Sayona Mining Limited (SYA-ASX): Sayona doubles Québec Lithium resources base amid surging demand
On 28 February 2022, emerging lithium producer Sayona Mining Limited (SYA-ASX) further enhanced its leading position in North America’s lithium sector by providing new and upgraded Mineral Resource estimates for its flagship North American Lithium (NAL) and Authier Lithium Projects in the La Corne area in Abitibi‐Témiscamingue, Québec, Canada. Theses projects key attractions are the capacity for near-term development potential with access to world-class infrastructure and labour, including hydroelectric power.?The Abitibi has strategic location being proximal to much of North American battery markets. The NAL and Authier projects are located ~45 km north and NW of the city of Val d’Or and are accessed by Provincial and rural road networks.
Sayona’s Québec lithium resource base significantly expands following upgraded estimates for the combined North American Lithium (NAL) and Authier projects, with total JORC compliant combined Measured, Indicated and Inferred Mineral Resource of 119.1 Mt @ 1.05% Li2O (Measured & Indicated Mineral Resource rising to 87.8 Mt @ 1.05% Li2O) following independent studies by consultants BBA Inc and SGS Canada.
?
?The JORC Mineral Resource estimate for NAL, the first since its acquisition in 2021, identifies a total Measured, Indicated and Inferred Mineral Resource of 101.9 Mt @ 1.06% Li2O. Recall Sayona had submitted a bid for the North American Lithium (NAL) mine to the west of Barraute. The identification of the first underground constrained resources at NAL, taking advantage of higher-grade mineralisation at depth, together with significant inferred mineralisation within the open pit constrained estimation offers scope for further future resource increases.
?
?
Sayona envisions a combined lithium production from Authier with lithium at the nearby NAL site, facilitating a significant improvement in plant performance and economics while protecting valuable jobs and investment and creating value for shareholders.
?
Recall in January 2021, Sayona formed a strategic partnership with leading U.S.-based lithium corporation, Piedmont Lithium Limited (PLL-ASX, Nasdaq). Under the agreements, Piedmont acquired up to 19.9% of Sayona Limited for total consideration of around US$7M and Piedmont also invested ~US$5 M for a 25% stake in Sayona Québec. Piedmont also has a binding offtake agreement under which it can acquire up to 60,000 tpa of spodumene concentrate or 50% of Sayona Québec’s production (with a minimum price of US$500/t and maximum price of US$900/t) on a delivered basis to Piedmont’s planned lithium hydroxide plant in North Carolina.
?
On June 30, 2021, Sayona obtained court approval for the acquisition of North American Lithium Inc. (NAL) permitting an integration of operation with Authier Lithium Project to create World‐scale Abitbi lithium hub. Under a Share Purchase Agreement, Sayona Québec acquired all the issued and outstanding shares of NAL for ~$192M. On August 30, 2021 Sayona Québec (SYA:75%; PLL:25%), a subsidiary of Sayona and its strategic partner Piedmont Lithium finalized the acquisition of NAL.
?
?
Sayona’s Authier Lithium Project is a hard rock spodumene lithium deposit scheduled as an open cut mine located ~70km by road to the NAL mine and mill complex.?The project area is composed of 19 mineral claims on Crown Lands totalling 653 ha, and extends. Sayona Mining acquired 100% of the Authier project (3.4 km in an E-W, and 3.1 km in a N-S direction) back in July 2016. ?In November 2019, Sayona completed a revised Definitive Feasibility Study (DFS) and has targeted near-term construction pending regulatory approvals. Sayona has also undertaken studies on producing a premium value-added lithium carbonate product at Authier amid growing lithium demand and constrained supply.
?
?
?
An expanded combined NAL-Authier resource base to be integrated in a definitive feasibility study should provide optionality, amid surging demand for lithium supply in North America. Sayona’s Managing Director, Brett Lynch stated: “This expansion is a major achievement for Sayona as we further enlarge our leading lithium resource base in North America. Since the start of 2020, we have now grown our Québec resource base nearly six times and with further increases expected soon from Moblan“.
?
Next catalysts, among others, is an upcoming definitive feasibility study for an integrated NAL-Authier operation,
?
?
?Important Disclosures
?
Sayona Mining Inc.?????????????????????????????????????????????
R????????????This issuer has indirectly paid the Mining Analyst.
?
?
?Update May 26, 2022
Sayona reports Positive Pre‐feasibility Study (PFS) - shows value of North American Lithium (NAL) operation in Québec
?
On May 23, 2022, Sayona announced results of a positive pre‐feasibility study (PFS) for its flagship North American Lithium (NAL) Project in Québec, Canada.?The PFS confirms the restored NAL operation’s technical and financial viability. The PFS, by Sayona Québec (SYQ) (owned by Sayona Mining (ASX:SYA, 75%) and Piedmont Lithium (ASX:PLL, 25%), shows value of North American Lithium (NAL) operation in Québec with a >27‐year life of mine, a pre‐tax NPV (8%) at ~$910M, an IRR of 140% and CAPEX standing at ~91M and Sustaining Capital at ~211M.?After-tax NPV (8%) is estimated at $768M. Long‐lead equipment has been ordered to facilitate a Q1 2023 restart with upgrades to improve operational efficiency, grade, quality and recovery of the Abitibi lithium hub. NAL aims initially to produce a lithium concentrate for general market conversion. Forming a key complimentary part of Sayona’s Abitibi lithium hub (comprising NAL and the nearby (~30 km) Authier Lithium Project), shall be Sayona’s emerging northern Québec hub. ?Sayona is set to launch production and establish North America’s largest lithium (spodumene) resource base with downstream processing and eventual value‐added lithium hydroxide or carbonate production.
