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Sayona Mining to enhance value of Authier lithium project

Published: 13:00 09 May 2017 AEST

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Phase 2 drilling is complete and a resource upgrade is pending

Sayona Mining (ASX:SYA) has commenced work programs focused on significantly enhancing the value of its flagship Authier lithium project in Canada.

The new work programs will provide new technical information aimed at improving the base case economics outlined in the February 2017 pre-feasibility study (PFS).

The PFS valued Authier with a pre-tax net present value (NPV) of C$140 million, which notably incorporated lithium prices well below current prices.

The work programs will be completed within three months and will include drilling and metallurgy test-work among other things.

Corey Nolan, CEO, commented: “The company is targeting a significant improvement in the Authier value and returns, following the pending Authier resource upgrade and completion of the optimisation programs.”


Work program details

The work programs which are expected to be completed within three months, include:

- 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; and
- Updating the February 2017 Pre-Feasibility Study and Ore Reserve estimate.


Authier fast-track strategy

An updated PFS paves the way to fast-track completion of the definitive feasibility study, and finalisation of permitting and approvals.

The company remains focused on rapidly developing Authier and capitalising on the strong pricing window available for new project entrants in the short-to-medium term.

Authier represents an advanced development project and cash flow generation opportunity for Sayona.


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.

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