sayona Mining Ltd's (ASX:SYA) chief executive officer, Corey Nolan, joined Proactive's Spotlight CEO Investor Sessions in Melbourne and Sydney this week, outlining the company's lithium strategy to investors.

Sayona has been granted a drilling permit for a 5,000-6,000 metre diamond drill program to commence in September at the Authier lithium project located in Quebec, Canada.

Authier was recently acquired by Sayona and is a near-term development project and cash-flow generation opportunity for the company.

The drilling aims to upgrade the current JORC resource and explore for extensions and other potential mineralisation.

 

ACCESS THE FULL PRESENTATION HERE

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Fri, 02 Sep 2016 17:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/165275/sayona-mining-ltds-corey-nolan-talks-lithium-drilling-at-spotlight-ceo-sessions-70812.html
<![CDATA[News - Sayona Mining Ltd gets green light for drilling at Authier lithium project ]]> http://www.proactiveinvestors.com.au/companies/news/165274/sayona-mining-ltd-gets-green-light-for-drilling-at-authier-lithium-project-70671.html Sayona Mining Ltd (ASX:SYA) has been granted a drilling permit for a 5,000-6,000 metre diamond drill program to commence in September at the Authier lithium project located in Quebec, Canada.

Authier was recently acquired by Sayona and is a near-term development project and cash-flow generation opportunity for the company.

The drilling aims to upgrade the current JORC resource and explore for extensions and other potential mineralisation.

Drilling will commence once track clearing is complete.

Corey Nolan, CEO, commented: “The resource definition drilling is expected to enhance the quality and scale of the resource that will be used in the pre-feasibility study.

“Once the pre-feasibility study is completed, the company plans the rapid completion of a bankable feasibility study, securing off-take agreements and project financing.”


Diamond drill program

The drilling program has been designed to improve the overall quality and expand on the size of its existing JORC 2012 compliant Mineral Resource estimate.

The project has more than 15,000 metres of historical diamond drilling in 123 holes, and 2,143 assay samples.

The aim of the drilling program, includes:

- Converting the inferred mineral resources to measured and indicated through further drilling;
- Increasing the drill density to convert mineral resources to reserves;
- Exploring for extensions to the existing mineral resources and other potential mineralisation within the tenement package;
- Collecting geotechnical and hydrological data for incorporation in the Authier feasibility studies; and
- Collecting additional drill core for any additional metallurgical testing that may be required to complete a bankable feasibility study, planned for 2017.


Background

Sayona recently completed the CAD$4 million acquisition of the Authier lithium project in Canada, which is a near-term development project and cash-flow generation opportunity for the company.

Sayona has paid CAD$4 million for a project that:

- Has been extensively drilled;
- Is a simple deposit amenable to open cut mining;
- Has a defined JORC resource with simple metallurgy; and
- Has good access to developed infrastructure.

The acquisition cost represents a valuation of $47 per tonne of lithium resource.

Sayona can unlock value by progressing this project further towards development.

Current lithium resource developers such as Altura Mining Ltd (ASX:AJM) and Pilbara Minerals Ltd (ASX:PLS) are valued at circa $600 per tonne lithium and lithium producer Galaxy is valued at $1,457 per tonne lithium.

Developing Authier is in the line with the company’s strategy to develop its lithium and graphite projects to provide raw materials for lithium-ion batteries.


Analysis

The drilling program at Authier will both progress the development of the project by aiding the completion of the pre-feasibility study; and leverage Sayona to exploration upside.

The completion of the recently commenced pre-feasibility study is an important milestone in taking the Authier project into lithium production.

Furthermore, while the drilling will be upgrading the definition of the JORC Resource, it will also be probing for new mineralisation which has the potential to be a catalyst for Sayona.

Any additional lithium resources found have the opportunity to improve project economics.

The Authier deposit is amenable to low cost, open cut mining.

News flow is expected regarding the commencement of drilling and assays received.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Thu, 25 Aug 2016 12:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/165274/sayona-mining-ltd-gets-green-light-for-drilling-at-authier-lithium-project-70671.html
<![CDATA[News - Sayona Mining Ltd takes another step to advance Authier lithium project ]]> http://www.proactiveinvestors.com.au/companies/news/165273/sayona-mining-ltd-takes-another-step-to-advance-authier-lithium-project-70621.html Sayona Mining Ltd (ASX:SYA) has commenced a metallurgical testing program at its recently acquired Authier lithium project in Quebec, Canada.

Testwork will use 410 kilograms of drill core available from historical drilling.

The primary focus of the program is to demonstrate whether Authier spodumene ore is amenable to concentration using dense media separation (DMS).

A lithium concentrate produced using DMS methods has a number of advantages including, cost reductions, being chemical-free and faster processing leading to nearer cash flows.

Results will be incorporated into a new flow sheet design and the pre-feasibility study.


Previous metallurgy work

Authier has been the subject of two metallurgical test work programs in 1999 and 2012.

In 2012, testing of a 270 kilogram composite sample achieved attractive results including an 88% metallurgical recovery to a 6.09% lithium superoxide concentrate.

The results of the program were used to design a conventional process flowsheet incorporating crush, grind and flotation for the 2013, Authier NI43-101 preliminary economic assessment.

The flowsheet contemplated the processing of 2,200 tonnes of ore per day at 85% metallurgical recovery to produce a 6% lithium superoxide spodumene concentrate.


Background

Sayona recently completed the CAD$4 million acquisition of the Authier lithium project in Canada, which is a near-term development project and cash-flow generation opportunity for the company.