?
?
Sayona Québec (SYQ) mandated BBA, a Montreal based engineering firm, to develop a PFS and Ore Reserves estimate for the NAL project and its integration with the Authier Lithium Project. SYQ’s NAL project shall consist of a 4,200 tpd spodumene concentrator, extension of the current open pit, ore stockpiling and blending area, waste and overburden stockpiles, existing conventional tailings as well as new dry‐stack tailings facilities, mine garage, administrative buildings and other infrastructure. Operations are based on a substantially increased Mineral Resource Estimate resulting from NAL’s recent drilling campaign.?The previous Ore Reserves estimate, published in 2012, were based on the Feasibility Study Update (NI 43‐ 101 Technical Report) prepared by Canada Lithium Corp. Following Sayona’s August 2021 acquisition of the NAL mine and concentrator in La Corne, Québec, the NAL project was revised to update the Ore Reserves and increase concentrator mill throughput from 3,800 tpd to 4,200 tpd to produce a 6% Li2O spodumene concentrate.
?
The NAL property is located ~60 km north of Val‐d’Or, ~38 km SE of Amos, 15 km west of Barraute and is ~70km by road from Sayona’s Authier Lithium Project as it is separated by the Harricana river. The NAL property consists of a contiguous group of 20 mineral titles (19 claims, 1 mining lease) for a total area of 699.9 ha. located in La Corne Township in the Abitibi‐Témiscamingue region. The mining lease has an initial term of 20 years, expiring on 28 May 2032 and is serviced by road, rail and air.
?
The NAL Ore Reserves have been estimated for a total of 29.2 Mt of Proved and Probable Ore Reserves at an average grade of 0.96% Li2O. The Ore Reserves Estimates consider the open pit constrained portion of the Mineral Resources, which are estimated at 54.3Mt of Measured and Indicated Mineral Resource at a grade of 1.01% Li2O. Inferred Mineral Resources were considered as waste. Overall LOM strip ratio is 5.3.
?
?
Sayona’s Managing Director, Brett Lynch stated: “The PFS showed the Company’s ability to quickly transform the NAL operation to generate a successful turnaround in performance and allow a customised feed source for the planned lithium conversion facility at NAL. Sayona’s acquisition of NAL and turnaround plan was not based simply on restarting the existing operation. Rather, it was based on our strategy of creating an Abitibi lithium hub, drawing upon the operation of our nearby Authier project and investing in plant upgrades to deliver improved profitability and performance. We have been modest with our pricing assumptions, but as the sensitivity analysis indicates, there is potential for significant upside in the NPV projection given recent trends in spodumene prices… I look forward to driving this project forward as we move towards becoming North America’s first local producer of spodumene next year…???
In doubling the expected mine life due to the expanded resource base at NAL, forecast tailings volumes on site significantly increased. Sayona has taken the proactive decision to dry stack tailings, reducing their environmental impact, in a move reflective of the Company’s ESG focus“.
?
?
Sayona Mining Limited is an emerging lithium producer with projects in Québec and Western Australia. In Québec, Sayona’s assets comprise North American Lithium together with the Authier Lithium Project and the emerging Tansim Lithium Project, as well as 60% stake in the Moblan Lithium Project in the James Bay-Eeyou Istchee (see: https://www.dhirubhai.net/pulse/sayona-mining-limited-sya-asx-otcsyaxf-reports-new-lithium-lemieux/). In Western Australia, Sayona holds a large tenement portfolio in the Pilbara region prospective for gold and lithium. Sayona is exploring for Hemi‐style gold targets in the world‐class Pilbara region, while its lithium projects are subject to an earn‐in agreement with Morella Corporation (ASX:1MC).
Update November 15, 2022
Sayona makes strategic acquisition – offers potential increase to NAL resource, production capacity.
On November 14, 2022 Sayona Mining Limited (SYA-ASX) reported potential expansion in the future mine production capacity of its North American Lithium (NAL) operation in Québec thru a property acquisition. ?A strategic acquisition and earn‐in agreement between Sayona Mining subsidiary, NAL and Jourdan Resources Inc (JOR-V) over its adjacent Vallée Lithium Project has been executed.?The Vallée project comprises 48 claims covering ~1,997 ha, closely neighbouring the NAL mine tenure with 20 leases located within 500m of the mine boundary. In comparison, NAL’s 19 claims cover some 582 ha.
Under the agreement, NAL shall acquire 20 claims outright, spanning 755.3 ha, providing an immediate extension to the NAL operating area and allowing for potential future infrastructure expansion at the NAL Mine and its processing facility. Pegmatite targets are located close to and along strike from the NAL orebody. The JORC Mineral Resource estimate for NAL, the first since its acquisition in 2021, identifies a total Measured, Indicated and Inferred Mineral Resource of 101.9 Mt @ 1.06% Li2O.
?
