Sayona feasibility for North American Lithium mine confirms $1.5 billion value

Having restarted commercial production at its North American lithium (NAL) mine in Quebec last month, Sayona Mining (ASX:SYA) has released the definitive feasibility study for NAL, including the nearby Authier lithium deposit.

The project is given a 20-year life with an average annual mill feed of 1.4 million tonnes. The plant has a capacity of 4,200 t/d, and the average concentrate production during the first four years will be 226,000 tonnes. The all-in sustaining cost will be C$987 per tonne of concentrate.

The NAL project has an after-tax net present value (8% discount) of C$1.4 billion, and the after-tax internal rate of return is 2,545%. Combined with the Authier project, the NPV would reach C$2 billion ($1.5bn). Total capex of the mine and mill restart are C$375.3 million, and the onsite total operating costs are C$2.3 billion, or $597 per tonne of concentrate. 

Sayona says proven and probable reserves are 21.7 million tonnes grading 1.08% lithium oxide (Li₂O) and containing 235.5 million tonnes Li₂O. Reserves are contained in measured and indicated resources, which total 25 million tonnes at 1.23% Li₂O for the pit constrained portion, plus 22 million inferred tonnes at 1.2% Li₂O.  

A 50,000-metre drilling program is scheduled for this year. The first phase will primarily target the conversion of inferred resources to indicated within the pit shell. The northwest and southeast strike extensions at NAL will also be drilled.

NAL and Authier projects are part of Sayona Quebec, owned 75% by Sayona Mining and 25% by Piedmont Lithium (ASX: PLL; NASDAQ: PLL).