Sayona has paid CAD$4 million for a project that:

- Has been extensively drilled;
- Is a simple deposit amenable to open cut mining;
- Has a defined JORC resource with simple metallurgy; and
- Has good access to developed infrastructure.

The acquisition cost represents a valuation of $47 per tonne of lithium resource.

Sayona can unlock value by progressing this project further towards development.

Current lithium resource developers such as Altura Mining Ltd (ASX:AJM) and Pilbara Minerals Ltd (ASX:PLS) are valued at circa $600 per tonne lithium and lithium producer Galaxy is valued at $1,457 per tonne lithium.

Developing Authier is in the line with the company’s strategy to develop its lithium and graphite projects to provide raw materials for lithium-ion batteries.


Analysis

The advanced metallurgical testing program will be incorporated into the pre-feasibility study which is a key milestone in Sayona’s development of Authier.

The pre-feasibility study will then allow Sayona to progress further towards production by completing a definitive feasibility study, mining licence applications and offtake contracts.

If Sayona can demonstrate that Authier ore can be processed successfully using DMS, this will have positive effects on project economics and feasibility.

DMS concentrate can be sold without further processing, shortening the lead time to generate first cash flows.

Furthermore, using DMS would reduce plant size and capital expenditure as well as reduce the consumption of reagents and power in the flotation and grinding circuits.

The Authier deposit is amenable to low cost, open cut mining.

On completion of the pre-feasibility study, the company plans to progress towards completing a definitive feasibility study, mining licence applications, and product offtake contracts.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Tue, 23 Aug 2016 13:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/165273/sayona-mining-ltd-takes-another-step-to-advance-authier-lithium-project-70621.html
<![CDATA[News - Sayona Mining Ltd brings Authier lithium project to light at Spotlight CEO Sessions ]]> http://www.proactiveinvestors.com.au/companies/news/165272/sayona-mining-ltd-brings-authier-lithium-project-to-light-at-spotlight-ceo-sessions-70519.html Sayona Mining Ltd (ASX:SYA) recently completed the CAD$4 million acquisition of the Authier lithium project in Canada, which is a near-term development project and cash-flow generation opportunity for the company.

Sayona has paid CAD$4 million for a project that:

- Has been extensively drilled;
- Is a simple deposit amenable to open cut mining;
- Has a defined JORC resource with simple metallurgy; and
- Has good access to developed infrastructure.

The acquisition cost represents a valuation of $47 per tonne of lithium resource.

Sayona can unlock value by progressing this project further towards development.

Current lithium resource developers such as Altura Mining Ltd (ASX:AJM) and Pilbara Minerals Ltd (ASX:PLS) are valued at circa $600 per tonne lithium and lithium producer Galaxy is valued at $1,457 per tonne lithium.

Developing Authier is in the line with the company’s strategy to develop its lithium and graphite projects to provide raw materials for lithium-ion batteries.

Find out more from Corey Nolan, managing director, at Proactive's Spotlight CEO Sessions in Melbourne and Sydney in August 2016.

REGISTER HERE

Melbourne Investor Sessions, Tuesday, 30th August 2016

Sydney Investor Sessions, Wednesday, 31st August 2016


Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Mon, 22 Aug 2016 14:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/165272/sayona-mining-ltd-brings-authier-lithium-project-to-light-at-spotlight-ceo-sessions-70519.html
<![CDATA[News - Sayona Mining Ltd's portfolio to focus on Authier lithium ]]> http://www.proactiveinvestors.com.au/companies/news/165271/sayona-mining-ltds-portfolio-to-focus-on-authier-lithium-70474.html Sayona Mining Ltd (ASX:SYA) will put all of its focus and energy into the Authier lithium project located in Quebec, Canada.

The upcoming work program will include a metallurgical study, a process engineering study, a resource definition and extension drilling program and preparation of a pre-feasibility study.

Sayona has advised that it will not renew an option to acquire the Itabela graphite project.

Corey Nolan, chief executive officer, commented:

"The company’s strategy is to invest in projects which it believes generate the highest return to shareholders.

"Our primary focus is now on the development of the Authier lithium project and identifying strategies for realising value from our other project interests."

Sayona continues to hold an exposure to the graphite sector through its East Kimberley project in Western Australia.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Tue, 16 Aug 2016 13:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/165271/sayona-mining-ltds-portfolio-to-focus-on-authier-lithium-70474.html
<![CDATA[News - Sayona Mining Ltd completes retail component of raising ]]> http://www.proactiveinvestors.com.au/companies/news/165270/sayona-mining-ltd-completes-retail-component-of-raising-70463.html Sayona Mining Ltd (ASX:SYA) has completed the retail component of its 1 for 5 pro-rata accelerated non-renounceable entitlement offer.

The offer was priced at $0.027 per share and will include one free attaching option exercisable at $0.03 for every two new shares acquired.

Total applications were $436,915, with the shortfall of $559,801 placed to investors by the underwriter Bizzell Capital Partners Pty Ltd.

Already completed is the institutional component which raised $1,904,570, with Sayona entering into an agreement to undertake a further placement to raise up to $600,000.

Total proceeds including the placement would be circa $3.6 million.


Lithium in Canada

Sayona is commencing a new five month work program on the recently acquired Authier lithium project located in Quebec, Canada.

The upcoming work program will include a metallurgical study, a process engineering study, a resource definition and extension drilling program and preparation of a pre-feasibility study.


Authier lithium project

The Authier lithium project is located in the top tier mining jurisdiction of Quebec, Canada.

The Authier project has been subject to a number of historical drilling, metallurgical testing and technical studies including:

- Over 15,000 metres of drilling;
- Two metallurgical programs including a 40 tonnes bulk sample;
- a base-line environmental impact study; and
- A NI 43-101 technical report, preliminary economic assessment in 2013.