NAL also has the right to earn up to a 51% stake in the Vallée project’s remaining 28 claims, covering ~1,241ha. NAL can earn up to 50% equity by spending $4M within the first year to earn a 25% equity stake and an additional $6M within 2 years to earn a further 25%. A further 1% equity is available if Sayona prepares a feasibility study and arranges funding for the construction of a mine at Vallée. Sayona shall aim to treat any ore obtained within the earn‐in area at its NAL operation, with NAL and Jourdan forming a JV to develop the Vallée project and its potential integration into NAL. Sayona’s Québec subsidiary shall also acquire a 9.99% shareholding in Jourdan through a private placement for ~ $1.5M and shall have the right to appoint a director on Jourdan’s board.
?
The Vallée project is located in Abitibi, near the township of La Corne and situated within the heart of the southern portion of the Abitibi Greenstone Belt, as well as contiguous and in proximity to RB Energy’s Quebec Lithium Property and adjacent to the NAL mine. The mineralised spodumene pegmatite dykes that NAL has mined continue directly onto the claims of Jourdan. Critically, the tenure secures the prospective granodiorite host and its contact zone, which are important ore controls in the NAL deposit. Within the Jourdan claims, some 14 pegmatite occurrences are recorded in government data base, suggesting the high exploration upside for discovery of mineralisation for potential blending into the NAL operation.??Exploration work, including geochemistry, geophysics and an aggressive drilling program is being planned by Sayona.
?
Sayona’s Managing Director, Brett Lynch said the agreement provided a substantial boost for NAL and its future production potential. ?He stated: “Sayona continues to pursue opportunities for expansion and this is an excellent opportunity to swiftly expand NAL’s potential resource base, paving the way for an increase in NAL’s future mine production capacity. With mineralised spodumene pegmatite dykes previously mined by NAL continuing directly onto Jourdan’s claims, we are keen to quickly launch new drilling. Significantly, the additional leases acquired under this agreement will also allow for increased flexibility and optimisation of the NAL mine design, production and infrastructure. Sayona is pursuing co‐operative alliances with our neighbours with the aim of further building on our already leading lithium resource base in North America. The potential for more tonnes, faster production and higher grades only amplifies the opportunity for NAL to move downstream, whether into lithium carbonate or hydroxide production”.
?
Update December 14, 2022
Change of leadership at the head of Sayona Inc. in Québec
?
On December 14, 2022 Sayona Mining Limited announced that Mr. Guy Belleau shall act as CEO of Sayona Inc. as of January 1, 2023. Mr. Guy Laliberté passes the torch to him after having skilfully guided Sayona over the past few years. Mr. Laliberté shall now act as a strategic advisor to Mr. Brett Lynch, Managing Director and CEO of Sayona Mining. As soon as he arrived at the head of Sayona in Quebec, Guy Laliberté made the development of equal relations with the First Nations a top priority, in particular with the Abitibiwinni First Nation.
Monik Kistabish, Grand Chief of the Abitibiwinni Pikogan First Nation stated: “We salute the work of Guy Laliberté in recent years. Through his work, our relationship with Sayona has been one of respect and transparency, which has allowed us to develop a promising partnership for our nation. Thanks Guy!“. The transition plan led by Mr. Laliberté made it possible to recruit Mr. Belleau and, today, entrusting him with the future of Sayona's projects in Québec is a natural gesture.
?
Mr. Belleau joined Sayona this year as President of P?le Abitibi-Témiscamingue. With more than 30 years of experience in the industry, he is an experienced senior executive in the mining sector, having held strategic positions in the largest mining companies in Québec and Canada. An engineer by training, he was COO at ArcelorMittal Mines Canada, general manager at Falco Resources and general manager of Goldcorp's éléonore Gold Mine, where he oversaw all stages leading from exploration to construction and to the operation of the mine. During his career, he has also served on the Board of the Quebec Mining Association and until recently he served as Chairman of the Board of Directors of the Institut national des mines du Québec since 2018.
Mr. Brett Lynch, Managing Director and CEO of Sayona Mining stated: “Over the past few years, Guy Laliberté has supported me tirelessly and it is his ideas and his in-depth knowledge of the mining industry that have allowed Sayona to rise to the position of leader in North America. Guy has demonstrated his understanding, his vision, his passion and his unique skills by developing, with private industry and government authorities, a sustainable industry based on lithium, in Quebec and Canada, which will be called upon to replace Asian suppliers. in supplying the North American market. I am privileged that he has agreed to continue to team up with me since he will now support me as a strategic advisor. He will be able to focus on this mission with Sayona to realize this dream of a world-class critical minerals industry in Quebec. At Sayona, we are proud to support him in his quest. Long live Quebec! Long live Guy Laliberté!“.
?
Effectively, Merci Guy!
Update December 21, 2022
Restart of North American Lithium (NAL) operation is on target for the recommencement of production
?
On December 20, 2022 Sayona Mining Limited announced that the restart of North American Lithium (NAL) operation further progresses towards target, with procurement and permitting completed. ?The NAL operation is on track for restart of production in Q1 2023, cementing Québec’s potential position as North America’s key supplier of essential battery minerals.
Sayona is on target for the recommencement of production at its flagship North American Lithium (NAL) operation in Q1 2023, with construction activities continuing to advance. ?Procurement was 99% completed as at the end of November, with nearly all major procurement items received at site. Contracts have been awarded for all critical installation items, including the Belt Filter, while the installation of key items such as the Apron Feeder and Derrick screens has been completed. Significantly, all environmental approvals have now been received following the recent award of the final permit (December, 12 2022), significantly de‐risking NAL’s restart. ?
