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Sayona Mining finds hidden pegmatite at Canadian lithium project

Published: 11:57 11 Oct 2016 AEDT

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Spodumene mineralisation in the new pegmatite at Authier

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.

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