The company’s primary strategy is to focus on completing the studies required to commence the development of the project.

The project contains the Authier deposit with a JORC Resource Estimate of 9.12 million tonnes grading 0.96% lithium for 87,302 tonnes of lithium.

The deposit is 825 metres long, has an average width of 25 metres and dips to 200 metres depth, where the resource remains open.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

]]>
Tue, 16 Aug 2016 12:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/165270/sayona-mining-ltd-completes-retail-component-of-raising-70463.html
<![CDATA[News - Sayona Mining Ltd continues to advance recent lithium acquisition ]]> http://www.proactiveinvestors.com.au/companies/news/165269/sayona-mining-ltd-continues-to-advance-recent-lithium-acquisition-70437.html Sayona Mining Ltd (ASX:SYA) is commencing a new five month work program on the recently acquired Authier lithium project located in Quebec, Canada.

Sayona recently completed the CAD$4 million acquisition of Authier, which is a near-term development project and cash-flow generation opportunity for the company.

The upcoming work program will include a metallurgical study, a process engineering study, a resource definition and extension drilling program and preparation of a pre-feasibility study.

Corey Nolan, CEO, commented: “The new studies will provide important technical and financial information about the project for shareholders, and supporting discussions with potential off-takers, equipment suppliers, financiers and regulatory organisations.

“On completion of the pre-feasibility study, the company plans to progress towards completing a definitive feasibility study, mining licence applications, and product offtake contracts.”


Authier lithium project

The Authier lithium project is located in the top tier mining jurisdiction of Quebec, Canada.

The Authier project has been subject to a number of historical drilling, metallurgical testing and technical studies including:

- Over 15,000 metres of drilling;
- Two metallurgical programs including a 40 tonnes bulk sample;
- a base-line environmental impact study; and
- A NI 43-101 technical report, preliminary economic assessment in 2013.

The company’s primary strategy is to focus on completing the studies required to commence the development of the project.

The project contains the Authier deposit with a JORC Resource Estimate of 9.12 million tonnes grading 0.96% lithium for 87,302 tonnes of lithium.

The deposit is 825 metres long, has an average width of 25 metres and dips to 200 metres depth, where the resource remains open.


Background

Sayona is focused on sourcing and developing the raw materials required to construct lithium-ion batteries for use in the rapidly growing new and green technology sectors.

The company’s project portfolio consists of lithium and graphite projects in Australia, Canada and Brazil.

The portfolio consists of:

- Recently acquired Authier lithium project (Canada);
- Pilbara lithium project (Western Australia);
- Mt Edon lithium project (Western Australia);
- East Kimberley graphite project (Western Australia); and
- Itabela graphite project (Brazil).

Sayona most recently expanded its Pilbara lithium project through a new tenement application in the Moolyella district of the Pilbara region.

This new 61 square kilometre project area will increase the company’s total presence in the Pilbara region to 1,047 square kilometres.


Analysis

The five month work program commencing on Authier shows the company has set a path to completing a pre-feasibility study.

The pre-feasibility study will then allow Sayona to progress further towards production by completing a definitive feasibility study, mining licence applications and offtake contracts.

The Authier deposit is amenable to low cost, open cut mining.

Extensive metallurgy has already been completed achieving an 85% recover of 5-6% lithium concentrate using a conventional processing route.

The CAD$4 million acquisition cost represents a valuation of $47 per tonne of lithium resource.

Sayona can unlock value by progressing this project further towards development.

Current lithium resource developers such as Altura Mining Ltd (ASX:AJM) and Pilbara Minerals Ltd (ASX:PLS) are valued at circa $600 per tonne lithium and lithium producer Galaxy is valued at $1,457 per tonne lithium.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Mon, 15 Aug 2016 11:40:00 +1000 http://www.proactiveinvestors.com.au/companies/news/165269/sayona-mining-ltd-continues-to-advance-recent-lithium-acquisition-70437.html
<![CDATA[News - Sayona Mining Ltd expands lithium portfolio in Pilbara region ]]> http://www.proactiveinvestors.com.au/companies/news/165268/sayona-mining-ltd-expands-lithium-portfolio-in-pilbara-region-70348.html Sayona Mining Ltd (ASX:SYA) has made a new tenement application in the Moolyella district of the Pilbara region of Western Australia.

This new 61 square kilometre project area will increase the company’s total presence in the Pilbara region to 1,047 square kilometres.

The new project area has not been previously explored for lithium and is located within a district known for hosting spodumene bearing pegmatites.

Mapping and airborne magnetics indicate that lithium pegmatites in the known Moolyella Tin Field are associated with structures located within the new application.

These targets will be the focus of initial exploration.


Background

Sayona is focused on sourcing and developing the raw materials required to construct lithium-ion batteries for use in the rapidly growing new and green technology sectors.

The company’s project portfolio consists of lithium and graphite projects in Australia, Canada and Brazil.

The portfolio consists of:

- Recently acquired Authier lithium project (Canada);
- Pilbara lithium project (Western Australia);
- Mt Edon lithium project (Western Australia);
- East Kimberley graphite project (Western Australia); and
- Itabela graphite project (Brazil).


June quarter highlights

During the June quarter, Sayona completed the acquisition of the Authier lithium project for CAD$4 million.

Lithium exploration in Western Australia also commenced with rock samples, soil samples and stream samples.

At the Mt Edon lithium project, over 70 pegmatites were identified over a 4 kilometre zone.

A total of 95 rock samples were collected and returned assays up to 1.57% lithium.