Contractor mobilization has reached 90%, with 4 excavators, 10 mining trucks and 3 drill rigs in operation together with other support and service equipment. First blast was on November 22, 2022 and a total of 6 production blasts have been undertaken for production of 77,020 tonnes of ore. ?From the previous ROM (Run of mine) pad and In‐Pit inventory, total ore inventory on the ROM pad is now 157,907t grading 0.87% Li2O. Overburden stripping is ongoing in the phase 2 pit expansion area. Currently there are ~100 workers on‐site, with Sayona having recruited a number of senior personnel such Guy Belleau as the new CEO of Sayona’s Québec subsidiary. Sayona is now optimising the short‐term mining sequence from the Pre‐Feasibility Study mine plan to facilitate a smooth start for commercial production.
Sayona has also undertaken community engagement activities, including partnering in a “Business Exchange Day” combined with the Interregional Economic Circle of Indigenous Peoples (November 14‐16, 2002) (Cercle économique interrégional des Peuples autochtones).
?
Sayona’s Managing Director, Brett Lynch stated: “Time is of the essence to get into production at NAL and I’m pleased with the progress made to date, with the operation on track for production of the first saleable spodumene (lithium) concentrate in Q1 2023. Our planned expansion at NAL, together with the growth of our northern lithium hub centred on the Moblan Lithium Project, have positioned Sayona well for 2023 as we work to cement Québec’s position as North America’s key supplier of essential battery minerals for the clean energy revolution”.
?
Update: January 18, 2023
North American Lithium (NAL) accelerates towards target
?
On January 16, 2023 Sayona, an emerging lithium producer, reported that is has pushed ahead towards the recommencement of production in Q1 2023 at its flagship North American Lithium (NAL) operation in Abitibi, Québec, Canada. Work continued during the Christmas holiday period to ensure deadlines are met towards first spodumene (lithium) production.?
Progress towards the concentrator restart neared nearly 90% by the end of December for engineering and construction, with all critical equipment received (including the Vacuum pump and WHIMS Rectifier‐Reducer). Installation of the LIMS was completed, together with the third ore sorter and other key items. Pre‐operational verifications and operational readiness continues to progress, including training and process operational support, with 75% of electrical and mechanical inspections completed. All equipment required for the restart has been procured, with all major procurement packages received at site. Recall, all environmental approvals have been received. No environmental‐related incidents were reported during the period, reflecting Sayona’s focus on maintaining the highest environmental standards and de‐risking NAL’s restart.
?
Sayona’s Managing Director, Brett Lynch stated: “Sayona continues to advance towards the restart of production at NAL this quarter, and I congratulate the project team for pushing through the holiday period to ensure targets are met. This is particularly noteworthy given widely publicised global supply chain issues and cost pressures, with our team working hard to mitigate any potential issues. We now plan on releasing bimonthly updates on the NAL restart as we accelerate closer towards production. With demand from North America’s EV and battery sector continuing to increase, NAL’s outlook is excellent, putting Québec in a highly strategic position as a clean and green, economical and stable supplier of this vital battery mineral”.
?
Update: March 7, 2023
Sayona Mining Limited Produces First Lithium Concentrate at NAL
?
On March 7, 2023 Sayona, an emerging lithium producer, announced that it has successfully produced the first spodumene (lithium) concentrate at its flagship North American Lithium (NAL) operation in Abitibi, Québec. The NAL operation should represent the most significant source of hard rock lithium production in North America, boosting Québec's potential plans for the development of a local battery sector, from mining to manufacturing.
领英推荐
?
Another milestone in NAL's restart: Up to ~70 tonnes of lithium concentrate were produced and commissioning is proceeding as per plan, with the first saleable concentrate to be produced relatively soon. Saliently, NAL's restart is proceeding on schedule and within budget, and this amid growing demand for the key battery metal from North America's fast-growing EV and battery industry. Sayona expects the first shipment of spodumene (lithium) concentrate from NAL shall occur in July 2023, with up to 4 shipments targeted for the first half of fiscal 2024. Sayona is targeting total production between 85,000 tonnes and 115,000t during this period.
?
Extensive drilling program for NAL, Jourdan's Vallee Lithium Project: NAL and Jourdan Resources Inc. (JOR-V) have agreed to embark on an aggressive exploration and development program with the aim of expanding and defining sufficient mineral resources to supply increased tonnages to the NAL concentrator. More than 50,000m of drilling are planned in 2023 at the adjacent ~1,1997ha Vallee Lithium Project. The Vallee Lithium Project is composed of the 48 claims subject to the earn-in and JV ?agreement entered into between NAL and Jourdan in November 2022, where NAL acquired 20 claims outright and with the right to earn up to a 51% stake in the remaining 28 claims (see: https://www.dhirubhai.net/posts/eric-lemieux-9468715_quebec-abitibi-sayona-activity-6998503519599169536-1rBl?utm_source=share&utm_medium=member_desktop). Over >24,000m of drilling is planned at the Vallee project (earn-in claims) to commence in May 2023. The Vallee Lithium Project, comprised of 48 claims covering ~1,997ha, closely neighbours the NAL mine tenure, with 20 leases located within 500m of the mine boundary. In comparison, NAL's leases cover some 582ha and Jourdan’s Vallée project totals>13,000ha.
