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Sayona Mining receives lithium assays from phase two

Further assay results from the phase two drilling are pending.
Sayona Mining receives lithium assays from phase two
Drilling is aimed at expanding the current JORC resource

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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