Sayona also completed its maiden drill program at Itabela drilling 49 holes for 2,440 metres, highlights include:

- 77 metres at 2.9% total graphitic content from 7 metres;
- 26 metres at 4.01% total graphitic content; and
- 43 metres at 3.14% total graphitic content.


Authier lithium acquisition

Sayona recently completed the CAD$4 million acquisition of the Authier lithium project located in the top tier mining jurisdiction of Quebec, Canada.

The company’s primary strategy is to focus on completing the studies required to commence the development of the project.

Authier is a near-term development project and cash-flow generation opportunity.

The project contains the Authier deposit with a JORC Resource Estimate of 9.12 million tonnes grading 0.96% lithium for 87,302 tonnes of lithium.

The deposit is 825 metres long, has an average width of 25 metres and dips to 200 metres depth, where the resource remains open.

The deposit is amenable to low cost, open cut mining.

Extensive metallurgy has been completed achieving an 85% recover of 5-6% lithium concentrate using a conventional processing route.

The acquisition cost represents a valuation of $47 per tonne of lithium resource.

Sayona can unlock value by progressing this project further towards development.

Current lithium resource developers such as Altura Mining Ltd (ASX:AJM) and Pilbara Minerals Ltd (ASX:PLS) are valued at circa $600 per tonne lithium and lithium producer Galaxy is valued at $1,457 per tonne lithium.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

]]>
Wed, 10 Aug 2016 08:40:00 +1000 http://www.proactiveinvestors.com.au/companies/news/165268/sayona-mining-ltd-expands-lithium-portfolio-in-pilbara-region-70348.html
<![CDATA[News - Sayona Mining Ltd completes acquisition of Authier lithium in Canada ]]> http://www.proactiveinvestors.com.au/companies/news/143759/sayona-mining-ltd-completes-acquisition-of-authier-lithium-in-canada-69957.html Sayona Mining Ltd (ASX:SYA) has completed the CAD$4 million acquisition of the Authier lithium project located in the top tier mining jurisdiction of Quebec, Canada.

The company’s primary strategy is to focus on completing the studies required to commence the development of the project.

Authier is a near-term development project and cash-flow generation opportunity.

Corey Nolan, CEO, commented: “The company is pleased to have completed the acquisition of an advanced lithium project with JORC resources.

“The company is now preparing for the rapid completion of a pre-feasibility study, a final campaign of resource definition drilling required to complete a Bankable Feasibility Study and securing off-take for the spodumene concentrate”


Authier lithium project

The Authier project is located in Quebec, Canada, which hosts a well-developed mining industry and a number of large high-grade lithium deposits.

The project contains the Authier deposit with a JORC Resource Estimate of 9.12 million tonnes grading 0.96% lithium for 87,302 tonnes of lithium.

The deposit is 825 metres long, has an average width of 25 metres and dips to 200 metres depth, where the resource remains open.

The deposit is amenable to low cost, open cut mining.

Extensive metallurgy has been completed achieving an 85% recover of 5-6% lithium concentrate using a conventional processing route.


Authier next steps

Sayona’s strategy is to develop Authier in a staged approach, including:

- Completion of further metallurgical testing for an updated pre-feasibility study;
- Converting inferred mineral resources to measured and indicated through drilling;
- Converting mineral resources to reserves;
- Exploring for extensions to existing mineral resources and additional regional mineralisation;
- Consolidating other potential resources in the district;
- Studying options for improving the project economics, including cost reduction, metallurgical optimisation and downstream processing options;
- Completion of an environmental impact statement and bankable feasibility study;
- Negotiating production off-take agreements; and
- Sourcing development finance and constructing the project.


Unlocking value

Sayona has paid CAD$4 million for a project that:

- Has been extensively drilled;
- Is a simple deposit amenable to open cut mining;
- Has a defined JORC resource with simple metallurgy; and
- Has good access to developed infrastructure.

The acquisition cost represents a valuation of $47 per tonne of lithium resource.

Sayona can unlock value by progressing this project further towards development.

Current lithium resource developers such as Altura Mining Ltd (ASX:AJM) and Pilbara Minerals Ltd (ASX:PLS) are valued at circa $600 per tonne lithium and lithium producer Galaxy is valued at $1,457 per tonne lithium.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 21 Jul 2016 10:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/143759/sayona-mining-ltd-completes-acquisition-of-authier-lithium-in-canada-69957.html
<![CDATA[News - Sayona Mining Ltd secures funds for lithium acquisition in Canada ]]> http://www.proactiveinvestors.com.au/companies/news/143756/sayona-mining-ltd-secures-funds-for-lithium-acquisition-in-canada-69913.html Sayona Mining Ltd (ASX:SYA) has successfully completed the accelerated institutional rights issue component of its $7.1 million capital raising.

The successful completion of the rights issue means that Sayona will have the required funds to proceed with the acquisition of the Authier lithium project in Canada.

The total $7.1 million capital raising consists of a completed $4.2 million placement and a partially complete $2.9 million rights issue.

The rights issue consists of a $1.9 million accelerated component, now complete, and a $1 million retail component in progress.

The $2.9 million rights issue component of the capital raising is fully underwritten.


Use of funds

Funding will be used for:

- The CAD$4 million acquisition of Authier;
- Feasibility work on Authier;
- Exploration of Australian projects; and
- Administration and working capital expenses.


Authier lithium acquisition

The Authier project is located in Quebec, Canada, which hosts a well-developed mining industry and a number of large high-grade lithium deposits.

The project contains the Authier deposit with a JORC Resource Estimate of 9.12 million tonnes grading 0.96% lithium for 87,302 tonnes of lithium.

The deposit is 825 metres long, has an average width of 25 metres and dips to 200 metres depth, where the resource remains open.