?
?
Sayona's Managing Director, Brett Lynch congratulated the NAL team on its latest milestone and stated: "This is another great achievement for the team at NAL. I extend my thanks to everyone concerned for progressing the NAL restart on time and on budget - something few others have achieved in recent times amid escalating cost and supply chain pressures. These are exciting times with the first saleable lithium concentrate to be produced soon, marking the next step in Sayona's evolution towards becoming a leading hard rock lithium producer.
Sayona is excited to be partnering with Jourdan Resources as we undertake a large scale and extensive drill program at NAL and the earn-in claims at the Vallee Project. The combined drilling program will be undertaken in consultation with our local community stakeholders, to pursue a bigger mineral resource base and better grades in the Abitibi Hub capable of delivering increased ore tonnages to the NAL concentrator and a longer mine life".
Update: March 16, 2023
Sayona produces 1,200 tonnes saleable lithium concentrate at North American Lithium (NAL)
?
On March 16, 2023 Sayona, disclosed that it has achieved a new milestone with the successful production of the first saleable spodumene (lithium) concentrate at its flagship North American Lithium (NAL) operation in Abitibi, Québec. Commissioning activities continue to progress soundly, with~1,200 tonnes of lithium concentrate produced. Recall ~70 tonnes were disclosed on March 8, 2023 per successful first lithium concentrate production (see https://www.dhirubhai.net/posts/eric-lemieux-9468715_quebec-abitibi-lithium-activity-7039027308933910528-SQlH?utm_source=share&utm_medium=member_desktop). The 1,200 tonnage produced includes SC6 (6% lithium grade), demonstrating ability to produce commercial concentrate.?
?
Another major milestone: This is a new milestone for NAL restart permitting Sayona to remain on track to become one of North America’s leading hard rock lithium producer.?We highlight that NAL’s restart continues to proceed on schedule and within budget. Engineering is now progressing on the next sub‐project, the Crushed Ore Storage Dome, with close expediting of engineering deliverables implemented. Sayona disclosed that the first lithium shipment is expected to occur in July 2023. Sayona is targeting total production between 85,000 tonnes and 115,000t during the first half of fiscal 2024. NAL is one of the projects in the portfolio of Sayona Quebec, a JV between Sayona Mining Limited and Piedmont Lithium Inc. (ASX:PLL NASDAQ:PLL), and includes the Moblan deposit (See https://www.dhirubhai.net/pulse/sayona-mining-limited-sya-asx-otcsyaxf-reports-new-lithium-lemieux/). In addition to an economic interest in the JV, Piedmont holds an offtake agreement with Sayona Quebec to purchase the greater of 113,000 metric tons per year or 50% of the JV’s SC6 production. Piedmont has agreements with LG Chem and Tesla to provide spodumene concentrate from NAL beginning in H2 2023.
?
?
Update: March 30, 2023
Sayona Mining and Piedmont Lithium announce successful restart of North American Lithium
?
On March 30, 2023 Sayona, disclosed the successful restart of commercial spodumene concentrate production at the jointly-owned North American Lithium (“NAL”) project in Abitibi, Québec. Sayona is an emerging lithium producer with projects in Québec, Canada and Western Australia (Portfolio Archive - Sayona Mining). Supported by a strategic partnership with American lithium developer Piedmont Lithium Inc. (PLL-ASX), Sayona’s assets in Québec Abitibi comprise North American Lithium together with the Authier Lithium Project and its emerging Tansim Lithium Project (Abitibi Hub: Sayona (75%) - Piedmont (25%)). Recall Piedmont Lithium is developing a world-class, multi-asset, integrated lithium business that include the Carolina Lithium and Tennessee Lithium projects in the United States and a partnership in Ghana with Atlantic Lithium (A11-ASX).
?
Moving forward: The $US80M restart of NAL was saliently completed on time and on budget (see: https://www.dhirubhai.net/posts/eric-lemieux-9468715_quebec-abitibi-lithium-activity-7042246413509943296-aKDE?utm_source=share&utm_medium=member_desktop). It is currently the only major source of new spodumene production expected in North America in the next 2 years. Sayona is targeting 226,000 metric tons per year of annual production with first commercial shipments expected in Q3 2023. Sayona is targeting up to 4 shipments from NAL totaling ~120,000 metric tons by the end of 2023, which are expected to supply key battery and electric vehicle manufacturers, including LG Chem and Tesla. NAL is ideally located in the Abitibi region of NW Québec with convenient access to proximal highway and railway as well as port infrastructure to bring lithium concentrate to the market. Operations are also powered by renewable hydroelectricity.
?
Additional feed: Production at NAL is expected to be supported by the mineral resources of Sayona Quebec’s Abitibi Hub projects. Sayona Québec is expected to provide an updated Definitive Feasibility Study for both NAL and its Authier Lithium Project. Additionally, a new, large-scale, extensive drill program is planned for 2023 by NAL and Jourdan Resources Inc. related to both NAL and the adjacent Vallée Lithium Project ?(see https://www.dhirubhai.net/posts/eric-lemieux-9468715_quebec-abitibi-lithium-activity-7039027308933910528-SQlH?utm_source=share&utm_medium=member_desktop). The intent of the program is to define a mineral resource base capable of supplying more tons and enhanced material quality to the NAL concentrator. Recall Sayona also holds a 60% stake in the Moblan Lithium Project in northern Québec (see: https://www.dhirubhai.net/pulse/sayona-mining-limited-sya-asx-otcsyaxf-reports-new-lithium-lemieux/).
