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S AY O N A
A central role in the development of QuĂŠbec
MINING | SAYONA MINING
MINING
c as a lithium hub for the battery markets
Sayona Mining is a small cap lithium and battery minerals explorer with a 100%-owned subsidiary called Sayona Québec, based out of Montreal in Canada. The ASXlisted company aims to play a leading role in Québec’s emerging lithium industry through its bid for the North American Lithium (NAL) mine, which it aims to restore to profitable operations through the expertise of its world-class bidding team. Combining NAL with its emerging Authier lithium project could provide a substantial boost to the province’s lithium output, with the potential to help deliver a complete value chain through to downstream processing.
MINING | SAYONA MINING
The NAL bid
“Our bid support team has
Sayona intends to boost its
already been there and done
lithium portfolio in Québec
that in terms of producing
through the potential
high quality lithium to a world
acquisition of NAL, a company
market, including companies
with a producing lithium mine
such as Altura Mining,
and concentrator located just
which has a producing mine
25 km (as the crow flies) from
in Western Australia, with
Sayona’s flagship Authier
further operational expertise
project.
provided by Primero.
At this short distance, Sayona
“We also have recruited
would be able to blend its
NAL’s former mine manager,
product from Authier with
together with engineers BBA
the spodumene produced
and Hatch and financial
at NAL’s deposit, should the
expertise from Jett Capital
former be successful in its bid
Advisors and PwC.”
for the latter. There is also the possibility to produce battery
Sayona submitted the bid
grade lithium carbonate at
before the stated deadline
NAL’s existing facilities, with
of 2pm (Montreal time) on
necessary investment.
February 21, after which Lynch said he was confident
Sayona’s managing director,
of achieving a successful
Brett Lynch believes a
turnaround at NAL that
significant turnaround is
supports Québec’s lithium
required at NAL to get the mine
strategy.
running at nameplate capacity that Sayona can deliver this
Authier project upgraded
after the company appointed a
Prior to this, some positive
world class team to support its
news concerning the
NAL bid.
company’s other projects
once again, but he is confident
MINING | SAYONA MINING
has also boosted confidence
With an estimated mining
amongst the Sayona team.
life of some 14 years, Authier could generate up to 176
On November 11, Sayona
valuable new jobs for the
announced a revised definitive
benefit of the local community,
feasibility study (DFS) for the
including First Nations and
Authier project which pointed
other stakeholders.
to its potential as a sustainable and profitable new lithium
Sayona has also been
mine.
progressing a revised environmental impact
In an improvement on the
statement (EIS) alongside
previous DFS completed in
the DFS, considering ways
September 2018, the revised
in which the mine can be
DFS showed an estimated
redesigned to limit its impact
net present value of C$216
on the local environment.
million, up from the $184 million estimated previously.
The additional review of
The study showed a pre-tax
the EIS is a mandatory
internal rate of return of 33.9%
requirement of the rigorous
and estimated capital payback
BAPE (bureau d’audiences
within 2.7 years, based on
publiques en environnement)
annual average spodumene
process stipulated by the
production of 114,116 tonnes
Québec Government, which
(6% Li2O).
obliges new mine developers to conduct wide-reaching
The hard rock Authier project
community engagement
is located around 45 km from
before being granted
the city of Val d’Or in Québec
permission to mine.
- a well-established mining district.
“The project and its impacts are put out openly and transparently in structured,
BRETT LYNCH, MANAGING DIRECTOR
formal public meetings
On January 22, Sayona
New deposit
chaired by the government.
announced the lodgement
Also in Québec, Sayona is
We’ve been working with
of its new EIS with Québec’s
increasingly excited by the
several stakeholder groups,
Ministry of the Environment
potential of a new lithium
including the local First
and the Fight against Climate
deposit at its Viau-Dallaire
Nations group and some of
Change. Following further
prospect, located within its
the environmental groups in
public hearings and review,
Tansim project some 82 km
order to fully understand how
the company ultimately
Southwest of Authier.
the project will affect the local
expects project approval under
area.”
the BAPE in late 2020.
On November 19, Sayona announced an exploration
MINING | SAYONA MINING
comprising an estimated
Québec’s lithium strategy
five million to 25 million
Recognising the role of
tonnes at an estimated grade
lithium as the key ingredient
of 1.2 to 1.3% Li2O. The
in modern technology, from
mineralisation is open in all
portable consumer technology
directions.
to renewable energy storage
target for Viau-Dallaire,
and electric vehicles, the “The exploration target has
Québec Government has
demonstrated the potential
set out a clear strategy to
for Viau‐Dallaire to become
capitalise on its voluminous
another key part of our
spodumene reserves by
strategy to develop a lithium
establishing a world-leading
hub, supporting Québec’s
lithium hub for the growing
ambitions to generate a
battery markets.
complete lithium value chain,” Lynch said.
“I don’t think there is any government in the world
The exploration target has demonstrated the potential for Viau‐ Dallaire to become another key part of our strategy to develop a lithium hub, supporting Québec’s ambitions to generate a complete lithium value chain” – Brett Lynch, managing director Sayona Mining
“Sayona could potentially
that has a clearer vision and
feed spodumene ore from
mandate on developing its
Authier and Viau‐Dallaire
lithium resources to become
into NAL’s concentrator to
a world leader in battery
generate the necessary quality
production than Québec,”
product for lithium‐ion battery
Lynch declares.
manufacturing.” “That beacon on the hill starts More drilling is under
with the Premier of Québec
consideration for the prospect,
and goes down through the
which ultimately could
ministries.”
become another key part of Sayona’s lithium portfolio in
Lynch is referring to a
Québec.
declaration made in August by Québec’s Premier François
“When you look at Québec, there isn’t anywhere more ideally situated to service the future North American demand for battery manufacturing” Legault that lithium is a ‘jewel’ that the province has yet to exploit. The Premier also envisaged a downstream processing industry and the possibility of 100% Québec lithium-ion battery production. It goes without saying that Québec is a resource-rich region with a skilful mining base and all the necessary infrastructure to support new lithium mines, including access to clean and green hydro-electric power. However, the challenge for Québec in the lithium
processing facilities, so that
production. This is a task that
sector will centre on
it can establish itself as a
Québec is perfectly prepared
developing a full value chain,
world-leading jurisdiction
for, according to Lynch.
including downstream
for lithium-ion battery
MINING | SAYONA MINING
“It’s going to be very difficult for anyone else to ship lithium around the world to compete in that North American market,” he claims. For Sayona and Québec, 2020 is suddenly looking like a milestone year as the electric vehicle revolution drives increased demand for lithiumion batteries. “Sayona is in the right place at the right time. We’re very confident of moving forward in 2020 as we help Québec become a leading player in this key industry for the 21st century,” Lynch concludes.
SAYONA M IN I N G AT A G L A N C E
“When you look at Québec,
demand for battery
there isn’t anywhere more
manufacturing. It’s got all the
ideally situated to service
logistical support and is low
the future North American
geopolitical risk.
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aj
Published by Anderson Murray Media Ltd
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