The deposit is amenable to low cost, open cut mining.

Extensive metallurgy has been completed achieving an 85% recover of 5-6% lithium concentrate using a conventional processing route.


Next steps

The key milestones for the Authier deposit include:

- Finalise pre-feasibility study;
- Convert resources to reserves through drilling;
- Explore and drill for extensions to known mineralisation;
- Complete a bankable feasibility study;
- Negotiate off-take and financing; and
- Proceed with construction and operation.


Value opportunity

The CAD$4 million acquisition cost represents a valuation of $47 per tonne for Authier.

Current lithium resource developers such as Altura Mining Ltd (ASX:AJM) and Pilbara Minerals Ltd (ASX:PLS) are valued at circa $600 per tonne lithium and lithium producer Galaxy is valued at $1,457 per tonne lithium.


Infrastructure

Authier is located in a major mining district with well-established development infrastructure.

It is located 50 kilometres by road to the Quebec lithium plant.

The project has access to low cost hydro power, road, rail and an experienced local mining workforce.


Analysis

The successful acquisition of Authier will transform Sayona into an established ASX lithium player.

Due to the advanced stage of the lithium project, the acquisition of Authier will progress Sayona directly to the appraisal stage of project development.

The acquisition leverages Sayona to a lithium project with near term development and cash flow potential.

A significant value proposition exists due to the low $47 per tonne purchase price valuation and the opportunity for uplift through progressing the project to the development stage.

This purchase will see Sayona avoid expenditures for already completed exploration, drilling, metallurgy and studies. A total of 123 holes for 15,000 metres have been drilled at Authier.

The project is located in a world class mining jurisdiction with access to developed infrastructure.


Background

The Authier acquisition will complement Sayona’s current portfolio of lithium and graphite exploration projects.

This supports the company’s objective of sourcing and developing raw materials required for lithium-ion batteries.

Sayona entered the lithium space by compiling 843 square kilometres of exploration tenure in Western Australia.

The majority of this tenure is in the Pilbara region.

Sayona also owns two graphite projects, the East Kimberley project in Western Australia and Itabela project in Brazil.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 20 Jul 2016 08:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/143756/sayona-mining-ltd-secures-funds-for-lithium-acquisition-in-canada-69913.html
<![CDATA[News - Sayona Mining Ltd to lift cash position for Canadian lithium ]]> http://www.proactiveinvestors.com.au/companies/news/143754/sayona-mining-ltd-to-lift-cash-position-for-canadian-lithium-69792.html Sayona Mining Ltd (ASX:SYA) has been granted a trading halt (2+2) by the ASX, pending details of a capital raising.

Sayona recently dialled into lithium in Quebec, Canada, which is host to a number of large high-grade lithium deposits.

The halt will remain in place until the opening of trade on Tuesday 19th July 2016, or earlier if an announcement is made to the market.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 13 Jul 2016 16:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/143754/sayona-mining-ltd-to-lift-cash-position-for-canadian-lithium-69792.html
<![CDATA[News - Sayona Mining Ltd swoops on Canadian lithium assets ]]> http://www.proactiveinvestors.com.au/companies/news/143752/sayona-mining-ltd-swoops-on-canadian-lithium-assets-68409.html Sayona Mining Ltd’s (ASX:SYA) share price has surged after signing a binding agreement with Glen Eagle Resources (CVE:GER) to acquire the Authier lithium deposit in Quebec, Canada for CAD$4 million (A$4.15 million).

The acquisition of Authier, which will be finalised after a 60-day due diligence period, represents an optimal fit with Sayona’s strategy of identifying and developing lithium focused projects.

The Authier project is situated near the city of Val d’Or, a major mining service centre in Quebec and situated close to a national highway a few kilometres east of the project site.

Authier is an 825 metres long deposit with an average thickness of 25 metres, hosting spodumene-bearing pegmatite intrusions amenable to low-cost, open-cut mining techniques.

The project has witnessed significant investment in drilling, geophysics and development studies which has estimated Canadian measured and indicated resources totalling 74,000 tonnes of contained Li20.

Glen Eagle had produced a preliminary economic assessment in 2013 demonstrating the technical and commercial viability of developing the Authier deposit.

This bodes well for Sayona as the fundamentals for lithium have improved significantly since 2013.

Lithium is a high-value product which is anticipated to be in tight supply as the demand for lithium-ion batteries continues to experience transformational growth due to use in the new green technology sectors.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Tue, 03 May 2016 13:45:00 +1000 http://www.proactiveinvestors.com.au/companies/news/143752/sayona-mining-ltd-swoops-on-canadian-lithium-assets-68409.html
<![CDATA[News - Sayona Mining Ltd adds to lithium portfolio in Western Australia ]]> http://www.proactiveinvestors.com.au/companies/news/143750/sayona-mining-ltd-adds-to-lithium-portfolio-in-western-australia-68011.html Sayona Mining Ltd (ASX:SYA) is advancing its lithium exploration portfolio with a new application of 140 square kilometres at Cooglegong, covering the northern part of the Shaw River tin field in the Pilbara district of Western Australia.

The project has never previously been explored for lithium but host to prospective albite pegmatites.

The Shaw River tin field covers an area of historic tin mining and is host to numerous pegmatites of albite composition. Tantalum is also reported from the area, indicating the potential presence of rare metal pegmatites containing lithium.

The company is exploring the project for its potential to host the albite – spodumene class of rare metal pegmatite and is developing a range of methodologies to efficiently test the large Pilbara regional project area.

Sayona is primarily engaged in pursuing     graphite resources, but has recently started lithium exploration.