?
More to come: A prefeasibility study (“PFS”) is currently underway to evaluate downstream production at NAL through the completion of the project’s lithium carbonate plant, which was partially constructed by prior owners of the operation. Results of the PFS are expected in H1 2023. Further evaluation of downstream production of lithium carbonate or lithium hydroxide in Quebec may follow the PFS study.
?
Sayona’s Managing Director Brett Lynch stated: “Since announcing our restart intentions in 2021, our project team has maintained a forward-looking focus to improve lithium capture, achieve more consistent runtimes, and streamline operating costs from the past-producing operation. Improvements were made as planned in our timeline and budget, and we are eager to see the impact the upgrades bring to both product quality and operational efficiency as we prepare for our first commercial shipments of spodumene concentrate expected in July of this year”.
Piedmont’s President and Chief Executive Officer Keith Phillips added: “We applaud the work of the operating team in bringing the restart of NAL to fruition. This marks an exciting milestone not only for Piedmont Lithium and Sayona Mining, but the North American market for which we are working to supply critical lithium resources. NAL is positioned to be a key contributor to the electric vehicle and battery supply chains as demand for lithium continues to rapidly expand along with the electrification economies in both Canada and the U.S.”.
?
Update: August 2, 2023
Sayona Mining Limited completing first shipment of spodumene, launching NAL concentrate revenues
?
On August 2, 2023 Sayona announced its first commercial shipment of spodumene (lithium) concentrate from the North American Lithium (NAL) operation in Abitibi, Québec, Canada. NAL has produced more than 42,000 tonnes of spodumene concentrate at ~5.5% Li2O since the successful restart of production in March 2023 (see: https://www.dhirubhai.net/posts/eric-lemieux-9468715_quebec-abitibi-lithium-activity-7039027308933910528-SQlH?utm_source=share&utm_medium=member_desktop). The ramp-up of the mine and process plant continues to perform in line with expectations, with the spodumene concentrate also adhering to offtake specifications. Sayona is positioning itself as North America's leading producer of hard rock lithium. NAL is jointly owned by Sayona (75%) and Piedmont Lithium (25%).
?
First shipment: The first shipment of ~20,500 metric tonnes of on-specification Li2O spodumene concentrate has been sold via a major trading company, minimising risk, and allowing for logistic flexibility as NAL prepares for increased sales tonnages in fiscal 2024. The AAL Moon vessel carrying NAL's spodumene concentrate departed port on August 1, 2023, with the concentrate bound for the international lithium market for further processing. Sayona shall monitor the process chain of the product as a pathway to global lithium chemical accreditation. Provisional payments are to be received by NAL within 5 business days of receipt of shipment documentation by the trading company, delivering important cash flow to NAL as it ramps up operations. The US dollar selling prices for NAL's first concentrate shipment should be derived from the Fastmarkets Spodumene spot price index, as well as the Fastmarkets Lithium Hydroxide monohydrate spot price index and Shanghai Metals Market Battery Grade Lithium Hydroxide spot price index, including any adjustments.
?
Offtake agreement: The next shipments of spodumene concentrate shall be sold by NAL to Piedmont Lithium under the terms of the existing offtake agreement. The estimated volume is of the shipments is 30,000 metric tonnes and is expected to be shipped in August and September 2023, subject to ship sizing and availability. NAL has sufficient tonnage of spodumene concentrate at the port to meet the volume requirements of the first estimated shipment to Piedmont Lithium. The offtake agreement between NAL and Piedmont Lithium commenced on July 1, 2023, with Piedmont Lithium entitled to the greater of 113,000 tonnes or 50% of spodumene concentrate production in a calendar year. NAL expects to sell Piedmont Lithium at least 56,500 tonnes in the first half of fiscal 2024 (July 1, 2023 to December 31, 2023) via the offtake agreement, with an equivalent amount sold to other customers, subject to the performance of NAL's production ramp-up.
?
?
Downstream processing and expansion potential: Sayona remains committed to downstream processing in Québec, as per agreement with the Québec Government, a move that should cement the Québec's role as a leader in North America's electrification transformation. Sayona published a preliminary technical study that estimated lithium carbonate production at NAL would increase the value of a fully integrated operation to A$5.4 billion. Recall also on July 11, 2023 Sayona reported that it has identified a significant expansion potential to the Moblan lithium footprint following diamond drilling of 88 holes for 18,442m (76 exploration drillholes (15,806m) and 12 geotechnical drillholes (2,636m)).?Moblan is located ~125km NNW of the town of Chibougamau and ~85km from the Cree community of Mistissini (see: https://www.dhirubhai.net/pulse/sayona-mining-limited-sya-asx-otcsyaxf-drill-results-expand-lemieux/?trackingId=SpqhzsfcT3qMSwm1qbUyVQ%3D%3D).
?
?
