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Sayona Mining Ltd completes acquisition of Authier lithium in Canada

Published: 20:00 20 Jul 2016 EDT

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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.

 

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