The company owns granted tenement applications totalling 764 square kilometres in the Pilbara region, and 843 square kilometres in Western Australia.

Lithium is a high-value product which is anticipated to be in tight supply as the demand for lithium-ion batteries continues to experience transformational growth due to use in the new green technology sectors.

Sayona’s share price has increased by about 65% since the start of 2016.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 12 Apr 2016 14:15:00 +1000 http://www.proactiveinvestors.com.au/companies/news/143750/sayona-mining-ltd-adds-to-lithium-portfolio-in-western-australia-68011.html
<![CDATA[News - DiamonEx says court confirms Diamonex Botswana creditor protection ]]> http://www.proactiveinvestors.com.au/companies/news/143748/diamonex-says-court-confirms-diamonex-botswana-creditor-protection-1126.html
The sale of the majority interest in Diamonex Botswana is proceeding. ]]>
Mon, 30 Mar 2009 17:51:00 +1100 http://www.proactiveinvestors.com.au/companies/news/143748/diamonex-says-court-confirms-diamonex-botswana-creditor-protection-1126.html
<![CDATA[News - DiamonEx shares remain suspended until company confirms plans for the future ]]> http://www.proactiveinvestors.com.au/companies/news/143745/diamonex-shares-remain-suspended-until-company-confirms-plans-for-the-future-0937.html
At the end of January 2009, DiamonEx requested a trading halt pending confirmation of the status of its Botswana diamond producing operations.

Diamonex Botswana remains under the Judicial Management Order under which it was placed in January. A further hearing regarding the order has been set down by the court for
Friday, March 27 2009.

DiamonEx will update the market once further detail of the plans regarding Diamonex Botswana have been set by the judicial manager and agreement reached with its lenders.


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Mon, 02 Mar 2009 00:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/143745/diamonex-shares-remain-suspended-until-company-confirms-plans-for-the-future-0937.html
<![CDATA[News - Diamonex requests trading halt ]]> http://www.proactiveinvestors.com.au/companies/news/143741/diamonex-requests-trading-halt-0704.html Diamonex (ASX:DON) has requested a trading halt in its shares pending confirmation of the status of Diamonex's Botswana diamond producing operations.

The diamond industry is in a trough. Worldwide, cutting and polishing companies are reporting losses of up to 30 percent,

In the United States, which consumes 50 percent of finished diamond jewellery, is caught in a debt trap of income–to–debt ratio of 1:140 percent, together with Japan, which closely follows at 19 percent.

“Demand, for diamonds, the Botswana's major source of foreign currency, has also been weakened by the current financial crisis and this will further weaken the country’s foreign exchange earnings in the form of low export earning from mineral sales and can impact negatively on the country’s economy if it is prolonged,” Motswedi Securities in Botswana said.

Some of the diamond mining houses, such as DiamonEx, have issued a flurry of statements warning against the impact of the global financial crisis on their business and at the same time fishing out for some money from investors in a bid to keep afloat. The diamond cutting and polishing industry, which is already indebted to the tune of US $19 billion and with stocks enough for a year supply, have driven down the prices by as much as 60 percent and the outlook for the year is that the whole industry will have a 12 percent hole to deal with.

Given the optimistic 12 percent deficit, the industry is expected to recover by the fourth quarter of next year, however, if the impact takes more than that, the consequences are likely to be more severe.

The length of the trading halt is until Tuesday 27 January 2009.

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Thu, 22 Jan 2009 00:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/143741/diamonex-requests-trading-halt-0704.html
<![CDATA[News - DiamonEx gets govt-guaranteed new loan from Botswana bank to fund company until diamond prices recover ]]> http://www.proactiveinvestors.com.au/companies/news/143740/diamonex-gets-govt-guaranteed-new-loan-from-botswana-bank-to-fund-company-until-diamond-prices-recover-0455.html believes to be a fair price is achieved.

The financing facility is for an initial ten million pula - around £847,000 - and can be increased and extended with the consent of the government depending on how discussions and negotiations proceed with diamond buyers.

It called results from its first Lerala diamond mine sale ‘disappointing’, and believes the average price of US$20 per carat received for the 10,612 carats sold on October 30
was an aberration, reflecting an abnormally depressed market.

The company strongly believes the supply deficit in world diamond production that currently exists and is expected to continue to increase over the next decade, will ensure that the market for rough and polished diamonds is strong. Short term however, with the global credit crisis, prices will remain uncertain.

DiamonEx said its main market, India, has to a large extent stopped buying rough diamonds. While market sources suggests that Indian buyers will return in the new year, the company has made direct contact with some Indian buyers and arrangements are being made for
viewing of the company's diamonds before Christmas. Discussions will include possible forward off-take commitments for its diamond production in the short to medium term.

For the month of October, 55,000 tonnes of ore were processed against a budget of 50,000, from which 15,500 carats were recovered confirming a grade of 28 carats per hundred tonnes. There is an estimated 15 percent of additional diamonds to be recovered from the
recovery tailings which will be re-processed during Plant stoppages, giving the group confidence that the grade will exceed 30 carats per hundred tonnes.

Separately, it announced the appointment of Mark Gray as the chief executive officer
of DiamonEx Botswana Ltd. He was previously head of corporate development for the group.

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Wed, 26 Nov 2008 00:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/143740/diamonex-gets-govt-guaranteed-new-loan-from-botswana-bank-to-fund-company-until-diamond-prices-recover-0455.html
<![CDATA[News - DiamonEx to raise A$2 million ]]> http://www.proactiveinvestors.com.au/companies/news/143738/diamonex-to-raise-a2-million-0320.html
The placing will be carried out in two tranches. The first trance will see 5.3 million shares placed tomorrow. The second tranche will be placed, subject to shareholder approval at the Company's AGM on 28 November, 2008.