Sayona's Managing Director, Brett Lynch stated: "This first shipment is another significant milestone as we fast-track production at North America's key source of hard rock lithium. I would like to congratulate the NAL team as we continue to advance Quebec's role as a critical supplier of lithium from hard rock sources to the battery materials sector. We are particularly pleased to make this first shipment in less than two years since NAL's acquisition in August 2021, reflecting the team's strong execution capabilities and commitment. With our recent study showing the outstanding value of downstream processing at NAL, we look forward to developing a vertically integrated operation and facilitating the ongoing development of a North American supply chain for this key 21st century mineral".
?
Guy Belleau, CEO of Sayona's Quebec subsidiary, commented: "I'm proud that our local team and partners in Abitibi-Temiscamingue are making this important contribution to the lithium industry in North America. NAL's operations are providing quality jobs, creating value for local businesses and generating significant benefits for the local community, including First Nations. This first shipment confirms Sayona's ability to meet the world's ever-growing demand for lithium and play a role in the global energy transition. We are delighted that this lithium, which was produced in Quebec according to the highest industry standards, will contribute to decarbonisation and electrification".
?
Update: October 31, 2023
September 2023 quarterly activities - Sayona continues to ramp-up operations at North American Lithium (NAL), Québec.
?
On October 29, 2023 Sayona, a new lithium producer, announced that it continues to advance the ramp-up of operations with its flagship North American Lithium (NAL) operation in Abitibi, Québec. ?NAL had its first quarterly record for spodumene concentrate production of 31,486 dry metric tonnes in line with targeted product specifications.
?
NAL completed its maiden shipments during the quarter, following the restart of operations in March 2023. The operations team at NAL continues to focus on improving process plant utilisation, throughput and recovery with initiatives such as the Crushed Ore Dome expected to improve mill utilisation. The advanced major capital projects at NAL, including the Crushed Ore Dome and Tailings Storage Facility 1, are designed to stabilise plant utilisation and support higher throughput.
?
Total sales volume in Q1 FY24 were 48,211 dry metric tonnes, with product quality parameters in line with target specifications. Three vessels loaded with spodumene concentrate departed port during the quarter, with AAL Moon departing in August 2023, and BBC Rainbow and Spliethoff Happy Delta departing in September 2023. The concentrate on board the vessels BBC Rainbow and Spliethoff Happy Delta were sold to Piedmont Lithium under the terms of the offtake agreement. A total of 11,504 tonnes of spodumene concentrate was stockpiled at the port of Québec City we believe as at 30 September 2023.
?
?
Exploration in Québec:
The 2023 objectives of the drilling program at NAL comprised the conversion of Inferred Resources to Measured and Indicated Resources, as well as the exploration for extensions of the NAL mineral resource to the NW and SE of the existing pit. At 30 September 2023, a total of 144 holes totalling 38,759 m had been drilled, with an average of 6 drill rigs used throughout the quarter.
?
On the Vallée Lithium Project, resource definition drilling commenced in Q1 FY24 with the objective of exploring of the SE extension of the Vallée Lithium deposit. At 30 September 2023, a total of 48 holes totalling 11,040 m had been drilled. Assays are being analysed, with completion of the drilling program targeted for the end of H1 FY24.
Beyond the Authier Lithium Project, Sayona controls the Tansim Project 82 km to the SW and composed of 355 mineral claims spanning 20,546 ha as well as a total of 1,284 claims covering 73,535 ha in the Abitibi-Témiscamingue hub.
?
At the Moblan Lithium Project (Sayona 60%; SOQUEM 40%), the 287 hole (60,084 metres) investigated the extensions of the mineral resource, with a focus on lateral and depth delimitation of the known mineral resources. Sayona announced drill results which indicate a significant potential expansion to the Moblan Lithium Project footprint (see: https://www.dhirubhai.net/posts/eric-lemieux-9468715_quebec-jamesbay-lithium-activity-7122372067370377216-BEw8?utm_source=share&utm_medium=member_desktop). The 2023 exploration drilling program has identified a 750m eastern extension to the flat lying South Pegmatite system outside of the April 2023 JORC resource pit shell. Moblan drill results continue to show a significant expansion to the project footprint to a well localized project by le Route du Nord at a reasonable distance to Chibougamau and the Abitibi.
?
?
Update: November 1, 2023
Sayona has won the "Entrepreneur of the Year" award at the AEMQ 2023 Xplor Gala in Montreal.
Each year, AEMQ (Québec Mineral Exploration Association) highlights and honors the enthusiasm and entrepreneurship of companies and individuals working in development of Québec’s mining exploration industry, by presenting various awards at its Awards Gala held during the Xplor convention (https://xplor.aemq.org/en/).
The "Entrepreneur of the Year" award recognizes the hard work of a company or teamwork whose company has made significant progress over the past year.
Congrats to the whole Sayona team!
Bravo,
Carl Corriveau Cindy Valence, MBA, PACI Guy Belleau Armand MacKenzie
Update: January 31, 2024
Sayona undertakes operational review of its North American Lithium (NAL) operation - focus on optimising cost structure and enhance financial sustainability.
?
