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Sayona Mining samples high grade lithium in world class district

Mallina is emerging as a significant project alongside the flagship Authier lithium project.
Sayona Mining samples high grade lithium in world class district
Further reconnaissance, mapping and rock sampling is planned

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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