DiamonEx Chairman Mr Greg King said:

"DiamonEx welcomes this further demonstration of confidence by investors.  In these turbulent times we continue to implement our planned growth strategy as we move into the production phase for the Lerala Diamond Mine project."

DiamonEx also reported that it had commenced the sale of its first parcel of diamonds which has more than 10,000 carats recovered from the commissioning and start up phase of its diamond mine in Botswana.

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Tue, 21 Oct 2008 00:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/143738/diamonex-to-raise-a2-million-0320.html
<![CDATA[News - Diamonex completes commissioning of Lerala Diamond Mine ]]> http://www.proactiveinvestors.com.au/companies/news/143736/diamonex-completes-commissioning-of-lerala-diamond-mine-0253.html
Diamonex also confirmed that it anticipated selling its first parcel of diamonds in September, only one month later than originally anticipated.

“The Plant has performed well in the commissioning phase with expected teething problems, as well as  minor disruptions”, the company said.  

Managing Director, Dan O'Neill, stated:

"As can be expected we have had to confront a number of issues during the commissioning process.  All the issues to date have been resolved and we are pleased to announce recovery of diamonds has commenced. Commissioning of the Plant is now complete and  the  Company is  now  focused  on ramping  up  to  full production of 200 tonnes per hour  and improving our rate of  diamond recovery".

Separately, Diamonex announced that it had also raised an additional A$3.6 million at A$0.20 per share with two Botswana Institutions. ]]>
Tue, 26 Aug 2008 00:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/143736/diamonex-completes-commissioning-of-lerala-diamond-mine-0253.html
<![CDATA[News - Diamonex still on track for first diamond sale in August ]]> http://www.proactiveinvestors.com.au/companies/news/143733/diamonex-still-on-track-for-first-diamond-sale-in-august--0225.html
The Company is also preparing for its first diamond sale, now planned for the end of August. Under its mining lease covenants to the Botswana Government DiamonEx must offer its goods to Botswana registered cutters and polishers, the company said.

"The diamond sale will allow DiamonEx's Lerala Mine to join the very small list of producing hard rock diamond mines in the world, a list of less than 20 mines, and also make it the first independently owned producing diamond mine in the Republic of Botswana." said Dan O'Neill, Managing Director of DiamonEx. "Botswana produces up to 30% of the world's rough diamonds by value. All of Botswana's production however, is accounted for by a single entity, a joint venture between the Botswana Government and Debeers, known as Debswana. DiamonEx will be the first independent diamond producer in the world's premium diamond producing region. This is a truly commendable achievement." ]]>
Thu, 24 Jul 2008 00:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/143733/diamonex-still-on-track-for-first-diamond-sale-in-august--0225.html
<![CDATA[News - DiamonEx Director ups stake ]]> http://www.proactiveinvestors.com.au/companies/news/143731/diamonex-director-ups-stake-0208.html
Diamonex recently raised A$1.52 million through this share purchase plan, the funds raised will be used to ramp up to full production at the Lerala Diamond Mine in Botswana. ]]>
Mon, 14 Jul 2008 00:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/143731/diamonex-director-ups-stake-0208.html
<![CDATA[News - Diamonex to raise AUD4 million from shareholders ]]> http://www.proactiveinvestors.com.au/companies/news/143727/diamonex-to-raise-aud4-million-from-shareholders-0166.html
Each shareholder will be entitled to subscribe for up to 21,275 shares. Diamonex added that it would cap the maximum raised at A$4 million, and if the fundraising was oversubscribed, it would reduce each individuals allocation. ]]>
Tue, 03 Jun 2008 00:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/143727/diamonex-to-raise-aud4-million-from-shareholders-0166.html
<![CDATA[News - Diamonex eagerly awaiting commencement of production ]]> http://www.proactiveinvestors.com.au/companies/news/143725/eagerly-awaiting-commencement-of-production-0162.html
Once commissioning is complete, some 30,000 tonnes of ore already stockpiled will be processed allowing for the first diamond sale in July, 2008. At full production, the Lerala Mine is expected to process approximately 100,000 tonnes of ore per month.

Dan O'Neill, Managing Director said the company was eagerly awaiting the commencement of full production. Once in production, Diamonex will be also to lay claim to the title as the only company hard rock diamond producer in Botswana that is not controlled by Debswana, a joint venture between the Botswana Government and Debeers.
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Thu, 29 May 2008 00:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/143725/eagerly-awaiting-commencement-of-production-0162.html
<![CDATA[News - Diamonex expects first diamond sales in July ]]> http://www.proactiveinvestors.com.au/companies/news/143723/expects-first-diamond-sales-in-july--0137.html
The Company is in the final stages of completing Botswana's newest diamond mine, and confirmed that plant commissioning is underway and production is expected to start in June. The first parcel of diamonds is anticipated to go under the hammer in July. The Lerala diamond mine is expected to produce around 330,000 carats per year for 10 years.

In addition to the mine development update, DiamonEx also added that it was planning to drill 19 additional targets on the company's Jwaneng project area in southern Botswana, and that it had applied for additional prospecting licences in the Orapa and Gope North areas. In the United States, permitting is underway to gain approval to conduct a bulk sample on the 9.3 hectare Sloan kimberlite pipe in Colorado.