On January 25, 2024 Sayona announced that it is conducting an operational review of its North American Lithium (NAL) operation. This review, in collaboration with its joint venture partner, is seeking to optimise NAL’s cost structure in response to changing global lithium market conditions. The review is focused on opportunities to reduce NAL’s cost base, manage cash flow and preserve the Québec operation’s financial sustainability. Sayona expects to complete the review by the end of the Q1/2024.? As part of the operational review, Guy Belleau, CEO of the Sayona’s Québec subsidiary, Sayona Inc., has departed his role effective January 24, 2024. Mr Belleau joined Sayona in late 2022 and took up the CEO position in January 2023 (https://www.dhirubhai.net/posts/eric-lemieux-9468715_quebec-lithium-abitibi-activity-7008854950617255936-NDgU?utm_source=share&utm_medium=member_desktop). Sayona’s Chief Operating Officer (COO) for Québec, Mr Sylvain Collard, shall assume direct management of Sayona’s Québec operations. ?Mr Collard has worked in the mining industry for 19 years managing copper and gold mines and projects in Québec (Niobec, Westwood) Ontario (C?té Gold Mine) for IAMGOLD Corp. and in the United States (Highland Copper Company Inc.) as well as in Africa (Essakane Mines - Burkina Faso). He joined Sayona in 2022 and has overseen NAL’s restart and ramp-up process and is also responsible for the development of the Sayona’s Moblan Lithium Project.
?
Unfortunately letting staff go: In conjunction with this management change, an additional 14 staff members have been made redundant in the Québec operations and regrettably terminated. Recall Sayona was recipient of the "Entrepreneur of the Year" award of the AEMQ (Québec Mineral Exploration Association) that recognized the teamwork over the past years.
?
?
James Brown, Sayona’s Interim CEO, stated: “This review of our Québec operations is focusing on reducing our cost base, enhancing productivity and improving Sayona’s ability to continue to produce lithium throughout the market cycle. As the only operating hard rock lithium mine in North America, NAL is well positioned to remain a strategic source of lithium for the North American battery and EV market. While current market conditions are challenging, we are confident that the long-term outlook for lithium remains positive as the energy transition gains momentum and the shift to an electrified world continues.???
While regrettable, these personnel changes are well targeted to ensure that Sayona has the right mix of experience and expertise to deliver key outcomes for shareholders. We are confident we now have the right team in place in Québec to maintain and enhance production, while enabling enhanced productivity to ensure our continued growth as a leading force in North America’s electrification”.
?
?
?
Strong operational quarter for Sayona: On January 31, 2024, Sayona reported significant increase in ore mined at the NAL operation combined with higher grades delivered to the plant due to increased blasting efficiencies and improved dilution management. Concentrate production increased by 9% to 34,237 dmt of spodumene concentrate at an average grade of 5.5% Li2O. Record monthly production of 13,954 dmt was achieved in December 2023. Process plant utilization improved with an average mill utilization of 75%, an increase of 3% compared to the prior quarter. Lithium recovery for the quarter was 62%, an increase of 4% compared to the prior quarter. Major capital projects advanced at NAL, including the Crushed Ore Dome, together with substantially completing the Tailings Storage Facility. Up to 2 shipments of concentrate sold by NAL during the quarter. A third shipment departed port in early January 2024.
?
?
?
?
Exploration activity continued during the December quarter: Drilling at NAL and Vallée Lithium completed, providing the potential for further increases to the existing NAL lithium resource base. ?The objectives of the 2023 drilling program at NAL comprised the conversion of Inferred Resources to Measured and Indicated Resources within the current MRE pit shell, and exploration for extensions of the NAL spodumene pegmatite dykes to the NW and SE of the existing pit. A total of 172 diamond drill holes totaling 45,535 m were completed. New high-grade lithium pegmatite mineralised zones were identified in NW extensions to the NAL mine and outside the current pit shell. Lithium mineralisation inside the pit shell continues to show continuity and consistency in grade and thickness, indicating the potential for resource conversion and resource definition. At the Vallée Lithium Project, a drill program aimed the exploration of the SE extension of the Vallée Lithium deposit. A total of 66 diamond drill holes totaling15,604 m was completed. Sayona fulfilled the first-year option at Vallée Lithium resulting in the acquisition of 25% ownership of the Vallée Lithium project.
The objective of the 2023 drilling program at the Moblan Lithium Project was exploration for extensions of the mineral resource, with a focus on lateral and depth delimitation of the known mineral resources. During the quarter, Sayona’s drill results indicated Moblan’s expansion potential as high-grade mineralisation was identified outside of the April 2023 JORC resource pit shell (see: https://www.dhirubhai.net/pulse/sayona-mining-limited-sya-asx-otcsyaxf-drill-results-expand-lemieux/?trackingId=SpqhzsfcT3qMSwm1qbUyVQ%3D%3D). The Moblan Definitive Feasibility Study (DFS) for the development of a lithium mine and concentrator progressed during the quarter and is subject to the finalisation of workstreams by technical consultants and further partner reviews. The DFS is expected to be released by Q2/2024.
?
?
Entry level Geophysicist at Ghana National Petroleum Corporation from February 2021 - August 2022 Safety Officer (Offshore Saltpond) from November 2014 - January 2020
7 个月Kindly employ me if you have a branch in West Africa
Président chez MI3 Communications Financières
1 年Merci éric ! A quand un listing sur le TSX ???
Mining & Exploration Analytics
1 年Ramping up... See end of: https://www.dhirubhai.net/pulse/sayona-mining-limited-sya-asx-doubles-qu%25C3%25A9bec-lithium-base-lemieux/