Sayona Mining (ASX:SYA) has announced a positive pre-feasibility study for its Northern American Lithium (NAL) project in Canada.
The emerging lithium producer said the study confirms NAL’s technical and financial viability, which was conducted by its 75-per cent owned Canadian subsidiary Sayona Québec. Piedmont Lithium (ASX:PLL) owns the remaining 25 per cent.
Sayona’s managing director Brett Lynch said the study 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.
The main objective at NAL is for the restart of production, with the benefit of supplementary ore feed from Sayona Québec’s Authier lithium project, located just 30 km from the NAL site.
Initially, NAL will produce a lithium concentrate for general market conversion, however its set to become a primary feed source for Sayona Québec’s integrated downstream refined lithium products.
“We have been modest with our pricing assumptions, but as the sensitivity analysis indicates, there is potential for significant upside in the net present value (NPV) projection given recent trends in spodumene prices.”
“With an estimated NPV of around 1 billion Australian dollars, low capex of about $10 million, our fast speed to production and a lengthy 27-year life of mine, this is a unique opportunity for Sayona, adding to our rapidly growing northern Québec hub as the leading lithium (spodumene) resource base in North America.”
Shares in Sayona Mining (ASX:SYA) are trading 5.4 per cent lower at $0.26.