Finally, on the financial front, DiamonEx said it expected to draw down the first tranche of its EIB facility in April 2008, with the balance of the facility drawn down over the next few months. ]]>
Mon, 28 Apr 2008 00:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/143723/expects-first-diamond-sales-in-july--0137.html
<![CDATA[News - DiamonEx – Diamonds in Botswana and the US ]]> http://www.proactiveinvestors.com.au/companies/news/143721/diamonex-diamonds-in-botswana-and-the-us--0132.html
As any single girl will no doubt testify, diamonds are notoriously difficult to find. They are usually located near the surface in resources known as kimberlites or lamproites, and also in alluvial deposits that washed away from these resources. Most diamond mines are based on kimberlites and, according to figures from BHP Billiton, only around 4,000 kimberlites have been identified globally and just 3% of them are economic.

Lerala Diamond Mine, Botswana

DiamonEx acquired its key asset, Lerala, in a tender process in 2002. It’s a kimberlite deposit that was discovered by De Beers a couple of decades ago. De Beers defined a 3 million carat resource in the early 1990s but then decided it was too small for its purposes.

Subsequent testing by DiamonEx has since seen the grades revised upwards and the indicated resource increased to 3.7 million carats at an average grade of 27.41 carats per hundred tonnes. There’s potential for this to be revised even higher. The current figure is based on four pipes to depths of 110m. One of these pipes, K003, could extend as far as 150m. Luckily for DiamonEx, this is also the best of the four, accounting for 2 million carats of the existing resource. A fifth pipe, K006, is not included in the resource and could add a further 80,000 carats or so.

In 2004, DiamonEx listed on the Australian Stock Exchange at A$0.20. A second listing on the Botswana Stock Exchange followed a few months later. Work then began on a feasibility study, which was completed at the end of 2006. This indicated a mine with a 10-year life producing 330,000 carats a year and costing $24m. Adding K006 and the deeper section of K003, neither of which is included in the current resource, could extend the mine life to 15 years.

Construction of the mine began in 2007. After some recent rain delays, production is expected to commence in June 2008. Sales will be conducted ten times a year through WWW International Diamond Consultants Ltd, who also carried out the diamond valuation in the feasibility study. The average price received is expected to be $58 per carat this year suggesting revenues of $19m in the first year increasing to $30m plus with the forecast growth in diamond prices.. The world average per carat is around $70 with the Botswana average around $100. While this is quite low for Botswana and just below the world average, , fortunately Botswana offers excellent infrastructure which keeps operating costs lower than any other diamond regions in the world. In addition, the capital cost of the mine is just $24 million, a fraction of the cost to develop a diamond mine elsewhere, so the return on equity is strong.

Cash costs, including marketing fees and royalties, are expected to be around $11.5 per tonne. The mine plan is forecasting a throughput of 1.32 million tonnes of ore a year, suggesting a total annual cash cost of $13m. After interest costs, the profit margin in the first full year will be around 10% of sales, but both the research analyst and broker covering the stock here in the UK, Edison and Fox Davies, expect diamond prices to increase steadily year on year, relying on forecasts from WWW International Diamond Consultants. The steady growing diamond demand curve matched by a sliding supply curve supports this view which will see DiamonEx’s profit margin grow considerably over the course of the next few years and beyond. They also point out that diamond mines often surprise to the upside, especially if a few large stones are found as these sell for disproportionately higher prices.

DiamonEx has paid for the construction of Lerala with a mixture of equity and debt. A convertible loan of A$10m was raised last year with interest payable of 13% per annum over its four-year life. 10% of the loan can be converted into shares. An eight-year 5m euro debt facility has also been taken out. Despite this, DiamonEx has already flagged that A$2m of additional working capital may be required if completion of the mine is further delayed.

Exploration in Botswana

The cash produced by the Lerala mine should fund DiamonEx’s exploration programme going forward. In Botswana it’s hunting in three areas that are all 100% owned. Although they have been explored before, newer techniques are being applied this time around which is hoped will yield better results.

The Martin’s Drift licences host the Lerala mine and the neighbouring Tswapong region to the east, covering a total of 350 sq km. Soil sampling has been taking place immediately south of the K002 pipe and results are expected sometime in the second quarter of this year.

Tuli is a much larger block, covering 12,354 sq km to the north and east of Lerala. Diamonds have been recovered here since the 1950s in bulk stream samples. Spectral imaging surveys have been carried out and DiamonEx is currently compiling results from the subsequent surface samples.

The final area of interest in Botswana is Jwaneng, a 3,015 sq km block in the south of the country, where around 20 targets are being followed up by surface sampling in the second quarter of this year. This district also hosts the Jwaneng mine, which produces 15 million carats a year and is the world’s largest diamond mine measured by the dollar value of its output. Not a bad neighbour to have.

Exploration in the US

DiamonEx fourth exploration area is Sloan in north Colorado. It was acquired by DiamonEx in November 2007 and there is a five-year option to evaluate two pipes that cover 9.3 hectares. No JORC resource is available but, based on drilling by previous companies, the tonnage could be double that of Lerala at half the grade and is still open at depth. The value per carat, however, has been estimated at $150. Putting this all together means total revenues over the life of any mine could be more than double that of Lerala.

A bulk sampling programme for the two pipes at Sloan should begin “as soon as weather conditions permit” with the aim of getting a parcel of over 3,000 carats for evaluation. All going well, a drill program would then follow to define a resource. In addition to Sloan, other targets have also been identified in the area and a drilling programme covering seven of them is expected to start shortly.

DiamonEx’s next quarterly update is due at the end of April. As well as news on Lerala there should be progress reports on all of its key prospects. The company intends to get one further exploration project to production within the next three years. For the moment, the smart money looks to be on the considerable upside potential of Sloan, or of course acquisition.



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Tue, 15 Apr 2008 00:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/143721/diamonex-diamonds-in-botswana-and-the-us--0132.html